After recording the steepest daily drop in valuation over the past few years, the crypto market has been struggling to rebound in a convincing manner. This is what pushed the dominance index of Bitcoin to 55%, making Bitcoin tokens more than half present in the entire crypto world.
The 55% dominance index of Bitcoin is the highest point that the major cryptocurrency sees since December 2017. As the tokens lost out largely against the largest cryptocurrency by market cap, BTC’s index increased over the past few days from 51% to 55%.
A lot of people are confident that the crypto market did not experience a drop below $200 billion – or near the yearly low of $192 billion. However, it is safe to say that Bitcoin, Ethereum and most of the top altcoins recorded a steep downward trend with little to no support in the mid $6,000 margin.
The good thing is that Bitcoin rebounded from its bottom of $6,000 and is now trading around the $6,450 margin. What we can all learn from this price impact is that the Goldman Sachs announcement had no impact on the short-term price of BTC, but definitely seemed like a negative development for the overall cryptocurrency sector.
Even the chief of Goldman Sachs, Martin Chavez, refuted the reports that Goldman Sachs was the one to blame for the drop, with the delay of their Bitcoin trading operations. As he said during a TechCrunch conference:
“I think one of the wonderful things about us is that we get written about a lot. I never thought I would hear myself use this term but I really have to describe that news as Fake news.”
Right now, if Bitcoin fails to break out of the $7,000 resistance level in the next 24 to 48 hours and completely reverse its fall from the $7,400 mark, it is highly likely that the most dominant cryptocurrency will test the $6,000 resistance level – just like it did in April, June, and August.
The drop to $6,000, however, is not necessarily negative, as it would allow the dominant cryptocurrency to bottom out at its low price range and prepare for a new mid-term rally over the next couple of months.
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Cameron And Tyler Winklevoss: It’s Bitcoin’s Bottom Of The First Inning
"We still think it’s the bottom of the first inning."The Winklevoss twins first invested in bitcoin back in 2013 and they said that at first bitcoin didn’t sound like a good idea but after a few tequila shots it started making sense. Now, they have about 1 percent of all bitcoin outstanding. The twins reportedly plowed millions from their settlement with Facebook into bitcoin of course. After they saw that the investment balloon will be estimated for billions of dollars, they claim to have taken away the sting from having Facebook kidnapped from them. The Wall Street Journal apparently asked them what happens when the twins meet with Zuckerberg at a crypto conference and the twins answered:
“Welcome to the party, what took you so long?”Regarding Libra, Facebook’s cryptocurrency is looking less as a cryptocurrency. David Marcus who works at the development center for Libra reportedly wrote to the lawmakers:
"We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”Meanwhile, the policymakers have a hard time to understand and to find a way how to handle Libra but they can’t stop bitcoin at least not anymore. Cameron and Tyler Winklevoss noted:
"To shut down bitcoin you have to shut down the internet...like North Korea. Countries will have to play with it."As per the coming altcoin news, the twins see future where Zcash and Ethereum will have a very important role mainly because of their privacy features. As for Gemini, the competitive landscape is only warming up. Poloniex, for example, allowed purchasing cryptocurrency by using credit and debit cards, Binance is coming to the United States and CEX.io also opened a new US office.
ECB Official Warns: Libra Could Be Very Dangerous Without Rules
‘’It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.’’The entire ECB executive board believes that digital currencies will represent the ‘’wake-up call’’ for regulators around the world. He believes that this could result in regulatory entities making improvements in their operations. Facebook’s plan is to launch a digital currency which will trigger central banks and all policymakers across the world. The U.S. congressional committee asked the social media giant to stop the operations regarding Libra. Also, the House Financial Services Committee noted issues that touch the security nature of the cryptocurrency and Facebook’s troubled past regarding data privacy:
‘’Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action.’’The House Financial Services Committee also warned that if Facebook decides and launches Libra prior to the legislative solutions, the result will be a new ‘’Swiss-based financial system that is too big to fail.’’ The committee also stated that it will further hold public hearings on crypto-related matters next week. As noted in the latest cryptocurrency news, the Reserve Bank Of Australia Governor Philip Lowe indicated there are a lot of regulatory issues regarding Libra. In Asia, the Bank of Japan also warned that Libra poses a huge threat to the current financial systems.
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