Bitcoin and other digital currencies were able to gain some positive momentum during last week's trading, as the bitcoin rose from its lowest level in six weeks at $ 5995 to trade above the $ 6000 level, recovering after the sharp losses it suffered during the previous week, which lost about 10.21 TP2T due to the continued heavy selling in the cryptocurrency markets amid growing concerns about regulatory actions in the United States and Japan.
Market fears are increasing about the bitcoin’s rebound below the $6000 level, after it failed to exceed the $6,500 level, due to the escalating fears of regulatory restrictions imposed by the United States, especially after the US Securities and Exchange Commission announced the postponement of the decision to include bitcoin in the exchange-traded funds until end of next September.
Most of the prices of other digital currencies have risen within the recovery processes from the low levels recorded in several weeks, and the total market value of digital currencies has risen to return above the $200 billion level, after it recorded its lowest level on November 2, 2017, at $190 billion.
The cryptocurrency markets lost more than 75% of their value, losing nearly 645 billion dollars after reaching an all-time high of 835 billion dollars last January, and this confirms the analysis of some analysts that what happened in prices is a price bubble.
Although the trend in the cryptocurrency market is downward, the majority of market participants prefer to hold the bitcoin.
Some analysts see the decline of Bitcoin due to many factors, the most important of which are the lack of trading volume in the markets, the strong downward trend, poor liquidity and the unpredictability of the live trading market.
Last week, the director of the US Financial Crimes Rescue Agency said that the agency witnessed an unprecedented rise in reports of suspicious activities and fraud related to digital currencies, adding that the number of these reports exceeded 1,500 reports per month.
While the CEO of Coinbase “Armstrong” said that what Bitcoin and other digital currencies are witnessing is an explosion of the bubble after unprecedented record heights during the past year, and added that the world is increasingly interested in the crypto and digital currency industry, and Armstrong continued his speech, saying that the platform Coinbase contributed to $150 billion in cryptocurrency trades in 2017, and confirmed that only 10% of cryptocurrency is used for games and online purchases.
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