Bitcoin Struggles to Breach the $12,000 mark, Here’s Why?
Fortunately, investors are pretty adapted with the big swings in the prices of cryptocurrencies. In fact, they believe in generating value from these movements. The movement of Cryptocurrencies remains soft in Friday trade after the dramatic last few sessions. Bitcoin pared previous losses, but the currency struggles to break the physiological mark of $12,000.
Bitcoin was trading around $11,587.30, down 2.5% over the previous day. There were a lot of optimistic and downbeat news’ surrounding the market in Friday trade; traders are eagerly waiting for the final announcement from South Korea.
Morgan Stanley’s (NYSE:MS) move of clearing the Bitcoin futures has raised trader’s sentiments, as this move will permit institutional investors to take part in the cryptocurrency trading. After the move, Morgan Stanley joined Goldman Sachs (NYSE:GS) in legitimizing bitcoin futures.
However, Morgan Stanley’s management hasn’t yet completely explained their plan whether they are going to take custodial responsibilities or market making. Analysts have a mixed opinion over the Morgan Stanley’s move.
Although clearing bitcoin futures would be a low-risk action, but bitcoin’s volatile nature of making huge swings in a single trading session combined with its unregulated status could craft noteworthy systemic risks for the institutions involved.
On the other hand, Bitcoin traders are waiting for the news from South Korea to make their future trading strategies. South Korea is the third largest cryptocurrency market. Thus, any new from Korean markets could lead big movements in prices as we have seen in the last two weeks.
The renewed concerns amid the potential ban have wiped off almost $200 billion from the total market capitalization of the cryptocurrencies on Wednesday. Bitcoin has hit $9,402.29 on Wednesday, the lowest level since last November.
“It’s impossible to ban Bitcoin and cryptocurrency trading because the more you regulate, the more it will become popular,” declared Francesco Nazari Fusetti, CEO of Aidcoin and CharityStars.
Regulating bitcoin and other cryptocurrencies appear to be a priority for several countries, due to the threat of money laundering, particularly in South Asian emerging markets. Indonesia, which is among the fastest growing south-east Asian country, has recently warned their citizens from cryptocurrency trading.
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