Bit­coin prices crash below W11 mil. mark

The Korea Times - - FINANCE - By Jhoo Dong-chan [email protected]­re­atimes.co.kr

Bit­coin’s price crashed more than 10 per­cent over a day, Wed­nes­day, fall­ing below 11 mil­lion won ($9,000) as the value of other ma­jor vir­tual currencies also fell over 15 per­cent.

Mar­ket an­a­lysts said be­he­moth in­vestors’ exit from the cryp­tocur­rency mar­ket caused the plunge in the value of vir­tual coins. Due to their exit, re­tail in­vestors also went into panic sell­ing mode based on in­flated fears.

Ac­cord­ing to the na­tion’s largest crypto ex­change, bit­coin’s price stood at 10.2 mil­lion won as of 2 p.m. Wed­nes­day, down 1.3 mil­lion won, or 11.29 per­cent, from a day ago.

Coin­mar­ket­cap.com, the world’s most widely used vir­tual coin tracker, said the value of bit­coin nose­dived 12.62 per­cent to $8,528.58 in the same pe­riod. The value of ethereum also dropped 16.15 per­cent over a day to $169.23, Wed­nes­day.

Bit­coin had surged to over the 16 mil­lion won mark last month fol­low­ing a mas­sive in­flux of Chi­nese in­vestors in­flu­enced by the trade row be­tween the U.S. and China.

Face­book’s plan to in­tro­duce its own cryp­tocur­rency was an­other fac­tor be­hind bit­coin’s up­trend in Au­gust.

How­ever, the value started show­ing signs of de­cline after bit­coin and other vir­tual coins were ruled as nei­ther le­gal ten­der nor fi­nan­cial as­sets by the In­ter­na­tional Fi­nan­cial Re­port­ing In­ter­pre­ta­tions Com­mit­tee (IFRIC).

The IFRIC is a not-for-profit in­ter­na­tional in­ter­pre­ta­tive body of ac­count­ing prac­tices as­so­ci­ated with In­ter­na­tional Fi­nan­cial Re­port­ing Stan­dards (IFRS) Foun­da­tion un­der the In­ter­na­tional Ac­count­ing Stan­dards Board (IASB).

“The IFRIC’s de­ci­sion could have seeded the crash Wed­nes­day,” said a do­mes­tic blockchain de­vel­oper who asked not to be named.

“It seemed ma­jor in­vestors dumped their vir­tual coins after the IFRIC’s an­nounce­ment. Re­tail in­vestors then went on a wave of panic sell­ing to min­i­mize their losses. I be­lieve, how­ever, the sit­u­a­tion could set­tle in the near fu­ture. Once Face­book comes up with a more elab­o­rated timetable with its plan to in­tro­duce the new Libra cryp­tocur­rency, vir­tual coin val­ues will surge once again.”

Dur­ing the Na­tional Assem­bly hear­ing last month, Fi­nan­cial Ser­vices Com­mis­sion Chair­man Eun Sung-soo dis­played his reser­va­tion on vir­tual coins’ en­try to the na­tion’s fi­nan­cial sys­tem.

“In a bid to pro­tect in­vestors and fi­nan­cial ser­vice cus­tomers, fi­nan­cial author­i­ties should come up with a new set of reg­u­la­tions to mon­i­tor vir­tual coins’ flow,” he said.

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