Cryptocurrency prices have turned down over the past seven days, after further signs of waning demand for virtual currency assets and fresh evidence of the struggle it faces to break into the financial mainstream.
A symbol of the decline in interest for Bitcoin came this week when cryptocurrency mining equipment producer Bitmain let its application for a Hong Kong initial public offering lapse, due to a drop in demand for mining products."We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value," the company said on its website. Bitmain designs microchips that are used for mining cryptocurrencies. The industry has been hit hard as price declines have made it difficult to justify the costs of mining. "We hope regulatory authorities, media, and the general public can be more inclusive to this young industry," Bitmain said. It may be hoping for a while yet, judging by the noise around a listing application from VanEck and SolidX for an exchange-traded fund.
The Securities and Exchange Commission has received mostly negative comments in a consultation on whether to approve the listing. The majority of comments urged the regulator not to approve the proposal, with many claiming concerns that Bitcoin is subject to manipulation.
The SEC is expected to decide on two ETF proposals in the near future: the VanEck project is the one viewed as the most likely to be approved.
Earlier in the month, SEC chairman Jay Clayton told Fox Business that there “may be a case where a Bitcoin ETF could satisfy our rules” but declined to comment on the specifics of either proposal.The SEC will hardly have been encouraged by a new study - by trading analytics platform The Tie - suggesting that trading volumes on crypto exchanges could be false.
“In total we estimated that 87% of exchanges reported trading volume was potentially suspicious and that 75% of exchanges had some form of suspicious activity occurring on them,” The Tie said about its findings on Twitter.
“If each exchange averaged the volume per visit of CoinbasePro, Gemini, Poloniex, Binance, and Kraken, we would expect the real trading volume among the largest 100 exchanges to equal $2.1 (billion) per day. Currently that number is being reported as $15.9 (billion),” the company added.
It isn’t the first report to claim that exchanges exaggerate reported trading volumes. Crypto asset manager Bitwise claimed in a report on Friday that 95% of reported volume is fake on digital exchanges, while the Blockchain Transparency Institute wrote a report with similar findings in December 2018.
Bitcoin has fallen 2% over the week to $3,932.60 on the Investing.com Index. Ethereumwas down 3.4% to $134.21 and XRP slumped 4.7% to $0.30019 while Litecoin slipped 2.2% to $58.70.
The combined market cap of cryptocurrencies fell to $138 billion at the time of writing, from $140 billion a week ago.
XRP fell bellow the $0.29927 level on Tuesday. XRP was trading at 0.29927 by 06:55 (06:55 GMT) on the Investing.com Index, down 2.28% on the day. It was the largest one-day percentage loss since March 21. The move downwards pushed XRP's market cap down to $12.60694B, or 9.17% of the total cryptocurrency market cap. At its highest, XRP's market cap was $79.53400B. XRP had traded in a range of $0.29920 to $0.30370 in the previous twenty-four hours. Over the past seven days, XRP has seen a drop in value, as it lost 4.68%. The volume of XRP traded in the twenty-four hours to time of writing was $751.88854M or 2.27% of the total volume of all cryptocurrencies. It has traded in a range of $0.2992 to $0.3223 in the past 7 days. At its current price, XRP is still down 90.90% from its all-time high of $3.29 set on January 4, 2018.
Cardano was trading at $0.064085 by 21:32 (21:32 GMT) on the Investing.com Index on Saturday, up 10.09% on the day. It was the largest one-day percentage gain since March 23. The move upwards pushed Cardano's market cap up to $1.65307B, or 1.18% of the total cryptocurrency market cap. At its highest, Cardano's market cap was $23.91700B. Cardano had traded in a range of $0.056731 to $0.064085 in the previous twenty-four hours. Over the past seven days, Cardano has seen a rise in value, as it gained 25.13%. The volume of Cardano traded in the twenty-four hours to time of writing was $128.69166M or 0.42% of the total volume of all cryptocurrencies. It has traded in a range of $0.0491 to $0.0641 in the past 7 days. At its current price, Cardano is still down 95.25% from its all-time high of $1.35 set on January 4, 2018. Elsewhere in cryptocurrency trading Bitcoin was last at $3,994.0 on the Investing.com Index, up 0.21% on the day. Ethereum was trading at $137.02 on the Investing.com Index, a gain of 0.38%. Bitcoin's market cap was last at $70.83728B or 50.50% of the total cryptocurrency market cap, while Ethereum's market cap totaled $14.49368B or 10.33% of the total cryptocurrency market value.
Bitcoin prices were relatively unchanged in midday trade on Tuesday, hovering below $4,000, a level that‘s become a crucial battle line, according to some pundits. In Tuesday action, bitcoin, BTCUSD, +0.37% the best-known cryptocurrency, was changing hands at $3,974.10, up less than 0.1% since Monday at 5 p.m. Eastern time on the Kraken exchange.
Litecoin was trading at $52.022 by 13:08 (13:08 GMT) on the Investing.com Index on Tuesday, up 12.52% on the day. It was the largest one-day percentage gain since March 5. The move upwards pushed Litecoin's market cap up to $2.997B, or 2.34% of the total cryptocurrency market cap. At its highest, Litecoin's market cap was $14.099B. Litecoin had traded in a range of $45.576 to $52.022 in the previous twenty-four hours. Over the past seven days, Litecoin has seen a rise in value, as it gained 8.2%. The volume of Litecoin traded in the twenty-four hours to time of writing was $1.238B or 4.57% of the total volume of all cryptocurrencies. It has traded in a range of $43.0657 to $52.0225 in the past 7 days. At its current price, Litecoin is still down 87.61% from its all-time high of $420.00 set on December 12, 2017.