Expert: the Bitcoin of Libra will benefit
Bitcoin on Thursday, in just a few minutes rocketed to 9%. In the first half of Friday BTC adds more than 6% and is trading around $10’500. Perhaps to restore faith in markets in the development of the bullish trend of the reference bitcoin would have to walk through the next round level at $11’000. Altcoins also showed a sharp growth of quotations, but still not played the failure of the beginning of the week.
Most impressive dynamics was demonstrated by Litecoin (LTC), showing an increase of 25%. Buyers interested in this altcon due to the approximation of halving in August, whereas after the correction the LTC has been very underrated. At the current price level of LTC to 97% below its historic highs, although the coin is typed in the price of 226%. Litecoin is experiencing obvious difficulties with the growth of the overall disappointment in altonah in principle. However, the market is still relatively easy to manipulate, despite the taller the trading volume.
Massive correction earlier in the week occurred because of weak SEO Calibra of David Marcus at hearings in the U.S. Congress. Officials of all ranks, up to the President, spoke negatively in relation to developed Facebook of cryptocurrency. There is a high probability that they will win, limiting the functionality of Libra to a minimum, which is not “danger to a stable financial system”.
The Committee on financial services of the house of representatives has drafted a bill banning the cryptocurrency of large companies with annual revenues above $25 billion, thus translating Facebook, Google and similar to the rank of “too big” to issue their own coins.
In case this law is signed by trump, violators will pay a fine in the amount of $1 million per day. The paradox lies in the fact that Facebook profit from full launch of its cryptocurrency can be above the amount of the fine. However, there already are the fundamental factors: the officials could raise the measure and to limit the activities of the company in principle.
Questions of regulation and the attitude of officials towards cryptocore become a fundamental factor price movements of the cryptocurrency this week. However, when the dust settled, it became clear that Bitcoin has changed little. First, the size of the market does not frighten officials. Second, it is decentralized, simply no one to ask awkward questions. Thirdly, there are suspicions that the US government itself uses the digital currency to Finance their informal needs abroad.
We live in an era where the demand and the security of the asset has gained new dimension in the digital plane. Market participants expect that large corporations will take the cryptocurrency market, becoming the competitors of the States, but the practice is indicating something else: maybe the add-on to the national currencies has already been created, and policies simply protect the market from other digital currencies? In this case, bitcoin maximalists can once be right in their expectations.
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