Bitcoin and Ripple XRP prices had plunged on Monday after website CoinMarketCap removed prices from South Korean exchanges.
Bitcoin prices fell below $14,500 mark today to trade at $14,234, extending its recent selloff, according to recent trading data from Luxembourg-based Bitcoin exchange Bitstamp. Ripple's XRP prices also plunged sharply. Bitcoin and Ripple's XRP prices had plunged on Monday after website CoinMarketCap removed prices from South Korean exchanges from its calculations of digital currency rates without any warning, resulting in a steep drop in all virtual coins they track. In recent trade, Bitcoin was at $14,227 down around 1 per cent, on the Bitstamp exchange. CoinMarketCap shows real-time prices and market capitalisations for more than 1,300 cryptocurrencies and is widely followed by market participants.
5 things to know about Bitcoin, Ripple XRP price movement
The exclusion of data from South Korean exchanges, where virtual currencies trade at a wide premium, sowed confusion and triggered a broad selloff on Monday, according to analysts. Market participants said CoinMarketCap removed data without any explanation from three of the largest South Korean exchanges: Bithumb, Coinone, and Korbit.
Monday's Bitcoin prices were also hit by news that South Korean financial authorities were inspecting six local banks that offer virtual currency accounts to institutions.
In recent trade, Ripple's currency XRP was trading at $1.94, down 12.8 per cent on Bitstamp exchange. Ripple is a US-based provider of blockchain-based banking payments and it created XRP to facilitate cross-border payments and institutional settlement in seconds.
Traders said XRP was the most severely affected on Monday by CoinMarketCap's removal of South Korean prices because it was trading at a 50 per cent premium in that country.
The Indian finance ministry recently cautioned investors about the risks of trading in cryptocurrencies such as bitcoin, saying digital currency investments are like "Ponzi schemes". Cryptocurrencies are not legal tender and have no regulatory permission or protection in the country, the finance ministry said in a statement. "There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes", with investors risking a sudden and prolonged crash, the statement said.