Over the past few days, Bitcoin has forged a place between the $6,300 and $6,400 mark, building up a volume of around $3.78 billion and taking its dominance index to slightly over 56 percent by the time we went to press. This is a gain of 0.61% in the past 24 hours.
The closest competitor to Bitcoin, Ethereum, is still struggling to recover from the fall that took it way below the $200 mark, and this has seen some tokens such as VeChain, WanChain, and WaltonChain to lose up to 10 percent in just a few days.
With both good and bad news circulating on the crypto sector, a lot of confusion abounds among investors, and there is no strong indicator whether to buy or to sell. Let us look at the news so that you base your decision on facts.
The Good News
The past week is arguably one of the best so far for Bitcoin this year, as the currency has remained stable for a long time.
The stability is expected to remain strong for the next few days, but it remains to be seen whether the price will rise or crash.
The increased recognition of the cryptocurrency sector and the growth of the market throughout the year by various financial commissions are crucial for the long-term growth of the blockchain sector. Additionally, the positive step towards regulation has increased the adoption of cryptocurrency the world over.
The Bad News
On the flipside, the suspension of trading on Exchanged Traded Notes (ETNs) tends to cast a big, dark shadow on all the good news. Even after the ETNs were well accepted on Nasdaq Stockholm Exchange for the past three years, the U.S. Securities and Exchange Commission (SEC) suspended it from trading on the US market after its documentation was found wanting. The SEC attributed this to different definitions of the ETN, which caused a lot of confusion among investors and the public.
This suspension is important because the ETNs represented one of the major ways for public investors in the US to gain exposure to digital assets. Therefore, suspension cuts off such a vital inflow path from the markets to the crypto.
Additionally, Wall Street financial institutions are sensitive when it comes to risk. They will unlikely rush into a market that sees regular regulatory scrutiny, including suspensions and denials. Financial institutions find an excuse to delay participation in crypto.
According to in-depth technical analysis and a look at the current trends, Bitcoin will most likely be stuck between the $6,000 and $7,000 range for the next two months. But does that mean it is time to dump your bitcoins? Think again!