The collapse of digital currencies is evidence of the importance of Asian markets

The digital world has seen a sharp drop in digital currency prices, affecting the system as a whole. This began in the early hours of Tuesday, 16 th of this month, and continued for most of the week with few gains in some currencies. The decline caused a decline in the prices of Betquin by about 15% in the initial stages, but then continued to oscillate between recovery and decline. While some alternative digital currencies lost nearly 90% of their original value before prices stabilized.

 

Asian influence on this market

This is not the first time that digital currencies have been affected in this way, especially after Governments have taken some measures against them. This time, the prevailing view was that this market behavior was the result of the latest regulatory pressures imposed by China and South Korea. In the first quarter of last year, a People's Bank of China (PBC) announcement referring to plans to regulate digital currency trading in China led to a similar situation. However, the decline in prices was short-lived, and the Betcuene recovered particularly well, and even recorded record highs in just a few days. The same pattern has been repeated several times in 2017, especially as several countries in Asia have made several announcements about actions and intentions about the digital currency ecosystem. The impact of these Asian countries in the industry is linked to the high level of participation the industry receives in that region.

 

A long-term opportunity for traders

"The fact that Asian countries are early adopters of digital currencies makes the negative news in Asia a major sale under fear in other parts of the world," said Michael Vogel, president of Netcoins. "We have seen this many times, but it is important to remember the paradox," said Vogel. "Betcuene achieved its best price gains a month after China announced its reluctance to accept and embrace the Betcuen."

Vogel also says that the recent decline in price is indicative of the long-term trend. He pointed out that it is just a reminder that digital currencies are volatile, and it is normal for long-term traders to take advantage of such opportunities to buy more currencies at low prices.