Home / Crypto Currency / Ethereum Rises to $220 as Tokens Surge; Will SEC Impact the Market?

Ethereum Rises to $220 as Tokens Surge; Will SEC Impact the Market?


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Supported by the 2 percent increase in the price of Bitcoin, major cryptocurrencies including Ethereum have demonstrated renewed short-term momentum.

Ethereum (ETH), Bitcoin Cash (BCH), and many other small market cap cryptocurrencies recorded gains in the range of 4 to 12 percent, with BCH recording a solid 10 percent surge in value.

The volume of the cryptocurrency market, which as CCN reported on November 6 remained at around $3 billion, has increased to $16 billion from less than $10 billion last week, showing a 60 percent increase in volume within a seven-day period.

Where are Bitcoin and Ethereum Headed?

Squeeze, a cryptocurrency trader, stated that given the three-month consolidation period of Bitcoin in the mid-$6,000 region, the probability of BTC initiating a significant surge in the short-term remains relatively low.

The launch of the Bakkt Bitcoin futures market on December 12 could be a major catalyst to impact the short-term price movement of BTC. Until then, the price of BTC is likely to remain in the $6,400 to $7,000 range.

BTC has been consolidating at this range for months. Was expecting the Descending Triangle to breakdown but didn’t happen. Fundamentally looking more likely towards a rally upwards till Bakkt launch (12 Dec),” he said.

Currently, BTC is eyeing a breakout of the $6,600 resistance level with the potential to surpass the $6,800. The dominant cryptocurrency has only been able to breakout of the $6,600 mark once in mid-September and since then, it has failed to test the level.

Given the increase in the daily trading volume from $4.2 billion to $5 billion over the last 24 hours, a minor short-term price movement to $6,600 remains a possibility.

“Resistance levels I’m looking at are horizontal red lines. $6,600 / $6,650 next. Levels should be fairly obvious and have previously acted as resistance, the more, the more meaningful. No point in being too precise, small increments represent noise,” said technical analyst Alex Kruger.

Tokens are Rising, But SEC May Have an Impact

At the D.C. Fintech Week conference, US Securities and Exchange Commission (SEC) director William Hinman stated that any token that can be recognized as an instrument that allows an individual or a company to place an expectation of return will be considered a security.

“If someone’s offering an instrument for money or other consideration to a third party, and that third party expects the offerer to generate a return or so something that will increase the value of the coin or token or whatever they want to call it, and there’s that expectation of return, we’re generally going to see that as a securities offering.”

Based on the statement provided by Hinman, a large group of tokens can be considered as securities under existing US laws and initial coin offering (ICO) projects that have initiated token sales with the participation of US investors could lead to the crackdown by the SEC.

While many tokens have recorded gains in the range of 5 to 20 percent over the last week, regulatory uncertainty around tokens and their regulatory nature could lead to a decline in the value of tokens in the weeks to come, as the SEC releases its new guideline.

Featured image from Shutterstock.

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Bitcoin Cash Price Gets Skewed due to Exchange Trickery

A lot of confusing action is taking place where the Bitcoin Cash price is concerned. Although its actual decline in value is quite obvious for everyone to see, the real price of BCH is not necessarily what people can see on Coinmarketcap. This is primarily because numerous exchanges treat BCHABC as Bitcoin Cash already despite nothing being decided in terms of which chain will be the longest. Bitcoin Cash Value Fluctuates Heavily Depending on where traders look at, the price of Bitcoin Cash will be either close to the $400 level or down to $250-ish. That is quite a large gap between prices, yet one that is also very easy to explain. Bitcoin Cash, as people knew it before the fork, no longer exists. Most professional exchanges have also retired this price ticker, for the time being. As the hash war rages on, there are still a lot of unknown factors waiting to be addressed. Despite this ongoing kerfuffle, there is a net 5.76% decrease in the Bitcoin Cash price, and a 5.4% decline over Bitcoin. More specifically, that is what CoinMarketCap reports at this time, although this is not necessarily the case whatsoever. In fact, some exchanges are clearly jumping the gun by labeling BCHABC as BCH and thus dragging the Bitcoin Cash price down a bit more. Exchanges currently engaging in this activity include Bittrex and Coinex, neither of which plays a big role of importance when it comes to trading. However, based on the current value of BCH on Bitfinex and Gate.io, it seems a similar incident is taking place. One also has to keep in mind Bitcoin Cash was getting battered ahead of the network split as well. Most exchanges have halted trading of BCH indefinitely, primarily because the currency no longer exists. It is evident either BCHABC or BCHSV will take over that name in the future, but nothing has been decided at this point. As such, any trading referring to just “Bitcoin Cash” or “BCH” should be avoided, as most users can never be sure which currency is effectively being traded under this name. All of this skews the picture pertaining to Bitcoin Cash altogether. Coinmarketcap reports there is still $392m in trading volume for BCH, even though that is virtually impossible right now. With so many exchanges freezing deposits and withdrawals, it is evident actual BCH trading is no longer possible whatsoever. Virtually all platforms have deposits of BCHSV and BCHABC frozen as well, which only makes this market trend more confusing. It is safe to say the entire network split has been a bit of a mess first and foremost. In the case of Bitcoin Cash itself, that name will – under the current circumstances- not be used across exchanges for much longer. Instead, the two separate camps need to be treated as such first and foremost. Until things settle down – with might not necessarily happen anytime soon – the Bitcoin Cash price itself is pretty much irrelevant for most traders and speculators. Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency. The post Bitcoin Cash Price Gets Skewed due to Exchange Trickery appeared first on NullTX.

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