Analysts point out that the pullback seems to be coming from a lack of buyers in Asia, particularly the main markets of Japan and South Korea, which a year ago were reportedly accountable for approximately 74per cent of global bitcoin trades.
This cryptocurrency has been on the lips of many due to the firm behind it and the fact that it does not uses a decentralized system like Bitcoin or other cryptocurrencies out there.
There have been nine instances including the current selloff going back to 2011 where bitcoin's price was halved on the Bitstamp exchange. Bitcoin, despite some stabilization in late USA trading, was half its record peak of nearly $20,000 set on the Luxembourg-based Bitstamp exchange a month ago. Coinbase, a leading bitcoin exchange, announced in November that it had an astonishing 13 million investors.
Less than two weeks ago, the cryptocurrency market reached an all-time high above $830 billion, before fears that South Korea, China, and Russian Federation were all mulling crackdowns on mining and exchanges lead to a global sell off.
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Major digital currencies edged higher on Thursday, after a two-day sell-off saw the world's biggest cryptocurrency bitcoin lose more than 50 percent from its December high.
The recent price drop also followed Bitcoin declining in value from around the $20,000 mark at the end of 2017.
Hong Nam-ki, minister of the office for government policy coordination, said that opinions on cryptocurrency trading are sharply divided within the government, but vowed to make a decision on regulations during Thursday's meeting.
The new plan follows China's crackdown on cryptocurrency trading previous year, which saw Beijing shut down bitcoin exchanges and ban all initial coin offerings. Cryptocurrency is a murky market with frequent swings. They also need to ban individuals or institutions that provide market-making activities, guarantees, or settlement services for centralized trading of the currencies, such as online "wallet" service providers.
The fledgling domestic crypto-currency market was in shock yesterday as a wave of panic selling shoved bitcoin closer to the abyss, with a 22 per cent dive in value to a six-week low.