19 Jan Bitcoin Rebounds Substantially, South Korean Dilemma Weighs
After the dramatic two days selloff, Bitcoin not only pared earlier losses, but the digital currency generated healthy gains in Thursday’s trade. Bitcoin moved back to the $12,000 mark in Thursday’s trade, signifying a growth of more than 20% compared to the previous close. Bitcoin hit as low as $9,199.59 in early trade on Wednesday. The price pared losses in the evening session and bounced back to the level of $11,188.84 at the end of the day.
Cryptocurrencies are highly volatile in nature, evident from the latest sideways movement. Due to the volatile nature, governments all around the world are planning to make strict regulatory requirements for bitcoin and other digital currencies.
After a long controversy, there is depressing news’ coming out of South Korea today. In a national policy committee meeting on Thursday, Choi Jong-ku, who is the head of South Korea’s Financial Services Commission said, “The government is considering both shutting down all local virtual currency exchanges or just the ones who have been violating the law.”
Along with China, South Korea is leading other global players over crypto regulation, as several countries have already shown their strong concerns over the money laundering with the help of cryptocurrencies.
Answering to reporter’s question, Lee Ju-yeol said, “cryptocurrency is not a legal currency and is not being used as such as of now.”
China is also one of the countries that are making strict regulations for the virtual currency trading. The country is now looking to completely ban any type of centralized trading of digital currencies.
South Korea has yet to make clear their stance on cryptocurrency trading. However, Bitcoin and the other digital currencies are moving higher in Thursday trade.
There are some analysts who believe in the strength of cryptocurrencies and they see regulations as a favorable step for digital currencies in the long run.
“These large drops, usually between the 25-40 percent range, generally find a bottom that is a consolidation of a previous-time high. When this bottom is found, the pattern continues with demand causing a new upward bounce,” said Nolan Bauerle, director of research at CoinDesk. Overall, the short-term future of the cryptocurrency is highly correlated to the final decision of South Korea.
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