ZyCrypto - 10/11/2018 6:29:47 PM - GMT (+0 )
When the IMF (International Monetary Fund) revised its policy on economic growth, risk-off trading circles across the world got quite a boost. The crypto world felt the effects, with Bitcoin surging up to hit the $6,656 mark.
However, this positive effect didn’t last long as it wasn’t supported by a matching trading volume. In essence, a market price increase or decrease needs to be supported by a corresponding trading volume for the effect to hold. If the volume isn’t enough, the breakout can’t last.
While the IMF’s move was a great step in the positive direction, most people missed the point where the international body expressed its reservations about the crypto world as a whole.
In its view, the IMF had issues with the rapid propagation of cryptocurrencies, mainly because of the risks faced in terms of digital security. The IMF’s World Outlook Report mentions cyber security issues as one of the most prevalent problems currently faced in the industry.
The report goes on to opine that these vulnerabilities could seriously impede secure cross-border trade and affect the flow of goods and services in the international market. As such, rapid growth of digital currencies gives rise to new vulnerabilities that further present more hurdles to be dealt with in the international financial system.
A look at the recent market environment suggests that the Bitcoin market, in particular, hasn’t had enough participation from the larger community, and that means that exchanges aren’t handling enough of Bitcoin’s trading volume to warrant a serious breakout.
In 2017, Bitcoin’s race to the $20k price mark was largely influenced by retail traders who saw the possession of the digital currency as their way to instant profits. The crypto community was going crazy over Bitcoin, and the effect worked to shore up the price and get everyone talking about Bitcoin.
However, that’s not to say that Bitcoin won’t be letting the bulls lose soon. All it takes is a little push – something like the rumors of a BTC ETF approval by SEC. That prospect would upset the market and drive up the price as the whole community rushes in to position for a bull run. In fact, that kind of blessing seems to be already in the works.
SEC will be inviting public input on ETF approvals on October 26th. That move alone suggests that SEC would actually consider approving a BTC ETF in line with positive public opinion. That could ultimately result in a serious Bitcoin bull ran kicking off within the month.
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