Cryptocurrencies soared in Tuesday’s market across the board, after making sideways movements in the last two sessions, supported by South Korea’s decision to track cryptocurrency trading accounts. The report of adding taxes and tracking trader’s data contrasted with the earlier comments of completely banning the cryptocurrency trade in domestic markets.
Ripple (XRP) generated gains of more than 14% in Tuesday trade, while Bitcoin Cash (BCH) price increased 7% after posting losses at the beginning of the day.
Ripple was the best performer among the top ten cryptocurrencies following the final announcement from South Korea. Ripple was widely traded in South Korean markets. Thus, the announcement of not prohibiting traders from cryptocurrency trading increased investor’s sentiments.
Source Image: CoinMarketCap
Bitcoin price soared above the $11,000 mark in Tuesday’s market, after hitting the level of $10,000 mark in early trading. Bitcoin’s market capitalization hovers above $187 billion in Tuesday’s trades, down significantly from the all-time high of $330 billion.
Ethereum (ETH) price gained more than 4.31% in Tuesday trade. Ethereum price currently stands just above the $1,000 mark. Investors have updated their outlook for Advanced Micro Devices, Inc. (NASDAQ:AMD) and NVIDIA Corporation (NASDAQ:NVIDIA), supported by the dependence on ethereum.
Morgan Stanley said, “contrary to popular belief, bitcoin is irrelevant to graphics vendors because it moved to application-specific integrated circuit chips several years ago. Instead, most graphics-based mining is being driven by bitcoin rival ethereum at this point.”
On the negative side, Dogecoin creator has suggested investors avoid trading bitcoin, ripple, and ethereum. He believes the huge rise in the price of these cryptocurrencies with limited technical development shows the sign of the bubble.
The co-creator of the “joke” cryptocurrency Dogecoin said, “Bitcoin and other cryptocurrencies such as Ripple and ethereum are having “dumb money” thrown at them by investors who are afraid of missing out on the digital currency mania.”
Moreover, several analysts expect a bumpy ride for cryptocurrencies in the following months, amid the looming regulatory concerns. Aside from South Korea, Central Banks all around the world are planning to regulate digital currencies in a bid to collect taxes.
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