Ethereum Deteriorates by 45 percent – Bitcoin up by 0.1 percentSeptember 13, 2018
Ethereum usually follows the crests and troughs with Bitcoin. However, the trend is changing. Despite the current volatility Bitcoin rose to 0.1% and Ether has gone down by 45%.
Mati Greenspan, crypto analyst at a well-established cryptocurrency exchange stated, “In this case, bitcoin is acting like more of a safe haven for cryptocurrencies — it’s kind of consolidating,”
“There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” Vitalik Buterin who spoke to Bloomberg News, this Saturday, remarked, “The blockchain space is getting to the point where there’s a ceiling in sight.”
The scrutiny in the ICOs has already killed investor enthusiasm, specifically for Initial Coin Offerings built on the Ethereum Platform. To add to the fuel the bearish comments from Vitalik Buterin likely would likely frighten investors.
“The fact that Vitalik is less bullish could be causing some to sell and it stands to reason that most of his most devout followers will be holding Ether,” added Greenspan.
According to the former Goldman Sachs analyst, Tams, “Shorts are going to ride that wave”. Short-sellers are adding up to the pressure in the market.
A few months ago, retailers who invested in crypto currencies were excited and happy; however, now they are in a panic. They are panicking because their investments are more than insignificant. Some of the investments are like “multi-million dollar bets” made in real time.
Regulation according to Tam is positive for the long haul. “Others see this as cause for panic — an end to the lax rules and low hanging fruit to which they’ve become accustomed,” Tam remarked, “You also now have a ruling on the table that effectively means ICOs are now subject to securities law.”
Securities and Exchange Commission, early this year stated that Initial Coin Offerings that are built on Etherum are securities that are subject to SEC law. However, the SEC denied that Etherum by itself is not a security.
In a case in Brooklyn New York, where it was argued on whether cryptocurrency is a security for the purposes of criminal law, the Brooklyn District Judge stated that Howey test should be applied for securities. When it was argued that “cryptocurrencies were not securities” in the context of criminal law, the Federal Judge refused to dismiss the case.
While legal authorities are considering cryptocurrencies as securities, Tons of crypto projects that have been holding Ethereum have sold their holdings, because these businesses had to manage their cash flow accordingly. Ether is going through a free fall.