The Long On-Going Crypto Slump Sees a 10% Rise in Bitcoin, Recuperates the Week’s Gains
After months of crypto turbulence, the world’s largest cryptocurrency- Bitcoin is rising again. As per the reports from CoinDesk, Bitcoin touched a value of 3,929.10 dollars on Wednesday morning. The 10 percent hike has summed Bitcoin’s three-day gains to supersede 22 percent.
The gains were seen on the other digital currencies too. According to the reports from CoinDesk, the world’s second largest cryptocurrency- Ripple (XRP) saw a hike of 16 percent. Ether, on the other hand, touched 13 percent this week.
Despite the slight positive news on the crypto market, the digital coins are still lagging way behind their all-time highs. Bitcoin, for example, is reported to be more than 80 percent lower than its all-time high rates of last year. If compared to its own fluctuating values within this year, Bitcoin has seen a 72 percent dip. All this naturally has affected the interest of buyers and investors. In 2017, with the crypto boom, the digital currency was rolling without any major push. Many investors made money through initial coin offerings. This year though, Bitcoin along with other cryptocurrencies, require a lot of persuasions. The Bitcoin has attracted a lot of speculations, pessimism, hopes, and efforts.
Crypto regulations have been made stern this year. SEC, on Nov. 16th, announced its “first civil penalties” against any crypto founder who does not comply with the registration of the new coin offerings, as per CNBC reports. This is to take control over crypto abuses, frauds, money launderings, and embezzlement in the digital currency landscape. SEC’s co-director, Stephanie Avakian, said-
“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities” […] These cases tell those who are considering taking similar actions that we continue to be lookout for violations of the federal securities laws with respect to digital assets.”
As per the reports from CNBC, early this April, two founders of ‘Centra’ (a cryptocurrency exchange) were charged with an allegation of fraud on initial coin offering (ICO) by SEC.
The CEO of CoinFi, Mr. Timothy Tam said it was a ‘necessary shakeout for the market’ when he talked about how the last few months have seen many ICOs been enforced to shut down. He said-
“The garbage, or at least a good portion of it, is starting to get collected. Ultimately this strengthens the market.”
Tam’s response to the 10 percent rise in Bitcoin’s value was along the lines of suggesting not to make hopes too high. It is just a gentle rise and is certainly not a “time to breathe a sigh of relief.” As per the reports from CNBC, Tam said that the majority is not trading in reality. He further added that he can see ‘some institutional level money flow’ in the crypto market in the past 48 hours. According to Tam, some investors are waiting for the market to find the bottom. According to him, the current time is insanely favorable to invest in the crypto. With the sifting of the crypto market by the turbulent time of the cryptocurrency and the new strict regulations getting implied, the crypto market is gaining much-awaited stability.
According to the Senior Market analyst of eToro, Mr. Mato Greenspan, the short covering has contributed to the Bitcoin’s hike. He said that many are streamlining their crypto exposure risk, and therefore, are closing at the “high- risk sell points before the holidays.” According to Greenspan, this is resulting in an upward thrust in the crypto market rates.
On the other hand, the CEO of Genesis Global Trading, Mr. Michael Moro, was also optimistic about the short coverings, just like Tam, when he talked to CNBC. His thoughts matched Tam’s when he also suggested that Bitcoin has not fully recuperated yet. He further added that he would “call a bottom when the rates break toward the 4000 dollars ceiling.” He suggested that investors and the buyers should practice patience and observe the rates holding for a few days, before making a final decision. As per Moro, 3,900 is a “key-short term level here before that happens.”
On Wednesday, Ether/USD saw an 8.15 percent change. Ripple/USD Bitstamp saw 8.86 percent change, whereas Bitcoin saw 9.80 percent of change.