Bitcoin slips closer to $10,000 as the market continues to feel the heat from global regulators, giving rise to the idea that it may struggle to produce a reversal.
According to figures from CoinMarketCap, at the time of publishing, the digital currency is valued at $10,407; however, late morning trading saw that it had dipped to $10,129.
This drop in value is continuing from yesterday’s price correction, which saw bitcoin fall below $11,000 after the weekend’s $13,000 rally. At present, the global bitcoin market value is worth $174.4 billion.
Many believe that the digital currency’s struggles are pinned to increasing global regulatory pressure that is being applied in light of heightened interest with it. Some of the more recent regulatory pressure can be linked to South Korea. In recent days, the country’s government has come out and presented its view on the market.
Just yesterday, it was reported that the South Korean government was planning to tax digital currency exchanges in an attempt to crackdown on the volatile market. Cryptocurrency exchanges that had an annual income of over 20 billion won ($18.7 million) last year would be required to be pay 22 percent corporate and 2.2 percent local income tax.
Additionally, today South Korea’s Financial Services Commission (FSC) revealed that digital currency investors in the country would now need to have real-name bank accounts if they want to continue trading. Any anonymous accounts would be banned by the 30 January. This is a further attempt by the country to improve its know-your-customer (KYC) laws amid fears that the crypto market is a bubble waiting to burst.
Not only that, but banks in India have reportedly started closing accounts links to digital currency exchanges, which is creating further turmoil with the market.
It remains to be seen how much further bitcoin will drop and whether it can produce a reversal with its price. For now, according to Peter Boockvar, chief investment officer at Bleakley Advisory Group, the number one digital currency could lost 90 percent of its value.
Speaking on CNBC’s ‘Futures Now,’ he said:
I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000.