26 Jan Cryptocurrencies Aren’t Responding to Controversies – Here’s Why
There are several activities going on around the world that have the negative impact on the future of cryptocurrencies. Despite all these activities, digital currencies continue to stand taller in front of these headwinds. Cryptocurrencies initially lost a huge portion of its value on regulatory concerns. However, the prices now look firm over the last couple of days.
Since the start of this week, the total market capitalization of cryptocurrencies traded in a narrow range of $550 billion to $570 billion. Analyst’s warnings and signals of strict regulations weren’t able to create a big crash in prices of cryptocurrencies.
IMF boss, Christine Lagarde, said:
“The anonymity of it is likely to facilitate money laundering, dark money moving around and things that no one is happy about if you’re looking for financial stability and transparency of financial transactions.”
Regulators all over the world are of the opinion that they can’t let the things to happen. The United Kingdom, which is among the biggest cryptocurrency markets, also signaled a potential crackdown on cryptocurrencies.
The U.K’s Prime Minister, Theresa May, said:
“Cryptocurrencies like bitcoin should be looked at ‘very seriously’ and has demanded tighter regulation. We should be looking at these very seriously – precisely because of the way they can be used, particularly by criminals.”
Usually, cryptocurrencies have a volatile nature and these digital currencies make large movements on comments from big fund managers and Country’s head. However, the movement looks quite soft over the last couple of days, despite negative comments from IMF, European Union, and the big fund managers.
This situation shows that investors are holding on their positions and they are not in rush to sell cryptocurrencies regardless of regulatory concerns. Investors know that regulating cryptocurrencies isn’t an easy task and this process will take a longer time. Therefore, investors are waiting for the real action from regulators before making any change in their strategy. Cryptocurrencies look steady in Thursday trading, as the total market capitalization continues hovering in the range of $550 billion.
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