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Bitcoin and Ethereum Price Forecast – Hit By South Korean Ban

Colin First
Updated

The bitcoin market today woke up to the news that the South Korean regulators have banned the issuing of ICOs. This brought back the spectre of a similar ban from the Chinese just a few weeks back but unlike the Chinese news, the impact on the bitcoin prices through this news has only been limited so far. South Korea had emerged as one of the biggest markets for cryptocurrencies in recent times and the bitcoin exchanges in that country had been pretty active of late, maybe due to the Chinese moving to these exchanges once the Chinese exchanges were shut down.

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Bitcoin Prices Fall Towards $4000

Also, unlike the Chinese ban, this ban in South Korea is only for new ICOs and does not specify anything about the funds that were collected through the older ICOs. This should prove to be a bit of a relief for many but it shows the continued crackdown from several governments on the bitcoin industry which is likely to keep the bitcoin prices under pressure. So far, the prices have managed to stay above the $4000 region but it remains to be seen whether there will be a strong test of this region once the rest of the world wakes up to the news.

Bitcoin 4H
Bitcoin 4H

The Ethereum market has also been hit hard by the news and the magnitude of the fall so far has been larger in the Bitcoin market than in the ETH market. This is understandable as most of the ICOs have Ethereum as the underlying and a ban on these is likely to affect the demand for ETH. The prices have since dropped below $300 and are likely to stay weak for the short term as the market digests the news.

Forecast

As for the rest of the day, as we have mentioned above, we have to wait and see how the rest of the markets wake up to the South Korean news but we believe that they are unlikely to take it kindly and this is going to keep both the ETH and the bitcoin markets under a lot of pressure during trading today.

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This article was originally posted on FX Empire

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