By: Steve Dellar | 02-08-2018 | News
Photo credit: Violka08 |

Bitcoin Finds Floor Whilst ECB Clamps Down On Crypto

Bitcoin, which suffered together with global stocks this week when the US jobs report of last Friday caused a serious ‘correction’ in all regions of some 5-10%, seems to have found support of late and was once again racing towards the $10K, trading at a level of $8.5k at the time of writing.


Mr Barry Silbert, CEO of crypto holding company Digital Currency Group (DCG), surprised an audience full of crypto fans at Yahoo Finance’s “All Markets Summit: Crypto” event in New York yesterday.

According to the 40-something expert worth an estimated $500 million in Crypto value, except for a handful of coins like Bitcoin, Ethereum Classic and Zcash, he stated: “I think most of the others are going to zero.”

<b>Global stock markets</b>

Whereas most analysts agree that Monday’s mini-crash is now regarded as a healthy ‘correction’, traders do point out that there are similarities with 2007 to be seen in the current market, which most still consider ‘overbought’.

Related coverage: <a href="">Asia Follows Global Selloff As Bitcoin Drops to $6k </a>.

As volatility is back, most investment portfolios are expected to become less invested percentage wise into the market at the end of the first quarter of 2018, which should lead to a calmer up and down cycle of stocks.


Meanwhile, the ECB has shown its hand when it comes to crypto, calling for a global clampdown on virtual currencies such as bitcoin because of their threat to financial stability. Mr Yves Mersch of the ECB’s executive board, said the that European Central Bank mostly shared the views voiced by Mr Agustín Carstens, the head of the Bank for International Settlements, who earlier this week had bitcoin as “a combination of a bubble, a Ponzi scheme, and an environmental disaster”.

Related coverage: <a href="">Bitcoin Bear Market Continues</a>.

“We at the ECB are fully in line with his views and we have similar worries,” Mr Mersch stated, while also calling for “global answers” to “safeguard the integrity of financial sector services.”


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