Bitcoin Keeps Its Head Above $14,000 Despite New South Korean Regulations
Sat Dec 30 2017
Nikki Bailey (1013 articles)

Bitcoin Keeps Its Head Above $14,000 Despite New South Korean Regulations

Bitcoin appeared to find a bottom Friday, rebounding above $ 14,000 after moves by South Korea to curb speculation and protect retail customers sent the cryptocurrency sliding yesterday.

Bitcoin climbed as much as 8.3% in Asian trading, before dropping back to trade 1.9% higher at $ 14,211 at 8:21 a.m. in New York, composite Bloomberg pricing showed.

Read: Forget Powerball and Mega Millions. This Bitcoin Lottery Has Better Odds

The digital currency has slumped about 27% from its record $ 19,511 reached on Dec. 18, when CME Group (cme) introduced its futures contract. While bitcoin’s debut on regulated derivatives exchanges in Chicago was thought to have given it a new mainstream channel for investors to tap, so far trading volume has been limited.

“Short-term support is about $ 13,500—we’ve hit that the last couple of trading sessions,” Chris Gersch, director of strategy at alternative investment management firm Bell Curve Capital in Chicago, said on Bloomberg Television. “Ultimately I think it moves lower and tests last week’s lows around $ 12,400 in the futures contract,” he said, referring to the CME version.

Read: As Bitcoin Sinks, So Do Stocks With Ties to Cryptocurrencies

The South Korean government has been among the loudest voices of concern about a possible speculative bubble in the largest cryptocurrency, which is still up about 1,500% for the year. The country is something of a bellwether for global demand, with South Koreans paying premiums about 20% over prevailing international rates as of Friday.

Nikki Bailey

Nikki Bailey

Nikki Bailey reports on US Stocks. She covers also economy and related aspects. She has been tracking US Stock markets for several years now. She is based in New York