It’s been quite a month for cryptocurrencies, what many took in January as a correction after December’s unsustainable highs turned into a rout, with bad news after bad news pushing cryptocurrencies down ever-further. Weighing on investors’ minds were impending bans of cryptocurrency trading in South Korea, clampdowns in China and SEC announcements and senate hearings in the US. Even Russian President, Vladamir Putin, said regulation of cryptocurrency market may be needed.
From a market capitalisation high of over USD $800 billion in early January, cryptocurrencies slumped to a low of USD $275 billion in just one month.
But then the tides turned and the negative turned positive.
Firstly, South Korea sent a somewhat bullish message out: “There is no intention to ban or suppress cryptocurrency [market],” said a Reuters report. Regulators in the US said nothing is going to happen soon and industry came out saying “Crypto is a real thing — it’s not going to go away” – albeit a company with huge vested interest in cryptocurrencies. All of this contributed to a massive rebound in price – and it’s now hovering around the USD $500 billion mark.
All in all, a rollercoaster month for cryptocurrencies.