The cryptocurrency market has turned extremely bearish after Bitcoin broke below the $6,000 level last week. In the past 24 hours, Bitcoin and all other significant altcoins such as Ripple (XRP), Ethereum, Bitcoin Cash, Stellar, and Litecoin have lost anywhere between 10% and 20% as investors and traders pressed the panic button following a series of warnings by crypto experts on the future of virtual currencies.
For the first time in 2018, Bitcoin crashed below $5,000, according to the latest trades on Bitstamp, the Luxembourg-based cryptocurrency exchange. The sharp decline is fuelling fears that the cryptocurrency market may see a total collapse. Bitcoin briefly fell to $4,814 earlier today before bouncing back a little to trade at about $4,975.
The market capitalization of Bitcoin has now come down to $86.45 billion, from over $110 billion two weeks before. In the past 24 hours, Bitcoin has lost roughly $1,600 or 10.9%.
One of the main reasons for the steep drop in the price of Bitcoin is the issue between two groups (coin developers and miners) handling Bitcoin Cash. The disagreements have resulted in splitting Bitcoin cash into two through a hard fork last week, resulting in the creation of Bitcoin ABC and Bitcoin SV. Both groups continue to fight for dominance over the Bitcoin Cash network by waging a hash war.
Government level initiatives
Cyberspace Administration of China (CAC) has published a document that proposes the country “accelerate” the advancement of blockchain industry standards. The report was prepared by Zhou Ping, who is the Secretary-General of the China Blockchain Technology and Industry Development Forum and Director of the Software Engineering and Evaluation Center at the Chinese Electronics Technology Standardization Research Institute. Zhou Ping serves the Ministry of Industry and Information Technology (MIIT). The document argues that the creation of a reference standard for blockchain architecture is vital for the assortment and implementation of blockchain systems in various domestic industries.
The Canadian House Finance Committee has suggested that the government commence supervising cryptocurrencies to foil money laundering. According to iPolitics, during its assessment of the Crime Money Laundering and Terrorist Financing Act (PCMLTFA), which happens once in five years, the Canadian House Finance Committee recommended that cryptocurrencies should come under regulation. Starting February, the Committee has had 18 meetings to review PCMLTFA. As a consequence of this assessment, the committee proposed three methods of regulating cryptocurrencies by the government.
The first recommendation is to organize the exchange between fiat and cryptocurrency, characterizing the firm performing the transaction as a money-service business.
The committee’s second recommendation is for the government to necessitate a license from cryptocurrency exchanges comparable to New York’s BitLicense.
The final recommendation for the government is to standardize cryptocurrency-holding wallets to make tracking easier. The government is expected to answer the suggestions in the House of Commons in 120 days.
Private sector initiatives
Korea’s biggest power supplier, KEPCO, says it will build its new-age microgrid (MG) using blockchain and other groundbreaking energy solutions. KEPCO is a $15.9 billion market cap enterprise in which the South Korean government and the state-controlled bank possess a majority stake. According to the Asia-based publication Nikkei, the firm has a “virtual monopoly” on power generation and supply in the country.
It is reported that KEPCO’s new “Open MG” will employ blockchain and other technologies to enhance the energy framework, especially for the local hydrogen industry. KEPCO aims to focus on decentralization, decarbonization, and digitization, which the announcement describes as the three key “trends” that lead the future of the energy sector. In accordance with the press release, KEPCO plans to fully develop the Open MG and create the “first” mega wattage (MW) microgrid in Korea.
Hong Kong-based blockchain startup Crypto.com revealed that it is in the final stages of issuing its crypto prepaid card, MCO Visa Card, in the United States. Crypto.com has stated that the launch will be done in partnership with its domestic banking partner Metropolitan Commercial Bank. The cards promise up to 2% rewards in the form of MCO token, airport lounge access (select cards), as well as competitive interbank rates.
According to Crypto.com, users of the MCO Visa Card can easily convert their crypto to fiat using the mobile wallet. Furthermore, the card can be spent in more than 40 million locations online and offline worldwide. The company emphasizes, however, that users must first convert crypto to fiat currency via the Crypto.com wallet before they transact. The company started shipping cards to Singapore users in October and currently has bookings for more than 100,000 cards.
Bloomberg reported that Silver Castle Ltd., the first dedicated crypto investment company in Israel for institutional investors, launched two new crypto funds this month. The company – whose profile includes the former CEO of the largest bank in Israel, Bank Hapoalim, and the founder of the country’s largest investment fund, Psagot Ofek – expects to have $ 50 million in assets under management by the end of the year.
The report notes that global competition for crypto investment funds is fierce today, with more than 370 crypto-focused funds collectively worth up to $10 billion in AUM, citing data from Autonomous Research.
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