Cryptocurrency market today saw bears take a breather following yesterday’s sharp declines. This breather turned out to be a positive boon for most major legacy crypto assets. While Bitcoin continues to trade range bound near previous sessions lows, most of the legacy cryptocurrencies among top 10 managed to stage significant uptrend price action today. There were several factors that helped with today’s recovery price action and all of them were news with a certain level of impact in both crypto community in general and in cryptocurrency trading market. The news that had a major impact on price action today are:
- Bitcoin’s weekly trading volume exceeds more than 2000 coins in Venezuela
- S. SEC Representative stating that Bitcoin ETF approval is inevitable
- IOTA’s sharp rebound following yesterday’s decline.
As mentioned in yesterday’s article, owing to economic and political instability in Venezuela, people wanting to shield their wealth from impact of ongoing civil wars, have resorted to converting their wealth from fiat currencies to cryptocurrencies and among the coins south after by people, Bitcoin reins at the top among digital coins circulating in the market. Further news hit market that U.S. Security and Exchange Commissioner Robert J. Jackson Jr. had stated approval of Bitcoin ETF is inevitable and SEC is working hard to make sure that when the instrument debuts in the market it is not vulnerable to manipulation so that even the general public who choose to trade in the asset are not hurt.
News Driven Momentum Helped Market Recover From Sharp Decline
He mentioned that the reason for delay in approval of request is that they are monitoring the cryptocurrency market for various risks and price manipulation to make sure American traders are not hurt post the approval of ETF’s and when speaking of recent rejection of the Winklevoss twins ETF, he stated that their product had high risk in regards to manipulation and could hurt American traders. However, CBOE has modified the rules and conditions of their Bitcoin ETF request before resubmission of request to make sure it’s in compliance with SEC’s latest terms according to their spokesperson. And SEC hasn’t rejected their proposal so far which has brought the hopes up in the market that this product could be approved in near future when SEC is done with observing market conditions.
This has created hopes for fresh inflow of fund into the crypto market once the product is approved by the SEC and hits the market. However, investors are likely to let the price of Bitcoin decline further before stocking up so that they can reap a huge profit when the market begins to recover once again. However, investor sentiment was dampened on news of fake website claiming Bakkt platform’s launch to be scheduled on March 12, 2019, surfaced in Reddit website. However, recovery of IOTA was supported by fundamental support in form of its agreement with the United Nations who aims to use IOTA’s blockchain tech to improve UNOPS operations. This recovery along with positive sentiment in the crypto market helped the most legacy crypto coins including Ethereum to see solid recovery price action today. As of writing this article, ETHUSD pair was trading at $104.73 up by 0.40% on the day, while BTCUSD pair was trading unchanged at $3389.6 having maintained a flat range-bound price action across the day. This positive action is expected to continue for the rest of today’s trading session in the market owing to improved investor sentiment and risk appetite in the crypto market.
This article was originally posted on FX Empire
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