The worldwide crypto market cap fell 3.32 percent to $1.08 trillion over the previous day, causing major cryptocurrencies to trade in the red early on August 19. Over the past 24 hours, the total market volume for cryptocurrencies fell by 11.06 percent to $64.45 billion. 5.08 billion dollars, or 7.78% of the 24-hour volume of the whole crypto market, represented the total volume in Defi. Stable currency activity totaled $59.20 billion, or 91.85% of the 24-hour volume of the whole crypto market. The U.S. Federal Reserve on Tuesday provided more advice for banks thinking about engaging in cryptocurrency-related operations, highlighting the need for enterprises to notify the Fed beforehand and ensure that anything they do is legal. In a statement, the Fed stated that while banks may see “potential opportunities” from cryptocurrencies, they should make sure they have mechanisms in place to make sure the volatile assets do not endanger consumer protections or safety and soundness. The two biggest meme coins by market capitalization, Dogecoin (DOGE) and Shiba Inu (SHIB), posted losses during the previous day, falling 3.8% and 5.7%, respectively. Despite the dip, both cryptocurrencies have distinguished themselves from the rest of the market because of significant gains over the previous week. According to data from CoinDesk, Bitcoin hit a low of $17,601 on June 19 and has since increased by almost 31% as of Friday’s trading price. The price of ether also reached a recent low on June 19 at $880.93, but it has since risen 106%.A significant improvement to the Ethereum blockchain known as the “merge” caused a dramatic difference in performance between the two cryptocurrencies. According to analysts, any further delays to the Ethereum upgrade risk derailing the significant rally. Reuters, SINGAPORE, August 19 – On Friday, cryptocurrencies plunged dramatically because of rash selling that brought bitcoin to a three-week low. The cause of the decline was not readily apparent. During the morning in Europe, Bitcoin dropped as much as 7.7% to $21,404 in a short period of time. It recently recouped a little and was at $22,047. At $1,753, ether was last down 5%.

  • Investors in bitcoin are only rationally inquisitive about how high it can go given that it has demonstrated a steady rise in value over time compared to that of any other cryptocurrency available on the market.
  • According to conservative estimates, bitcoin will reach $100,000 by 2023. However, more optimistic cryptocurrency aficionados claim that $250,000 is not far away. Big financial firms have also predicted their own outcomes, with JPMorgan predicting a long-term high of $146,000 and Bloomberg predicting it may reach $400,000 by 2022. According to a recent study by Deutsche Bank, one-fourth of bitcoin investors predict that in five years, the price would exceed $110,000. Because bitcoin is still so young, price projections are mainly educated guesses.
  • Events that see the price of bitcoin halve indicate a trade-off between cryptocurrencies and U.S. stock markets when there is a major negative stock market reaction. The world’s capital market regulators recognized the need to promote innovation in the sector by adopting emerging technology (such as blockchain) and adaptable ownership/payment models (i.e., digital assets, and cryptocurrencies). On the one hand, regulators around the world (such as those in the United States, Singapore, Thailand, Switzerland, and Hong Kong) are issuing guidelines and frameworks to facilitate the exchange of digital assets, in line with expectations that global jurisdictions are embracing innovative technologies. On the other side, bitcoin’s high volatility and speculative character require regulatory government engagement, which will lead to the publication of guidelines and laws on how to classify and use bitcoin. However, at times, the engagement of government authorities is seen as a setback to bitcoin’s revolutionary nature and its growth as a peer-to-peer mechanism that does away with middlemen. Government regulations, therefore, have unforeseen repercussions. Market intervention in bitcoin trading generally can take the form of regulatory rule announcements or messages from regulators.
  • The United States designated bitcoin as a commodity in 2015. The Securities and Exchange Commission (SEC) has been diligently working to protect investor rights while also fostering innovation in the financial market by allowing it to develop exponentially and at the same time expanding the SEC federal rules and regulations to include digital assets after realizing the need to adapt to flexibility in financial market innovations. The regulatory control of digital assets has also advanced and been tailored to make laws and regulations simpler in the US market. To lower the operational risk for broker-dealers operating alternative trading systems, the SEC, for instance, streamlined the settlement process for digital asset securities and reduced the number of steps from four to three (ATS). There are four steps in the process: 

     (1) the buyer and seller send orders to ATS

          (2) ATS matches the orders

          (3) ATS notifies the buyer and seller of the matching process. 

 (4) the transaction is bilaterally concluded.

  • Only three steps make up the simplified procedure:
  • ¬†When a match is announced on the ATS, the buyer and seller place orders with the ATS and provide their custodian instructions to settle the transactions. The ATS then matches the order and notifies the buyer and seller. The custodians of the parties carry out the instructions.The magnitude of the bitcoin industry globally makes it impossible for one government to regulate it. Anecdotal data indicates that bitcoin rules lead to market turbulence and long-term drop in trading activity. To reduce market friction and transaction costs, enable quick payments, and cross borders and other barriers, bitcoin was created. Global efforts are necessary to reap the actual benefits of bitcoin and mitigate the inevitable drawbacks that frequently accompany novel technology in emergency situations like the unprecedented COVID-19.

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