Sky-high bitcoin prices are plunging due to the concerns over futures trading and the news of the introduction of the regulations.
According to cryptocurrency exchange giant Bithumb on December 10, the price of one bitcoin stood at 14,829,000 won (US$13,542) as of 2:50 pm on the same day. The figure dived about 40 percent in two days after it soared to 24.8 million won (US$22,648) at 9:28 am on the 8th.
Bitcoin prices surpassed 20 million won (US$18,265) at 0:00 am on the 8th in just 11 days after surpassing 10 million won (US$9,132) at 3:10 pm on November 26. As there are growing concerns that futures trading can adversely affect bitcoin and the authorities are to introduce regulations, the price of bitcoin crashed.
Currently, biotin is about to make a debut on the mainstream financial market. The Chicago Board Options Exchange (CBOE) and the Chicago Mercantile Exchange (CME) in the United States will begin trading bitcoin futures on the 10th (local time) and the 18th, respectively. The CBOE will start trading bitcoin futures at 5:00 pm on the 10th (local time) and at 8:00 am on the 11th (Korea standard time).
When bitcoin futures begin trading, the price of futures will play a role as key predictors and help stabilize the trading but the futures trading can also cause price fluctuations to the contrary, according to experts. Accordingly, the price of bitcoin is on the decrease around the world. The U.S. cryptocurrency exchange Coinbase said bitcoin prices fell a whopping 21 percent from US$17,638 (19.31 million won) at 10:30 am on the 8th to US$13,853 (15.17 million won) at 3:00 pm on the 10th.
The decline in bitcoin price in South Korea is twice as steep as that in the U.S. because the authorities are trying to introduce regulations. As the price of bitcoin continuously showed a suddenly rising tendency, the “Pan-governmental Joint Task Force Team to Deal Cryptocurrency“ led by the Ministry of Justice has decided to hold a meeting next week to discuss the government-level regulations.