Cryptocurrencies looked to close out the week steady, with bitcoin seemingly well supported about $35,000 despite more talk of global regulatory scrutiny. As per CoinDesk data, Bitcoin plunged around 2% in the last 24 hours to trade at $36,289.61 whereas other digital coins also were trading lower.
Ether, the coin linked to the ethereum blockchain network, declined over 5% at $2,431 while dogecoin at $0.32, down 5%. Other cryptocurrencies like XRP, Cardano also fell more over 4% in the last 24 hours.
International banking regulators’ decision to classify Bitcoin as the riskiest of assets dragged cryptocurrencies further into the mainstream financial world. The Basel Committee on Banking Supervision proposed that a 1,250% risk weight be applied to a bank’s exposure to Bitcoin and certain other cryptocurrencies. Bitcoin jumped on the announcement, then erased the gains, reported Bloomberg.
In another news, JPMorgan sees signal of coming bear market in Bitcoin and in a recent note has said that there’s weak bitcoin demand from big investors and a crypto bear market could be on the way.
“We believe that the return to backwardation in recent weeks has been a negative signal pointing to a bear market,” JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note. They added that Bitcoin’s relatively depressed share of total crypto market value is another concerning trend.
The JPMorgan analysis is based on the 21-day rolling average of the 2nd Bitcoin futures spread over spot prices, and pointed out the Bitcoin futures curve was in backwardation for most of 2018.
Bitcoin’s share may need to top 50% to make it easier to argue the current bear market is over, the JPMorgan strategists said in the June 9 report. Panigirtzoglou previously flagged Bitcoin’s declining market share in early May, ahead of tumble in the coin’s price.
(With inputs from agencies)
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