The coin market is once again seeing massive losses with Bitcoin down nearly 5 percent in the last 24 hours. As usual, all the top coins and most altcoins felt the effect losing between 5 and 12 percent.
The biggest losers in the recent bear market among the top ten coins are Bitcoin Cash and Ripple (XRP) losing 12.3 and 11.4 percent respectively.
World Bank Issues Warning
The recent bleeding in the market can be traced to the recent warning by the World Bank that cryptocurrencies would introduce vulnerabilities to the monetary system considering its volatility.
The recent warning by the world body stated that,
“Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system,”
The IMF report further said,
“Despite its potential benefits, our knowledge of its potential risks and how they might play out is still developing. Increased cybersecurity risks pose challenges for financial institutions, financial infrastructure, and supervisors. These developments should act as a reminder that the financial system is permanently evolving, and regulators and supervisors must remain vigilant to this evolution and ready to act if needed.”
Bull Run Not Yet in Sight
These are coming at a time cryptocurrency enthusiasts were hoping that the coin market would show greater recovery in a year that has been marred mostly by falling prices. This is mainly due to uncertainties stemming from regulatory concerns.
Compounding the regulatory concerns is the reluctance of the Securities and Exchange Commission to approve bitcoin exchange traded funds that would have given a measure of legal backing to the coin market.
Bitcoin is presently trading at $6,291 losing nearly more than $300 in the last couple of days. This is the first time the coin is trading below $6,400 in the past 2 weeks.
This is at a time that many analysts are hoping that the market world exhibit a repeat of the bullishness that saw the value of many coins increase by more than 1000 percent at the end of last year.
A Volatile and Unpredictable Market
The unpredictability of the coin market is the main reason regulators are not willing to give the nod that would give it the impetus needed to experience mainstream adoption.
Also, its unregulated nature has made it an all comer affair that is fraught with scams. In some instances, high level hacks have contributed in no small measure in seeing that caution needs to be exercised in granting approvals that would create the regulatory ambiance institutional investors have been waiting for.
In the meantime, market watchers are certain of one thing; that is the uncertainty of the coin market and the fact that its direction is yet unknown. Perhaps, its unpredictability is the thrill behind the market.
Picture credit: Coinmarketcap