Charles Hayter, CEO of CryptoCompare, believes that the uncertain future of cryptocurrency regulations in Asia is the main driver of the decline
All major cryptocurrencies are experiencing a severe price decrease, with the market size decreasing from around $ 830 billion a week ago to $ 570 billion, according to CoinMarketCap.
Currently, Bitcoin has a price of $ 12,062, a decrease of 12.7% in the last 24 hours. Ethereum has fallen 18.8% to $ 1,082, and Wavy dropped to $ 1.35 per currency, a decline of 26.8%, Mashable reported.
The decrease is probably the result of several factors. Last week, South Korean Justice Minister Park Sang-ki reported that the country is preparing a ban on the cryptocurrency trade. Although other branches of government later stated that the ban is not finalized, the country's position towards the cryptocurrency market seems to be increasingly difficult.
Charles Hayter, CEO of CryptoCompare, believes that the uncertain future of cryptocurrency regulations in Asia is the main driver of the decline.
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"Korea and Asia in general have been strong support for cryptocurrency markets that add users and demand with prices that are often quoted at a higher price," but now "uncertainty is scaring markets to a certain extent" , he said.
Hayter describes the current market sentiment as "profit taking in the increase of risk scenarios in the future".
It is also possible that problems arise in cryptocurrencies in the US Fortune reported on Sunday that the Metropolitan Bank suspended all international electronic transfers related to cryptocurrencies, probably in response to an international fraud incident related to one of the bank's clients.
The cryptocurrency market is very different from what it was a year ago; to start with, it's almost 4,000% bigger, and with the recent launch of Bitcoin futures and a lot of future blockchain-based projects, the stakes are much higher.