After last weeks minor collapse, the price of Bitcoin has leveled out and is trading relatively horizontally in the $6,200 to $6,400 range.
This week has seen a stream of positive news come in regarding the cryptocurrency industry but is it having an effect on the value of digital assets?
Probably the most notable news is that of the Winklevoss Twins cryptocurrency exchange Gemini being granted regulatory approval to release its own stablecoin, Gemini dollar (GUSD). The New York Department of Financial Services (NYDFS) gave the green light to their application for a US dollar-pegged cryptocurrency, allowing for a conduit between traditional fiat currency and digital assets.
Unlike U.S. equities that might trade 9-to-4, five days a week, this is a 24-7-365 asset class,” said Gemini president and co-founder Cameron Winklevoss.
Other positive news from across the pond comes from European Commission vice president Valdis Dombrovskis, who was quoted as saying he sees a future where cryptocurrencies co-exist within the existing financial ecosystem and believes they are “here to stay”. The statement from such a high-ranking official will undoubtedly provide traditional financial institutions with a greater level of confidence in the digital asset marketplace.
However, whether the news will have a positive effect on the price of Bitcoin and other cryptocurrencies remains to be seen. Until recently, it was assumed that the news and media had a significant effect on market movements but this belief has come into question recently.
Despite being one of the years biggest developments for the cryptocurrency market, the announcement that the Intercontinental Exchange (ICE) was planning a crypto trading desk had a very little effect on the market. Furthermore, despite the recent market crash following fake news that Goldman Sachs was scrapping plans to create their own Bitcoin trading desk, it is now widely accepted that the news did not, in fact, cause the crash.
It’s possible that the cryptocurrency market and it’s wider, more integrated financial ecosystem, has evolved to a point that is no longer so easily swayed by positive or negative news.
The price of Bitcoin continues to trade at around $6,300, where it has been the past few days, indicating no positive movement as a result of the news.
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