Cryptocurrencies bounce back after sudden price drop

A massive drop in value affected most of the top cryptocurrencies on Wednesday and Thursday.

The drop was attributed to a substantial sell-off as prices risen following a low period.

Bitcoin was close to $12,000 on Tuesday as prices recovered across the board.

But the gains were quickly shed as the price dipped below $10,000 shortly after.

The drop for Bitcoin was echoed in most other cryptocurrencies.

Prices rebound

Prices started to make up for lost ground today, though.

According to the Coin Thud cryptocurrencies price index, all but two of the top 50 cryptos have risen in value today.

All of the top 10 cryptocurrencies have enjoyed gains of between 2-10% today over yesterday.

bitcoin price recovers drop
All of the top 10 cryptocurrencies showed price increases today over yesterday.

So, what happened?

South Korea’s Yonhap news agency reported earlier this week that an association of South Korean cryptocurrency exchanges plans to vet its members.

The evaluation will see if they follow a set of new self-regulatory measures outlined by the government.

The Korean Blockchain Industry Association announced it would evaluate 21 of its 33 members.

The process includes some of the most significant Crypto Exchanges in South Korea.

Elsewhere, French market regulator, Autorité des marchés financiers (AMF), released a statement calling for cryptocurrency derivatives to be regulated.

The AMF also suggested a ban on advertised crypto-related services online.

This negative press may have caused a sell-off which affected values.

Another possibility is that some investors bought crypto during the February 6th low, and sold when prices reached highs of Tuesday.

World governments embracing cryptocurrencies

Otherwise, news regarding cryptocurrencies has been mainly positive recently.

This week, Venezuela also just launched its new oil-backed “el Petro” cryptocurrency.

After making headlines worldwide, Venezuelan President Maduro announced his country would create a second coin, backed up by precious metals.

According to Telesur, the new crypto coin will be called Petro Gold.

Following the success of “el Petro,” Iran and Turkey have also expressed interest in creating national cryptocurrencies of their own.

This curiosity is a remarkable U-turn for both nations as they previously opposed Bitcoin and other digital coins, according to NewsBTC.

Venezuela’s Foreign Finance Minister also met with Russian government officials this week.

The two nations met to discuss cryptocurrency, although Russia has yet to reveal its role, or interest, in Venezuela’s crypto.

Meanwhile, California may soon become the most significant US state to embrace the blockchain.

A new bill, 2658, was introduced by 27-year-old Assemblymember Ian Calderon.

If the bill passes, the state will recognize digital signatures and contracts recorded on the blockchain.

California would be one of only a few states so far to recognize such technology.

Due to its size and economic importance, it would establish a significant precedent, which other states would inevitably follow.