After reports on Asian countries cracking down on the cryptocurrency craze, the overall market began to crash. Bitcoin prices have fallen 17 percent in the past 24 hours, while the cryptocurrency market fell $150 billion in a 24 hour period, according to CoinMarketCap.com.
Bitcoin prices went from Tuesday’s high of $14,141.60 down to Wednesday’s low of $9,199.59. Bitcoin prices have now hit a new 1.5 month low. Prices have now fallen 52 percent since bitcoin’s all time high $19,343.04 in December.
South Korea reported that cryptocurrency investors must convert their virtual accounts into real-name ones or face fines for refusing, according to South Korean authorities. Authorities are giving investors one month to convert their accounts. The fine is undetermined yet.
China has also moved to crackdown on cryptocurrency but instead looking into banning trading and miners, causing a huge shakeup in the market. Exchanges and ICOs have already been regulated by the Chinese government, but it seems like the government is looking to abolish it as a whole. The government is also looking to block domestic access to homegrown and offshore platforms that allow for centralized trading.
“The pullback seems to be coming from a lack of buyers in Asia," Mati Greenspan, senior market analyst at eToro, told CNBC in an email.
"Japan and South Korea usually dominate this market but over the last few days, the volumes have been dropping steadily. This morning the combined volumes from these two countries dropped below 30 percent." added Greenspan.
The increasing amount of traders exiting their positions due to overall market decline has contributed significantly to the reason why Bitcoin fell under $10,000. After seeing Bitcoin crash over 50 percent in a month, many traders could also be taking profits in now that the coin has fallen back under $10,000.
The regulatory crackdown is stirring fear which leads to an overall panic, but previously, the market has seen events similar to this one. Last year, China moved to ban all ICOs causing the overall market to pull back before it recovered and then climbed to new all time highs.
While this moment could potentially be a short term pull back, investors can still definitely expect to see volatility swings going forward.