The cryptocurrency suffer major setback correction as bitcoin, ethereum and ripple fall for the second time this week, as the price of both major and small altcoins fell by large margins.
Almost immediately after South Korea’s Justice Minister Park Sang-ki falsely claimed that the government is showing a law to effectively ban cryptocurrency trading, the price of nearly every cryptocurrency in the global market fell in value.
Altcoins with their daily trading volumes heavily concentrated in the South Korean market such as Qtum, EOS, and Zcash fell by larger margins.
Subsequent to the initial crypto trading ban, the price of most major crypto such as bitcoin, Ethereum, Tron, Ripple, dash, litecoin, recording over 10 percent in daily losses.
Although the market seemed to recover shortly after the cryptocurrency trading ban rumors were refuted by the South Korean government and the Blue House, the executive office of President Moon Jae-in, the market suffered another major correction today, on January 15.
Within the past 24 hours, the valuation of the crypto market fell from $742 billion to $683 billion, by nearly $60 billion.Bitcoin, Ethereum, Ripple, IOTA, Cardano and stellar recorded almost 10 percent in daily decline, while smaller crypto such as (BTG) Bitcoin Gold and(TRX) Tron demonstrated larger losses in value.
a cryptocurrency research, revealed that Binance has become a billion dollar startup in the shortest time in history. Within six months, it has become the largest cryptocurrency exchange in the global market, with a market valuation of nearly $2 billion.
Exchanges like Kraken, Bitstamp, Coinbase, and Binance are said to be adding over 100,000 users on a daily basis, and consequently are struggling to meet the demand from their users.
Evidently, given the exponential increase in the growth rate of cryptocurrency exchanges, there exists a significant demand for cryptocurrencies. But, it is also important to consider the rate of the growth of the market.
Short-term major corrections prevent bubbles from forming, by shaking off weak hands and solidifying the market. After a 20 percent decline in the valuation of the cryptocurrency market, a large number of weak hands or speculators tend to exist, while strong hands remain in the market.
Given sufficient demand for cryptocurrencies from the global market, it is likely that the market will recover in the upcoming days, as it recovers from the South Korea trading ban controversy.