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Weekly analytics: why cryptocurrency capitalization didn’t exceed $500 billion

02 March 2018 00:00, UTC   |   1914
Weekly analytics: why cryptocurrency capitalization didn’t exceed $500 billion
By Margaret NAIL
The past week was pretty tense for the cryptocurrency market: fluctuation of exchange rates in the middle of the week,  trials with the ICO industry in the US and the statements of the world authorities on the development of new mechanisms to regulate the cryptosphere. Bitnewstoday presents the most exciting events of the past seven days.

Figures

Capitalization of the cryptocurrency market rose by almost 8% in a week. However, experts say that it failed to exceed the psychological threshold of $500 billion. Now the total value of all cryptocurrencies is estimated at more than $ 462 billion.

The Market Cap indicator reached its maximum, 465.7 billion dollars,  on February 28. At the beginning of the analyzed period, the level of capitalization fell to 417.6 billion dollars.

It is worth noting that the increase in market capitalization by 8% is mainly due to the rise in the total cost of bitcoin coins, as the market cap of altcoins has grown only 2.6%.

As for the value of the most considerable cryptocurrency, after its growth on twentieth of February, the bitcoin rate started a two-day fluctuation and slipped to $9407 on February 24. The cost increased later, and in March it reached $ 11,000.

The top five leaders by the level of capitalization are Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin. Their total cost is about 344 billion dollars — 74% of the total market.

Ethereum appreciated by 7,5% during the past week, Bitcoin Cash gained 6% in price, Litecoin - 8%. The week was less successful for Ripple, its rate was trading at a level below $1, though a week earlier the coin cost around $1.14-1.20.

News

The past week was eventful. Authorities presented their reports on intentions to create a regulatory system for the cryptosphere.

The Securities and Exchange Commission of the United States (SEC), which promised not to interfere in the development of technological progress, started hunting those who had disregarded the legislation in the sphere of securities.

The Wall Street Journal, referring to its sources, said that summonses had been sent to companies and experts working in the sphere of ICO. Moreover, some lawyers-advisers will also receive these “chain letters.” Due to this case, many companies decided to postpone the launching of ICO.

We also learned that the SEC had already gone after the tZero platform. In the opinion of the regulator, the project within the framework of the ICO violated the legislation in the field of the equity market.

This two news from the United States are not the only ones over the past week. The US authorities titillated ICO projects as well as crypto holders. According to CCN, the federal court in the Northern District of California has decided to transfer the user data with the total amount of annual transactions more  $20,000 from Coinbase site to the US Treasury. What does this mean? Soon 13,000 people will have to pay taxes on income received from the trade in the cryptocurrency, as well as fines for expired tax payments.

Last Friday Bank of America (BoA) said that cryptocurrencies pose threats to its business model.

The Australian Ministry of Finance intended to regulate the cryptosphere by analogy with the regulation of trade in gold and derivatives. Minister of Finance Hartwig Leger believes that the projects launching ICO should get permission from the regulator.

Soon, the crypto community of Singapore will get a "regulatory surprise." According to Reuters, the Monetary Authority of Singapore (MAS) decides whether cryptocurrency investors need additional security measures. It’s possible that soon there will be a new regulatory initiative concerning cryptocurrency exchanges of Singapore.

The cryptocurrency exchanges in Venezuela also received negative news from the government. It concerns the limitation of the number of local sites for cryptocurrency trading. It is reported that only eight exchanges will obtain permission to run business in the country first. But approximately three months after the start of these favorites, this constraint can be withdrawn or eased. But experts fear that a much smaller number of exchanges will be able to work in the country in fact.

The Chinese authorities decided to play the spy game, and, according to Yicai, started to monitor the activities of foreign cryptocurrency platforms and local exchanges which had changed Chinese jurisdiction to foreign ones.

The Japanese regulator informed the market that it is planning to change the legal documents to build a system for ICO regulation.

Cryptocurrency rates are susceptible to the news background. So if you are planning to invest in the crypto or following up on the funds invested in coins, stay tuned.

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