Bitcoin has plummeted sharply in the past 24 hours as crypto market has extended its losses, and is currently trading at $1o,492. Bitcoin was down by 12.55 percent, Ethereum by 13.59 percent and Ripple by 20.19 percent.
It is the most significant sell-off in at least three years which comes after the South Korean Finance Minister revealed their plans of banning the trade of crypto currencies in a radio interview.
Ethereum, which is second largest crypto by market capitalization, dropped by more than 25 percent and Ripple fell by more than 40 percent.
South Korea's decision has sent ripples in the market as South Korea is the third-biggest market in the world, only behind Japan and US. From college students to homemakers, the South Korean citizens are quite fond of investing in bitcoins.
Warren Buffet, who is said to be the world's savviest investor said, 'I can say almost with certainty that crypto currencies will come to a bad end.' The crash in the prices also follows a report in the Journal of Monetary Economics, suggesting that early prices rise for Bitcoin were manipulated by one of two actors, it initially pushed it over $US1,000, back in 2013.
Price swings like these have raised many questions over the credibility of crypto currencies as a medium of exchange. Australia is planning to tread Japan's path for regulating crypto currencies.
Australia is looking to follow Japan in regulating crypto currencies. Its legislation has passed a bill in the Parliament that will force crypto currency exchanges to disclose the details of investors and transactions.
Last year, Chinese regulators decided to clamp down the crypto currency trading and are reportedly planning to tighten its screws further.
Analysts find the pullback of buyers in Asia, particularly of those from the primary markets of Japan and South Korea to be a significant reason behind the crash as they were accountable for approximately 74 percent of global Bitcoin trades. Due to high local demands, the crypto currencies were trading significantly, but now it seems that the investors are backing off as specific clouds of uncertainty, risks and doubts surround the crypto market.