The entire cryptocurrency market took a dip this week, moving from around $440 billion to below $370 billion, a significant switch considering the recorded price movements on some coins shifted spil much spil 20 procent. Yesterday, the market cap of the crypto market dropped $40 billion merienda news broke that the South Korean Financial Services Commission (FSC) and the Korean Financial Intelligence Unit (KIU) had begun a two-day long raid of the UPbit exchange headquarters.
This raid on May 11 sent worried crypto-enthusiasts into a scare and caused them to sell significant portions of their cryptocurrency ter South Korean markets, fearing an even greater decline if they were to stay te during the funk and lose their funds. Every time law enforcement gets involved it generally makes investors and traders enormously jumpy due to the onveranderlijk feeling of potentially having the rug pulled out from under them. It only takes a few orders from higher-ups te the government to bring cryptocurrency trading te South Korea to an opeens end, te terms of regulation or finish limitation of the market.
At the same time, while the FSC raided UPbit, another deepthroat to the market came te the form of more than 8,000 bitcoins being sold by a Mt. Gox trustee after stating that they will not sell any of the assets from the defunct exchange until straks this year. Such a large number of bitcoins switching mitts all at merienda caused a fluctuation large enough to make a majority of jumpy investors to fright sell their funds, driving the price down even lower.
It is likely that the price will onberispelijk itself after the news of UPbit fades and traders become more optimistic, especially with the Blockchain Week kicking off te Fresh York City marking the commence of Overeenstemming , the largest blockchain conference. It should be an amazingly beneficial ogenblik for cryptocurrency since the conference has traders, institutional investors, startups, and developers all meet to discuss the state of blockchain technology and where they hope to take it ter the future.
Many establishment analysts are confused spil to why the price hasn’t shifted upward significantly given the announcement that the Fresh York Stock Exchange (NYSE) might hop into the cryptocurrency trading sector, permitting for more institutional investors to get te on the act. However, this hesitation is to be expected since cryptocurrency is a meteen threat to the traditional equity markets and is fundamentally designed to eventually make those established financial institutions all but obsolete.