Crypto Corner - July 12, 2018
Crypto Market Loses $10 Billion in 24 Hours, US Govt Establishes Task Force to Combat Digital Currency Fraud etc.. and India May Not Ban Crypto After All
The crypto market has fallen even further, losing $10 billion USD in the last 24 hours for a total market cap of $245 billion USD at press time. Data from CoinMarketCap shows that virtually every one of the top 100 coins are in the red with Bitcoin (BTC) trading at just $6200 USD. Is this Q2 price decline a vindication of crypto critics, or is simply time to stock up on discounted coins? A report from CCN by writer Joseph Young argues that low volumes are driving the drop in prices.
"The low volume and lack of demand from bulls have reduced the probability of a corrective rally occurring in the next 24 to 48 hours. If bitcoin can recover back to $6,300 and stabilize in that region, it could eye a move towards $6,400. However, if BTC fails to find any momentum at this price range, a further drop is inevitable."
But where does that leave the widely-reported predictions for Bitcoin (BTC) hitting $50,000 USD by the end of this year or even Fundstrat co-founder Tom Lee's comparatively modest $25,000 USD projection? CCN's Joseph Young says:
"In essence, $50,000 and $60,000 BTC price targets by the end of 2018 are based on an assumption that a significant change can be made on the regulatory side of the cryptocurrency sector that can enable various publicly tradable instruments like bitcoin exchange-traded funds (ETFs)."
President Trump signed an executive order yesterday which establishes a task force devoted to securing market integrity and combating consumer fraud. Comprising the Deputy Attorney General as chair, the task force's function is outlined as "providing guidance for the investigation and prosecution of cases" which includes digital currency fraud.
Contrary to expectations, India's government may opt to treat cryptocurrencies as commodities as opposed to imposing a blanket ban, according to a report from Quartz yesterday. A senior government official who requested anonymity told Quartz that the government was more concerned with regulation and classification than a ban.
"I don't think anyone is really thinking of banning it (cryptocurrencies) altogether. The issue here is about regulating the trade and we need to know where the money is coming from. Allowing it as (a) commodity may let us better regulate trade and so that is being looked at."
Sam Mowers, Investorideas
Read other editions of the Crypto Corner
Get the Crypto Corner News by email Get Crypto Corner News