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Cryptocurrency market recovery

Jul 22, 2019

Even though 12 out of 15 cryptocurrencies with a capitalization of more than $1 billion completed the previous week in the “green zone”, we cannot notice a resumption of growth. Bitcoin returned a little more than 3%, fixing at $10500. At the same time, Bitcoin SV (BSV) remains the undisputed leader in growth, adding by more than 41%. LEO and DASH remained in the negative zone.

One of the powerful growth drivers for the cryptocurrency market was a statement by the US Congressman Patrick McHenry. In an interview, he stated that no political force could destroy Bitcoin.

We recall that before BTC, and the rest of the cryptocurrencies were under considerable pressure after the failed performance of the Libra representative in the US Congress.

“There is such a force to destroy bitcoin, he replied. Even the Chinese with their firewall and the extreme degree of intervention in the life of society can’t destroy bitcoin. A distributed registry is the basis of bitcoin, as a pioneer in this space. I want to say that bitcoin cannot be destroyed” stressed Patrick McHenry.

Capital outflow from BitMEX

On Friday, July 19, the BitMEX exchange of cryptocurrency derivatives faced a significant capital outflow. Thus, during the day, users withdrew more than $85 million from BitMEX when making deposits of $12 million. For comparison, users took $54 million with $ 58 million of deposits from Binance, $50 million with $52 million of deposits from Bitstamp. Bittrex users withdrew $5 million and contributed $4 million. Poloniex got these figures amounted to $ 4 million and $6 million, respectively.

Over 7 days, traders and investors withdrew $294.8 million, while the inflow of deposits amounted to only $129 million.

Considering the current situation over 7 days, we clearly see the impact of the US Commodity Futures Trading Commission (CFTC). It has launched an investigation of BitMEX. In particular, the agency intends to find out whether the exchange allowed Bitcoin derivatives to be traded to US citizens without registration.

Bakkt will launch Bitcoin futures  this quarter

 Sam Doctor, the managing director of Fundstrat Global Advisors, said that the launch of Bitcoin futures with physical delivery on the Bakkt platform may take place this quarter.

“It seems that at the moment a large mass of people want to enter the market on the day of launch of Bakkt. The sales management team is gaining momentum in working with brokers, trading floors and liquidity providers, ”said Sam Doctor.

The mood in the cryptocurrency market differs a lot . There are still quite a lot of optimists predicting BTC growth to $20000, but uncertainty is clearly visible in the overall dynamics of trades. Therefore, the next return of the price under the psychological level of $10000 will increase the likelihood of its further decline in the medium term.

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