Thursday, April 26, 2018

Bitcoin is rising, but for how much time ? :


Last week was pretty good for Bitcoin, as its price has increased by more than 10% according to CoinMarketCap. Since the beginning of the month, this virtual currency has gained about 27%. After the rise last week, Bitcoin is currently stuck under $ 9,000 (€ 7,385), but it was recently under pressure because the US tax filing deadline was set at last week.

However, the threat of stricter regulations still weighs on cryptocurrency. Indeed, many fear that the Securities and Exchange Commission (SEC) does not sequester with issuers of ICO (Initial coin offerings).

"This year, Bitcoin demonstrated its tenacity when it dropped below $ 7,000 (€ 5,740), despite major upheavals, such as the ban in India of banks involved in crypto activities, etc. "Says Garrick Hileman, co-founder of the cryptocurrency research and data company, Mosaic.io. "The drivers of this increase include reports from major financial institutions such as Barclays, stating that they want to enter the world of cryptocurrencies."

In March, the board overseeing the bankruptcy of the former Mt. Gox Cryptocurrency Exchange, denied being behind the 2018 sale, after revelations reported Bitcoin sales from Mt Gox, for the first time. $ 400 million (328 million euros) since last September.

Meanwhile, one of the largest Bitcoin exchanges in the world, Coinbase, got Barclays UK to open an account.

Despite similar steps to make Bitcoin, and other cryptocurrencies, easier to trade, this sector is as much a step forward as it is a step backwards.

Regulators around the world, many in Asia, the continent where the exchange of cryptocurrencies has exploded in recent years, have closed trade and banned cryptocurrencies, fearing that they will be used for money laundering.

In February, British banks Lloyds and Virgin Money announced plans to ban their customers from buying cryptocurrencies with their credit cards.

However, Garrick Hileman believes that the most stringent cryptocurrency regulations are yet to come: "What everyone wants to know is the definitive guidelines from the SEC as to whether a certain number of tokens are considered securities and if they were sold using illegal ICOs. It seems that this decision will be announced soon. It's hard to know which way the SEC will go, and there's a big risk that the cryptocurrency market will regress if it goes against it. "

The price of Bitcoin had exceeded $ 19,000 (€ 15,580) last December, which represents an increase of 2,000% in one year. But it has since lost two-thirds of its value because of the threat of a tightening of regulations.

"In recent months, Bitcoin has lost nearly three-quarters of its value, eventually reaching a level that is more in line with its long-term trend. Today, traders see many values ​​on the board and they invest again. The market may have plunged this year, but the technologies on which cryptocurrencies are based have continued to evolve. The value of Bitcoin Cash has more than doubled this month, "said Glen Goodman, a cryptocurrency analyst.

Before adding: "I think it's still a bit early to say that this is the beginning of a new bull market. But optimism has made a big comeback in the cryptocurrency community. ".

Meanwhile, many people expect the influx of new regulations, as well as a wider user base, which would mean lower volatility for Bitcoin and other cryptocurrencies.

"Regulators are expected to be less stringent as they look more closely at the potential capabilities of cryptocurrencies," said Charles Hayter, founder and CEO of cryptocurrency data analysis company Crypto Compare. "The price is particularly sensitive to the mass effect, but in the long run we will see a drop in volatility."

According to Coinmap.org, a site that lists merchants accepting cryptocurrency, more than 12,000 companies accept Bitcoin or other regulations, and most are located in East Asia and emerging markets.

"With the arrival of new investors last year, cryptocurrencies now have more users. These additional users want to be able to use their virtual currencies. So more companies agree to be paid with, "adds Charles Hayter.
Réactions :

0 commentaires: