The bright future for the cryptocurrency and blockchain industry Dec 12, 2018
Analyzing the dynamics of trades of the largest cryptocurrencies by capitalization, there has been less optimism, especially among investors who entered the market at the turn of 2018, in other words – at highs. Among the nine “billionaires” by capitalization, only Ripple (XRP) shows a weak, but the positive trend, adding just over 1.5% during the past seven days. While the other eight cryptocurrencies have losses up to 33% for the same period. Nevertheless, there is no need to panic, as we are at the stage of the rapid development of the cryptocurrency market and blockchain in general. The increase of the market volatility allows traders to earn on speculation.
Spain is going to join the countries that actively develop their legislation for the cryptocurrency market and blockchain industry.
Garcia Egea, the Secretary of the ruling “People’s Party” (Partido Popular), has informed about creating the bill, which is supposed to regulate the blockchain and cryptocurrency market. Despite the fact, that this bill is still under development, it can reduce the tax burden on cryptocurrency startups as well as on the companies which operate on blockchain and develop decentralized technologies – according to Egea.
Moreover, in order to increase the value of the main cryptocurrencies today, there is a need in specific conditions to attract institutional investors. However, there is a rumor that the US Securities and Exchange Commission (SEC) will not approve the application for creating Bitcoin-ETF, submitted by C BOE BZX exchange. Therefore, it is impossible to count on the approval of the applications from other companies either.
Jack Chervinsky, a lawyer, specializing in securities, published several tweets, pointing to a ten percents chance of endorsement on the Bitcoin exchange fund.According to him, the SEC cannot get the guarantees of the absence of market manipulations, until it has control over cryptocurrency exchanges. Moreover, the legislative framework is still not perfect, which forces the SEC to postpone the process of consideration by the end of February 2019. However, the development of the infrastructure of the cryptocurrency market may increase the chance of approval in the future, which will serve as another bullish signal for the market.
The network is actively discussing the appearance of large “whales”, which carry out large transactions. In this case, we are talking about a complex of transactions in the amount of 856 thousand BTC. It is quite a lot – 4.9% of the total value of BTC. But, as it became known, it is not a whale and this transaction was executed by Coinbase – American crypto exchange.
Coinbase previously reported on the major transactions, that is why 107 transactions of 8000 BTC each are explained by another decision of the exchange aimed at improving security.
A similar distribution of 988,888 ETH was made at the Binance exchange, from its cold storage with the aim of distributing the risk.
However, at the same time, large transfers periodically appear, and this trend can grow as the price of cryptocurrency decreases.
We highlight that BTC is approaching very strong technical and, at the same time, psychological support level of $3000. Some experts considered this level as a turning point or a “bottom” of the market, which in turn, increases the risk of a significant increase in demand for BTC at the marked price level.