Bitcoin Forum

Cryptocurrency market crashes 20 percent as website ditches South Korean exchange data.

BITCOIN and other cryptocurrencies including ethereum, litecoin and ripple plummeted in value on Monday after Coinmarketcap removed prices from South Korean exchanges without warning.

Prices on South Korean exchanges are typically up to 30 per cent higher than in other countries. The widely used research site’s decision to exclude average price data from Bithumb, Coinone and Korbit resulted in a sudden drop in displayed prices.

That caused confusion among investors and partly contributed to a major sell-off, which was also fuelled by news that South Korean and Chinese regulators planned to increase oversight on cryptocurrency trading and mining.

“This morning we excluded some Korean exchanges in price calculations due to the extreme divergence in prices from the rest of the world and limited arbitrage opportunity,” Coinmarketcap wrote on Twitter. “We are working on better tools to provide users with the averages that are most relevant to them.”

The total market capitalisation of more than 1300 cryptocurrencies tracked by Coinmarketcap fell from around $US830 billion ($A1056 billion) to bottom out at $US669 billion ($A851 billion) on Monday, a drop of 20 per cent. By late Monday, the market was sitting at around $US742 billion ($A944 billion).

It was a slightly odd thing to do without any up front announcements of their intentions. However I can see a kind of logic to it as the Korean prices always seemed to be 20 - 25% higher than the rest of the world.

From a low of $ on Monday, Bitcoin bounced back up, and this is now going to happen again. But what is done by south korea might be good.Whatever happens there is nothing that can block the rate of crypto-currency increment, especially bitcoin to flourish.

This is alright, it will bounce back and we'll hit a trillion dollar market cap in a matter of a few months.

Yes, it was weird to do this without announcing it - I think most people understood what had happened within a couple of hours, but yes there are still people who think it was a real price drop, and this has resulted in a sell off. Everything will recover soon enough.

If the price of that exchanger 20% till 25% higher so it is a chance to arbitrage.
Anybody knows why the price of korean exchanger always 25% higher?

With the regulation of national policies, the bubble of crypto money market could burst at any time, and need to be careful.

Don't think it is a crash, just a correction. Some people didn't know the real reason behind the "drop" in prices on Coinmarkecap so I guess they sold off their positions which resulted in a real drop. Coinmarketcap should have really announced their intentions before proceeding with such a change, knowing that hundreds of thousands of people use their site as reference.

I remember what happened to crypto last year where there where issues about China removing crypto currencies or whatever, there's a bloodbath that time but look what happened to digital currencies after it bounced back. If I were to compare the crash that time and what's happening today, the FUD that time is more than you can handle if you were a newbie.

the main thing here is to NOT PANIC like what a lot of people
seem to have done, the prices always float back to a healthier
level.

in fairness it was a strange move without prior warning but I
suppose we will be getting a truer value going forward from
coinmarketcap.

And we are used to this in the crypto world, the way I see it is that it is just what happens and it allows you to invest in the lows.

The market of crypto currency always falls if bitcoin becomes cheaper. And if you notice, bitcoin went down once again. Correction has not ended and while it is last, the capitalization of the crypto currency can go down.

It looks like a great opportunity again to buy those coins.
But I dont see Ethereum really going down. In fact, it goes up some more.

This could just be another bump and soon be resolved. There is no way bitcoin will go down for a long time.

I feel coinmarketcap most likely has profited from this, they have always been manipulating numbers in some ways.
It's about time some officials take a look at them.

It was a minor correction but everything is back to normal now. We saw how news can affect crypto economy in an instant and on a huge scale, thats why there is still a lot of risk involved when trading with crypto coins.

I was at first scared why such a drop in the market is going, but the introduction is correct,now the average price is much more accurate

Yeah that allow you to buy cheap now and to sell that coins with a double price later. It how that market works, lads.  ;)

This is the law of the market - there can not be eternal growth, after rapid growth there is a correction. I are waiting for new heights.

Volatility is the key factor of cryptocurrency. Bitcoin is the most volatile coin among all cryptocurrencies. Sharp rise and sharp fall in price is a normal thing about bitcoin currency. The day China banned bitcoin, its prices fall 20% sharply. But later recovered rapidly. In the middle of December bitcoin prices crossed $19000 mark, but later on due to profit booking prices fall sharply and bitcoin rolled back to $13000.  Since January 2018, bitcoin prices started rising and now they are near $16000. So crashes and recoveries are not new to bitcoin currency.

I don't think this is really a dump, what happend was that coinmarketcap.com decided to remove the outliers prices from the Korean exchanges, if you look at that of Ripple, the prices there was higher than other countries and was removed to give a true picture of things

I think there is a great chance to take Bitcoin and other crypto-currencies - the same Etherium. Of course this shows the degree of non-stability of the crypto-currency market, but nevertheless everyone expected something like this in the new year!

When it comes to cryptocurrency crash, it's kind of normal thing because of "correction". When it crashes a bit, it might rebound later on. That's how cryptocurrency works. Expect that there will be pumps and dumps, and you have to deal with that.

We do understand that there are panic sellers like they aren't matured enough to hold their assets for long. Just like in the last days of December, Bitcoin has tumbled to more than $10k only, but now rebounded to $14k+.

This is not a crash. It would be if we had a real price drop of 50% or more in a day.
It's true that investors are easy manipulated by the news and they react selling. Actually is a price correction and an opportunity to all of us to buy more coins at a cheaper price.
I don't like the fact that the cryptomarket is so vulnerable and a co-ordinated operation of the world bank could send us to history.

