Daily Litecoin News Update
Cryptocurrencies worn out billions from their market cap this week. What we observed on Wednesday was solely a trailer. This horror flick is having fun with to a full residence on Thursday morning. Top cryptocurrencies have merely hit their new all-time lows in 2018. Once as soon as extra, merchants have the Koreans in cost.
The steep drop in prices in a single day resulted from a rumor that South Korea is also banning cryptocurrency shopping for and promoting altogether. Deja vu!
- First, there’s a rumor of an entire ban.
- Then, crypto prices begin to crash.
- Then, the federal authorities backtracks, taking a milder stance.
- Then, crypto prices recuperate.
This is the second time we’re seeing this transfer of events. Just three weeks ago, one factor associated occurred that induced prices to tank and later revert.
Here’s what South Korea’s Ministry of Justice talked about this time that induced the wildfire to unfold.
“The South Korean Ministry of Justice is considering the closure of cryptocurrency shopping for and promoting to ship cryptocurrency mania and speculation under administration for investor security.”
Here’s how the nation’s Ministry of Finance and Strategy later countered it.
“We do not share the similar views as a result of the Ministry of Justice on a attainable cryptocurrency alternate ban.”
(Source: “South Korea’s Finance Ministry Refuses to Support Cryptocurrency Trading Ban,” CCN, January 11, 2018.)
Sweet. That’s comforting.
The remaining time this occurred, the federal authorities offset the ban rumors by solely placing in some guidelines. This was accomplished to ensure the safety of merchants.
Mind you, South Korea is one of the most important markets for cryptocurrencies. Investor exuberance for cryptos runs so extreme there that the Koreans are eager to pay an extra premium to get their fingers on these investments. From grandmas to minors, almost all individuals in South Korea has been investing in cryptos.
For event, as of now, Litecoin is shopping for and promoting for over $300.00 at South Korean exchanges Bithumb and Coinone, whereas its frequent worth on totally different exchanges is barely under $240.00.
So it’s understandable why the federal authorities cracked down on these exchanges. However, the rumor of an entire ban is solely that; a rumor. Its crypto-equivalent is FUD—shorthand for concern, uncertainty, and doubt.
This FUD difficulty has disrupted cryptomarkets far too many events beforehand. Recall how cryptocurrency prices reacted to China’s ban on preliminary coin selections (ICOs) once more in September. We initially observed a big wave of sell-offs. But inside days, prices have been once more on observe and heading straight for the moon.
With this context in ideas, I’m not searching for this FUD. The massive dip in prices may have, the reality is, opened a brief lived buy window for merchants.
To me, this drop in LTC prices is a brief lived hitch that will transfer. Here’s how Litecoin founder Charlie Lee is equally reassuring merchants.
There isn’t any motive for us to indicate bearish in our Litecoin worth forecast attributable to South Korea’s ban rumors. Ban or no ban, cryptocurrencies have a promising future, so we’re wanting ahead as we hold our $400.00 LTC worth objective for 2018.