Market Cap Inches Towards $400 Billion As Cryptos Appreciate

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Market Cap Inches Towards $400 Billion

Strong momentum has been observed in the virtual currency market and this is likely to lead to the combined market capitalization reaching the $400 billion mark. Many major virtual currencies have seen huge gains since last week and this includes Bitcoin (BTC) which has appreciated by more than 14%.
Despite the downward movement experienced following the selloff associated with Mt. Gox, the cryptocurrency has exhibited solid volumes on both virtual currency-to-fiat currency exchanges such as Bitfinex and virtual currency-only exchanges such as Binance.

Regulatory scrutiny

Other factors that had led to a fall in the price of Bitcoin include the U.S. Securities and Exchange Commission indicating that virtual currency exchanges would be breaking the law by listing initial coin offering tokens deemed to be securities by the regulator. The U.S. Treasury Department had also released a letter which suggested that operators of ICOs might be required to comply with bank-level anti-money laundering regulations and reporting requirements.
The recovery of the digital coin has been attributed to positive developments in the sector as well as a prolonged recovery which followed a correction earlier in the year. Some of the optimistic developments have taken place in South Korea. In one instance the leading online retail platform in the country, WeMakePrice, as well as the biggest hotel booking platform in the country, Yeogi Eottae, have started integrating virtual currencies in conjunction with Bithumb ? South Korea?s largest virtual currency trading platform.

Ripple effect

Though it may take some time before Yeogi Eottae and WeMake Price begin accepting payments in virtual currencies a spokesperson for Bithumb indicated that the move by the two firms will have a ripple effect and motivate other business organizations to join in the trend.
Other firms in South Korea that have begun integrating digital coins include Kakao, an internet conglomerate which operates Dunamoo, KakaoStory, KakaoTaxi, KakaoPay and KakaoTalk services. Kakao?s move is especially significant since around 12,000 merchants use KakaoPay.
This comes in the wake of the launch of a sentiment indicator known as Bitcoin Misery Index by the co-founder of Fundstrat, Tom Lee. The index aims to help investors of cryptos to determine entry points when purchasing.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at news@dippli.com.

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