nother South Korean hack this month and Japan going after exchanges has correlated with a massive decline in the price of BitCoin and other cryptos this month.
There have been worries the South Korean hack will slow their regulatory lightening on cryptos, and that Japan’s previously accommodating attitude may be shifting amid their recent privacy-crypto ban too.
I believe these developments are just noise within themselves, and rather merely potentially signs and triggers for the general lull in public interest in cryptocurrencies at the moment.
Cryptocurrencies, with highly elastic demand-based prices, are down immensely in public interest from earlier this year, despite a big rally in April, and particularly now as the industry turtles-in and continues technological and business development.
Once cryptos achieve stability in regulation, technology, and general use, they will likely then be “re-released” and see a resurgence in market interest, as well as increased asset-based valuations rather than just currency-like market price action.
Bitcoin (BTC-USD) the past week has collapsed to its lowest level as of far in 2018, amid a combination of another South Korea cryptocurrency exchange hack and potentially hostile action by Japanese financial regulators, long the regulatory safe harbor for cryptos.
Upon closer examination however, the recent news is actually noise in terms of any long-term drivers of cryptos yet still had the effect of sending the asset down over 10-15% in just a few days.
What’s Going On In Japan And South Korea For Cryptos?
Japan and South Korea, as where much of world cryptocurrency activity has been taking place, have also been the target of immense hacks in recent months. From the $500 million hack of Japanese exchange Coincheck in January to South Korea having this month faced a $40 million hack of Coinrail and $30 million hack of Bithumb, it seems even now exchange security remains tenuous at best.
Amid this, Bitcoin has sunk to currently a price of $6,199 per coin and a market capitalization of just $104.7 billion, down 5.98% this week on week and 18.57% month on month. At now its lowest level in 2018, BitCoin has not seen this price level since a brief correction back in November 2017.
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