The volatility of the crypto market is reflected again in today’s session when the two main cryptocurrencies in the market, BTC and ETH, after opening higher, they collapsed again.
The lack of institutional support and the base in the offer – demand of the same, translates that before declarations of institutions or influential personalities the price is altered.
We have seen that in recent months BTC and ETH reached new highs as a result of speculation and institutional commitment to it.
However, in the last month, the BTC lost approximately 30% of its value, to which is incorporated the Chinese ban of the last hours and the decision of Tesla not to move towards the use of crypto as a form of payment.
The nation has decided to prohibit the provision of the service linked to cryptocurrency transactions. It is aimed at financial institutions, banks and online payment channels that provide transactions with this type of asset. The standard is directed at the China National Internet Finance Association, the China Banking Association, and the China Payments and Clearing Association.
The objective of the decision, as reported, is the preservation of the security of both the property of the people and the economic and financial order since the contracts are not protected by the law of the country. In this way, the institutions will not be able to offer registration, negotiation, compensation or settlement.
Similar attempts or similar bans have been seen in other countries, in order to regulate activity related to cryptocurrencies.
The influential effects on the price of these crypto assets are various, so the near future on their price is unclear. There is speculation from the possibility of returning to lows to the speculative possibility of new highs.
The truth is that the institutional guarantee encourages and discourages investment in them, while the adverse economic context leads to the search for profitability.
BTC opened at 44,740 and its low today was $ 42,925. Meanwhile, ETH opened at $ 3,413.81 and after falling to $ 3,226.57, it returned to $ 3,413.