Bitcoin fell on Monday morning after more news broke about the likelihood of new regulations. In just over three hours on Monday morning (New York time), the price fell to $10,500 from $11,700.
And unlike past slumps, traders can’t hide in other coins like ether or litecoin until the dust settles. The top 63 coins by market cap were all down Monday morning, according to coinmarketcap.com.
A South Korean news source reported that several crypto exchanges could be forced to pay tax rates of 24.2% on last year’s earnings. And they’ll have to share users’ transaction data, another report said. Anything that could slow down the free-wheeling Korean crypto market could also slow bitcoin’s price momentum.
Arthur Hayes, the CEO of BitMEX, a Seychelles based crypto-coin trading platform, told us last week that traders pay special attention to Korea, because of the heavy bitcoin trading volume there. “The infighting amongst different branches of the Korean government with respect to how Bitcoin should be regulated, played out in the international media, spooked many traders,” he wrote.
“‘Korean punters drive the market’ is the narrative that speculators globally have latched onto. When that is challenged, they dump their holdings or go short.” Read more from barrons.com…
thumbnail courtesy of barrons.com