What You Need to Know
From a surge in market demand to the implications of a looming SEC deadline, crypto news has been buzzing with activity recently. As the world of digital currency continues to expand and grow at an astonishing rate, there are plenty of developments to monitor as an investor or potential investor in cryptocurrency.
And while it can be easy to get lost in all the noise, you must view any piece of news about cryptocurrency from as objective and un-emotive a perspective as possible. The future value of any asset is always directly linked to its real-world adoption and true potential for widespread use.
Without further ado, here are five things you should know about Bitcoin and the wider cryptocurrency market right now...
Bitcoin Hit With a Double Whammy
The price of Bitcoin was dealt a double blow in early May. First, the SEC declined to approve a Bitcoin ETF product proposed by an investment firm and financial services company. The proposed ETF would have given investors the ability to bet on the price of Bitcoin without actually owning the cryptocurrency.
Second, the Japanese Financial Services Agency ordered several cryptocurrency exchanges in Japan to suspend new account creation. These two events have kept the price of Bitcoin under pressure, but analysts expect the cryptocurrency to make a strong comeback.
Bitcoin also faced regulatory challenges in several other major markets, including the U.S., Europe, and South Korea. But experts say the challenges faced in these jurisdictions might help to strengthen the crypto market in the long run. For example, the U.S.
Securities and Exchange Commission (SEC) is reviewing its policy on whether digital assets can be classified as securities—and, if so, the best way of regulating them. The SEC has also warned investors about the perils of investing which could prompt people to look for safer investment options such as Bitcoin.
All in all, the next few months could prove to be pivotal in shaping the future of Bitcoin. We could likely see increased regulatory oversight in mainstream markets, but this could translate into a strengthening price in the long run.
Ethereum: Still the King of Dapps
As awareness and adoption of blockchain technology grow so does the number of decentralized applications (dapps) built on top of it. Ethereum remains the undisputed leader of this growing market, with the vast majority of apps built on its blockchain.
As such, Ethereum’s fortunes are intrinsically linked to the growth of this sector. And while it’s true that the price of Ethereum has suffered in the past few months, it’s still trading above its 2018 low by a considerable margin.
As the SEC deadline draws ever nearer, a growing number of analysts believe Ethereum will emerge stronger than ever. A report published by Dapp.com in April indicated that the number of daily Ethereum transactions had increased by 439% year-over-year.
And with the number of daily transactions on the Ethereum network expected to reach 500,000 by the end of the year, it appears the app industry is growing stronger by the day.
So why does this matter?
Well, the app industry is still in its infancy. There are thousands of apps operating currently, but it is expected that the number will increase dramatically in the next few years. And as it grows, so too will the need for the Ethereum blockchain. All things considered, the future of Ethereum is likely right.
Ripple is on the Rise
XRP has earned a reputation as the “black sheep” of the cryptocurrency world in recent years. Many leading commentators have accused Ripple and its native token of being thinly veiled securities, while others have accused the company of using unfair methods to increase adoption.
However, the tide appears to be turning in favor of Ripple. It was recently announced that would be listed on, one of the world’s leading crypto exchanges.
And with customers able to trade from June, the price of Ripple will likely ramp up in the coming weeks and months. The listing has come at a time when the SEC is tightening its grip on the cryptocurrency market.
Many leading exchanges have been forced to delist tokens in recent months, including tokens that have been considered safe for investment. The listing is a sign that the company is trying to stay ahead of the curve in this regard.
And with Pro rolling out a new staking feature, the price of Ripple will likely rise shortly. All in all, the future of Ripple and its token appears to be brighter than ever.
More and more large-scale financial institutions are expected to adopt the token in the coming years, which should help to strengthen the price in a big way.
The SEC Deadline Comes Again
As we mentioned above, the SEC is currently reviewing its policy on whether digital assets can be classified as securities or not. This review was originally scheduled for the end of March, but it has since been delayed to July 16.
The SEC has also issued a public warning urging the public to be cautious when investing in token sales. The regulator has also indicated that it will be taking a “wide-ranging” approach to the review and that it may result in “enforcement actions” and “registration” requirements.
These developments have raised alarm bells among investors and regulators alike. Many leading figures in the crypto community have urged the SEC to adopt a “no harm” approach to its review, while others have called for a “freeze” on the industry in general.
If the SEC decides to take a “hardline” approach to its review, the industry will likely suffer significantly.
Conclusion
The future of the cryptocurrency industry is bright, but it’s important to remain level-headed and unemotive. New coins and tokens are coming to market almost daily, and there are plenty of “get rich quick” schemes looking to take advantage of naive investors.
To stay ahead of the curve, you must keep abreast of the latest developments in the crypto market. So make sure to follow the news, analyze the latest developments, and remain skeptical, no matter how tempting it is to get swept up in the hype.