Bitcoin loses its status of a protective asset in times of global turbulence

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The market of cryptocurrencies and Bitcoin in particular did not respond to the negative dynamics of the stock. At this point it appears that cryptocurrencies exhibit greater stability than shares of the largest international brands, and this could attract part of the demand for safety. Recall that about a year ago, the stock market correction spurred the growth on the digital market.
It is also worth noting that the topic of cryptocurrencies almost completely disappeared from mainstream financial publications, and this creates favorable preconditions for a more neutral fundamental dynamics.
On Friday morning all of the TOP 10 cryptocurrencies demonstrate almost zero fluctuation. It is likely that the stability of the market will have a positive impact on the decision of the Commission on securities and exchange Commission (SEC) to launch a Bitcoin ETF at the end of 2018 – beginning of 2019. Prior to that the SEC rejected applications for reasons of extreme volatility rates, the desire to bind the reference rate for crypto exchanges of low liquidity and weak regulation: now the situation is changing rapidly.
While the SEC may not define Bitcoin ETF, the largest cryptocurrency companies seek to obtain a license for custodial services. Thus, the largest crypto currency exchange Coinbase has received a license from the state of new York for the provision of such services to institutional clients. Until the end of the year the big players to enlist such a number of licenses and a positive decision of the regulators, the question arises: are there sufficient institutional money for such opportunities to invest?
“Warm up” the interest in bitcoin try the largest holders of coins. After a huge transaction in the Bitcoin network at a cost of 10 cents, it was the turn of Ethereum with the transaction of $181 million and the Commission of 6 cents. Judging by the absence of any market reaction to this news, a substantial part of its participants from euphoria and depression came to indifference, and now have plenty to try again to awaken at least some of the excitement that prevailed on the market a year ago.
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Alexander Kuptsikevich,
Analyst
FxPro