Bitcoin (BTC) has seen a lot of ups and downs recently. Starting from the month of January, where its price was almost $18,000. However, in the month of February 2018, it dove 55% following the previous month’s hike and its price was almost $10000.
The fluctuation in Bitcoin’s price comes as a reminder to enthusiasts to show just how volatile and high risk this crypto world is, and that people should always check all the parameters carefully before diving into this world. Neither a huge or a negative divergence has created over the past month. Bitcoin traded in a similar manner only one other time this year – in June when its price increased from around US$5,900 to around US$8,200.
Total Market Cap
Since falling from $6,500 to $6,424 on October 3, Bitcoin is now in the $6,550 region. Bitcoin has been fairly stable at $6,550 region recording a movement that has allowed tokens to minimize losses against BTC and other major cryptocurrencies. This week (October 1– October 6, 2018) cryptocurrency market capitalization has a fluctuating trend with a commendable rate and as of writing, equaled $215.51 billion (see below figure). On October 1, the total market cap was $220.29 billion. It has decreased by almost 7 billion on October 3, the market cap was $213.44 billion. According to Coinlib, the total market cap is $215.51 billion.
Dominance of Bitcoin
Now the dominance of the trendsetter cryptocurrency Bitcoin (BTC) as of writing has been 53%. On October 1, its dominance was 52%.
The total volume of Bitcoin
Now, the total volume of Bitcoin is also showing fluctuating behavior. On October 1, it was $2.80 B. It was at $2.70 B on October 3 and at the time of writing this article its total volume is at $2.26 B.
Bitcoin’s price has been fluctuating around two SMAs. There are two territories. The distribution territories are $7,500, $8,500 and $9,500 and accumulation territories are $6,000, $5,000 and $4,000. There has been a pattern of lower highs and lower lows in Bitcoin’s price over the past few weeks. Performance wise Bitcoin is still the number one cryptocurrency. Exactly 293 days ago its ATH( all time high) value was at $19812.12 and since then it has been decreased by 67.10%. Its relative strength index is 48.78 while its commodity channel index is 45.88.
The legitimacy, price, volume and total market cap of cryptocurrencies depend on any country’s leading provider of banking systems. There are several factors such as approvals of various sections like SEC and what regulators think. Crypto market tends to react rapidly to any decisions regarding cryptocurrency regulation.
Regulations play a major role in the rise and fall of cryptocurrencies. A few days ago, the European Union’s 28 member states had decided to scrutinize cryptocurrencies and the regulatory challenges they pose. Finance Ministers from the member states are now discussing whether or not regulations on the industry should be tightened and will be looking at issues including the lack of industry transparency, and the misuse of cryptocurrency for illicit purposes, like money laundering, tax evasion, and financing terrorism.
Investors in the United States have been witnessing the regulators sending mixed signals, even though the Securities Exchange Commission (SEC) has been fairly quiet on cryptocurrency regulation, they have been rejecting countless ETF applications citing reasons of “market manipulation” and volatility. According to Julie Myers Wood, Chief Executive Officer of Guidepost Solutions, a New York-based consulting firm that offers compliance-related investigations and security services, The lack of regulations that the crypto industry faces today will soon come to an end.
Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The cryptocurrency market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.