Cryptocurrency

07/12/18 08:09 UTC-4

The reasons for the fall of the cryptocurrency rate. What is happening in the market today?

The state of the cryptocurrency market: the reasons for the fall of the course
The state of the cryptocurrency market: the reasons for the fall of the course

On the night of Friday, December 7, Bitcoin updated the minimum price of this year. Now, the price of "digital gold" is already balancing at around $ 3,200. Bitcoin overnight lost 11.5%, updating its 15-month low, as was reported at the Cointelegraph.

 

What happens to cryptocurrency today?

The remaining digital currencies also suffered a "price collapse". As is known, XRP and Ethereum over the past 12 hours have fallen in price by 10.6% and 15.9%. In relation to the dollar: XRP to 0.3, and Ethereum – to 84.86. From the TOP 10 of the largest cryptocurrency capitalization levels, on December 7, only Bitcoin SV grows.

If to compare with the fixed mark of the maximum price, then Bitcoin has already lost about 84.3% of the cost. For example, the capitalization of the financial crypto-sphere, which at the time of January 8 (this year) was more than 813 billion dollars, now amounts to slightly less than 107.9 billion dollars.

Compared with November 14, the BTC rate has decreased by 45%. This led to the fact that the capitalization of "digital gold", and with it the entire market, has almost halved.

 

Causes and effects: why cryptocurrencies fall in value

The reason for the global fall of the crypto-sphere, most likely, was yesterday's decision of the "US Securities and Exchange Commission" (SEC). Recall that the SEC once again decided to postpone approval of Bitcoin ETF. As it became known, the application of the well-known VanEck investment company and ICOICO
(Initial Coin Offerings) is an acronym, which means a primary currency offer. Details
SolidX are now going to consider no earlier than February 27, 2019.

Как было сообщено в CCN, в феврале Комиссия уже не сможет отложить вопрос по первому Биткоину ETF. Согласно законодательству США, в следующий раз SEC обязана принять окончательное решение.

According to Hester Peirce, one of the five SEC commissioners: "The fall in the price of Bitcoin was expected, because some of the SEC commissioners do not trust the development of the cryptocurrency industry in the US (...) so the decision of the commission is delayed"

Recall that on Thursday, December 6, the number of "short positions" on the Bitfinex cryptocurrency exchange for the BTC-USD pair reached its 6-week maximum. This fact indicates that the global sale of "digital gold" continues to grow.

For comparison, on October 15 (of the current year) the number of "short positions" on this exchange was 36,966, and yesterday the number rose to 37,891. It is worth noting that the total number of "short positions" in the market did not fall below 35,000, even a time when digital gold has recently risen to $ 4,400. This statistic is regrettable enough and is forcing traders to increasingly sell Bitcoin assets.

Bloomberg Intelligence: Mike McGlone, technical analyst, stated: "Bitcoin began to actively sell off again, and its price could fall to $ 1,500 (...) Today it is not clear under what scenario events will develop in the future"

 

Conference in Washington: H. Pierce about Bitcoin

As you know, one of the reasons for the rapid decline in prices in the cryptocurrency market is the delayed decision of the "Securities and Exchange Commission". Yesterday, Hester Pierce, a representative of the US SEC, who is one of five commissioners, answered several questions at a conference in Washington. According to her, the commission is likely to approve the Bitcoin ETF.

Recall that Hester Pierce became a popular protector of Bitcoin, when she expressed her disagreement with the ban on the statement of the Winklevoss brothers. Then she announced her positive attitude to the introduction of cryptocurrency in the global economy.

"If you just call something a cryptocurrency, this does not mean that you can break the rules that were adopted many years ago. But I really think that we should open the door a little wider for innovation in the world." – Hester Peirce.

The reasons for the fall of the crypto-coin rate and what is happening in the market today: the question is very ambiguous. Now, many discussions are beginning to develop among traders. The question: "What will happen to cryptocurrency next year?" Is still without an unequivocal answer.

Editor: Yuliya Soroka

See also: "The collapse of the cryptocurrency market: overnight crypto-coins lost $ 16 billion"

#bitcoin #cryptocurrency #USA #Bitcoin ETF #SEC #Hester Pierce #Washington

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