How Youbit caused the price of Bitcoin to plunge in the last 24 hours

How Youbit caused the price of Bitcoin to plunge in the last 24 hours

Prices of Bitcoin suffered a hit about 15 per cent in Asian trade in the last 24 hours following scares of the news that a South Korean exchange, Youbit had been hacked.

The unit price of Bitcoin was almost hitting USD19530.0000 at the start of the week but the momentum changed and the hit saw the price dropped.

Reports however emerged that the hit may have been caused news from the South Korean exchange Youbit that it had been hacked, leading the firm to say it will close and start bankruptcy proceedings, according to Bloomberg News.

It was also reported that US authorities had earlier in the week suspended trading in a popular Bitcoin-related stock, citing concerns about market manipulation.

The Crypto Company’s share price had risen 1,700 per cent between the end of September and Monday evening before the Securities Exchange Commission intervened to halt trades until January 4.

“Both the news of South Korea’s exchange having been hacked and position adjustment following recent rallies affected the market today,” Raita Yamaguchi, senior consultant at Nomura Research Institute, told AFP.

However, “the weight of South Korea as a Bitcoin market is not that big,” he added. Bitcoin dropped to $15,815.78 in early Tokyo trade from $18,000 Tuesday evening, according to data compiled by Bloomberg. The crypto currency recovered to around $16,000 in early afternoon trade in Tokyo.

On the oter hand, this may however be a red light for critics of the cryptocurrencny. The prices have been seen to soar with some exchanges buying into the idea of trading in Bitcoin.