The price of Bitcoin has slid to its lowest level of the year. Investors went on a selling spree as there were growing instabilities in Bitcoin Cash, one of the major cryptocurrencies, and the U.S. financial regulator cracked down on companies that sold digital tokens in an initial coin offering (ICO). The total number of Bitcoin transacted in South Korea also plunged to 12,262 as of Nov. 19 from 97,340 in January this year, which was an all time high.
According to Upbit, one of the biggest cryptocurrency exchanges in South Korea, the price of Bitcoin stood at 5.64 million won (US$4,998) as of 1:00 p.m. on Nov. 20, down a whopping 12 percent from a day earlier. The figure hit the lowest level of the year. Bitcoin has continued to show a decrease in price since its price plummetted to below 7 million won (US$6,203) on Nov. 15 for the first time in 13 months.
The current price is cut by one-fifth compared to earlier this year when it reached an all time high. The price of Bitcoin surged to some 27 million won (US$23,926) early January amid an investment craze. South Korean Prime Minister Lee Nak-yeon even referred to it as “social pathology.” However, the price of Bitcoin took a nosedive in February after the bubble burst and moved between 7 million and 9 million won (US$6,203 to US$7,975) after March. Yet the box pattern collapsed.
“Bitcoin Cash risk” dragged down the price of Bitcoin to the level in October last year. The management of Bitcoin Cash is divided by internal conflicts over the direction of hard fork and it raises the instability of the digital coin.
With growing concerns among investors, the volume of Bitcoin transactions also showed a sharp drop. According to digital currency market tracker Coinass, the daily volume of transactions at the nation’s four largest exchanges, including Bithumb, Upbit, Coinone and Korbit, rose from 14,121 at the end of July to 32,302 at the end of September. However, the figure fell to 12,262 on November 19. Investors, who expected the increase in cryptocurrency prices, such as Bitcoin, are stamping their foot in anxiety.