Cryptos mount recovery after bitcoin falls below $5,800
Concerns over how regulation of the crypto asset market will develop have put digital currencies into a downward spiral in recent months and on Sunday bitcoin fell below the $5,800 mark for the first time since November 2017.
Add to that concerns over the security of crypto exchanges – with close to $1.1bn worth of digital tokens stolen from exchanges this year – and sentiment for alternative currencies has become pretty toxic.
Crypto capitalisation knocked
Indeed, CoinMarketCap says the market capitalisation of the entire cryptocurrency market now stands at around $242bn. In January, at its price peak of $19,870.60 the market capitalisation of bitcoin alone was more than $300bn.
The issue of regulatory control over the crypto asset market is becoming fragmented even before any firm rules have been established.
The Securities and Exchange Commission (SEC) in the US has declared that both bitcoin and ethereum are not securities and, therefore, it has no regulatory oversight of them. However, the markets regulator has said it considers initial coin offerings (ICOs) to be securities, and so those cryptocurrencies derived from ICOs will come under the SEC’s scrutiny and must be registered.
Institutional cash coming
Charles Hoskinson, the founder of Ethereum, tweeted over the weekend that once the regulatory push was over institutional money would start entering the crypto market.
He said: “What’s often missed by the ‘cryptocurrency-is-going-to-die-broken-record-media’ is that after the next wave of regulation, Wall Street is showing up to the party with all their locked up capital. That’s tens of trillions of dollars entering the space eventually. The future is bright.”
What's often missed by the cryptocurrency is going to die broken record media is that after the next wave of regulation, wall street is showing up to the party with all their locked up capital. That's tens of trillions of dollars entering the space eventually. Future is bright
— Charles Hoskinson (@IOHK_Charles) June 21, 2018
On Sunday, bitcoin fell as low as $5,785.30 against the dollar – its lowest mark since November, when the spectacular crypto rally that saw bitcoin nearly hit $20,000 was just getting going.
Monday price action
On Monday, however, the market was recovering some poise:
- Bitcoin rose 4.4% back to $6,160.20
- Ethereum gained 1.1% to $449.83
- Ripple climbed 3.4% to $0.48
- Bitcoin cash rose 7.6% to $750.68
- Eos added 8.1% to $7.85
- Litecoin was 5.6% higher at $80.25
- Stellar lumens gained 5.6% to $0.19
- Cardano rose 3.6% to $0.13
- Tron climbed 2.8% to $0.04
- Iota added 3.3% to $0.98