For three years, cryptocurrencies experienced a significant downturn in the month of January. 2018 is no different:
This year, the deflationary cycle is exacerbated by the influx of altcoins and fresh crypto investors – not to mention unsubstantiated regulatory threats by South Korea and alleged but unconfirmed reports of China shutting down exchanges.
Thought regulation will certainly represent deflationary pressures, it may not be determinative. An outright ban on crypto-trading in China and South Korea will be very difficult to enforce due to the existence of off-shore exchanges and VPN access.