Bitcoin crashes below $10,000 as fears mount of a regulatory crackdown in Asia
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Bitcoin has crashed back below $10,000 as fears mount that authorities in Russia, China and South Korea are preparing to crackdown on cryptocurrencies. Panic selling took hold of the cryptocurrency market and approximately $200bn has reportedly been wiped out by the latest two-day plunge, which has slashed Bitcoin’s value by 34pc. The government in South Korea, a major market for Bitcoin, has suggested that it will ban trading and Chinese state media has reported that its authorities are planning to crackdown on cryptocurrency trading.
ETX Capital analyst Neil Wilson described its dip below $10,000 as an mportant technical and psychological breach, adding that it feels like a “tipping point” for Bitcoin. He said:
“This bout of selling appears to have been sparked by a tightening of the regulatory noose on the wider cryptocurrency market.
“In addition to signals that South Korea and China may ban trading on crypto-currencies, we have heard comments from Russian leader Putin that the country will seek to regulate the market more tightly.”