The leading cryptocurrency previously arrived where it has been several times this year: under the important $10,000 mark. The market cap of crypto-assets traded on exchanges was around $270 billion, more than $30 billion over the past four days.
Most other crypto assets were also in the downward trend. There were several reasons for this:
After the US Congress expressed significant concerns over Facebook’s planned cryptocurrency Libra, the entire market crashed and was in a down-trend. Meanwhile, there were some positive comments, but not enough to reverse the trend.
The largest margin trading platform, Bitmex (which has a higher trading volume than Binance’s largest “traditional” platform) is currently under investigation by the US CFTC. The operators were accused, to have made access possible to US customers despite a prohibition. Since the beginning of the investigation, the trading volume at Bitmex has plummeted by around 50 percent.
TRON’s popular Crypto-Influencer and CEO, Justin Sun, made headlines this week over a planned meeting with investment guru Warren Buffet. Actually, lunch with other representatives of the crypto industry should have taken place on Thursday, July 25th. The goal: to close the “gap between the blockchain industry and traditional investors”.
But then the meeting was postponed at short notice. According to Sun, it was postponed because of his health reasons (he is said to have kidney stones), but there are reports from various sources that Sun is being prosecuted because of money laundering and therefore unable to leave China. This also cast a cracking light on the crypto market and intensifies general uncertainty.
At Ethereum, the second most important blockchain on the market, updates were constantly being postponed. For the next major update, Ethereum 2.0, the community has to wait for the 3rd of January 2020. That the Ethereum developers want to scale to Bitcoin Cash was also not well received by the community. The biggest update in the history of Ethereum, among other things, plans to change the consensus mechanism from “proof of work” to “proof of stake”.
The last days did not only bring negative news. A Chinese court has ruled that Crypto is a digital property. This suggests that cryptocurrencies could be recognized as legal in China. So far, China was more known for “Crypto Bans”, which were targeted at miners. The court ruling speaks in favor of loosening the current law and could make the market more attractive to Chinese investors.
Overall, however, there was generally a lot of uncertainty in the market, which reflected the past downtrend.