It has been a month-long bearish cryptocurrency market ever since it reached a high $835 Billion (market capital) on January 7th. A series of news articles referring to ‘bans’ by different countries created ‘FUD’ (fear, uncertainty and doubt) in a market causing a loss of confidence which led to ‘panic selling’. This came at a time when ‘whales’ were already selling their holdings at an all-time high, causing the market to reach a low of $276 Billion on February 6th. Within this period the cryptocurrency markets lost almost 600 billion dollars.
Confidence has returned to the markets in the past 48 hours after a slow but gradual recovery of $147 billion at press time. If this trend continues for the next three days then it will be confirmed that the bearish market is over and the possibility of a new all-time high opens up.
AMBCrypto’s Aditya spoke to several market veterans regarding the markets and following are the comments from a couple of people.
Jitendra Gaikwad, a Financial Analyst from Bombay Stock Markets, says,
“Understanding the cryptocurrency markets requires you to have sentiments, your traditional asset indicators, RSI, etc won’t give you much result. It has always been driven by sentiment because of it is such a small market. The trends and news in the past 48 hours have been positive so you will definitely see a positive impact.”
Romanov Petrov, a Bitcoin miner from Moscow says,
“There is a definite uptrend, if Bitcoin is able to break the key resistance at $9,300 and $10,600 then we are upwards from there. This would probably be the last time in your life you will be seeing Bitcoin at $8000. If we are not able to climb and break that resistance then a definite slip to $4000 mark is possible”
There have been numerous announcements and technical advancement by various blockchain projects which have played an important role in the recovery of prices, but the positive swing happened with the Senate cryptocurrency hearing in the US.
The following quotes are taken from the US Senate hearing :
Commodity Futures Trading Commission Chairman, Christopher Giancarlo remarked,
“We owe it to this new generation to respect their enthusiasm for virtual currencies, with a thoughtful and balanced response, and not a dismissive one.”
He further added,
“Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes, and engaging in economic activity. Ignoring these developments will not make them go away, nor is it a responsible regulatory response.”
Securities and Exchanges Chairman, Jay Clayton commented,
“To be clear, I am very optimistic that developments in financial technology will help facilitate capital formation, providing promising investment opportunities for institutional and Main Street investors alike…. these developments may enable us to better monitor transactions, holdings and obligations (including credit exposures) and other activities and characteristics of our markets, thereby facilitating our regulatory mission, including, importantly, investor protection.”
Giancarlo on the future of cryptocurrencies said,
“Virtual currencies mark a paradigm shift in how we think about payments, traditional financial processes, and engaging in economic activity….. The evolution of these assets, their volatility, and the interest they attract from a rising global millennial population demand serious examination.”
In an environment where the regulators of the world are coming down on cryptocurrencies, a positive attitude from an esteemed organization was exactly what the market needed after China announcing the ban on foreign cryptocurrency exchanges.
Paul Taylor, a blockchain enthusiast from the US says,
“The SEC and CFTC hearing was very positive today that will bring some stability to the market. Blockchain is here to stay and it’s reassuring to see the USA embrace this innovation.”
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