U.S. Market Uncertainty Is Positive Impulse For Cryptocurrencies
FxPro Financial Services Ltd | Nov 09, 2018 12:04PM ET
Major cryptocurrencies show a decline of about 1% at the end of the week however based on the results of 7 days, they are still in positive territory: Ethereum (ETH) adds a little less than 7%, XRP grew by more than 11%, Bitcoin Cash (BCH) raised more than 35 %. Among non-Top 10 ZCash (ZEC) shined with growth of 16%.
ZCash network recently carried over a hardfork named Sapling which resulted in a transaction processing speed growth up to 90%. It should be noted that the number of transactions decreased by 70% to 3.5 thousand per day against 12 thousand at the beginning of the year.
Crypto community believes that crypto market has gained momentum on the back of mid-term elections in the United States where cryptocurrency & blockchain supporters won seats in a number of the states.
In addition, the largest American crypto companies are actively creating opportunities for “digital” sector lobbying in the government. It is worth noting that because of their capitalization size these companies long time ago ceased to be startups. For example, Coinbase capitalization passed through $8 billion mark.
Nevertheless, the SEC (Securities and Exchange Commission) of the USA has published a report on more than 10 closed illegal ICOs. At the same time, another 255 cases are under consideration which indicates the need to maintain a very cautious optimism regarding "supportive" regulation in the near future.
Stock indices declining from the historic highs are also support strong demand for digital assets. Although current stability can be more associated with the prevalence of “buy and hold” approach: according to a CoinMetrics study only one BTC out of four coins was moved in the last six months.
The very same day the year before, with the current capitalization around $215 billion, the explosive phase of digital currencies growth has began, following only 2 months the total capitalization raised to $822 billion. As a result of large-scale correction crypto market rolled back to current values.
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Alexander Kuptsikevich, the FxPro analyst
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