THE bitcoin price has plunged amid a massive sell-off prompted by mounting fears of a trading ban in South Korea. But why is bitcoin falling so much today?
Cryptocurrencies were off to a pretty volatile start this year, but reports of South Korean regulators cracking down on exchanges shook the entire digital currency market.
Earlier on Tuesday, Finance Minister Kim Dong-yeon reiterated that a ban on crypto trading is still very much a “live option”.
Cryptocurrency trading in South Korea is highly speculative, more so than the rest of the world, at times trading with 30 to 40 percent premiums.
Crypto tokens were plunged into another crash last week when crypto tracker CoinMarketCap decided to pull Korean exchanges from its valuations. The move saw Ripple’s XRP token fall up to 30 percent.