The Bitcoin price has bounced up to $9,370 following recent a 10 percent decline marked on April 26 that reportedly was triggered by the sale of the Mt. Gox trustee funds while technical figures indicate the feasible potential for a move higher towards major resistance at $10,000.
Bitcoin seems to recover from the price roller coaster it has exhibited for the last few days. At the press time, the king of altcoins hit the $9K mark according to data from cryptocurrency tracker CoinMarketCap and some analysts predict even more upwards in the nearest future. However, the digital currency has had a slow start to today’s trading, which might be signaling that the rally is coming to a pause.
The reason for the experienced decline in Bitcoin price became a Mt. Gox trustee’s major sellout that was said to dump on the public cryptocurrency exchange more than 17,000 Bitcoins over the past 24 hours. At a price of $9,700, 17,000 bitcoins were worth $165 million and that large sum of funds lead to increased volatility at the largest cryptocurrency exchanges.
In spite of the criticism from the cryptocurrency community and the request from investors to utilize the Over-The-Counter market to sell large batches of Bitcoin rather than cryptocurrency exchanges, the Mt. Gox trustee has continued to rely on major exchanges to dispose their funds. Consequently, subsequent to each sale, the price of Bitcoin has fallen by large margins.
Nevertheless, by now Bitcoin has managed to regain the value as well as re-emerge its volume, thus the overall market demand is being balanced. As practice shows, when Bitcoin remains in a neutral zone and is not flooded with sell orders, it tends to perform strong in the short-term giving investors a stimulus to anticipate the Bitcoin price to end April at $10,000, regardless of the recent drop in price triggered by the Mt. Gox sale.
And indeed this assumption might has merit, since over in Chicago the cryptocurrency space was boosted by the highest daily volume for Bitcoin futures trading since their introduction at the CBOE five months ago. The recently obtained market statistics reveals that about 18,210 contacts for the May futures were traded, along with 703 for the June contract and 87 for the July contract and no volume was reported for the exchange’s August-dated contract.
Kevin Davitt, the CBOE Options Institute senior instructor, said that the average daily volume (ADV) runs about 6,600 in XBT Bitcoin Futures when reported the volume was nearly three times ADV that makes approximately a total of 19,000 Bitcoin futures traded across the term structure.
Bitcoin’s recent gains comes amid a larger rebound observed across the cryptocurrency market. The other top 10 digital coins are all posting significant gains for the most recent 24-hour period, with Stellar (XLM) and IOTA (MIOTA) being the standout performers, thanks to their double-digit percentage increases.
Stellar’s robust performance have allowed the coin to overtake Cardano (ADA) as the seventh-largest digital currency by market capitalization. The second most valuable cryptocurrency, Ethereum (ETH), has turned in impressive performance too, gaining 7% over the period.
As a result of the rebound, the cryptocurrency market’s total valuation reached the $415-billion mark reached that once again nourishes the expectation of Pantera Capital CEO, Dan Morehead, who the other day has predicted a possible $40 trillion worthiness of cryptocurrency market capitalization.
The New York Attorney General’s office has contacted a number of crypto exchanges to request information to aid their research into cryptos. Despite the fact that many of these exchanges have agreed to provide information, one of them, Kraken, has refused to comply.
Jesse Powell, CEO and co-founder of crypto exchange Kraken, decided to refuse the request for information sent by New York Attorney General’s office. According to Powell, doing so would blow up the company’s roadmap.
Powell said that moving the company from New York three years earlier was a wise move, which will allow the company refuse this request. Usually, the company would be more than happy to help the US government understand what they do, but they believe that this is the wrong way of doing it.
Other companies’ stance on the issue
There are many companies such as this one that chose not to conduct their business in the territory of New York due to the requirement for a BitLicense. This is something that must be obtained from the New York State Department of Financial Services. There are companies that still have not followed the process and applied for their license, like Ripple, bitFlyer USA, Coinbase, and Circle.
New York Attorney General’s spokeswoman, Amy Spitalnick, stated that entities that do their work legitimately prefer to demonstrate to their partners and investors that they are serious about their business and that all invested monies will be safe. She said that this is a basic info and that all credible platforms should have it, and be willing to share it.
The office of Eric Schneiderman, the New York Attorney General, sent out a questionnaire to 13 crypto exchanges. The information should be delivered back to the Schneiderman’s office by May 1st, and it must contain details like fees, ownership, money laundering issues, and trading suspensions.
Kraken won’t give in
Other exchanges have complied with the request and have even expressed their support for it. In fact, Powell was the first, and so far the only voice, that stands against it. Powell even stated that if the attorney general’s office wishes to talk, they should ask for a phone call, or even fly to San Francisco and organize a lunch in their office.
According to Powell, New York is not a friend to cryptocurrencies and businesses that deal with cryptos. This is the very reason why Kraken left in the first place, because the last time when the exchange decided to comply with requests for info, BitLicense was introduced soon after.
Right now, this crypto exchange is the 12th largest, according to their trading volume, says CoinMarketCap, and fifth by rank when it comes to trading US dollars and Bitcoin. With such results, this is a big and influential business and it remains to be seen whether this will be enough for others to decide and follow in Kraken’s footsteps regarding the info request issue.