After a two-week growth, the digital market started a correction: the position of most currencies has seriously weakened. Currently, Bitcoin has dropped to 8370.0 (−3.8%), Ethereum is trading at 157.00 (−4.9%), Ripple is near 0.2160 (−7.2%), Bitcoin Cash is at 306.00 (- 8.9%), and Bitcoin SV is at 258.00 (−10.1%). The total market capitalization during the week decreased from 237 to 229 billion dollars. Bitcoin’s market share ranged within 66.6-65.5%.
The positive impact of institutional investors trading Bitcoin options on the Chicago CME exchange has given way to long-term negative pressure from global regulators. The problems of launching Libra and Gram projects are highlighted again. Vodafone left the Facebook project this week.
Representatives of the company deny that their decision was caused by pressure of global regulators on the Libra project, and explain it by the desire to focus on the development of their own payment service M-Pesa.
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However, this is already the 8th company that left the project, which makes investors doubt the possibility of its implementation. According to The Block, the majority of large representatives of the cryptoindustry (72 out of 106 respondents) do not believe in the launch of Libra this year.
The SEC is also continuing its lawsuit against Telegram. On Monday, the Blockchain Association, which includes companies such as Coinbase, Circle, 0x, and Ripple, defended the TON project and the Gram token. The organization’s statement said that Telegram had made enough efforts to meet the necessary requirements, and the court should not prevent the launch of the product, since such actions could harm investors and the cryptocurrency market in general.
In response, SEC representatives questioned the possibility of implementing the Telegram Open Network, actually again accusing the company of cheating investors.
Secret Indicator –
One should pay attention to the decision of the largest mining pools of the Bitcoin Cash network (BTC.top, Antpool, BTC.com, ViaBTC, and Bitcoin.com) on the deductible 12.5% of the reward for mining blocks to the cryptocurrency development fund.
The deduction plan is designed for six months and is designed to collect about 20,600 BTC (about USD 7 million). Despite good goals, this decision was generally taken negatively by the market, since miners who refuse to make deductions may lose their block rewards altogether, which actually makes the payment mandatory.
In addition, the ease with which large mining pools make decisions vital for the network has raised concerns about the excessive centralization of Bitcoin Cash. Ripple CTO David Schwartz has denied allegations that the company has the ability to control or block XRP token movements. Schwartz said this is not possible because the network is decentralized. We should also note that work continues on testing the Ethereum 2.0 network, the launch of which is expected in the first half of the year. Currently, the largest test network is Ethereum 2.0 from Prysmatic Labs; it allows to evaluate the advantages and disadvantages of the new system for individual users and service manufacturers. There is also an active work on the security system: hackers are urged to crack the test network so that developers can eliminate its vulnerabilities. The cryptocurrency market may continue downward correction or consolidate next week.
Robert Thomas has over 14 years experience in the investments on the institutional side of markets and has an “insider” view on the markets. In addition, he is an futures day trader that focuses on analyzing fundamentals, specifically earnings reports and technical levels. He has a Masters Degree in Business and Economics.