The crypto market sank deeper on Tuesday as the future of cryptos remains foggy. Bitcoin broke its 200dma, which stands at $6,275, to the downside and even fell below the $6,000 threshold during the Asian session. The total market capitalization of crypto assets fell more than $100 billion over the last 24 hours to reach $280 billion dollar. Since the all-time high of early January, more than $550 billion of value went up in smoke. On average, this correspond to a decrease of $18 billion everyday over the last 30 days.
As usual, the fear that South Korea and China, considered as the most crypo-enthusiast countries, will ban crypto-currencies has made investors nervous. This tension increase another notch this week as the Chinese government is on the cusp to block domestic access to foreign exchanges and websites that provide ICO investments. Meanwhile, South Korea’s Finance Minister not only confirmed that there will be no ban on cryptocurrency but said that “blockchain is an important technological breakthrough” and that the ministry “will impose strict regulation for negative use cases of cryptocurrencies”.
Finally, the hearing of CFTC’s Giancarlo and SEC’s Clayton before the Congress could be the final in the coffin for the crypto-market. The two tops market regulators are calling – according to the document that contains the prepared remarks - for a federal oversight for crypto trading platforms. According to the document, there is no discussion of banning cryptocurrencies, but rather to regulate it. Given the fact that neither the SEC, nor the CFTC, has clear oversight of crypto exchanges, this leave investors in the dark as they don’t know what fate has in store for them.
By Arnaud Masset