In addition, Bauerle noted, “The pattern is familiar: Bitcoin falls, finds a bottom and consolidates at previous all-time high. Traders who seek to increase their total bitcoin holdings take a fiat position, or move to another cryptocurrency, then buy back into bitcoin. This massive, global traffic pushes prices back up.”
Cryptocurrency regulation will be good
In an e-mailed statement to CNBC, Charles Hayter, the CEO of CryptoCompare, says the news played a big role in the sell-off. He believes that regulation of cryptocurrencies will be good in the long-term.
According to Hayter, “Trade volumes were very noisy yesterday as the bulls and bears fought it out and some sort of calm has appeared on the markets after what has been a severe correction. News has a lot to play with this.”
Additionally, Hayster said the cyptocurrency market is now big. Therefore, governments are “sensing revenue…as well as a threat in some degrees. This will catalyze regulation where regimes who legislate severely will balkanise themselves to the industry.”
