Bitcoin0.01%
7967.04 USD
CAP: 141,131,591,822 USD
Ethereum0.52%
257.13 USD
CAP: 27,298,534,886 USD
XRP0.89%
0.40 USD
CAP: 16,899,138,999 USD
CAP: 7,468,040,437 USD
EOS0.31%
6.31 USD
CAP: 5,755,673,131 USD
Litecoin0.3%
91.72 USD
CAP: 5,675,091,403 USD
CAP: 4,486,750,225 USD
Tether0.08%
1.00 USD
CAP: 2,933,382,420 USD
CAP: 2,588,855,602 USD
Cardano0.4%
0.08 USD
CAP: 2,202,861,434 USD
TRON0.05%
0.03 USD
CAP: 1,936,609,919 USD
Monero0.66%
89.80 USD
CAP: 1,526,183,337 USD
Dash0.13%
166.81 USD
CAP: 1,471,171,663 USD
IOTA0.4%
0.42 USD
CAP: 1,162,093,039 USD
Tezos0.24%
1.65 USD

Notice: Undefined index: sparkline_url in /var/www/html/wp-content/plugins/p-cryptocanada/src/class.ff_topSlider.php on line 60
CAP: 1,092,255,397 USD
CAP: 904,676,763 USD
CAP: 822,914,621 USD
NEO-0.09%
12.20 USD
CAP: 793,153,318 USD
NEM0.75%
0.09 USD
CAP: 788,573,447 USD
Apr 6, 2018by CryptoCanada

The bears are out and it seems like there’s no end in sight to this market downtrend. We’ve seen the landscape change drastically in recent months – the pressure is mounting on the entire cryptocurrency space by regulators. We’ll go over 4 factors that, in our opinion, contribute to the state of this bear market.

1) Regulatory Limbo

Cryptocurrency has captured the interest of government officials/regulators worldwide.  Particularly in February, we saw the U.S. Senate take a keen interest in cryptocurrency and the impact the markets may have on consumers. Whilst many governments seem to agree that blockchain technology is something that can be leveraged to improve the overall state of the finance world, there are many discussions in regards to the massive amounts of manipulation, scams, money laundering, criminal enterprise, and other mishaps that fall under the same umbrella.

It is unclear what actions will be taken next pertaining to the regulations of cryptocurrencies. Due to this uncertainty, we’ve seen many of the largest companies take preemptive actions. An example of this is that many of the largest ad platforms are putting an end to cryptocurrency-related promotion. Facebook, Google, Twitter, Snapchat, and Yandex find themselves on this list.

What happens next could have a monumental impact on the markets. India’s regulators have come to a decision just today – the Reserve Bank of India is now no longer dealing with any businesses or individuals who participate in cryptocurrency related transactions.

Whilst we wait for a final verdict from countries like the U.S., Canada and the U.K., we can expect many projects and their facilitators to conduct themselves very carefully as to not be caught in the cross-hairs of regulators.

2) ICOs regulated as securities?

Keeping with the topic of regulation, it seems that regulators worldwide are looking to classify at least some ICOs as securities. Here are what some key individuals/organizations have to say:

Asset ICOs: FINMA regards asset tokens as securities, which means that there are securities law requirements for trading in such tokens, as well as civil law requirements under the Swiss Code of Obligations – FINMA (Swiss Financial Supervisory Authority)

…if a cryptocurrency, or a product with its value tied to one or more cryptocurrencies, is a security, its promoters cannot make offers or sales unless they comply with the registration and other requirements under our federal securities laws. – SEC Chief Clayton

Earlier in the year we saw the SEC issue 80 subpoenas to some of the largest ICOs, as reported by Bloomberg. This has investors worried – if any of these ICOs are found to be violating securities laws, this can put their projects at risk.

Concern is certainly being reflected in the markets. The vast majority of ICOs are Ethereum based, leveraging its’ smart-contract system. In light of this regulatory pressure, Ether and many of the ERC-20 tokens have been hit hard price-wise.

What’s to come of this SEC probe is still yet to be determined for the most part. Centra (CTR), an ICO that was endorsed by boxing champion Floyd Mayweather, has recently been making headlines. The initial coin offering was deemed fraudulent by the SEC, the co-founders arrested, and the coin de-listed by major exchanges including Binance and KuCoin.

One thing is apparent though – if the SEC finds something they don’t like, the project and thus the investors involved could be in some trouble.

3) It is much harder for the average consumer to enter the market

In recent months we’ve seen an enormous amount of banks put an end to cryptocurrency purchases via credit card. Especially so in the United States and Canada.

In December 2017,  Coinbase held the #1 spot in the App Store. Users from a multitude of countries were able to hop on the cryptocurrency train using their credit cards and mobile devices – a very convenient and beginner friendly way to get into the market. Coinbase and other fiat gateways were undoubtedly on-ramping a record number of newcomers into cryptocurrency investments. However, things are not looking as optimistic as they once were.

Coinbase has recently stopped certain new customers from adding credit cards to their accounts, regardless of whether or not there are any complications with the particular card issuers:

At the moment, Coinbase cannot ensure customers will have a positive purchasing experience with a credit card. As a result, we have disabled adding new credit cards as a payment method for US customers. (Excerpt from this Coinbase product update)

The pressure that the banks have been putting on cryptocurrency purchases not only makes things difficult for individual investors, but for exchanges as well. Many exchanges find it extremely difficult to find a banking solution, and hopping from bank-to-bank to make ends meet is more commonplace than you’d think.

