At the beginning of the week, the cryptocurrency market was actively growing, but then began a downward correction and lost a significant part of the positions won. Currently, Bitcoin is trading at 7720.0 (+4.8%), Ethereum is at 134.00 (+0.6%), Ripple is at 0.2000 (+3.3%), Tether is at 1.0054 (+0,1%), and Bitcoin Cash – near 234.50 (+5.5%). The total market capitalization during the week reached USD 219 billion, but then decreased to USD 206 billion. Bitcoin’s market share reached 69%, but so far has dropped to 68.5%.
According to most analysts, the growth was caused by exacerbation of tension in the Middle East. After the assassination of Iranian general Qasem Soleimani, relations between the United States and Iran could become military, which aroused investor interest in cryptocurrencies as “safe haven assets” like gold. The growing popularity of digital assets is confirmed by Bakkt. Since the beginning of the year, the daily volume of concluded contracts has been stably high, and on January 7 it reached USD 40.8 million, which is the second highest figure after the opening of trading in September. The correction at the end of the week was a consequence of a statement by US President Donald Trump, who made it clear that there would be no war, but instead the United States would introduce new sanctions against Iran.
From the news of the cryptocurrency industry, it is worth noting the refusal of the New York court, where the SEC lawsuit against Telegram is filed, to request information from the company about the use of funds raised by the TON project during the ICO. Representatives of the regulator previously insisted on this, but Judge P. Kevin Castel considered that this data was not directly relevant to the case. The Libra project also continues to be criticized by authorities. Representatives of the Reserve Bank of Australia said that the new product will not be in demand, since Australia already has many systems that allow real-time payments.
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One should also note the comments of the ECB head Christine Lagarde, who confirmed the regulator’s interest in the development of the state cryptocurrency, which will accelerate international payments. However, Lagarde noted that such an asset should not displace the assets of private companies from the market. Also, the vice president of Libra Association, Dante A. Disparte, accused Bitcoin of not being a full-fledged payment tool ao that it will not be widely used by people around the world. Probably with these words, Disparte is trying to hint at the advantages of Libra over the first world cryptocurrency.
Next week, the digital market may stabilize or continue a moderate decline.
Jason P. Vasser gives us an analysis into the recent geo-political news hitting the services, legal, and technology sectors. He has been an financial advisor for over 10 years in the NYC and in recently turned his experience investment and passion for journalism into a full time role. His responsibility is for the analysis of companies and writing valuable information for shareholder community.
Jason is an a seasoned writer who has a passion for tech and travel. His goal is to see travel the world and report on the use of technology from a market perspective.