Apr 10, 2020, 11:17:51 AM
Cryptocurrency Market Review
This week, the cryptocurrency market continued to grow but on Friday made a downward correction, as a result of which the largest currencies lost several previously won positions. Currently, Bitcoin is trading around 7000.00 (+3.8%), Ethereum is at 160.00 (+13.8%), Ripple is at 0.1900 (+7.9%), Tether is at 1.0026 (+0.05%), and Bitcoin Cash – around 240.00 (+4.8%). The total market capitalization has grown from 192 to 200 billion dollars. The share of Bitcoin in the market decreased from 64.7% to 64.0%.
Experts still see the main reason for the strengthening of the market in the launch of a broad program to support the US economy. In particular, $2.2 billion from it should go to direct subsidization of American citizens and cover the cost of labor for employees during the quarantine. Pouring so much money into the economy leads to higher inflation and stronger cryptocurrencies. The Bitcoin halving scheduled for May also contributes to the digital market. Investors, especially “whales”, are actively accumulating reserves of the first digital currency, which entails an increase in its value and pulls up the rest of the market. This week, the first forks of Bitcoin, Bitcoin Cash (Wednesday) and Bitcoin SV (Friday) took place. They were very similar. In both cases, the halving took place at block No. 630000, and the reward for miners was reduced from 12.5 to 6.25 coins. After that, in both networks, there was a sharp decrease in mining activity, as mining companies began to switch to mining more profitable electronic assets, especially BTC, where halving is yet to be done.
This week, world regulators made several active actions. Thus, the French Financial Markets Authority (AMF) expressed concern about the wide distribution of stablecoins and the fear that they could become a threat to the national financial system. Officials also confirmed their negative attitude towards the launch of the Libra project. Representatives of the Bank of England, on the contrary, noted the prospect of creating private payment systems and digital assets with the function of money, which could exist along with the state cryptocurrency. The Bank of South Korea announced the launch of a digital won and development program for digital won, which will last until the end of next year. It is planned to determine the technical and regulatory provisions necessary for the issuance of currency, as well as the blockchain based on which the won will be created. Japanese authorities reported that the regulations governing the cryptocurrency market in the country will come into force later than planned, tentatively, on May 1.
Next week, cryptocurrency quotes may continue to grow moderately, however, the potential for the resumption of decline also remains very serious since the complex background for the sector remains negative.