Bitcoin, the world’s most famous cryptocurrency, was recently able to break the $4,000 barrier, but this support was not able to receive proper development and thus traders began selling. The benchmark Bitcoin ended up losing more than one percent, and began to come close to the $4,000 level. Other digital currencies began to show a more significant decline, from 2% to even 4%.
The fact that Bitcoin was not able to sustain growth momentum after breaking the $4,000 level is rather concerning. When an asset is not able to sustain a fast growth pace after hitting an important level, market uncertainty is often increased, and various speculators quickly begin selling.
The positive trends in the markets have recently been supported by assumptions that some positive fundamental shifts might be on their way. The only problem is that this is happening at a much slower pace than the cryptocurrency lovers expected.
Since 2013, the number of companies that are willing to accept cryptos as a payment method has increased more than seven times, but however this is still far from the Visa or Mastercard scale. The famous Swedish online retailer Digitec Galaxus AG and an electronic components supplier from Phoenix Avnet, with annual sales of more than $18.4 billion, have become the biggest companies that currently accept Bitcoin as a method of payment.
However, the bad news came from the US Securities and Exchange Commission. Part of their public comment, the Bitcoin-ETF application from VanEck and SolidX received no more than just seven letters, 6 of which were rejected. It should be noted that in September 2018 Bitcoin ETF application received more than 1400 letters, and the majority was positive. The current situation is certainly linked to a long period of stagnation.
Regardless of this, the adjustment of cryptocurrencies within the traditional financial markets is still on its way moving forward. It is now well known that the Nasdaq, Reuters and Bloomberg platforms will publish many cryptographic indicators based on CoinMarketCap data. In addition, CoinMarketCap has established a partnership with Flipside Crypto and created a new rating system that will allow traders to see a more detailed review on the “state of health” of any cryptocurrency.
A recovery can also be expected, taking into account the growth rate of the Bitcoin network hash rate fragmentation. Apparently, growth is associated with the release of new ASIC miners, which is a good sign.