"Crashes by a 20 percent" Buddy, it clearly shows that you do not know anything about cryptos, a 20% is nothing compared to a real crash.

A real crash is more than 50% or just 70%, not a little twenty percent, lmao.. hahah, it is funny to read the forum at this hours.

The panic and sell off fuelled by the sudden drop in prices and capitalisation was as a result of the fact that it was not pre-announced before the South Korea's market prices was removed. But I personally don't see any reason for worry. The market behaviour is still on course. It is normal.

This reaction is totally predictable and I'm sure that Bitcoin will stabilize in a day or two. Korea might be banning it, but people will still look for ways to get involved.

Don't be panic. It is common because crypto 's volatility is high. When more people know and use crypto the price will be normal like fiat. There are many new tokens and coins everyday. Those have their own fans. Hoewever the fans are not many so the price is very volatile.

The worst still to come. Nothing seems bright for now and no sign of anything good. If a few other countries crack down the exchanges then that's the death of cryptomarket.

Bitcoin will surely stabilize so also is ethereum. South Korea can not be isolated from the rest of the world in terms of pricing.  If the prices of cryptocurrency are truly high as a result of market forces in their jurisdiction, it is only natural that opportunity for arbitrage should also exist without restrictions!

I love watching the market respond... most people you see posting if forums and groups are clearly calm and experienced with ebbs and flows of it all, but the market looks like its being strung along by 7 year olds on sugar highs. Its probably just my naivety but the whole Korean Market issue seems blown out of proportion. The crypto market is supposed to be global - on a macro scale yet, apparently it can be "crashed" and "manipulated" at will by sensationalist journalism or a price valuation website... pfft, just meant a nice discounted buy price on the top100 coins. At one point I saw only 3 things on the list in the green lol.
Still been an interest day though :) Discounts all round!!

Saw this posted earlier and was rather fitting for perspective;

August 2017 - Entire Crypto Market Cap: $152B
China's GDP: ~ $11 Trillion

Today - Entire Crypto Market Cap: $628B
Korea's GDP: ~ $1.2 Trillion

Korea raiding a couple exchanges means nothing in the scope of things. China was 10X worse and look at the market coming back from that from $152B to $628 today. That's 4X stronger than before.

This is just people panic selling. Now is the time to buy coins that were previously too expensive. Load up when and where you can.

ONLY sell if you see a better opportunity. Otherwise, you're selling at a loss that'll be back in days to weeks.

It was a great idea to remove South Korean prices from the coinmarket cap average.
People used the fact that the prices at coinmarketcap were about 15-20 % higher then the price on the major exchanges, and they just offered to sell bitcoin for cash at CMC prices.
Newcomers that didn't know about the bug, decided to take the offer, and they ended up being scammed and paying about 20% extra, without even knowing.

Removing South Korean prices made the prices to be more accurate and prevents newcomers from getting fooled.

I think it was fine to remove the outliers, just would have been good to announce it.

Either way in the upcoming months we will hit the 1 trillion dollar marketcap.

You speak wisely my friend, only sell if you have a better opportunity, otherwise HODL, we will be back in green soon.

Here I thought it was just one of the usual spikes in BTCBTCBTC's value. Although it was the right thing to do it's really just a wrong for a major reference site to do that without prior notice.


We've heard this story a lot of times before believe me.

This is not the first when everything falls, and then rises! I think that is now over correction and all will go up! you just have to wait a little bit! I noticed the market cryptanalytic up and down, but always up! wait a couple of days of restoration of the market! good luck to everyone!

This panic sells are funny actually, why people don't want to read and research first?

Goes to show that coinmarketcap is a terrible tool to use to calculate the value of your coins.
While it does have useful information, it is a huge noob mistake to base your valuations off of it.
Really, it became the "standard" because it's kind of the only one.
While there are other sites that shows similar information, I've yet to find one as fully fleshed out as coinmarketcap.

So what to do? Use coinmarketcap as a springboard to jump to coins' websites or exchanges.
Only do valuations on your investments based off of what they are going for on the actual exchanges themselves.

As far as the price differences between exchanges, why not take advantage of it?
I'm signed up with 14 different exchanges and constantly move coins around to get the best buy and sell price.
To avoid high fees, I usually move around ltc instead of eth or btc, then convert and trade.

Not really. South korea doesn't have that much of an influence over the market like many people think, other than the cryptocurencies prices being extremely overpriced in exchanges due god know's what (could be volumen/price manipulation or an extremely high demand), I don't see hold a big influence in the crypto market.
The news we saw earlier from south korean tax authorities is just one of the many catalysts that are causing the current downtrend.

Personally, I believe that the market is going down thanks to those with big pockets that are constantly manipulating the crypto market. Some people have realized that they can make bank by manipulating the prices since most people give in to FOMO (because they think X is going to ovetake bitcoin), greed (no one cares about tech, people only want to make money) and panic sell (newcomers don't understand how the crypto market works and they sell at the first sign of a correction).

Also, 20% is hardly a crash, especially when we see the growth in the overall market cap (from $400b to almost $830b) thanks to the new money that has been pouring on altcoins over the past few months.

Because South Korea is so important for cryptographic money markets, South Korea's policies are bound to lead to sharp fluctuations in the price of cryptocurrency markets.

Volatility Games of banks, fonds, speculators and other whales. Nothing else. Here very big players take benefit from the volatility of the crypto currencies. And from the adjustments to BigMother Bigcoin. And whoever runs behind loses.

Meanwhile, this market only lives on good and bad news. It does not focus enough on the content, concepts and solutions of the individual currencies.

Overall, the crypto community has the game still very well under control.