No other asset across the globe has shown more volatility than cryptocurrencies. Crypto markets are substantially responsive to market reports, and they can add or wipe billions of dollars off the board in a single day alone – forcing Bitcoin (BTC) investors to keep an eye on the price charts several times a day to see where their investments stand.
“With other speculative investments, like private equity and venture capital, you can’t check your phone every five minutes,” Jim Smigiel said. With cryptocurrencies, “you’re able to track the minute-by-minute value of it.”
Bitcoin price lost close to $2000 since the start of this week following reports regarding increasing crackdown and advertisement related ban from Google.
Source Image: coinmarketcap.com
The total market capitalization of cryptocurrencies fell as low as $309 billion on Thursday, down significantly from $390 billion at the beginning of the week. The market capitalization currently hovers around 325 billion, down more than 60% from the value it hit at the beginning of the year.
The Stressful Time is Likely To Extend
The price volatility extended on Friday; Bitcoin and the rest of top ten virtual currencies regained some momentum after hitting the one month low of $7,700 on Thursday. Though there wasn’t any supportive news for digital currencies, the prices are increasing on speculations that the price has found support below $8000.
Though the market opinion is divided about the future of cryptocurrencies, some analysts believe BTC prices are likely to crash below the $6000 level after the corrective rally – they have based their opinion entirely on technical aspects of the BTC price chart.
“When sentiment is this weak, the market is increasingly ’fire, ready, aim’ — meaning, any headline today is likely to trigger selling,” Fundstrat analysts including Tom Lee and Robert Sluymer wrote.
Market dynamics are getting tougher for crypto markets following increasing concerns over the scams and illegal practices using cryptocurrencies.
French regulatory authority has blacklisted 15 cryptocurrencies and crypto-asset websites. The Central bank of France has already denounced to accept cryptocurrencies and issued a warning to their citizens. Similarly, regulators from the U.S. and other major countries are implementing new rules – which could significantly slash trading volume in the days to come.
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