Bitcoin is hanging around the $4,000 level, not daring to choose any particular direction. It seems that investors feel that the benchmark cryptocurrency has not really reached the bottom yet and they are still waiting for the appearance of a strong impulse. However, BTC/USD has been able to avoid re-testing the level of $3,500, what after decline in the second half of November should be regarded as a manifestation of the buyers’ courage. As before, altcoins follow the leading cryptocurrency's dynamics, and the total capitalization of the crypto market holds about $130 billion.
While the average mining cost of Bitcoin is at the level of $4,500, at the moment we are witnessing how the miners continue to turn off their ASICs. Bitcoin hash rate collapsed by 39% (from historic highs at the end of August) to 37.7 EH/s. However, in the case of a sharp rise of prices, the computing power of the network will also quickly return. Only prolonged period of low prices increases is the risk of no return of computation power.
Along with cryptocurrencies the ICO market, is showing a deep recession. Since the beginning of the year, the volume of raised funds fell by 91%. Moreover, even successful ICOs mostly show no real results. Since most of the projects are based on the Ethereum platform, the attracted ETH’s were converted to fiat currencies to finance their activities, which also adversely affected the leading altcoin.
At the G20 summit, participants also discussed cryptocurrencies, noting them in the final communique. First of all, the leading countries are concerned with the problem of money laundering and financing of terrorism, so the FATF standards with a single taxation and verification of market participants will be introduced in the crypto sector in the near future. This attitude of the G20 can be considered both positive and negative at the same time. On the one hand, crypto was conceived as an ecosystem independent of politicians and financiers, on the other hand, its size no longer allows it to exist under the same conditions.
In the meantime, the SEC is already leading its local war, hitting the stars of show business advertising various ICOs. Well-known boxer Floyd Mayweather will have to pay more than $600k fine for advertising ICO Centra whose tokens can recognize as securities. It is obvious that now it will be difficult to find those who wish to advertise such projects.
In the end, it is worth noting that the SEC methodically considers the events of 2017 and is looking for illegal reasons for the abnormal growth of Bitcoin. Experts believe that this process directly affects the market as investors won't take any new risks until the SEC completes all investigations.