Six Possible Market Developments Behind Bitcoin’s Recent Price Volatility
If you have been watching the market closely, then you know that there's no denying that it has been a pretty volatile week for both Bitcoin and other altcoins. If anything, almost markets have shed over 10% of their value over the past 24 hours alone – and everyone is seeking answers to why this is the case.
Digging a little deeper reveals a series of interesting developments that can all be traced back to the performance of the markets. The news is that there is always more to this little-understood market than what meets the eye.
1. More Bitfinex/Tether Drama
A significant percentage of experience crypto pundits and digital coin enthusiasts have for a long time now claimed that there may something amiss with Tether and Bitfinex. For starters, both of these have been recently suspected of influencing the price of Bitcoin artificially.
And, as expected, this development would then go ahead and affect the performance and behavior of all markets across the board in what can be said to be a ripple effect; other alt coins inevitably derive their value from BTC.
2. Failure of Blockport's STO to Raise the Much-needed Capital to Stimulate the Markets
It's no secret that ICOs have recently gone out of fashion. It has been increasingly harder to raise money to fund project through traditional ICOs – and that's why numerous firms and key players are trying to make do through STOs.
STO or security token offering may be somewhat relatively more successful although the rate of success is lower than that of ICOs. A typical example is Blockport – which is a company that particularly specializes in letting users buy BTC in exchange for Euros – has attempted to raise more than 1 million euros in a bid to keep their business afloat. This has, in turn, contributed to the recent unprecedented spike in BTC's charts.
3. Prohashing no Longer Supports BCH ABC Mining
The Bitcoin Cash community has also not been left behind in the latest twists and turns of events. Just last week, Prohashing dropped their mining support that was the mainstay for BCH ABC client. In lieu of this, they have now switched to using Bitcoin Unlimited Cash. This development has had a price surge effect on BCH.
4. Mounting BTC Transaction and Operation Fees
The present correlation between BTC's inert value and its rising transactional and operational fees has always been a subject for debate for quite some time now. However, the average BTC transaction fee has quadrupled this past week without any apparent reason.
Although it is highly unlikely that such a development could trigger a major selloff, it is still not a positive development in any way whatsoever.
And the reason behind this remains that it is presently more expensive to send bitcoin across any network than any other time before. Which also explains why a few people are looking to cash out and await a lower entry point.
5. Binance Announces that is Now Allows Withdrawals
While this could be quite unrelated to the currrent general market trend, it is still worth noting that Binance has recently allowed controlled withdrawals for most,if not all, of tokens. Which, of course, means that the exchange is slowly but progressively resuming its operations that were previously halted after the latest infamous security breach.
6. Poloniex Cracks Down on Suspected or Potential Securities
This has been expected for some time now,although ICO tokens which are now labeled as securities are increasingly coming under more and more pressure. At the moment,the tokens may be listed on numerous exchanges already though not accessible to the average American user.
If anything,this may have influenced Poloniex's decision to stop the trading of nine potential ISOs to US users.
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Bitcoin’s price is $47,273.36 BTC/USD exchange rate today. The real-time BTC market cap of $880.27 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $16.78 Billion and live coin value change of BTC 0.12 in the last 24 hours.
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