Bitcoin is no longer the foremost cryptocurrency
Bitcoin price continues to decrease
Bitcoin already lost 3% during last week. As we have mentioned above, analyst Thomas Lee, counting on the reaction of Bitcoin price to the Consensus conference last year, predicted the rising of BTC up to $15 000. Despite this big event, the leading cryptocurrency has limited itself to coming close to the $8900 level. However, Bitcoin stopped at $8881,12. Then it started to fall, reaching $8500 by May, 18. At the moment of writing, this coin was traded at the level of $8500. BTC capitalization is $145bn, and this is 37% of the total cryptomarket capitalization.
Picегку 1. Dynamics of Bitcoin price
Source: Coinmarketcap
The supportive statements from the IT-titans had no positive effect on Bitcoin as well. Thus, the co-founder of Apple Steve Wozniak and Twitter CEO Jack Dorsey declared that Bitcoin may become “a native currency of the Internet” in future, but this is to be expected only during the next decade.
Some negative impact was also received from the Chinese center of IT developments, which has given Bitcoin only the 13th place in its rating. Total 28 cryptocurrencies were analyzed on such parameters as “technology”, “ application” and “innovation”.
The market followed decrease of Bitcoin
Following Bitcoin, Ethereum raised as well on Monday but then lost in the price during the rest of the week. Its price fell to $663,81 on Friday. But on Sunday the coin broke through the $700 ceiling and at the moment of the writing cost $721.
The rest of the coins were less lucky. Thus, Ripple lost about 6%, Bitcoin Cash – about 14%, EOS – 12%.
Regulatory uncertainty
Thomas Lee supposes that Bitcoin price couldn’t skyrocket due to the absence of institutional tools and institutional investors, who don’t want to enter the market because of the uncertainties in regulation aspects.
Besides, Ethereum Foundation advisor William Mougayar noted that the world regulators lack the fundamental understanding of cryptocurrencies. The expert highlighted that the U.S. Securities and Exchange Commission (SEC) wants all cryptocurrencies to work under the securities laws when the majority of the coins are not securities at all.
It is worth noting that the crypto market tries to do its best to attract institutional investors. For example, Coinbase informed about the creation of a special platform for institutional investors and a service, which will help investors to perform market transactions with cryptocurrencies. Financial company Nomura in cooperation with the investment house Global Advisor Holding and Ledger, a digital solutions provider, created a company named Komainu, which will provide institutional investors with the solutions for secure storage of digital assets.
SEC engaged in the education of crypto investors
The U.S. Securities and Exchange Commission started an educational experiment by creating a website of a non-existent ICO project named HoweyCoin. The website offers investors to purchase tokens, promising a revenue of 1-2% per day. SEC even posted an imaginary project team, though there are no CVs or links to social media pages of team members.
Users who want to buy HoweyCoin tokens are redirected to the SEC website page with the guidelines helping to determine if the ICO is a fraud.
Rising of the main cryptocurrencies on Sunday is very encouraging and gives hopes that the market will increase in the upcoming week. Stay with Bitnewstoday and follow the recent developments in the crypto world.