The crypto market is seeing a bearish wave which has negatively impacted the cryptocurrencies. Bitcoin has not been able to make a break for the upside. It dipped 1.31% in the last 24 hours and is trading at $16,501. Ethereum also lost 1.30% of its value and is holding at $1,187.
Fluctuations in the market will lead to further decline. It should be noted that previous bearish changes had resulted in a significant decline in value. Moreover, the influx of capital to the market has been affected by previous bearish waves. The International Monetary Fund highlighted that the speedy decline of Bitcoin and the collapse of multi-billion dollar companies have created chaos in the market. As such, calls for tighter crypto regulations have become louder.
However, some believe that the recent debacles may ultimately strengthen the crypto industry. It will push regulators to ratchet up their efforts. Benoit Bosc, global head of product at GSR, said one is going to be in this situation where all of a sudden one has to manage how much information one wants to reveal. He believes it might be more information than one can actually want to reveal. Bosc quoted Warren Buffett’s statement when the tide goes out, one can see who is swimming naked.
Nicholas Colas, the co-founder of DataTrek Research, says the current crisis will take time to be resolved. He said the space until then will likely see more selling pressure. The broader crypto market has dipped significantly from $857 billion to $871 billion. The industry, despite reclaiming $12 billion, is still far from its peak capitalization of more than $3 trillion.
