May 22, 2020, 11:08:27 AM
Cryptocurrency Market Review
On Monday, the cryptocurrency market made an unsuccessful growth attempt and then moved on to a downward correction. Currently, Bitcoin is trading at 9100.00 (–6.2%), Ethereum is trading at 200.00 (–2.8%), Tether is trading at 0.9997 (–0.01%). Ripple is in the fourth place by capitalization, trading near 0.1975 (–1.4%), while Bitcoin Cash is trading at 230.00 (–4.8%). The total market capitalization during the week decreased from 272 to 252 billion dollars. Bitcoin's market share ranged from 68.2% to 66.3%.
There is no consensus on the reasons for the current correction in the expert community. Many attribute the current correction to the movement of BTC 50, which was mined back in 2009, at the dawn of the existence of the network, and since then has been without movement. It is believed that this sum may belong to the legendary Bitcoin creator Satoshi Nakamoto, who at that time was one of the few miners of the new currency. If so, then there is the possibility of the beginning of the movement of the remaining capital of Satoshi, which amounts to more than BTC 1M, which is alarming for investors, because in the case of sales the entire cryptocurrency sector will be under pressure. Another reason for the decline could be the activity of Bitcoin miners, who, after halving, began to sell their coins, trying to compensate for the losses from the reduction of block mining rewards. In addition, some Chinese mining companies in Sichuan are currently forced to turn off equipment due to the delay of the rainy season and the lack of cheap electricity. They need funds to support activities, which leads to the sale of free BTC and pressure on the market.
From the altcoin news, it is worth noting that the US Consumer Financial Protection Bureau (CFPB) positively assessed the potential of Ripple blockchain technology and XRP cryptocurrencies for cross-border payments. This technology allows financial institutions to know the exact final amount intended for the recipient, even before sending the payment. However, Bureau officials believe that in the near future, banks will continue to dominate the payment market, despite the emergence of modern solutions in this area.
The Ethereum user community is in discussions to establish a decentralized autonomous organization to return ETH sent to the wrong addresses. This problem has existed since the formation of the cryptocurrency market and is relevant for all coins. It is assumed that the new structure will deal with the return of ETH to the owners who sent them to the wrong address.
Next week, quotes for most cryptocurrencies may attempt to recover or stabilize.