Subject
Crypto market dynamics.
Significance
The market capitalisation of cryptocurrencies fell to below 250 billion dollars on April 6 from a record high of 827 billion on January 7. Greater regulation, coupled with more volatile global equity markets and the April 15 US tax filing deadline had prompted substantial cryptocurrency selling. However, the valuation has since recovered to more than 325 billion dollars, supported by the US deadline passing, a seminal paper on April 10 by Blossom Finance declaring bitcoin investment allowable under Sharia law and, most importantly, interest in uses for blockchain continuing to grow.
Impacts
Many crypto hedge funds have shut, many ICOs have failed and this will continue, but among the blockchain firms there will be big successes.
The Swiss stock exchange plans to launch a cryptocurrency version of the Swiss franc; Switzerland will expand as an ICO hub.
The rise in financial market volatility since February will intensify and persist as global trade tensions are increasing.