With a lot of uncertainty engulfing the crypto markets, Bitcoin prices remain flat as regulation remains in the spotlight. Many investors are optimistic on the future of the once popular digital coin if the current trends are anything to write home about.
This comes barely days after the Winklevos twins; Tyler and Cameron suggested that what is needed in the cryptocurrency market is self-regulation. This can only be achieved once the consumer is made to feel secure and safe when transacting with in digital currencies. Provision of practical framework for the virtual assets and commodities is what will transform the cryptocurrency to a mature market.
Bitcoin Unprecedented Growth
To become the global leading cryptocurrency, Bitcoin unprecedented growth has left many critics unsure of the huge growth halted by the recent crypto-crash. This has put many investors sitting on the fence with the price hovering around the $ 9000 mark for several weeks.
The coin shot up above the $9,400 earlier yesterday before shedding the gains to trade at $8,863.63 shedding a marginal 5.71%. According to CoinMarketcap price index, Bitcoin dominance in the market stands at 41.7% indicating the influence of Altcoins in the market.
The piece activity in the market has been attributed to the current regulatory crackdown making the future of Bitcoin bleak. Market analysts point a finger at Mt. Gox’s exchange going under as another reason the market is not gaining traction. There is too much anticipation from the sale of BTC held by the bankrupt Mt. Gox as well.
Cryptocurrency Regulation Uncertainty
With the volatility nature of the digital money market, the current cryptocurrency regulation uncertainty is impacting negatively on Bitcoin price. Lack of guidance from state agents and respective agencies are putting the market in uncertainty leading to panic trading.
According to the CEO of Noble Alternative Investments, Charles Thorngren, the current regulatory structures have a negative impact on the cryptocurrency market. There is a lot of influence from speculative traders and Wall Street and these are affecting the price of all digital currencies not only Bitcoin. When the market is awash with many short-term traders, the whole pricing ecosystem stands to surfer.
IMF on Crypto Regulation
The head of the International Monetary Fund Christine Legarde argues that there is need for regulators to use the same blockchain technology to track the digital coins and offer the right solutions for the industry to avert the “wrong” interruption in the sector. According to her, only blockchain technology can be used to curb money laundering and terrorism funding.
One of the key aspects the regulatory bodies need to address is ensuring the seamless integration of their system with blockchain ecosystems to make global transactions safe and secure. If the technology can perform real-time global transactions, it can easily aid in regulating itself using verifiable digital signatures.
The head of the IMF believes in a level playing ground where “select players” players are not looked down upon. She strongly believes that cooperation between all players in the industry is important to keep the crypto-sphere safe for all.
With the lack of clear-cut cryptocurrency framework, Bitcoin (BTC) price might continue to struggle affecting other cryptocurrencies. Once step are made, an overall adoption and traction will become noticeable. These will lower cases of speculative trading and level playing ground established between digital currency and fiat.
Cryptocurrency enthusiasts are ready to get back to the market and all they need is assurance that no more loses going forward. All players are nervous and not willing to put their stakes on Bitcoin and select Altcoins. This is why there is too much “holding” making the sideways market movement.