G20 has started formulating regulations over cryptocurrencies
A blockchain funding centre was scrapped in China
Ethereum remains optimistic for two reasons
Bitcoin is under selling pressure again and chances of its recovery are looking slim.The price has traded above the 8000 today but for a brief moment. Ever since, there has been more selling pressure than buying. Last week’s negativity around Bitcoin hasn’t faded away, and there isn’t any significant improvement in the bull power. Bitcoin, from the weekly graph, has slid significantly, since the tech giants’ ban on ICOs.
This is not to say that there hasn’t been any good news for the cryptocurrencies. G20 has started formulating regulations over cryptocurrencies, setting a well-regulated environment for economic superpowers to enter the market. This is great in the long term. However, this development has very limited impact on the price. Having said that traders have also acknowledged how blockchain and crypto hotspots are now mainly in non-G20 countries, e.g. Singapore, Gibraltar, and Malta. Hence, in the long term, with G20 forming a healthy framework for cryptocurrencies maybe a key driving force in crypto-growth. Other optimistic news includes BOE’s willingness to try out distributive ledger technologies, indicating optimism in blockchain and the new tech. The impact has been limited on Bitcoin prices despite the BOE case marked a milestone in governmental blockchain adoption.
Yet, pessimistic news still remain. A blockchain funding centre was scrapped in China as its regulations created obstacles. The news caused traders to dump Bitcoin as it further reinsured China’s negativity and reluctance in using blockchain-related products. China’s future in blockchain remains misty. Danske, Denmark’s largest bank, banned crypto trading, but remains optimistic over blockchain. The ban, like the China blockchain funding center ban, created short run disruption. However, we believe such news would offset the adverse price action for the cryptocurrencies, as Danske showed willingness and optimism in blockchain and the future crypto market if its becomes more transparent. These all pave the way for a long-term crypto and blockchain future positively.
In Ethereum, further radical changes, such as rental fees and sharding is creating more uncertainty in the market. Yet, as proceeds consolidate and improve, Ethereum remains optimistic for two reasons. Firstly, such radical changes improve Ethereum’s long term functions. Second, most ICOs are designed according to Ethereum’s blockchain, and ICO growth correlates to Ethereum growth.
In Ripple, prices didn’t change significantly although Uphold, a platform with $3 billion worth of transactions, enabled members to purchase XRP with zero fees.
Cryptocurrencies are also marking positive growth amongst huge corporations, like Ford. They are now investing and looking into cryptocurrency creation. In essence, the system allows drivers to sell their time by choosing to move to a slower lane, accepting payment from vehicles that don’t want to overtake them. This creates positivity in blockchain, and is most reflected in Bitcoin, being a key indicator to overall market confidence in blockchain
