The bitcoin currency witnessed volatility during the week’s trading. At the beginning of the week, it achieved a limited rise, to rise strongly on Thursday, recording its highest level in nearly a month, to breach the $4,000 barrier, in light of the continuing positive atmosphere on the digital markets with the relative improvement in the levels of demand for buying digital currencies. On Friday, Bitcoin tumbled to trade below the $4,000 level, with corrections and profit taking activity.
And it seems that the Bitcoin currency fails to maintain the psychological support level of 4000 dollars for a long time, as it quickly gives up on it in a short time, and this increases the fears and concerns of investors about investing in the Bitcoin currency, because it needs a strong motive that strengthens its penetration of this level strongly. Despite this, the pessimistic view of the future of digital currencies has begun to diminish, especially with more adoptions and positive news.
Below we will list some of the important news that investors and trading platforms dealt with IQ Option Over the past week:
The chief digital asset advisor at the Securities and Exchange Commission said:US stock exchanges Valerie Sisbank said that stablecoins, digital currencies that are designed to counteract price fluctuations, will raise several important issues regarding securities laws.
Stable cryptocurrencies have value as their price is pegged to the US dollar to prevent global volatility, such as Tether and TrueUSD which are backed by the US dollar.
- A report stated that the CBOE Global Markets Group announced its intention to stop trading in futures contracts denominated in the currency of Bitcoin just one year after its launch.
Despite this, the group is still waiting for approval to list bitcoin in exchange-traded funds (ETFs) from the US Securities and Exchange Commission.
On Tuesday, Bloomberg Agency published a report quoting a startup company “The Tie” that the major cryptocurrency exchanges are reporting incorrect trading volumes, meaning that trading volume numbers are given many times higher than expected, by the company tracking traffic. Online on the websites of the 100 largest global cryptocurrency exchanges.
The report added that investors remain concerned about manipulating cryptocurrency prices to make demand rates much higher than reality.
Among the negative news reported among investors, reports that the US Securities and Exchange Commission received negative comments on the disapproval of the proposal to list bitcoin in exchange-traded funds submitted by VanEck Investment Company and SolidX Financial Services.
Negative comments focused on Bitcoin's lack of value, its degree of volatility is extremely high and the digital market can be manipulated.
It was reported that the cryptocurrency mining giant “Bitmain” announced its plans to build 200,000 units of mining equipment in China, arguing that hydroelectric power that is used in mining is cheap. This expansion comes despite the company reducing its efforts in some countries. The company's development center in Israel last December, and reduced its operations in the Netherlands after one month, as the company failed to list on the Hong Kong Stock Exchange.
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