Regulators Step in as Bitcoin Breaks Below $10,000: Weekly Crypto Market Update

Following a few turbulent months, the cryptocurrency market has slowed. However, Bitcoin’s volatility has done no favors for investors’ peace of mind. We don’t currently see new money entering the market, and many investors are sitting on the sidelines.

At the same time, it’s important to note that the trading volume has been increasing steadily since April:

However, it should be remembered that volume numbers don’t always reflect real activity but rather attempts on the part of exchanges to manipulate investors. After all, the cryptocurrency market is still relatively young and small, and hence strong players are capable of moving the market.

Here is the distribution of cryptocurrencies in the market as of today according to Chainalysis:

Regulation is here and it’s no longer possible for legislators to ignore the crypto phenomenon which continues to gain momentum. Facebook’s Libra has elevated digital currencies to the top of the agenda, and many world leaders have already expressed their positions on the matter, including US President Donald Trump. Despite the many concerns which surround the Libra project, there is no doubt that it will promote regulatory debate on the subject. We expect to see more and more regulators look closely at the industry and issue guidelines and clarification as well as stringent enforcement over exchanges, fundraising, and so forth.

Despite attempts of several altcoins to break through, it seems that it’s still quite early for another alt season, especially as most of them have experienced massive losses in the past few months. In addition, Bitcoin’s volatility isn’t conducive to currency trading, and traders are waiting for signs of stability that will give them some confidence.

In addition to the colorful altcoin market, we hear more and more about companies such as Telegram, Facebook, and other giants looking to issue their own cryptocurrencies, along with many countries and banks which are testing this new technology in an attempt to benefit from it. Meanwhile, the Palestinian Authority is considering replacing its own currency with digital currencies in order to eliminate its dependence on the Israeli economy.

In conclusion, it’s probably safe to say that cryptocurrencies are here to stay, and it’s hard to remain indifferent to recent events.

Market Data

BTC: $9,960 (-6.4%)

ETH: $210,4 (-6.2%)

XRP: $0.31 (-0.43%)

UK Getting Serious About Crypto Regulation: FCA Looks to Hire Industry Specialists. The UK’s Financial Conduct Authority (FCA), which is responsible for governing the country’s financial markets, is taking steps to increase its involvement in the crypto space. The regulator is looking to hire specialists to join two of its divisions.

You Can’t Kill Bitcoin, Says Rep. Patrick McHenry. The US congressman serving North Carolina’s 10th District has said that even the Chinese can’t kill Bitcoin. He also noted that there are a lot of other projects which are trying to mimic it but that they are neither fully distributed nor fully open.

Coincidence? CFTC Probes BitMEX Following the Roubini Debate. BitMEX, the most popular Bitcoin margin trading exchange, is reportedly being investigated for allowing US-based traders to use the platform. Interestingly enough, this comes shortly after the heated debate between BitMEX CEO Arthur Hayes and Nouriel “Dr. Doom” Roubini.

Bulgaria’s Bitcoin Holdings Surpass Their Gold Reserves. It appears that the small country of Bulgaria has holdings of Bitcoin which are worth more than its entire gold reserve. Supposedly, the country has holdings of more than 200,000 BTC, currently worth around $2 billion, while its gold reserves are worth around $1.8 billion.

China’s Ruling That Bitcoin Is Property Is ‘Major Milestone,’ Says Investor. In what seems to be a major milestone for Bitcoin, a second Chinese court has applied this attributed property status to the cryptocurrency. Industry experts consider this to be a significant step forward for the space in the country.

Bakkt Begins Testing of Bitcoin Futures Platform Following Hype and Delays. The highly-anticipated launch of Bakkt’s user acceptance testing (UAT) has kicked off. The platform is accepting users from around the world to trade its Bitcoin daily and monthly future contracts.

Charts

This week we’ve analyzed Bitcoin, Ethereum, Ripple, Binance Coin, and Houbi Token; click here for the full price analysis.

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