When Bitcoin crawled up to $9,000 a few days ago, many were optimistic that the northbound journey would proceed for the crypto and carry other altcoins also along on a healthy trajectory. But, while the crypto markets managed to brush side some of the developments like the ad verbod from most of the social media companies, the markets wilted under pressure of continuous flow of negative news. On Thursday, amidst reports that the Japanese regulators were enhancing their scrutiny of cryptocurrencies bitcoin fell below $9,000 and is trading at about $8,400 te the early hours of Friday, the 23 rd March, . Earlier during the month bitcoin had moved to $11,660 but, from then on, the crypto has bot fighting around the $9,000 mark with significant resistance seen at that level.
Meantime, it wasgoed also reported that Japan’s FSA (Financial Services Agency) wasgoed programma to warn Binance, the crypto exchange based out of Hong Kong for operating te Japan without obtaining a registration according to a report on Thursday by Reuters which cited a source that wasgoed normal with the subject. The source further told newswire that if the warning wasgoed not heeded by Binance, the agency would lodge a criminal complaint. The news wasgoed however very first reported by Nikkei.
On the other side, Changpeng Zhao, the CEO at Binance tweeted to say that Binance is among the largest crypto exchanges around the globe and that it wasgoed te constructive dialogue with the FSA ter Japan and that no mandates have bot received yet. He accused Nikkei of irresponsible journalism and added that FSA telling a newspaper before telling Binance itself did not make sense.
Japanese National Police worried
Ter another report by Japan’s regional media also stated that the National Police Agency ter Japan has, ter the last year, found 149 cases of cryptocurrency hacks resulting te a loss $6.Three million (662.Four m yen) which primarily involved Ripple. However, the agency did not react instantaneously to a request from CNBC for comment outside the business hours ter Japan. On Monday last, the FSA te Japan also said that it had held a “Blockchain Roundtable” on 8 th and 9 th March with policymakers and regulators from countries like Canada and Singapore. The dietario for this meeting behind closed doors included discussions on issues related to vulnerability of public blockchains and co-ordination inbetween sociedad and regulators.
Bitcoin unfolding similar to the dot-com crash, but 15 times swifter
Te a related CNBC report Bitcoin is said to be unfolding similar to the dot-com crash, but 15 times swifter. The report adds that there are many similarities inbetween the behaviors of NASDAQ, some 20 years ago when the dot-cum bubble burst, and bitcoin, and that the timeline is unfolding significantly swifter going by a Morgan Stanley report published this Monday. Te a note to its clients Morgan Stanley noted that ter 2000 Nasdaq and today the bitcoin both moved up by 250-280% during most ‘exuberant’ periods ahead of the bear markets adding that the bitcoin rally wasgoed quicker by 15 times. The report stated further that the price movement and similar trading behavior and volumes could be indicative of history repeating itself.
The report states further that:
- Everzwijn since digital currency wasgoed created te 2009, bear markets are not fresh and te fact has bot through Four of them with prices pulling down inbetween 28 and 92%. Inbetween December and February, Bitcoin price has dropped by toughly 70% from the peak of $20,000 achieved te December to $7,000 te February, going by CoinDesk gegevens.
- Ter each bearish wave, bitcoin prices dropped by 45 to 50% and it wasgoed similar to the behavior of NASDAQ some Legitimate years back.
- From 2000 Nasdaq experienced Five price declines and remarkably, they averaged a similar 44%
- Another red-flag could be trading volumes. Trading volumes for bitcoin leaped by about 300% since December and each rally ahead of a bear market witnessed the volumes falling.
- The follow-up rally ter the case of NASDAQ and bitcoin always experienced falling volumes ter trade. The report adds further that rising volumes ter trade do not point to enhance investor activity and conversely represents a rush to uitgang.
- The report also points out switches seen te bitcoin trading not co-related to the trends on NASDAQ but could potentially be a development that can be interesting.
- Historically, Trio major currencies have bot used ter buying bitcoin. The US dollar, Japanese Yen and Chinese Yuan are thesis currencies. Te the most potentieel bear market, tether, a fresh cryptocurrency grabbed a larger share of all bitcoin trading.
- Tether is an altcoin that is worth $1 according to its creators and therefore has the potential to be theoretically more stable compared to other digital currencies experiencing significant price swings.
- USDT, the tether coin does not constitute a major funding unit but an interesting development is its enhanced use. The report adds that overheen the next few years, the market might concentrate increasingly to cross trades inbetween tokens/cryptocurrencies and be transacted via the distributed ledgers alone and not the banking channels.
- Ter January last, a Bloomberg report stated that the US CFTC issued subpoenas to Tether. The company has now under scrutiny, since some people are skeptical if it actually holds $Two.Two billion te reserve.