Vulnerability of crypto industry to external factors makes Bitcoin price one of the most discussed issues. Let’s see what factors have led to its recovery.
Bitcoin has entered this week with comparatively a good progress. After a 9,37% increase in 24 hours, its value according to Coinmarketcap is $8,801 with a market cap of $148 billion. The growth of Ethereum is 8,14%, so the cryptocurrency is traded for $870,86 with a market cap of $85 bln. The highest growth among the leading cryptocurrencies has been shown by Ripple – 13,18%. While it’s market cap is $43 bln, its value is $1,1, informs Coinmarketcap.
It looks like a recovery of the cryptocurrency market. But what are the reasons for these positive trends? As the cryptocurrency market remains strongly influenced by regulatory activity in major trading markets, the experts have named several major events that may have had their impact on the industry’s development.
First of all, it became known that the U.S. Government had announced that the cryptocurrency industry should try to be self-regulated. It was a breath of fresh air for stakeholders as some time ago it had been believed that the Government could impose some limitations and regulations for the crypto industry like it had been done in China and South Korea.
Without any doubts, these fears constrained market’s development. Exchange rates of the majority of coins began skyrocketing on the night of February, 7 when the U.S. Senate was considering regulations for cryprocurrencies, ICO and blockchain. Earlier, financial media had written that hearing’s results could harm cryptocurrencies’ reputation and cause their prices decline.
But before the beginning of the hearing, it had been already announced that the Government was not going to prevent the market’s development, having an aim to make it safer and more transparent for the state as well as for investors. The main issues of the discussion were the matters of control of ICOs due to a large number of fraudsters; traders’ safety and illumination of threats that could lead to potential financial losses. U.S. experts believe that the Government should help the investors instead of imposing bans.
Secondly, banks in Australia and New Zealand allowed its clients to carry out any transactions with cryptocurrencies. Earlier, major American banks prohibited clients to purchase digital currencies with their credit cards.
Thirdly, coins won’t be banned or regulated in Singapore. Though earlier, it was proposed to ban cryptocurrencies in the country. Nevertheless, the country’s Deputy Prime Minister stated that the crypto industry wasn’t studied enough that’s why any regulations couldn’t be introduced in the near future.
Fourthly, India also denied rumors related to the ban of digital currencies. However, the Prime Minister of India said that he didn’t consider Bitcoin and other coins as means of payment and would like to ban their usage in the country.
Despite all the positive tendencies, on Sunday we could observe some moderate losses across the top 50 assets tracked by Coinmarketcap, with only a curious entry by new altcoin U.CASH. It spiked over 900% yesterday and claimes the number 26 spot by market cap at a capitalization of $1,05 bln.