The cryptocurrency started realizing bear market slashed 10 months low after Bitcoin’s largest rival declined amidst the U.S. regulators restricted trading activities in two securities that are linked to digital assets as per the valid source of Bloomberg.
The second largest cryptocurrency trailing Bitcoin, Ether declined by 8.9 percent from its level at 5 pm New York time on Friday as reported by Bloomberg. The crypto major Bitcoin lost 2.1 percent whereas its market capitalization of digital assets marked by CoinMarketCap.com slashed to $197 billion declined about $640 billion from their January peak.
While looking at the entire scenario, cryptocurrencies have slashed since last six weeks following the concerns regarding the adoption of digital assets will take longer than it was anticipated earlier. So much so that the U.S. Securities and Exchange Commission restricted trading activities of two exchange-traded notes link to cryptocurrencies caused the major concern.
Besides this, Ryan Rabaglia, Head of Cryptocurrency trading firm, OSL in Hong Kong said, “The temporary suspension of these products led to an initial knee-jerk reaction. But ultimately, it’s just another obstacle for the market to overcome.”
If we analyze the market movements, cryptocurrencies remained under pressure at present even though the global banking giants Citigroup Inc. has created a certain mechanism that streamlines investment in this space. It has acquired to act as an agent issuing digital asset receipts or DAR that consolidates trading activities by the authority without direct ownership of the coins.
Amidst all these, the Bloomberg Galaxy Crypto Index of larger virtual currencies slashed by 4.1 percent to 392.68 at 8.28 am in London. Besides this, Bitcoin declined to $6313.51 and Ethereum slashed to $199.05. Ether slashed to a larger extent than Bitcoin recently following it’s disposed of by blockchain based firms. There are numerous examples where starts-up have raised Ether from investors through ICOs and ultimately they have sold Ether in order to cover up their overhead expenses and development costs.
Speaking further to the entire subject matter, Ryan Rabaglia said in his statement that “The rhetoric around ICOs continuing to unload their raise proceeds on the market remains valid. It’s hard to see how that storyline will go away any time soon.”
Let us not forget that be it capital markets or stock markets, they are highly volatile and succumbed to the macro fundamentals in place!!