Bitcoin seems to have stabilized but a week of positive news may spur recovery.
In the past few days, bitcoin [BTC] prices have steadied around $6,300 and $6,400, only moving slightly from these points.
As altcoins selloff continues, bitcoin dominance—currently at 57.4% according to CoinMarketCap–is headed towards two-thirds the entire crypto market.
Though the selloff has affected ethereum the most, it now seems to be affecting token who before now have fared very well. VeChain [VET], WanChain [WAN] and Decentraland [MANA] all felt the pang losing between 5% and 10% in the last 24 hours.
Ether [ETH] is struggling the most as it romances with a yearly low of $185 since it made the dip below $200.
Positive News for Crypto and Crypto Adoption
However, the past few days have brought some positive news around cryptocurrency which is capable of spurring the markets or bring some respite at the very least.
This will be most beneficial to Bitcoin [BTC] which needs some push to get it above the $6,400 mark where it has hovered for days now.
Positives from the European Union (EU)
The cryptocurrency sector and its market growth were recognized this week by no bigger a group than the European Commission (EC), the EU’s legislation and decision arm. The Vice president of the commission, Valdis Dombrovskis put confidence in crypto markets which he said were here to stay. “We also had a good exchange of views on crypto-assets. We see that crypto-assets are here to stay. Despite the recent turbulence, this market continues to grow,” he said.
This recognition is important because the EC has shown mixed signals towards cryptocurrency in the past months. While it has prioritized blockchain promotion, the commission, and its parent body, the EU has been more cautious about cryptos. After its meeting in February, he Financial Act Task Force of the EC recommended “Improving the understanding of virtual currencies risks”. Later in April, the European Parliament agreed to tighter regulation of the crypto sector.
An EU backing is capable of galvanizing the European crypto market which has lagged behind the likes of Asia.
Positives from Citigroup
Citigroup disclosed that it would provide crypto custody in an ADB-styled crypto investment product. By helping institutional investors own cryptocurrency without dealing with them directly is huge for crypto adoption, needless to say, it will bring more money into the sector.
Positives from Nasdaq
Nasdaq is reportedly developing a crypto analytics tool for investors. If it is eventually released, it will be the first actual crypto product from the bank which has shown great support for crypto in words.
Positives from Gemini Exchange
Winklevoss twins-led Gemini has launched the first fully audited and licensed stablecoin in the market, called Gemini dollar (GUST). Experts have said that the fully audited and licensed stablecoin of Gemini will increase the legitimacy of the market and further improve its infrastructure.
In normal situations, any of these positives in the past few days is capable of spurring the market, and they may well do—especially for bitcoin [BTC]. But there are no guarantees.
The nature of the current bear market means that even the best news coming from the sector may have little or no impact on prices. The introduction of Bakkt, for instance, didn’t do much good for the market as one would expect.