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The cryptocurrency market is reviving, but remains uncertain

Dec 3, 2018

After the rapid collapse in the cryptocurrency market and, thus, a significant capitalization decrease, investors carefully begin to return.

At the beginning of the last week, capitalization of the only 9 cryptocurrencies was more than $1 bln, and by the end of the week Monero and Cardano had joined the list of “billionaires”.

Three leaders remain unchanged:

  • Bitcoin (BTC) – $72.59 bln
  • Ripple (XRP) – $14.89 bln
  • Ethereum (ETH) – $12.14 bln

Moreover, Stellar Lumens (capitalization – $3.1 bln) has displaced BitcoinCash (capitalization – $3.02 bln) from fourth to fifth place in this rate.

Summing up the activity of the last month, we should mention that it wasn’t quite successful for investors.

24 out of TOP-25 cryptocurrencies have finished this month with the negative value. Only Bitcoin SV has reached 7.2% of growth by the end of this month.

It is important to note that the average reduction rate for the TOP-25 cryptocurrencies is -35.9%.

Despite the powerful slump of BTC price in November, lots of experts predict its further decline to $3000. Anthony Pompiano, a managing partner of Morgan Creek and Leon Liu, the chairman of the board of BitKan, consider the psychological level of $ 3000 as a possible turning point.

Alex Kruger, a former banker, economist, trader, and Michael Moreau, the CEO of Genesis Trading points to this level, marking it as the possible Bitcoin “bottom”.

Should the BTC price return to the level of $3000, it will reach 85% of its historical maximum and coincide with the historical technical support range of $2900–$3000. That’s why this level is considered as a turning point for Bitcoin.

We also should highlight the development in the regulation of this market.

On December, 1 the summit of G20 concluded with the final declaration signed by the heads of member countries. They also noted the necessity of cryptocurrencies’ regulation and, as a result, the creation of the unified system for taxing digital assets.

According to the document, regulation of digital assets is necessary to build “open and sustainable financial system”. The regulation will be carried out in accordance with the Financial Action Task Force on Money Laundering (FATF) standards.

According to the latest amendments to the bill “On digital financial assets”, the Central Bank of the Russian Federation will regulate the issue, accounting, and turnover of tokens. However, according to experts’ opinion, this bill has some inaccuracies.

Jay Clayton, the head of the US Securities and Exchange Commission (SEC), during his interview on CNBC pointed out two ways by which ICOs can avoid SEC regulation. The regulation will be carried out by analogy with securities: “The first and most obvious way is simply moving to offshore. ICOs that take place outside of the United States doesn’t have to adhere to the SEC rules, even if the regulator does have a wide reach.”

The second option is private placement rules. But, in this case, companies would be able to raise capital from up to 35 investors without any advertising campaigns.

The Ministry of Finance of Estonia has been preparing the amendments to the recently passed bill on combating money laundering and terrorism financing.

The amendments for this bill will concern cryptocurrencies. According to economists’ opinion, laws will aim to tighten regulations for the industry.

We also highlight that the issuer of the most popular stablecoin USDT – Tether the company resumed the verification of accounts and the possibility of direct withdrawal of USDT in fiat.

All this indicates the development of the cryptocurrency industry and contributes to the growth of institutional investors in the medium timeframes.

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