The past few months have been an extremely difficult period for the cryptocurrency market. China has once again banned cryptocurrency. While at the same time, testing localized versions of their brand new digital currency in a few regions of Beijing. This could be a strategy to eliminate competitors from the Chinese market before the widespread launch and acceptance.
The value of crypto assets, such as Bitcoin was hit hard in value. It was evident all over the world. It is said that trading in crypto is an unwise business. Do you believe that?
Do you think it is better to remain out of the cryptocurrency market?
You’ve heard about the latest news from China What else has been happening? The United States officials have started to look into both Bitmex as well as Ripple. In Turkey which is a new crypto market, they’ve decided against cryptocurrency trading. BTC as well as other closely-pegged assets have lost around 40 percent in value. This sounds like a complete nightmare isn’t it?
At first sight, perhaps. However, if we step inside the metaphorical time machine and go back one year from June in 2020, then we will see that the Bitcoin value of $9200! From this perspective, it is clear that lose a penny of 40% but rather an increase of 275 percent.
With the high fluctuation in Bitcoin, market traders are truly lucky with the frequent opportunities to earn profits by trading daily. The market is resilient and has demonstrated numerous times, that it has the wonderful characteristic of being able to bounce back every time, with often stronger support than prior.
Don’t get unhappy about the odd loss. Consider the larger picture. The market is one that always returns. Every day, there’s a chance to invest in both the latest and old cryptocurrencies. Even if you didn’t purchase it a year ago and you’re not planning to purchase it today? Would you consider yourself an investor even if you weren’t?
What’s changed since the last time? Miners are being ordered to close their shops in China. This caused a lot of FUD (Fear of uncertainty, uncertainty, and insecurity) to the global market. Banks all over the world are rewriting, reviewing, and expanding the crypto laws that are in force to their respective states. The government is fighting against money laundering.
Total Market Cap:
The market cap of all cryptocurrencies has surpassed $100 billion. The majority of the gains have been made in the last few months. On April 1, the market cap was less than $25 billion. This is an increase of 300 percent in value in less than 60 days.
Although some of the gains come from bitcoin (BTC is up by 160 percent over the same two-month period) however, other digital currencies such as Ethereum are as well to blame for the growth that by itself has increased by 439 percent in the past two months.
There’s perhaps a no better method to demonstrate this diversity in terms of gains than looking at the graph that shows bitcoin’s “dominance” — i.e. what percentage of the market capitalization of cryptocurrency is accounted for by bitcoin. In the past, this percentage has been around 80 percent, however, in recent months it has dropped below 50 percent, with other currencies such as Ethereum and Ripple being in its place.
China decision to ban BITCOIN:
It’s not just China that uses cryptocurrency. As of the moment this news was received, bitcoin was given a sort of official status. Not just a socially driven initiative for geeks, but an idea that has been approved by a global economy. We believe that Bitcoin and other cryptocurrencies aren’t yet stable enough and mature enough to completely replace the fiat system of the world.
It doesn’t mean that they won’t but it’s not quite there at the moment. Blockchain-based financial systems are the next stage of advancement for the planet and our individuals. Each day, people’s experience with Bitcoin and cryptocurrencies is growing. The global relationship with cryptocurrency is growing.
The Bottom Line:
The previous week was filled with crypto-related milestones. A noteworthy milestone was the announcement in Texas in which state-owned banks are not able to offer custodian services for cryptocurrency. What is this mean? It means that a new window has been opened.
This means that the banking system of the United States can begin offering customers services that are crypto-related. The new system is not going to be long before it is popular in Texas. All of these factors will help the cause of crypto gain greater acceptance.