Bitcoin fell 11 percent in the last 24 hours on popular trading site Coinbase, falling to record new low levels of $10,234. The fall in Bitcoin comes after South Korean government announced that it would collect 24.2% corporate and low income tax from the digital currency exchanges in 2018.
It wasn’t just Bitcoin that faced a decline as other currencies also dropped sharply on Monday morning. Statistics reveal that Bitcoin briefly dropped to $10,234 around 11 a.m., making a loss of almost 11% in the last 24 hours. At 11.56 a.m., Bitcoin traded at $10,487.
On the other hand, other currencies to face a dip was also Ethereum, which traded 6.5% lower to $980. Ethereum and Bitcoin both slumped and Ripple was another currency to join their league as it traded at $1.22, dropping by about 12%.
The reason for the price decline comes after South Korea’s government announced that it would tax Bitcoin payments in taxes in the current year. It said that it would collect up to 24.2% corporate and local income taxes in the digital currency exchange in 2018. However, Bitcoin trading in the region of South Korea was just 4 percent trading volume. The Japanese Yen had a higher share, accounting for 37% and U.S dollar having a volume of 33%.
As the currencies dropped in value, Kim Dong-yeon, the Finance Minister of South Korea, said that the complete shutdown of virtual currency exchanges is also an option. Moreover, following its announcement in late December as the government said that it is going to ban new trading accounts, the government has made another announcement that shows its limitations against crypto currency. However, following his announcement, the prices did stabilize but today, they again felt to new lows.
However, Tom Lee of Fundstrat increased his target on Bitcoin on Thursday, saying that it will increase to $25,000 by the end of 2018. Moreover, he also said that $9000 is low for a cryptocurrency like Bitcoin but it will make it easier for people to buy it. After the Bitcoin bloodbath recently, this is another news that has sent the prices of digital currency dropping.