The price of one bitcoin traded below the $11,500 mark Tuesday morning, which marks a six-week low. The digital currency along with other cryptocurrencies fell lower after South Korea's Finance Minister Kim Dong-yeon said the shutdown of various cryptocurrency exchanges in his country is "one of the options" still available to the government.
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Reports surfaced last week that South Korea is considering a move to severely limit if not ban cryptocurrency trading. The country has since softened its stance, but Tuesday's report that the possibility of a ban sent bitcoin's price plunging lower by more than 12 percent.
Why It's Important
Bitcoin-mania made its way to Wall Street and Tuesday's report is impacting a handful of stocks with exposure to bitcoin and other cryptocurrencies.
Here is a list of some of the more notable names that traded lower:
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- Riot Blockchain Inc (NASDAQ:RIOT) down 12 percent
- Digital Power Corp (NYSE:DPW) down 11 percent
- Marathon Patent Group Inc (NASDAQ:MARA) down 10 percent
- Bitcoin Investment Trust (OTC:GBTC) down 7 percent
- U.S. Global Investors, Inc. (NASDAQ:GROW) down 7 percent
- On Track Innovations Ltd (USA) (NASDAQ:OTIV) down 4 percent
- Overstock.com Inc (NASDAQ:OSTK) down 3 percent
- Longfin Corp (NASDAQ:LFIN) down 2 percent
What's Next?
What comes next is essentially anyone's guess.
"Anybody that understands the technology knows there's going to be a correction - it's going to be a big correction and it's going to be indiscriminate, because there are no established fundamentals for anybody to distinguish between where there is and isn't value," Jamie Burke, chief executive of Outlier Ventures, told Reuters. "There's no way you can rationalise that there's any value in the market at the moment; everything is significantly overpriced."
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