Bitcoin, Ethereum Prices Hit After South Korean Exchange Raids
Bitcoin News and Talking Points
- Cryptocurrency markets rattled on South Korean exchange raids.
- South Korea Ministry of Justice continuing work on cryptocurrency trading closure bill.
Bitcoin (BTC), Ethereum (ETH) Rattled on Cryptocurrency Exchange Raids
A wave of selling hit all digital coins overnight on the news that South Korean tax officials and police had raided various cryptocurrency exchanges. While an outright ban on cryptocurrency trading has not been announced, the South Korea Ministry of Justice has confirmed that it is continuing to draft its cryptocurrency trading closure bill in an effort to bring more transparency to cryptocurrency trading in the country.
Earlier today, South Korea Attorney General Park Sang-ki said, “The South Korean Ministry of Justice is considering the closure of cryptocurrency trading to bring cryptocurrency mania and speculation under control for investor protection.”
Today’s raids follow on from the announcement over the weekend that one of the largest market price aggregators, coinmarketcap.com, would no longer use prices from South Korean exchanges in its data due to unreliable pricing. In a tweet the company said that the exclusion of some Korean exchanges in price calculations “was due to divergence in prices from the rest of the world and limited arbitrage opportunities.”
Cryptocurrency prices at Korean exchange Bithumb traded at a massive premium to other exchanges over the weekend, helping to justify the aggregator’s decision.
Bitcoin (BTC) Price Dives Then Recovers But Chart Still Negative
Crypto-market heavyweight Bitcoin (BTC) fell on the news of the raids but recovered slightly as European traders arrived at their desks. BTC continues to trade with a negative bias after falling out of the recent uptrend at the start of the week. A band of support between $11,700 and $13,700 is currently providing some support for the currency, although the recent jump in value in Ethereum (ETH) could see Bitcoin overtaken as the market leader, a situation discussed at yesterday’s Cryptocurrency Webinar.
Bitcoin (BTC) Price Chart Daily Timeframe (October 7, 2017 – January 11, 2018)
DailyFX analyst Paul Robinson’s latest technical set-ups and charts for Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP) also highlight a negative pullback shadow on the coins with consolidation on the cards.
Top 8 Cryptocurrencies by Market Capitalization – January 11, 2018
Cryptocurrency Trader Resources
If you are interested in trading Bitcoin, Bitcoin Cash or Ethereum we can offer you check out our Introduction to Bitcoin Trading Guide.
--- Written by Nick Cawley, Analyst.
To contact Nick, email him at firstname.lastname@example.org
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.