Since last Monday, the cryptocurrency market has been quite unstable, to say the least. With all major and smaller currencies enduring corrections in their prices, it has been quite an intensive week for the community.
Since last Monday, the cryptocurrency market has been quite unstable, to say the least. With all major and smaller currencies enduring corrections in their prices, it has been quite an intensive week for the community. On Wednesday, the South Korean government announced its plans to ban cryptocurrency trade and the announcement triggered yet another wave of fear-induced sell-offs.
Being one of the biggest markets for digital currencies in the world, South Korea’s daily trading volume is enormous even for not as popular currencies such as Qtum, EOS, and Zcash. After the Korean Justice Minister admitted the government has concerns over probable tax evasion schemes, almost any currency in top 10 suffered over 10% losses in just around 24 hours.
On the next day, the market recovered partially due to the fact that the South Korean government dismissed the rumours regarding the trading ban. However, the recovery didn’t last for too long. Yesterday, another major correction in prices occurred. Bitcoin, Ripple, Cardano, Stellar, IOTA, and Ethereum suffered 10% fall in value. The total valuation of the crypto market fell from $742 billion to $712 billion or in other words, $30 billion daily loss. Additionally, minor currencies like Bitcoin Gold and TRON plunged even harder.
As you may have already guessed, even the South Korean market experienced some difficulties despite the fact that many currencies are traded at big premiums there. Bitcoin and Ripple fell by 12% each.
The big winners from the cryptocurrency craze are the exchanges. A research recently revealed that Binance has become a billion-dollar startup in the shortest time in history. During its short six-month lifespan, Binance became the exchange with the largest trading volume per day. Its market valuation is approximately $2 billion. End adds that even though Coinbase established itself as the first cryptocurrency hub, Binance outperformed it, because it operates in Asia, and Asia 40%+ of global Bitcoin trading.
Furthermore, the whole market is growing rapidly. Exchanges like Kraken, Bitstamp, Coinbase, and Binance add over 100,000 new users every single day. Of course, the large interest from the public makes life difficult for online platforms who struggle to meet the users’ demands.
Apparently, short-term major corrections prevent the forming of bubbles. They aim to solidify the market and shake off weak players. Once a 20% decline occurs, small investors and weak currencies fall off, while the strongest remain. Having on mind the serious demand for crypto money from all over the world, we should expect a market recovery in the following days.