Bitcoin, the world’s largest crypto currency, marked an 11 per cent drop within 24 hours against the US dollar on Fr4iday during Asian trading hours which marked a new decline for the currency.
December has not been a good month for bitcoin with its price dropping by about 8 per cent in the very first day of the market.
According to data from industry site Coindesk, bitcoin fell by 11. 32 per cent in the last 25\4 hours and traded at $3,367.50 as of 2:30 p.m. HK/SIN (1:30 a.m. ET on Friday.
In the same last 24 hours, there was drop in value of the prices of XRP and Ether which are the second and third largest crypto currencies of the world by market value respectively. Data from Coindesk shows that there was a fall of 10.16 per cent in the value of XRP and a drop of 15.56 per cent in Ether.
Crypto currency market “definitely seems to be suffering,” said one analysts of the market to the media.
“The market is in a general bearish trend that doesn’t seem to be letting up driven by what seems to be a general negative sentiment towards crypto,” said Zennon Kapron, director at financial technology consultancy Kapronasia while reacting to a media question. “As the market is heavily retail driven, it’s very much at the mercy of group sentiment which causes huge swings.”
“Without any positive drivers in the near future, this could continue well into 2019,” he said.
The entire year this year has not be favourable for crypto currencies at all in terms of their prices. According to data from Coinmarketcap, there has been a fall in about 86.92 per cent in market cap this year for all crypto currencies since the high they attained January this year. Since the same time, there has been a drop of 61.63 per cent in 24-hour trading volumes.
In relation to the wider crypto currency market, the announcement for a proposal for a change in rule for regarding the approval process and for allowance of a bitcoin exchange traded fund (ETF) was made on Thursday by the U.S. Securities and Exchange Commission (SEC).
An ETF is an exchange listed financial product that tracks the price of an asset. This means that investors don’t actually have to buy the underlying asset. Analysts view ETFs to be a process to allow large institutional investors to start investing in the crypto currency market in a safe manner without them requiring to purchase bitcoin from a crypto-asset exchange.
The VanEck SolidX Bitcoin Trust is the ETF in question. It has been created by through a joint venture between blockchain company SolidX and money management firm VanEck. This is the third attempt by VanEck in the process of creating a bitcoin ETF. The decision was being delayed until Feb. 29, 2018 said the SEC in the update.
“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change,” Eduardo A. Aleman, assistant secretary in the SEC, said in the release.
(Adapted from CNBC.com)