As I wrote on Monday, bitcoin had been showing strong price support at the $13,000 level.
Well that support cratered early Tuesday morning in NYC trading as the price fell more than 20% to $10,600 by late afternoon.
The price was crushed after South Korea’s finance minister came out over night to reiterate that the country was still looking to ban trading in cryptocurrencies. The announcement spoke about looking into regulation, but had no hard measures proposed.
In the crypto world this is called FUD, meaning fear, uncertainty and doubt that affects price without action.
While Asian markets — including South Korea and China — are in the top three global markets trading in cryptos, parts of these governments continue to point out that regulation is coming.
Given these official moves, which crush the bitcoin price, gives them the ammunition to say cryptos are in a bubble due to price volatility.
Look at the US dollar, when China says it is looking to pare its holdings in the greenback, the value of the dollar falls. Is the dollar value in a bubble?
While cryptos trade in a free market globally, it now has stronger ties to finance and banking schemes, which badly restricts its renegade roots.
As sun comes up in NYC, the price has rebounded tp $11.800 as the market begins to access the talk out of South Korea. As I have written late last year, if the North Koreans increased hostilities against the south then bitcoin could soar $15,000 as people moved to get currency out of the country.