Cryptocurrency Market Review

This week, the cryptocurrency market has dropped down, almost all currencies have experienced a weakening of varying degrees, and there have been changes in the list on capitalization. Ethereum moved down to rank three, losing the second place to Ripple, and EOS now occupies the sixth position, replaced by Stellar on the fifth. Currently, the market has stabilized and is trying to win back some of the losses. Now Bitcoin is trading around 5500.00 (-14.5%), Ripple – 0.4670 (-9.9%), Ethereum – 177.00 (-16.9%), and Stellar – 0.2450 (-9.1%). The total market capitalization during the week sharply decreased from 213 to 185 billion dollars. The share of Bitcoin in it remained at around 52.6%.

The exact reasons for the decline are not known, but according to most observers, they are speculative. The collapse began with the elimination of long positions on the BitMEX exchange, and then it was supported by other exchanges. The fall in prices could also be influenced by the withdrawal of investors into stablecoins, the number of which is gradually expanding, and the withdrawal of miners from Bitcoin, since its price below 5800 is not profitable for production. There is also an opinion that hardfork of Bitcoin Cash could lead to a decline in the market. Thus, the head of the investment company BKCM, Brian Kelly, noted that some investors considered that the performance after hardforks would fall in both BTH network and in BTC network, and the speed of transactions would slow down. Therefore, they began to actively sell both assets.

Recall that on November 15, hardfork of Bitcoin Cash divided the currency into two competing assets Bitcoin ABC (continuation of the original BCH) and Bitcoin SV (a variant with upgraded software), while the owners of Bitcoin Cash got access to both tokens. Currently the operations with these assets are not available.

As for the news on other cryptocurrencies, it is worth noting that the fifth largest bank in Malaysia, CIMB, joined RippleNet, and the head of Ripple, Brad Garlinghouse, spoke in favor of clear regulation of digital assets, because uniform understandable rules could spur the development of cryptocurrency and blockchain. Ethereum founder Vitaly Buterin reaffirmed his intention to reduce his impact on the ecosystem in order to ensure even greater decentralization.

Among world regulators news, it is necessary to note that Bank of America received a patent for a storing system of cryptocurrency deposits of large companies. The Financial Services Agency of Japan wants to equate the activities of cryptomarket operators to the activities of cryptocurrency exchanges and subordinate them to uniform legislation.

This week, opposing views on digital assets were expressed by IMF head Christine Lagarde and ECB board member Benoit Ker. According to Lagarde, global central banks should consider the possibility of creating a national cryptocurrency. And Kerr called Bitcoin a product of the financial crisis of 2008 and expressed the opinion that digital currencies of central banks will not be released within the next decade.

In general, next week the cryptocurrency market may begin an upward correction.

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