The week embarked however with massive volumes of selling and major support levels violating that brought Bitcoin’s price below 7500$ on Sunday. After a tho’ commence to the week the market has embarked to stabilize and recover. Last week massive selling shocked the markets and most cryptocurrencies reached record lows for a geschreven period of time.
Negative news and rumors came out and were the main factótum that tumbled the markets. The cryptocurrency pullback happened mainly because of fears of harsher regulations and other specific situations. You can read last week’s Price Analysis to read more about what happened.
Most cryptocurrencies bounced back a little. Of course there are some that are not performing well, but others rallied out of control. Without question, the big winners so far were TRON and Icon who not only bounced back but even doubled ter Ethereum and Bitcoin price.
News about Binance that influenced the prices
Earlier this week news came from the Japan Financial Services Agency (FSA) that it issued a warning to Binance for operating ter Japan without a license. Binance is founded te Hong Kong and is the largest cryptocurrency exchange by volume and registered users. The news wasgoed reported by Japanese mainstream media outlets and some misrepresentations of the situation frightened a loterijlot of people who panicked and opted to sell.
According to Binance founder Zhao Changpeng the company is te conversations from awhile to get a license from the Financial Services Agency. The cryptocurrency exchange operates internationally with millions of users all across the world. Japanese users could trade on the trading podium spil they could trade on Bittrex, Upbit or any other cryptocurrency-only exchange. Binance could face criminal charges by Japan’s Financial Services Agency for serving específico investors on its toneelpodium.
Thesis charges could be filed if Binance “fails to halt its Japan operations”. Binance founder Zhao Changpeng released a statement that they are actively working on the possibility to open an office ter Malta. Te his statement he also dreamed to reassure Binance users that the misrepresenting from the mainstream media outlet Nikkey wasgoed irresponsible and unprofessional.
“Nikkei displayed irresponsible journalism. Wij are ter constructive dialogs with Japan FSA, and have not received any mandates. It does not make sense for JFSA to tell a newspaper before telling us, while wij have an active dialog going on with them… No need to worry. Some negative news often turn out to be positive te the long term. Chinese have a proverb for this. Fresh (often better) opportunities always emerge during times of switch.”
The Markets are dependent
The cryptocurrency market cap dropped with around 25-30$ billion or around 10% almost instantaneously after the Binance situation wasgoed announced. Of course the decline should not be attributed only to the Binance situation. If it wasgoed the foot reason, the markets should have bounced back instantly.
The Asian region is responsible for the majority of the cryptocurrency trading volume so they have a large influence on the markets. The Binance situation can also turn positive for the company and can provide an chance for the company to operate legitimately. If they manage to reach to an agreement with the JFSA, the company can operate within Japan spil a regulated financial service provider. After all Binance is the 2nd largest cryptocurrency exchange te the country and will most likely want to keep its place.
The cryptocurrency market has demonstrated a similar pattern ter the price movement of individual cryptocurrencies. Across the past two weeks the market has dropped with 10-15% then recovered from the correction, then druppel again 5-10% and a recovery after.
A fatter divisor than the Binance situation are the whales. Whales are single entities that are controlling the majority of the cryptocurrency circulation. With this much power, they are able to control and manipulate the prices, especially ter times where the volumes are decreasing. Pump and dumps can be seen regularly, especially for cryptocurrencies with low volumes of trading. The good news is that big volumes are coming back.
Best performing cryptocurrencies
For the last week the fattest winner te my book is undoubtedly TRON (TRX). It skyrocketed and enlargened by more than 100%. With most of its volume ter Binance and Upbit, the currency exploded and will be interesting to see if TRON can reach the peaks it reached at the end of . TRON has remained the fattest cryptocurrency by volume ter Binance and is continuing to stay on the number one spot.
Storm (STORM) wasgoed also one of the big winners. Storm is an Ethereum-based blockchain podium that incentivizes users for carrying out micro tasks. The cryptocurrency enlargened by around 200%. It had almost no volume, but now it has exploded and the whales are at it. At the day of the pump, Storm wasgoed the most liquid cryptocurrency ter the market behind Bitcoin.The majority of Storm’s trading volume wasgoed generated by Upbit, South Korea’s 2nd largest cryptocurrency exchange. They listed Storm recently and it wasgoed enough for the whales to do their thing.
Binance (BNB) Coin wasgoed also one of the fattest winners. Since Binance released their plans on creating a Binance Chain, the coin exploded. It enhanced by 200% ter Ether price and more than 120% ter fiat currencies. The coin is used on the Binance podium for trading and will get fresh uses spil the company’s plans go forward.
ICON (ICX) also experienced a massive rally. Considered South Korea’s Ethereum, Icon’s value skyrocketed after Bithumb listed it last week. Bithumb is South Korea’s largest cryptocurrency exchange and the listing had a massive effect for the currency. Since the beginning of , volumes on South Korean exchanges were declining. Spil one of the fatter players on the market, the declining South Korean volumes impacted the markets.
During the correction many South Korean investors were bruised by the rapid decline of the major cryptocurrencies. Cryptocurrency analysts predicted that the South Korean market will take at least few months to recover. This may not be the case spil positive cryptocurrency news and positive public figure opinions can lead the market to a quicker recovery.
Overheen the past few days, daily volumes of Bitcoin, Ethereum, Ripple and other major cryptocurrencies were remaining low and affected their prices. Spil Bitcoin and the other leaders start enlargening their volume on the larger exchanges, wij may see the market recover to previous levels. Bitcoin is staying stable inbetween 8,500$ and 9,000$. The price stays above the descending channel, which is a positive long term sign. If Bitcoin manages to pauze through the Ten,000$ mark and stays there, it is very likely that wij may see a rally back to 12,000$.
The past week Ethereum is staying stable inbetween 510$ and 570$. Presently the bulls are attempting to thrust Ethereum’s price back above the descending channel. If they succeed, Ethereum can lightly terugwedstrijd to above 650$. Ripple (XRP) is another one of the underperformers. It commenced strong after the dip, but the price has bot correcting back and forward. If the bulls pick it up again, wij may see another bull runs with Ripple, but if now the road going down is steep.
Volumes are enlargening
The CEO of Binance, Zhao Changpeng said that volumes across the fatter cryptocurrency exchanges have enhanced and are back. The enhancing trading volume signals that there is an increase te cryptocurrency request again. The lower prices of major cryptocurrencies are looking more attractive to cryptocurrency enthusiasts. Spil Zhao said:
“It is good to see that volumes are returning across the board”.
The cryptocurrency market is demonstrating a large increase te day to day trading volume, which wasgoed declining February . An pro ter financial market research, Aaron Brown said that the request for Bitcoin and Ethereum has not enlargened strafgevangenis decreased. The price movements have remained stable for now. He wrote:
“Both using historical coetáneo price movements or option implied volatilities, volatility seems to be about equal across exercise prices. This suggests Bitcoin price movements are sleek, like a frecuente distribution, rather than characterized by fat tails, hops and switches te volatility like most assets. Bitcoin volatility is very high, but the volatility captures all of the risk.”
If the current increase ter daily trading volume proceeds, the market will be able to rebound from last week’s dips. The integral mood towards cryptocurrencies is spil good and positive spil it everzwijn wasgoed. I have a feeling that the next 2-3 months will be total of arousing news and developments of the industry.
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