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Crypto-Linked Stocks Sink With Bitcoin on South Korean Warning

The rout in bitcoin is also taking down stocks with ties to cryptocurrencies.

Crypto-Linked Stocks Sink With Bitcoin on South Korean Warning
A pedestrian is reflected in a window as a monitor shows the prices of virtual currencies at the Bithumb exchange office in Seoul, South Korea. (Photographer: SeongJoon Cho/Bloomberg)

(Bloomberg) -- The rout in bitcoin is also taking down stocks with ties to cryptocurrencies.

Pareteum Corp. dropped 26 percent as of 1:13 p.m. in New York, while Digital Power Corp. and LongFin Corp. each slipped more than 6 percent after South Korea’s government said it wanted to clamp down on speculation, potentially by shutting down some exchanges. The warning sent bitcoin below $14,000, leaving it down 29 percent from last week’s record.

Overstock.com Inc., On Track Innovations Ltd., and Riot Blockchain Inc. also traded lower Thursday, in relatively light volume during a holiday-shortened week.

Crypto-Linked Stocks Sink With Bitcoin on South Korean Warning

The crypto space has been on a wild ride this month, with the digital token bitcoin soaring to record highs before a dramatic selloff last week. The assets rebounded earlier this week, before resuming their slide lower in a test for investor enthusiasm in the asset class.

Such volatility isn’t new for bitcoin or its proxies. The digital coin has seen many peaks and valleys over the course of its history. This year, it’s climbed 1,300 percent and once reached more than $19,500. Related assets have largely moved in tandem with the cryptocurrency. Shares of Riot Blockchain and Digital Power, while taking a hit today, are still up 611 percent and 475 percent this year, respectively.

For related news and information:
XBT Curncy GP for bitcoin
VCCY for a cryptocurrency monitor

To contact the reporters on this story: Kailey Leinz in New York at kleinz1@bloomberg.net, Julie Verhage in New York at jverhage2@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh, Randall Jensen

©2017 Bloomberg L.P.