Crypto Markets Continue to Descend as Governments Globally Clarify Regulations
Crypto markets continue to see red today, July 12, as data from Coin360 shows, with Bitcoin (BTC) falling below the $6,200 price point. All of the top 50 coins by market cap are red on the day to press time.
Market visualization from Coin360
The markets have now reversed their weekend upswing, which followed a promising week in which they consolidated gains first claimed in a late June rebound. The downward trend comes as the governments of major markets globally are refining their official regulations on cryptocurrency.
Bitcoin is trading around $6,170 to press time, down about 3 percent over the 24-hour period to press time. The top cryptocurrency lost over $200 in the space of a few hours this morning, before trading sideways around its current level. Despite a strong rally July 8, Bitcoin is now down over 5 percent on the week.
Bitcoin price chart. Source: Cointelegraph Bitcoin Price Index
Top altcoin Ethereum (ETH) is trading around $429 to press time, down over 4 percent over the past 24 hours, and over 7 percent on the week. The coin did not mirror Bitcoin’s sharp tumble this morning, but saw a gradual and jagged decline over the course of the day.
Ethereum price chart. Source: Cointelegraph Ethereum Price Index
On CoinMarketCap’s listings, the top 50 coins by market cap are all in the red, with the outliers seeing losses of up to 7-8 percent. Among the top 10 coins, losses are no higher than 3.5 percent to press time.
Total market capitalization of all cryptocurrencies is now at around $245 billion at press time, down almost $30 bln since market descent that began July 10. The markets are nonetheless holding over $10 billion above their monthly low in late June, which saw total market cap shrink to $232.6.
Monthly low in the total market capitalization of all cryptocurrencies from CoinMarketCap
An in-depth analysis published today on Cointelegraph weighed in on the controversies surrounding the impact of crypto futures trading on the markets, which some have argued play directly into the hands of bears by allowing major institutional players to short the markets. Others have however countered that crypto derivatives are a major offering that will ultimately promote adoption and maturation of the emerging industry.
Market analysts are more united behind the notion that regulatory uncertainty continues to negatively impact cryptocurrencies’ price performance – an argument that held traction this week with the most bullish of crypto industry figures, TenX’s Julian Hosp. He nonetheless remained confident and upheld his initial forecast for 2018 that Bitcoin can hit the $60,000 mark this year.
Today saw news that digital currency fraud will form one of the areas of “particular attention” for a new U.S. anti-crime task force, as the country’s bid to protect retail investors from perceived risks continues.
Yesterday notably saw news of further proactive regulatory action on the part of South Korea, with legislators revealing drafts of bills intended to develop rules on cryptocurrencies, initial coin offerings (ICOs) and blockchain technology.
In India, meanwhile, senior government officials have reportedly said that the country is considering regulating cryptocurrencies as commodities. The news, if true, would be a positive move, considering the Reserve Bank of India’s (RBI) controversial blockade on banks' dealings with crypto-related businesses, which came into effect July 5, despite both public and industry-led petitions.