Crypto-economy shows a significant drop in prices. This phenomenon can be observed for most of the week with several UPS, which were immediately turned into fall. Bitcoin has fallen in price by about 15% in the early stages, made a rebound and fell even more, while some altcoins have lost about 90% of the original cost in price. At the moment the situation has stabilized, but the decline continues.
This is not the first case when cryptocurrencies react that way, especially after the adoption of measures by the governments. This time it is the result of regulation by China and South Korea.
In the first quarter of 2017, after the statement of the people's Bank of China (PBoC), which stated about the plans to regulate cryptocurrency transactions in China, there was a similar situation. But, the fall in prices was short-lived, Bitcoin has recovered completely and even set new record prices in just a few days. This pattern was repeated several times during 2017.
The influence of the Asian countries is associated with a high level of participation, which the industry receives from this region.
The collapse of the cryptocurrency market after the announcement of South Korea.
Netcoins CEO Michael Vogel says it is a fact that these Asian countries were among the first who adopted the cryptocurrency, and often this leads to the fact that the negative news from Asia cause panic in other parts of the world.
Vogel notes that this is just a reminder that cryptocurrency is unstable, and this is typical of long-term traders to come in and take advantage of the opportunity to place the orders.
President Blockchain TV Jason Cassidy explains that the growth of capitalization, it is natural to see a rebound. He notes that regardless of what will lead the market down, the market behaviour is normal, necessary "breathing space" between adding hundreds of billions of dollars to market capitalization.
Events have shown how significant is the Asian community for the industry of the blockchain. Paving the way at the beginning of the introduction of technology, as well as considering the environmental factors, as well as the population, which, in turn, affects the size of the market, this has put the region on a leading position in the industry. How long this will continue remains to be seen but the strength of Asia in the current crypto industry must be taken into account.