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Bitcoin (BTC) – After one of the most difficult weeks for the markets scrambled in an otherwise bearish year, the top ten market capitalization currencies seem to be recovering.
On Monday, total cryptocurrency market downturn declined by less than $ 200 billion for the first time since last year, reporting a relatively low level against the dollar valuation of almost three trillion in January 2018. In particular, the Altcoins they fell sharply, with currencies across the board that recorded double-digit losses throughout the week.
Ethereum, an otherwise strong currency that has thrilled both developers and investors, has gone on to an assessment not seen since last year, making a full retraction of value after the upward rush to start the process. year. Various analysts are not agreeing on the exact reason for Ether's rising price, but two predominant theories have emerged. The first was proposed by Biswas Das, director of the Crypto Hedge Fund BloomWater Capital, which accused the ICO market of having caused a decline in Ethereum. According to Das, the collapse of the markets in addition to the occasional venture capitalists was leading to a mass sale in the Ether collected for ICO, partly to cover costs, but also to block profits before a total collapse of the market, [19659006] "These startups are collecting a lot of money but they do not have sufficient cash management or liquidity management experience, so they are selling too early and causing a lot of pressure in the market – it was good last year but right now the market is so fragile to cause much pressure. "
Arthur Hayes, CEO and co-founder of the BitMex cryptographic exchange, echoed the sentiment that ICOs were damaging the price of Ethereum, boldly stating that it believed that price depression would bring the ether to fall below $ 100.
While Ethereum has benefited for much of 2017 and at the start of 2018 of the massive boom in the development of ICO, of which almost every project is built on the ERC-20 platform, the crypto price has led the initial currency to offer venture capitalists the strength to sell Ether. However, in a statement to CCN Mati Greenspan of eToro accused the falling price of cryptocurrency and Ethereum on a strengthened dollar. According to Greenspan, US inflation efforts are leading to a stronger dollar, which means investors have fewer incentives to protect their funds from inflation in cryptocurrency, particularly with the massive price volatility that is causing chaos in the market, [19659006] "As the US moves to tighten its economy and avoid strong inflation, they are taking steps that are strengthening the dollar, because the US dollar is the reserve currency Overall, many smaller economies rely heavily on a stable exchange rate with the greenback, and since the dollar is viewed as a permanent reserve of value at the moment, there is not much incentive for people to keep their money in digital assets. "
Most of the market is still focused on a decision by the Securities and Exchange Commision of the St United States (SEC) on the opportunity or not to approve a fund traded on the Bitcoin exchange. The belief is still that institutional investors and most of the Wall Street players are waiting for more government regulation in the cryptomarkets before entering, which has produced a great deal of interest on ETFs.
At the time of writing, total market capitalization was $ 210 billion.
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