The Market in Cryptocurrencies is Uncertain and Volatile
Cryptocurrency fortunes have reversed. Just recently it seemed that digital tokens like Bitcoin were coming out of a long decliner.
BTC, which was ranged within about 6,000 and $7,000 for many weeks, managed break out and rose beyond $8,000 for a short period.
Last week prices declined.
According to data from CoinMarketCap, every 1 of the Top 10 digital currencies by market declined in value on the week.
Currently, Bitcoin is trading at 7,128.34+85.95, or +1.2205%, as of 5:31a BST, the market is open
The Big Q: Why the sudden drop across the leaders of the digital currency space?
The Big A: Last week, when news broke that the Winklevoss brothers’ proposed bitcoin ETF had been rejected by the SEC for a 2nd time, analysts speculated that this news might bring about a dip in values. However, given that the momentary dip has continued for several days beyond the headline’s release, participants are wondering if there may be something else at play in here.
There is the possibility that OTC markets for Bitcoin are significantly larger than the exchange market, and that large sells have impacted the market in recent weeks, increasing volatility. This is just 1 possibility out of a large list of causes for the decline.
Early last week, OKEx indicated that it had to trigger its “societal loss risk management mechanism” after it was unable to liquidate a large futures contract. This means that active OKEx users were called upon to bail out the exchange with their own profits. This is a tough position for any exchange to be in, and 1 that certainly has caused concern about liquidity in the crypto world.
In other cryptocurrency news
Intercontinental Exchange (NYSE:ICE), the parent company to the NYSE, announced plans to launch a new crypto ecosystem called Bakkt. Among other services, ICE’s new project will provide delivery of actual Bitcoin in its futures contracts, most similar contracts are settled with cash, it will also offer secure storage for Bitcoins.
Have a terrific week