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The volatility increase of cryptocurrency market

Dec 5, 2018

The volatility of the TOP-10 cryptocurrencies remains moderate, but even among them, there are outsiders, which are rapidly losing their positions.

EOS the sixth cryptocurrency by market capitalization has depreciated by more than 8.3% over the beginning of the trading week, having fallen from $2.8472 to $2.3664. Moreover, its decline over the past seven days has exceeded 24%. As a result, during the beginning of the trading week capitalization decreased by $0.43 bln, and over the last seven days – by more than $0.8 bln or 27.5%.

The reason for such a significant decline was the problems with democracy in the EOS ecosystem. One of the block producers in the Proof of Stake of EOS – Starteos offered publicly to buy votes in its favor. This questions the decentralization of one of the largest blockchain networks in the world, and therefore has an intense pressure on the EOS price.

General bearish market sentiment should be taken into account.

In early trading on Wednesday, BTC and ETH continued to decline, but sellers activity remained moderate. The two largest cryptocurrencies still show negative dynamics, upon the background of tightening regulation for the entire industry.

News from Asian cryptomarket

The Japanese media announces the National Tax Agency of Japan (NTA) intentions to gain possessions of authority to request information about clients of cryptocurrency exchanges that are suspected of tax evasion. It is a weak, but still, a bearish signal for the cryptocurrency market, even though Japanese government plans to limit the tax authority power.

South Korean authorities are going to impose taxes on ICOs and cryptocurrencies. It is declared in the document published by Hong Nam-ki, the country’s minister of finance.

Despite the government’s’ intentions to regulate this market and therefore to develop the legislative bases, the whales of the developed countries continue to increase their influence.

On 3rd of December, there was a transfer for more than $265 million or BTC 66 233. We highlight that the account, carried out the transfer, was registered in 2013. The total capitalization of BTC is $67.99 bln and this transfer represented about 0.37% of it. Moreover, such large BTC holders have a real opportunity to influence the current bearish scenario of the market.

Summing up, we must admire the fundamental and technical prerequisites for the further prices decreasing of the most capitalized cryptocurrencies in the short and medium terms. The closest target for BTC sellers is a range $2900-$3000 – the historical point of the mirror-reflection effect of the support level. The next target for ETH sellers is the psychological level of $100, but there is a risk of more powerful reduction to the level of $85.

There are incredibly bearish sentiments among EOS traders, but the activity of sellers may be declined, considering its rapid decrease before.

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