Cryptocurrencies are losing interest from big investors
The next week began rather quietly on the cryptocurrency market (total capitalization is stable in the neighborhood of $212 billion, Bitcoin is worth $6415 (+0,21%), which does not say about traditional assets, which experienced a real news shock.
Lately the main topics of financial markets development are connected not so much with macroeconomic indicators, so much the confrontation of different forces, and the outcome of these struggles influence not only on short-term movements, but also determines long-term trends.
An example might be a trade war, the US and China, the effect of which, in the case of an exacerbation (no doubt) is likely to be felt the next decade and will influence not only the economy of China and the United States, but all over the world that in the future there going to be another global crisis.
In the sphere of crypto-currency assets, a key opposition is the difference in the positions of conservative regulators, and enthusiasts, promoting a new digital future. Here the most striking example is the Commission for securities and exchanges (Securities and Exchange Commission) in the US, which does not give industry the “green light”, all the while deferring the resolution on the creation of tools (ETF) will be able to ensure the influx of institutional money, and to ensure the growth of market capitalization, and its exit from the status of “gray zone”.
Today the number one topic on the traditional foreign exchange market is another disorder of the agreements on Brexit. After previously obtained optimistic comments about the negotiations, a United Europe and Britain did not agree. Against this background, the financial market experienced a real stress – the Euro fell against the dollar on -0,73% since the market open, breaking below the key support level 1,1300 and updating the annual minimum. Pound, respectively, also “got” his value declined by -0,86% in the morning and continues to decline.
On the background of major changes in the structure of the global financial market, investors seem to have lost interest in the cryptocurrency market because they are forced to pay maximum attention to their core portfolios, including the stock market. This idea is supported by the enormous volume of inactive digital money – for example, 5 inactive keeping $2.2 billion in bitcoins.
The number of inactive wallets that store bitcoins for the last year has grown in 2 times. According to MarketWatch, the owners of approximately 10% of the coins have not been active since November of 2017. Most likely, this could cause a reduction in the volatility of crypto assets.
100 of the largest non-active wallets is stored about 9.5% of all mined bitcoins at five locations is about 350 thousand coins at the average market rate on October 31, they cost $2,245 billion.
“International Financial Center”