Yahoo Finance Bitcoin and Ethereum Price Forecast – Prices Move Lower for Short Term But Medium Term Looks Bullish
The bitcoin prices have been choppy since last night as reports have come in that say that the South Korean authorities have decided to tax the crypto exchanges. The exchanges would be taxed 24.2% which is inline with the corporate taxing that exists in that country. The prices of bitcoin have dropped since the news came in as the traders expect the exchanges to pass on this burden to their clients which could affect trading and volumes as well, in the short term. This has made the bitcoin prices to slip into the $10000 region and the instrument now trades in the mid 10,000s region which should continue for the short term.
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South Korea Taxes Exchanges
We believe that, though the prices have weakened in the short term, this should be good for the crypto industry in the medium and the long term as this would mean that the fears of the crypto exchanges being shutdown are unfounded. These fears would begin to fade in a slow manner and this would be beneficial as more regulation is there, the more it is likely to attract the bigger traders and investors. This is also likely to provide the template for other countries on how they would need to regulate this industry in the medium term. This confidence and removal of uncertainty should help the prices to move up gradually as the demand picks up once again.
The ETH prices have also slipped below the $1000 region on account of these reports but since the morning, we are seeing the ETH market trading in a buoyant manner and just short of the $1000 region as of this writing. Like the BTC market, we believe that the ETH market would also begin to attract some demand in the medium term which should drive the prices higher.
Forecast
For the rest of the day, expect some consolidation to happen as the market digests the news. The exchanges have also been mandated to not allow virtual accounts and foreign persons to trade and it would take a while for the markets to settle down following this news. Once that happens, the consolidation period is likely to be over and we should see the prices moving up from here.
This article was originally posted on FX Empire
