Bitcoin plunged to a six-month low on January 16, dropping below the $12,000 mark. Ethereum also declined 16% and below $1,100 after breaking the $1,400 threshold. The dramatic sell off comes after the South Korean government announced a crackdown on cryptocurrency trading. A number of South Korean citizens have responded by petitioning the government to ease up on the policy.
Cryptocurrency markets were shaken several months ago when the Chinese government unveiled a similar policy. However, a bounce back for bitcoin appears more remote. It has lost almost $10,000 in value since its peak in mid-December.
Long Blockchain Corp. (NASDAQ:LBCC), which recently changed its name from Long Island Iced Tea Corp., was down 0.84% towards the end of the noon hour on January 16. The stock more than quadrupled in mid-December after changing its name and shifting its company focus to “blockchain research”. The company recently announced a partnership with a tech firm based in the United Kingdom.
Kodak (NYSE:KODK), which recently launched a cryptocurrency for photographers called KodakCoin, was down 5.49% in early afternoon trading. The announcement seemed to induce a temporary flicker of life in a stock that has still declined 43.2% year over year.
Investors should still be excited about the prospects for blockchain technology down the line. However, the cryptocurrency mania has entered a period of volatility that should be avoided by retail investors.
