Bitcoin and other digital currencies witnessed sideways movements in light of the weak trading volume during last week’s trading, and amid investors’ assessment of the opportunities for digital currencies to recover at the beginning of 2019, especially since this year is likely to witness a lot of regulatory measures for the digital market.
The bitcoin currency recorded during the past week, a rise of about 5.5%, recording the first weekly rise, to trade in the $3800 range, amid strenuous attempts to reach the next psychological support level of $4,000, with the relative improvement in demand for bitcoin, but the digital market is still Urgent need for strong catalysts and motives to push prices higher and maintain the upward momentum.
The bitcoin currency fell dramatically during 2018, as it lost about 73% of its value after it reached its peak at the end of 2017 near the level of $ 20,000, for the bitcoin currency to record its first annual loss since 2014, these heavy losses come due to the intensification of open selling operations in light of the tightening A number of countries have their regulatory procedures and imposed a lot of restrictions towards the trading of digital currencies, in addition to the occurrence of a number of breaches of some stock exchanges and theft of many digital currencies, and the manipulation of some stock exchanges in currency prices.
With the beginning of the new year, many investors are optimistic about digital currencies, as many expect that the market will witness a recovery and that many countries and major financial institutions will deepen their consideration of blockchain technology and digital currencies.
Among the positive news that circulated during the past week was the statements issued by Member of Parliament “Clyde Fanel” on social media, who said that New York State Governor “Andrew Cuomo” approved a project to study digital currencies and how to regulate them through a meaningful working group, and thus, New York State is the first state in the United States to do so, and that team is expected to report by the end of 2020.
Fannell said that the blockchain technology behind cryptocurrencies can be used in so many applications to help improve transparency and efficiency.
In the footsteps of the New York state governor’s decision to form a working group to study digital currencies and blockchain technology, South Africa announced the formation of a working group to investigate digital currencies and blockchain technology, and the team is supposed to finish its work by the end of 2019 and will present a research paper on this topic.
On the other hand, the Council of Ministers in Ireland approved the Criminal Justice Act of 2019, which urges the fight against money laundering, and the law stresses the use of digital currencies to finance terrorism and participate in money laundering operations.
The Hindu Business Line also reported that the Central Bank of India had decided to halt plans to launch its own digital currency, and an anonymous source stated that it was too early to talk about a central bank digital currency, and this news came after reports from Iran about the government's suppression of any Cooperation to launch a digital currency, and the Iranian government considered this act against the country's national security.
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