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.
A claim by Wikileak’s official online store states that its account with Coinbase was suspended by the cryptocurrency exchange. In 2016, Wikileaks was central to a long string of international scandals before the presidential election according to the leaked document depository and it is now calling for a boycott of coinbase. Coinbase says that its primary goal is to make digital currency safe and secure for its customers.
According to reports, an unconfirmed announcement from Coinbase has irritated the Bitcoin community and also highlighted certain unavoidable tensions as cryptocurrency becomes increasingly commonplace. Wikileaks Shop claims to have received a note that was posted on Twitter from Coinbase that appears as if the cryptocurrency exchange cites U.S government financial regulations as one reason for the suspension.
A letter sent to Wikileaks by Coinbase states “Coinbase is a regulated Money Service Business under Fincen that is obligated to implement regulatory compliance mechanisms. Upon careful review, we believe your account has engaged in prohibited use in violation of our terms of service and we regret to inform you that we can no longer provide you with access to our service.” The letter continues to show the instructions that “We respectfully request that you follow the on-screen instructions presented when you log into your Coinbase account to send any remaining balance offsite to an external address.”
There are no indications that show how Wikileaks specifically violated the rules. Coinbase is concerned about Wikileaks to operate legitimately in order to prevent money laundering and other illegal activities.
Wikileaks also responded immediately via a tweet upon receiving Coinbase’s notice and called for the crypto community to stop using the exchange until further notice. “Wikileaks will call for global blockade of Coinbase next week as an unfit member of the cryptocurrency community.
Coinbase, a large Californian Bitcoin processor, responding to a concealed influence, has blocked the entirely harmless @WikileaksShop in decision approved by management,” Wikileaks said.
The suspension by Coinbase will not stop Wikileaks from accepting payments or donations through Bitcoin though the organization may have to doom a lot of resources to handle its accounts directly and will find it more challenging to convert bitcoin to other currencies such as the dollar.
Prominent Bitcoin Users Worried
Bitcoin has gained a lot of popularity as it can be used to bypass or avoid existing financial regulations and systems including banks. Andreas Antonopoulos pointed out on twitter that many politically involved users were first attracted to Bitcoin as a way of donating to Wikileaks after being cut off in 2010 by traditional financial services.
Although Coinbase has attracted a lot of users to Bitcoin and many more crypto exchanges by providing an easy way for them to be bought and used, its status as a regulated U.S business means it must accord and agree with U.S financial regulations. Most Bitcoin advocates remain questioning and skeptical of Coinbase and other intermediaries due to the exposure and many act as caretakers of customers’ cryptocurrency, defensibly increasing systemic risk in an occurrence of their failure.