Despite China's ban, BTC resumes it's upward movement

12.09.2017 / 11:27

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Bitcoin is going through a turbulent period. The cryptocurrency fell last week on the back of Chinese regulators imposing a ban on individuals and businesses from raising funds through initial coin offerings (ICOs).

The latest news emerging from China is that domestic Bitcoin exchanges are to be shut down entirely, delivering a final blow to a once-thriving industry of commercial trading for virtual currencies. The virtual currency dropped to around $4,100 on the China ban. Earlier this month it reached a record high of $5,000

However, market participants have said they are taking this latest news with a grain of salt as it is not the first time China has made threats to ban Bitcoin. Despite the ban, Bitcoin will remain universal and China’s Bitcoin fans will find another way to access the currency.

Sasha Ivanov, CEO of Waves Platform explains that the cryptocurrencies are still very volatile. Daily fluctuation of Bitcoin, for example, can be 10-15% or even more. The reason: a relatively small capitalization of the cryptocurrency market.

To put things into perspective, the current market capitalization of Bitcoin is only about $80 billion dollars, Ivanov adds. This is about three times less than the volume of daily transactions seen by conventional credit card issuers such as Visa (NYSE:V). There remain a number of risks surrounding the currency. As well, according to many, Bitcoin is in bubble territory.

In contrast to China, which is taking a step back by banning Bitcoin, Japan has legalized the cryptocurrency.
“We already see how the situation is changing in a positive direction," says Ivanov. "And the more liquidity there is in the Bitcoin market, the more stable the exchange rates will be. We can start talking about the bubble only when the market cap of crypto currencies exceeds the $1 trillion mark, not earlier.

Source: Investing.com

Trader Bozhidar Arabadzhiev

Varchev Traders

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Despite China's ban, BTC resumes it's upward movement

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