Bitcoin fears drag down crypto-linked stocks after South Korea says it may close exchanges

PUBLISHED : Friday, 29 December, 2017, 5:12am
UPDATED : Friday, 29 December, 2017, 5:17am

The rout in bitcoin is also taking down stocks with ties to cryptocurrencies following an announcement by South Korea’s government that it might shut down some exchanges.

Pareteum Corp fell as much as 25 per cent in New York, while Digital Power Corp and LongFin Corp each slipped more than 6 per cent after Seoul said it wanted to clamp down on speculation.

The warning sent bitcoin below US$14,000, leaving it down 26 per cent from last week’s record of nearly US$20,000. Inc, On Track Innovations Ltd, and Riot Blockchain Inc also traded lower on Thursday, in relatively light volume during a holiday-shortened week.

The crypto space has been on a wild ride this month, with the digital token bitcoin soaring to record highs before a dramatic sell-off last week.

The assets rebounded earlier this week, before resuming their slide lower in a test for investor enthusiasm in the asset class.

Bitcoin’s all the rage with millennials but it’s certainly no passing fad

Such volatility is not new for bitcoin or its proxies. The digital coin has seen many peaks and valleys over the course of its history.

This year, it’s climbed 1,400 per cent and once reached more than US$19,500. Related assets have largely moved in tandem with the cryptocurrency.

Shares of Riot Blockchain and Digital Power, while taking a hit on Thursday, are still up 627 per cent and 450 per cent this year, respectively.