Trading platform SFOX presented the monthly report on the state of the cryptocurrency market. It says that the situation in NIS is moved from the “neutral” to “slightly bullish” stage. The transition was triggered by a series of positive news from China regarding the adoption of the blockchain. Other potential factors identified in the report greater clarity on the part of regulation of cryptocurrency in Hong Kong and move the coins the big players.
The report analyzes market data over the last eighteen months with eight major exchanges, including bitFlyer, Binance, Bitstamp, Bittrex, Coinbase, Gemini, and itBit Kraken. And the levels of liquidity six scriptaction, among them Bitcoin, the Ethereum, Bitcoin, Cash, Litecoin, Bitcoin SV and Ethereum Classic.
Recall that liquidity is a property of assets to be sold quickly at a price that is as close as possible to the market.
China and Bitcoin
The report found that the recent statement of China regarding the approval of the blockchain has helped the market to get stronger, although China’s position on the cryptocurrency still remains ambiguous. In late October, President XI Jinping said the standing Committee of the Politburothat the blockchain is a significant technology in which to invest. Literally within the next two days, the Bitcoin price increased by 42 percent from 7448 to 10610 dollars. In SFOX noted that also jumped and the volatility of Bitcoin — from 43 to 70 percent.
Volatility — the volatility of the asset price. The latter can go both ways.
One statement is not done. China has also extended project financing blockchain startups to 19 provinces and abandoned plans to ban the use of bitcoin mining. According to SFOX, China also has a huge “potential significant impact on the industry of mining BTC and how this industry will develop further as China and US”.
At the end of last month, one of the largest mining companies in Canaan Creative has also filed an application for IPO in the US. According to preliminary calculations, the company public offering of shares will allow to attract up to $ 400 million. The main competitor of Canaan, Bitmain, has also filed an application in the hope to collect 300 to 500 million dollars. If these IPO will eventually happen, it will provide American investors with a new tool for investment — though indirectly — in Bitcoin through traditional markets.
The report also stated that the upcoming political instability in Hong Kong and the United States may compel people to look at Bitcoin. At least in connection with a pretty good level of computer and financial literacy in these regions. Analysts SFOX also refer to the previous reports, which is clearly visible the link between cryptocurrency markets and trade war between China and the United States. It is worth noting the introduction of a clearer regulation in Hong Kong. According to the latest data, now the local crypto currency exchange can license the activity.
What about the whales?
The guys from SFOX also revealed a link between the Bitcoin whales and wider changes in kaptarenko. For example, on the night of 21 October, the price of Bitcoin fell nearly 20 percent from 8325 to 6737 dollars. Three days later the price increased by 60 percent, to 10610 dollars. Why?
SFOX attribute this to large-scale transactions of large players who have millions of dollars. There is a high probability that whales was the main reason for such significant price differences leading cryptocurrency.
In the end in favor of increasing the play love of China to the blockchain, political instability and major players. We will remind, against them play a slow acceptance among institutional investors, the lack of technology and the General mood in the industry. Read more about the problems of the niche, we wrote in this article.
The current rate of coins you can see in the class ranking cryptocurrencies, and in cryptodata traders there are a lot of other useful information.
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