The market correction continues on for the fifth week, and the total market cap of all the projects marked its lowest point on Tuesday with 277 billion dollars. An almost immediate return followed to levels of around 370 billion dollars as if a stable balance between demand and supply was reached. Indeed, the week ended in an upward direction, and on Saturday evening UTC we marked the end of the week with 408 billion dollars, but the market demonstrated its volatility again and returned to the level established some days ago of a little below 400 billion.
The market movements are not determined by the appearance of some systematic risk in the crypto field or news regarding problems with the technology. On the contrary, we are witnessing targeted action, including from regulatory authorities, directed towards supporting the development of the technology and its implementation, regardless of the field, be it in the financial sector or other spheres of business.
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Last week we mentioned the strategy called “dollar cost averaging” as a means to lower the cost of your investment. Here is an example:
Let’s assume you have decided to invest $1000. in ETH each week. A month ago, when the price of one ether was $1200, you would have bought 0.83 ETH. A week ago, when the price was $900, you would have bought a new 1.11 ETH, and last Tuesday, when the price of an ETH was only $570., you would have acquired another 1.75 ETH for the same sum.
If you buy less when the market is overvalued or going up, and more when the market is undervalued and going down, you effectively take advantage of the plunges of prices in the market. If you maintain a more long-term outlook on your investment and keep an investment discipline, then you could increase your crypto investment and eliminate the risk of entering the market at a sub-optimal moment.
The Chair of SEC announced support for cryptocurrency in a hearing before Congress
While governments and regulatory authorities around the world threaten the development of the crypto field by introducing regulations that would restrict its development, the two biggest financial agencies in the USA have declared their support for it. The Chair of the SEC, Jay Clayton, and CFTC head, Christopher Giancarlo, have similar views in their testimonies before Congress and did not deviate from the position they held in the last documents from Monday. They officially announced the need for careful regulation that would protect the interests of investors in the crypto field and would devise a new financial class for their needs that would make the development of the technology and its use in the financial sector easier.
Hong Kong demanded leading crypto exchanges to delist some ICO tokens from their lists
The local regulator took another step in the direction of regulating the cryptocurrency and crypto tokens exchange desks and more particularly those, who list new ICOs. In an announcement from Friday, the SFC stated that they have sent out warning emails to seven exchange desks in which they mention that it is highly likely some tokens will be considered financial assets and should not be traded. The names of the desks were not specified, but it is believed that they are in the top 20 in volume of operations. This resulted in some of the exchange desks replying that they do not trade with these tokens or they just took some of them off their lists.
This move is considered to be a new step towards regulating the cryptocurrency market in Hong Kong with the interest of small investors in mind, after announcing their concerns in another statement from the 5th of September last year.
The first government blockchain in India starts in 2019
The central Indian government gave start to the first implementation of IndiaChain. The students graduating in 2019 will be the first ones whose diplomas will be stored in a shared register. The educational sphere will be the first serious test of the ambitious government blockchain technology project, developed by the Indian Technological Institute and the University of Delhi. Later on the same blockchain register will be used to store and authenticate the state property register.
Coinbase is introducing SegWit
The popular cryptocurrency exchange desk announced over Twitter this Monday that they will be implementing the upgrade regarding scalability Segregated Witness for Bitcoin addresses (SegWit) It will help decrease the time needed and the amount of taxes required when making a transaction in BTC. Although Coinbase is in the final stages and final testing before implementation, they pointed out that the security and stability of the platform is their main priority.
The news and other materials, published here, are for educational purposes only and do not provide recommendations or suggestions related to making deals with cryptocurrency, crypto tokens, smart contracts or other products of the blockchain technology. The products of blockchain technology (cryptocurrency, crypto tokens, smart contracts and others) are not regulated or protected by the legislations of the EU or the Republic of Bulgaria at present. Deals with products of blockchain technology (cryptocurrency, crypto tokens, smart contracts and others) have a high degree of risk.