It’s not unheard of for exchanges to move across the globe in order to provide their users with the services that they need. Just last week, Binance had announced that it would be moving its’ operations from the Asia-Pacific region to Malta. This move will allegedly solidify banking solutions for the company as well as allow for fiat trading.

Without the support of banks and financial regulators, it is very difficult to make cryptocurrency investing easy for the end-user. Hopefully the future holds better things for those looking to enter the market.

4) The general public isn’t interested in a declining asset

Buy low and sell high, a commonly touted rule to follow when it comes to investing. It may seem counter intuitive, but cryptocurrencies seem to find the most investors when they reach their all time highs rather than when they’re retracing previous market prices. It can be boiled down to supply and demand, if a cryptocurrency is at an all time high, that price action must be backed up with an enormous surplus of demand.

Google Trends indicates that new interest had peaked in unison with Bitcoin’s price:

Google Trends – Interest over time for the search term “Bitcoin”

Let’s compare that with Bitcoin’s market cap over the same timeline:

Bitcoin price chart from CoinMarketCap – April 9th 2017 to April 4th 2018

It may very well be coincidence, though the two being related does make sense.

 

Conclusion

Cryptocurrency prices aren’t looking promising at this time. We are at a crossroads right now when it comes to regulation – the short term future of the cryptocurrency markets will be determined by what regulators ultimately decide.



Coinbase
7991.66 usd
Bitstamp
7987.60 usd
Bitfinex
7978.90 usd
Kraken
7980.00 usd
Coinsbit
7944.61 usd
Kraken
7162.40 eur
Bitstamp
7149.06 eur
Coinbase
7161.65 eur
ExtStock
6974.69 eur
Bitlish
7155.90 eur
Kraken
10688.00 cad
LakeBTC
11302.60 cad
NDAX
10805.67 cad
LocalBitcoins
11228.18 cad
BitSquare
11270.65 cad
ACX
11657.70 aud
BTCMarkets
11651.50 aud
CoinJar
11620.00 aud
IndependentReserve
11732.79 aud
LakeBTC
12218.87 aud
OKEX
7939.10 usdt
CoinBene
7951.66 usdt
Bitforex
7942.77 usdt
Binance
7945.78 usdt
IDAX
7954.30 usdt
Coinbase
258.22 usd
Kraken
258.11 usd
Ethfinex
258.00 usd
Bitfinex
258.00 usd
P2PB2B
246.78 usd
Kraken
231.40 eur
Coinbase
231.14 eur
ExtStock
224.54 eur
Bitstamp
230.80 eur
Ethfinex
231.10 eur
Kraken
347.42 cad
NDAX
353.05 cad
QuadrigaCX
163.29 cad
Remitano
214.73 cad
BTCMarkets
377.00 aud
IndependentReserve
377.38 aud
ACX
377.10 aud
CoinJar
382.90 aud
Liquid
374.94 aud
OKEX
256.71 usdt
Bitforex
256.79 usdt
BitMart
256.09 usdt
EXX
256.73 usdt
Binance
256.79 usdt
Bitstamp
0.40 usd
Bitfinex
0.40 usd
Coinbase
0.40 usd
Kraken
0.40 usd
RightBTC
0.40 usd
Kraken
0.36 eur
Bitstamp
0.36 eur
Bitlish
0.36 eur
Coinbase
0.36 eur
Bitsane
0.37 eur
Kraken
0.54 cad
NDAX
0.55 cad
BTCMarkets
0.59 aud
IndependentReserve
0.60 aud
CoinJar
0.60 aud
ACX
0.62 aud
OKEX
0.40 usdt
DigiFinex
0.40 usdt
Binance
0.40 usdt
ZBG
0.40 usdt
BitZ
0.40 usdt
P2PB2B
419.32 usd
Coinbase
419.89 usd
Bitfinex
420.29 usd
Bitstamp
420.20 usd
Kraken
420.20 usd
ExtStock
367.68 eur
Kraken
376.00 eur
Coinbase
376.27 eur
Bitstamp
376.43 eur
Bitsane
380.71 eur
NDAX
627.36 cad
QuadrigaCX
181.68 cad
ACX
610.63 aud
IndependentReserve
618.94 aud
BTCMarkets
580.00 aud
CoinBene
417.89 usdt
HuobiPro
417.75 usdt
DigiFinex
417.74 usdt
Binance
417.79 usdt
BitZ
417.77 usdt
Bitfinex
6.32 usd
Kraken
6.33 usd
Coinbase
6.33 usd
Exmo
6.24 usd
Yobit
5.08 usd
Kraken
5.68 eur
Bitfinex
5.66 eur
Coinbase
5.67 eur
Exmo
5.85 eur
DSX
5.68 eur
NDAX
8.26 cad
ACX
9.23 aud
IndependentReserve
9.30 aud
OKEX
6.29 usdt
BitZ
6.28 usdt
BitMart
6.28 usdt
FCoin
6.29 usdt
HitBTC
6.29 usdt
binance