Cryptocurrency market crashes 20 percent

[croptodic]

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).

[Kryten12]

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.

[Ereun]

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.

[Filmmmakerr]

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

[Cnut237]

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.

[Icaxx]

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.

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?

[Azzhan]

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

[shaun98]

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.

[RodneyKings]

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.

[aoluain]

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.

[bithuner]

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.

[Marvell1]

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.

[Dart18]

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.

[sensimilia]

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.

[wissy]

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.

[Beazerdred]

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

[Vik_the_Carpentner]

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.

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

[Malbaunti]

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.

[taiwww]

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.

[jacaf01]

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