The cryptocurrency market is having a turbulent over the past week as the price of Bitcoin and other cryptocurrencies have been exhibiting huge volatility. Last week, Bitcoin prices tanked to nearly a low of $8500 levels showing a 20% correction from its weekly high of above $11,000 levels. Following Bitcoin, other digital tokens on the indices showed a significant downward movement as the overall market valuations hit a month low of $350 billion before finally recovering back.
Why crypto is going down
One of the major reasons that markets are not showing strength in the recent past is the increased scrutiny of regulatory bodies from around the globe. After the hack of Coincheck exchange earlier this year in January 2018, The Financial Service Agency (FSA), Japan’s financial watchdog has been seen taking stringent measures on the country’s other local exchanges making sure that they are following all the regulatory protocols thereby maintaining high-end security for the investor’s funds.
Last week, the U.S Securities and Exchange Commission ordered all the online trading platforms involved in any sort of activity of digital assets to get registered with the agency. It said: “If a platform offers trading of digital assets that are securities and operates as an ‘exchange,’ as defined by the federal securities laws, then the platform must register with the SEC as a national securities exchange or be exempt from registration.”
Positive market recovery
Today, on March 12, the market has shown a good recovery with Bitcoin showing a surge of over 8% from yesterday’s value where it was trading around $8700 levels. Currently, at the press time, Bitcoin is trading at $9602.83 showing an 8.6% jump in its price. The overall market cap has also surged over $387 billion. The Bitcoin market at this point is $162 billion contributing nearly 42% of the overall market cap, according to the data on CoinMarketCap.
However, the daily trading volumes in Bitcoin has remained relatively very low at around $5 billion regions. Moreover, the higher volatility in the market can be assured due to very high trading volumes of the Tether tokens which is used by several exchanges and is pegged to the U.S Dollar in 1:1 ratio.
However, while talking about what seems to in store for Bitcoin ahead in the future, a popular cryptocurrency investor and analyst Crypto Rand said that the “Misery Index” is showing signs of buying opportunity for Bitcoin investors. Crypto Rand said that looking into the trends of the last six years, whenever there has been a dramatic surge is Bitcoin’s selling volumes, the recovery of the cryptocurrency has been pretty sharp after major corrections.
Another cryptocurrency which has shown a good recovery recently is the first Bitcoin derivate ‘Bitcoin Cash’. At the press time, the altcoin is trading at a price of $1110.63 a 10.51% increase over yesterday’s price. The price of Bitcoin Cash is said to have gained traction amidst reports that it soon to be added to the Gemini exchange.
The Winklevoss twins, the owners of Gemini, said that they are soon going to add Bitcoin Cash and Litecoin to its exchange allowing their customers to trade in two new digital assets. The Winklevoss brothers are early investors of Bitcoin and also registered making a billion-dollar fortune from their Bitcoin investments, last year in 2017.
They said that they still remain a lot bullish on the Bitcoin growth story of the future. They said that in fact the institutional base and customer quality has gotten better in comparison to last year. Tyler Winklevoss in a statement said that “In 2018, you’re really going to see institutions and Wall Street really get in, and it’s going to look very different.”
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