Cryptocurrencies Shoot Back up as the Market Calms Down
Cryptocurrencies have been able to come back over the course of the past few days as their market capitalization or market cap has gone up substantially during that same time period.
The total market cap of all cryptocurrencies shot up to a solid $141.3 billion during the later half of September. This shows a 45% increase from the low that these currencies hit on September 15th. The data is according to CoinMarketCap.
When the value of all these currencies dropped to such a low amount, it was noted that it hadn’t been that low since the beginning of August.
There are several factors that contributed to the sharp decline in pricing as speculation from these reasons led to the price drop.
Although Bitcoin has existed since 2009, regulators around the world have failed to have any sort of backbone to these currencies and have not been able to produce any legislation. This has led to a free land of the industry where no one has sole control. Governments are continuing to try to legislate these currencies like in 2015 when the U.S. Commodity Futures Trading Commission stated that digital currencies were commodities. A year later, a U.S. federal judge stated that Bitcoin is actual money, thus contradicting the ruling earlier.
The result of all these governments trying to put in legislation has led to a confusing market place where no one knows what way is up.
This is seen in the recent action taken by China. The past few weeks has seen the country promise a crackdown on digital currency, banning initial coin offerings or ICOs and shutting down exchanges for the coins. The three largest trading exchanges in the country have stated that they will cease to operate in the next few weeks.
All of this news has contributed to the price drop amongst these currencies, but as the market calms down, it has begun to bounce back.