Market Overview: 14–20 May
By: Alexandra Petrova
Tags: Crypto, Analysis, Bitcoin, Overview, Cryptocurrency

During almost the whole week Bitcoin was trying to consolidate between $8000 and $8500 markpoints. We can even say that things were following the positive scenario. Frustration factor could have taken its place as many traders could have organized much bigger sales seeing no serious upward movement during the Consensus conference. On Sunday, May 20, Bitcoin is trying to overcome the $8500 level again. During the spring this level has been a certain border for several times already. When trading below $8500, bears are prevailing with the fear that the global fall is not over. With prices at a higher level, there is an obvious bulls’ desire to develop an upward trend.

The week was rather rich in news, but we’d like to point out the most important events. Earlier in May, CFTC and SEC discussed the Ethereum status trying to decide if ETH tokens should be considered as stocks.

No definite solution was made, but according to the recent announcement of the CFTC commissioner Brian Quintenz, it’s neither a matter of days, nor of months. The reason for such a rush is quite clear. CME Group, the Northern American derivatives exchange, is launching Ethereum index. This could mean that the operator is looking to launch futures in addition to Bitcoin futures.

Another interesting news was the announcement made by the Circle (Goldman Sachs company). Together with Bitmain it is going to launch the USD-backed cryptocurrency. This USDC project is to be launched this summer. Presumably, if the project turns out to be successful, pound and euro will also go digital. Both news items mentioned above mean that traditional financial giants are getting ready to strengthen their positions in the market.

As long as the market is all about trends and expectations, it’s worth mentioning fresh statistics. Coindesk published several main cryptocurrency trends based on the Q1 information. In particular, we’d like to point out survey results: according them 79% are sure that the bear trend won’t last for long, with 62% explaining the fall in prices by the regulation policy of the majority of mature economies. Another important fact is that mining remains essential. Miners themselves seem to be positive despite the fact that their incomes have decreased. Bitcoin total hash rate increased by 47% in a quarter. This overview is published with the figures even more impressive: Bitcoin network power has doubled since the beginning of the year.

No major events or news buzz is expected next week. There is a certain risk related to South Korea regulators who can make harsh statements in contrast to general discussions on mitigating regulation policy as it already happened before. We expect that cryptocurrency market needs this calm media background to start growing, so that investors get reassured and realize that the situation got stable and all the risks are within the limits.

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