Today, 16 January, the cryptocurrency market is suffering an incredible correction. The top 100 cryptocurrencies are all operating down with more than 10% loses. USDT and CNX are operating down, but with moderate loses (1,03% and 7,37% respectively). Bitcoin, Ethereum, Ripple, Cardano, Litecoin and NEO are all in a free fall. Let’s have a look at what has happened.
Cryptocurrency Market Crash
At the beginning of the day, the total market capitalization of the cryptocurrency market was $680 billion dollars. At the moment it is $557 billion dollars. That means that it has lost more than $100 billion dollars in just a few hours. With this fall, the cryptocurrency market capitalization arrives at values seen during the first weeks of December.
The main reasons about this drop come from Asia, more specifically from China and South Korea. These Asian countries have a big impact in the markets due to several reasons. South Korea is one of the most active countries in the world in the cryptocurrency market. Is the third country by trading volume after Japan and the United States. China is a hub for cryptocurrency miners and different technology enterprises that work with cryptocurrencies and blockchain technology.
The cryptocurrency market has apparently plummeted due to increased fears that South Korea could ban cryptocurrency trading. According to the South Korean news site Yonhap, the Finance Minister Kim Dong-yeon told a local radio station that the government has in mind a set of measures to clamp down on the ‘irrational’ cryptocurrency investment craze.
Think Markets chief strategist Naeem Aslam commented:
“It has mainly been regulatory issues which are haunting the cryptocurrency, with news around South Korea’s further crackdown on trading the driver today”.
The South Korean information merged with the statement from a senior Chinese central banker. According to him, authorities should ban centralized trading of virtual currencies and individuals and businesses that provide related services.
Bloomberg has also reported on Monday, that Chinese authorities are planning to block the domestic access to Chinese and offshore cryptocurrency platforms that allow centralised trading.
Bitcoin, Litecoin, Ripple and Ethereum
At the moment of writing this article, Bitcoin is just under $12,000 dollars losing more than 13% in the last 24 hours. Its market capitalization has been under $200 billion dollars for some minutes and now it has stabilized around this value. The famous cryptocurrency is not the most compromised. Most of the alt-coins have lost much more than Bitcoin. It is important to remember that several alt-coins are paired to Bitcoin. In this case, investors sell their alt-coins for bitcoin.
Ethereum, the second cryptocurrency by market capitalization has lost 20% of its value. Its market capitalization has reached $100 billion dollars and at the moment it has stabilized around this number. Some days ago, Ethereum reached new all time highs when it crossed $1,400 dollars.
Ripple, is losing almost 25% of its price. This cryptocurrency used by several financial institutions around the world, has touched $1.35 dollars. Some weeks ago, this cryptocurrency reached the second position by market capitalization. At the moment it has $53 billion dollars’ market capitalization.
Litecoin, another important player in the market is operating with negatively. Charlie Lee’s creation has lost around 17% in the last 24 hours and it was traded under $200 dollars in GDAX and other exchanges. At the moment its price has stabilized around $200 dollars and has almost lost $2 billion dollars of its market capitalization in the last hours.
Other cryptocurrencies like Cardano, Stellar, IOTA, Dash, Monero and Tron are all down between 15% and 25%. Most of the alt-coins are operating down, giving some breath to Bitcoin to recover part of the market share lost in the during the last weeks.
Image Source: Shutterstock
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