The crypto market is changing daily with new digital coins in the market, new regulations, and even crazy tweets that can even result in the latest slump in the digital coin market. Before you start investing in the crypto market here are some latest crypto news that could affect your investment.
1. Bitcoin volatility can impact the US stock market
Bitcoin’s volatility can harm the US stock market as investors fear that unpredictability could result in unsettled investor sentiments. This unpredictability is not good for the market. Investors do not like seeing their investments decline in a few minutes, and such events create fear in the minds of potential investors. This is because investors are likely to shift their investments away from stocks to Bitcoin, which creates an opportunity for Bitcoin and other cryptocurrencies to pick up on their demand. If you want to invest in bitcoin, you can visit the online platform like this trading bot.
2. New trading restriction in Hong Kong
Very disheartening news for the people in Hong Kong when Christopher Hui – Hong Kong’s Treasury Secretary said that the government is planning to stop all crypto trades. This move will prevent people in the city from trading in Bitcoin and other cryptocurrencies. The Hong Kong Government, though, does not have the regulatory authority to close any local trading venue. The Hong Kong Treasury Secretary, however, says that he is getting closer to introducing the new trading measure that will prevent people from trading in digital currencies. “The ban will not apply to Bitcoin or other virtual currencies held as assets. However, we are looking to restrict the trading of virtual currencies for purposes of money laundering and terrorism financing.”
3. Dogecoin hits $1 billion
Dogecoin has been performing well over the past week, as it reached $1 billion market capitalization. This marks a big jump for the currency that started the year at just $14 million. Dogecoin is currently trading at $0.0085, with a market capitalization of $1.12 billion. The coins have performed well over the past year. In January 2017, dogecoin was worth just $0.0006. But the value of the coins grew to $0.0054 by March, $0.0099 in April, and finally $0.000085 in May.
4. China’s bitcoin crackdown hurts US exchanges
The Chinese government may ban Bitcoin mining in the country. Bitcoin miners who have invested in mining equipment and other equipment that are needed to make Bitcoin run will be affected by the ban. This will increase the mining costs for users, and this may not be beneficial for them. However, this move is also to ensure that cryptocurrencies are not used for money laundering.
5. Ethereum network slashes fees
Bitcoin’s 1MB block size is too small to be used for a transaction, and thus, to the mining pools that are the backbone of the Bitcoin network. Due to this, users who wish to make smaller transactions have to wait for a long time before the transaction is confirmed. They can also encounter high transaction fees. For example, if you are selling 5 bitcoins, and want to pay 10 Bitcoins to someone for $100, you will have to pay $6 to the miners to send those 5 bitcoins. Ethereum, on the other hand, has a much larger block size, and transactions can be processed very quickly. Ethereum continues to take advantage of its great leadership in the blockchain industry. This high cost of transaction is something that bothers Bitcoin users and is not good for the network.