With the cryptocurrency market still in its infancy, investors are still trying to get used to its price volatility.
Following a major rally of a very impressive $20 billion, all major cryptocurrencies, including Bitcoin and Ethereum have dropped by more than 4 percent.
Market experts say the drop came after Binance, which is one of the world’s largest cryptocurrency exchanges, received a stern letter from Japan’s Financial Services Agency demanding that the company register itself in line with Japanese law it wants to operate in the country.
The cryptocurrency market is volatile moving up and down depending on the on the supply and demand from the market, which is still at its early stage and responsive to big-time investors moves to influence it.
The past few weeks has seen Bitcoin, Ethereum and other major cryptocurrencies falling from $9,000 to $8,300, rebounding to $9,100 only to slide down to $8,500 on Sunday.
Experts believe that until big investors come in, the cryptocurrency market is likely to remain volatile.