After experiencing a significant growth last year, cryptocurrencies are experiencing a lot of volatility since the start of this year, as prices are swinging both ways depending on the market reports. The majority of cryptocurrencies, including bitcoin and ethereum, lost their market capitalization and their prices dropped in Thursday’s trade, while ripple and bitcoin cash is gaining momentum amid improving fundamentals.
Bitcoin and Ethereum are the biggest laggards of the recent market activities. Both cryptocurrencies lost the major portion of their value, driven by shocking reports from China and South Korea.
China has recently announced higher regulatory restrictions on crypto mining and they are likely to put more taxes on these miners. On the other hand, South Korea, which is the third largest market for cryptocurrencies, has also been planning to ban cryptocurrencies trading in domestic exchange. South Korean authorities have raided several cryptocurrency exchanges. There are more than a dozen cryptocurrency exchanges in South Korea.
Bitcoin wiped out more than $2000 in value after the initial announcement, but prices started pairing earlier losses, thanks to the intervention from the South Korean president. Ethereum declined more than 7% in the Thursday’s trade.
Although Ripple’s XRP has also lost more than 10% of the value after the news, the price of ripple has bounced back sharply, supported by reports that it had partnered with MoneyGram. Ripple is currently trading 13% higher than the earlier session.
In a statement, Ripple CEO Brad Garlinghouse described the MoneyGram tie-up as a strategic one, and said it would demonstrate XRP’s ability to lower costs for money transfers between friends and families.
Ripple has experienced significant volatility in the last three days, due to intense scrutiny. After reaching the highest level of $3.50 and hitting the market cap of over $120 billion, ripple is currently trading around $2.18 with a market capitalization of just over $84 billion. The latest partnership of Ripple with MoneyGram could have a massive impact on Ripple’s price and trader’s sentiments; as this digital currency has experienced questions over its practical uses.
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