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Cryptocurrency Market Loses $43 Billion in Five Days

August continues to be a dreadful month for the cryptocurrency market. In the last five days, the market has shed billions of dollars from its value despite a flurry of positive developments in the industry.

$43 Billion Decline

Between Wednesday (August 8, 2018) and Sunday (August 12, 2018) the cryptocurrency market lost about $43 billion. During the weekend alone, the loss was a whopping $8 billion as the prices of many cryptocurrencies tanked considerably.

The reticence of the United States Securities and Exchange Commission (SEC) to approve a Bitcoin ETF has eroded most of the positive sentiments that abounded in the market in July 2018. Since then, the SEC has denied the Winklevoss ETF while postponing a couple more, including the VanEck/SolidX filing.

Apart from the influx of Asian money especially from China in the wake of significant currency devaluation, rumors of an impending SEC-approved BTC ETF contributed to the steady price march that saw Bitcoin eclipse the $8,400 mark. However, after the series of SEC shutouts and delays, the price of top-ranked cryptocurrency fell significantly even reaching a three-week low at one point.

Presently, the bears are in the ascendency, and some analysts predict that Bitcoin could test a new sub-$5,000 low for 2018. However, the recent influx of $50 million worth of USDT might help to stabilize Bitcoin. Indeed, the price of BTC reacted swiftly to the news and is currently attempting to push beyond the $6,500. At press time, BTC is still struggling to maintain clearance above the $6,300 resistance level.

Economic Crisis in Turkey Could Spur Cryptocurrency Market Recovery

In another development, the economic crisis in Turkey might offer new opportunities for increased Bitcoin and indeed, cryptocurrency enthusiasm. With the Turkish Lira presently in the midst of a downward spiral, increased cryptocurrency trading activity is being reported in Turkey.

Some of the largest cryptocurrency bourses in the country are reporting a more than 63 percent increase in Bitcoin trading volume. If the situation persists, then another July 19 price spike might not be entirely impossible. The absence of any cryptocurrency ban in the country means that there is little to stop the influx of money into the Turkish crypto market as the economic crisis deepens.

Do you think the situation in Turkey will contribute to a positive cryptocurrency market growth as citizens likely use the market as a hedge against economic uncertainty? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.

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Crypto Markets Add 40 Billion USD, Claw Back From Recent Lows

Cryptocurrency Markets–Despite 2018 being a near-continuous bear cycle for cryptocurrency, the past three days have brought a significant amount of wealth back into the industry–giving investors a short glimpse of hope that the relative bottom might have been reached.

Since peaking at an all time high of 830 billion USD in the first week of January, the cryptomarkets have been in steady declining, shedding 67% of their value over the first six months. June looked even dire for investors, as all coins plummeted to their relative low this past week, with the market reaching 234 billion USD for the first time since last October.

While most investors cautiously await the performance of the market, the major currencies in the industry have all posted significant gains in the last several days, clawing back into the green for the first time since nearly the end of last year.

Bitcoin has had to contend with recent news over the failure of Lightning Network to perform consistently in transactions of larger value, but the currency is showing strength among community perception and in the willingness for investors to hold their coins through the falling price. Despite CNBC’s Crypto Trader predicting Bitcoin to test 5300 USD levels, other bullish proponents for the currency have been adding their two-cents to the dialogue. Bitmex co-founder Arthur Hayes recently made the prediction that Bitcoin would achieve 50,000 USD this year–fulfilling similar predictions made for the currency in the midst of last year’s bull run–citing the history of cryptocurrency volatility and price swings as being nothing new to veteran investors,

“something that goes up to [around] $20,000 in one year can have a correction.”

Hayes does contend that a bottom could form much lower than current prices, but highlights the fact that cryptocurrency is teetering on a precipitous edge of adoption. One small regulatory change or positive announcement could be the push needed to send the currency exponential once again,

“We could definitely find a bottom in the $3,000 to $5,000 range. But we’re one positive regulatory decision away, [maybe] an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year.”

This time a month ago, few high-profile investors or industry figures were venturing any positive predictions for cryptocurrency in the near future. That is slowly beginning to change, with the announcement of several hedge funds venturing into crypto despite the recent price-lows.

Ryan Rabaglia, head trader with Octagon Strategy, echoed the comments of Arthur Hayes in an interview with CNBC, saying more clear market regulations would pave the way for cryptocurrency growth. The current state of the industry, without regulation or even a green-light for future regulation, has created a buffering uncertainty for professional and institutional investors. Until that barrier is removed, big-money players from Wall Street and around the world are more content to stand on the sideline, even as average investors continue to enjoy double to triple-digit gains.

While regulation has long been antithetical to the decentralized ethos of cryptocurrency, a more clearly defined legal understanding of dealing in crypto, from everything surrounding exchange operation to tax collection, could go a long way in inspiring confidence in financial institutions looking to guard against the downside of crypto investing. With both Hayes and Rabagalia remaining bullish on cryptocurrency in the event of greater regulation, it’s worth considering the impact upon market prices and industry growth.

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