- Crypto market is recovering from the recent slump.
- SEC and Vitalik Butering may be behind the collapse.
Cryptocurrency market is licking wounds after the weekend carnage. Bitcoin has gained 2% on a daily basis, recovering from $6,116 low touched on Saturday. The digital coin No. 1 is changing hands at $6,311. Ethereum was the worst-performer of the week: the coin has lost over 30% of its value in the recent seven days and dipped below $200 threshold for the first time since July 2017. ETH/USD is trading at $198.12 with 4% gains on a daily basis. XRP followed the market and slumped to $0.2686 on Saturday. Currently, the third largest coin by market cap is trading at $0.2766 with 1.34% gains on a daily basis. The total market capitalization of digital assets shrank to $197B, thus about $640B has been wiped out from the market since January.
There were two major reasons that might have caused the collapse on the cryptocurrency markets during the weekend.
1. The US Securities and Exchange Commission suspended trading in tow crypto-related securities – Bitcoin Tracker One and Ether Tracker One – citing investor confusion. The suspension will last through September 20.
“The Commission temporarily suspended trading in the securities CXBTF and CETHF because of confusion amongst market participants regarding these instruments. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act).
The Commission cautions broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company,” the official statement says.
2. Ethereum Co-founder Vitalik Buterin said that told Bloomberg that another phase of the explosive growth in the blockchain industry is unlikely.
“If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1000-times growth in anything in the space anymore,” he said in the interview with Bloomberg.
Now wonder that Ether led the decline on the weekend.
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