BTC 9997.34 ETH 868.59 LTC 157.21 DASH 672.55

Sun Mining blog

BONUSES: +10% on all contracts paid from the reinvestment account.      DISCOUNTS: For the contracts  BTC from 100 000 GH/s (including May 13, 2018). - 30% till January 31, 2018 (Prices are indicated with discount included).
IMPORTANT!     Beware of Imposter Sites.   SUN-MINING.COM  is the ONLY official site for this cloud mining servises.

Crypto currency market overview for September-November 2017

2017-10-13 5082

Crypto currency market overview for September-November 2017

September 2017 became a very important month for the leading currencies, because it was this month that they demonstrated their effectiveness and resistance to financial shocks. Probably the most important event this month was the ban of ICO in China.

The first crypto currency was launched 9 years ago. At that time very few people believed in this technology, so until 2013, it did not attract much attention. However, time goes by, and now, when people understand the essence of blockchain and were convinced of its effectiveness, the market began to develop at an incredible pace.

2017 was the most successful year for the entire crypto currency industry. The rates soared so high that even the most daring expectations of financial analysts were exceeded. However, it did not happen without difficulties.

September 2017 became a very important month for the leading currencies, because it was this month that they demonstrated their effectiveness and resistance to financial shocks. Probably the most important event this month was the ban of ICO in China.

Drops in rates

ICO is the primary location of tokens. In simple terms, the creators of crypto currencies start to collect investments, and the investors, by sponsoring a particular currency, will receive certain goods or services in the future, commensurate with the contributions made by them. This process is very important for the entire industry as it allows you to raise additional funds and start developing your own crypto currency system.

Why was the ban on such deals in China so important? First of all, it is necessary to understand that China and other large countries of Asia are the main representatives of the industry for today. It is there that most transactions take place and most of blockchain startups appear. Accordingly, the ban on ICO has become a very big shock for the market, as a huge number of investors now do not have the opportunity to invest their money in the development of the crypto currencies.

The logical outcome of these actions on the part of the state was a significant drop in rates. Shortly before the latest events, bitcoin has already overcome the psychologically important mark of $5,000. And two weeks later it smoothly slid to $2,500.

However, it did not last long, and those who hurried to sell their bitcoins at a reduced price later regretted it very much. By the end of the month, the rate rose again to $4,500. This situation has become an excellent indicator that the most popular crypto currency for today remains in demand, even despite the loss of such a large player in the market as China.

What about other currencies?

If bitcoin was fast enough to recover after its drop, then other currencies from the top 10 could not repeat such success. The rate of the second-largest blockchain network in terms of capitalization, Etherium, fell by about 20% and remains in this state until now.

Other currencies were even less fortunate. Litecoin dropped almost 2 times, as well as the other altcoins. This leads to a logical question: is bitcoin the most stable currency at the moment? In fact, it is too early to talk about this, but there is certainly no doubt about the fact that by the beginning of October bitcoin is the most demanded and most popular currency.

Reasons for ICO ban

It is difficult to tell which motive had the state of China. Most likely, this happened due to the insufficient regulation of this sector. In fact, crypto currencies are the field which is inaccessible for the state; in this field all transactions pass freely and anonymously. Accordingly, state authorities do not like it and try to fight it.

China’s actions were very harsh, but they partly achieved their goal. In Russia, from the very beginning of autumn, there are talks about regulation of the crypto currency system, but the state has not taken any action yet. Perhaps this is due to the fact that the volume of transactions on the territory of the Russian Federation is several times smaller than in China, and such harsh actions are not yet necessary.

Quite the opposite approach to the problem was proposed in Canada. There, the state actively supports the crypto currency and tries to ensure its development. Perhaps this was one of the main reasons why the loss of the Chinese market for ICO did not result in a 90% drop of rate for the major currencies. The Canadian policy towards the crypto currencies is not yet very clear as of the beginning of October, but it can be said with certainty that the state will only provide support to this industry, and nobody says anything in support of ban.

End of September and ICO ban in South Korea

Very interesting situation has developed in the market in the last week of the month. Following the example of China, the South Korea also decided to ban primary placement of tokens. At the moment, there was only an announcement from the state, but this is a huge crypto currency market, so all analysts unanimously forecasted a drop in the rate. But that did not happen. Moreover, bitcoin and other crypto currencies from the top 10 feel confident enough now, and the rate stays on the spot.

Of course, we remember that the China incident reduced capitalization, and it has not increased since that time. However, the fact that after the announcement of the ICO ban in South Korea, the situation has not changed much, can not but rejoice. This is, in the first place, a sign that the crypto currencies acquire more stability and independence from specific markets over time. Accordingly, in the near future, it is for sure worth expecting a sharp jump in the rates, and – in the first place – from the main contender, i.e. bitcoin.

New leader by the volume of exchange trade

Over the past month, Japan has become the obvious leader by the volume of exchange trade in crypto currencies. Experienced analysts expected such a development of events, since there were 2 prerequisites for this:

1. Free circulation of crypto currencies in Japan

2. Restriction of exchange trade and blocking of exchanges in China

Accordingly, Japan is now confidently taking the leading position. Of course, if the exchanges will be unlocked in China, the situation may change dramatically, but at the moment Chinese miners can only dream about this to happen.

Another fork of bitcoin

Not so long ago, bitcoin survived hardfork – a rigid division of the chain into 2 independent crypto currencies. At that time it did not affect the rate and capitalization, and the new currency, which got the name Bitcoin Cash, was accepted by the miners quite well.

Currently bitcoin is very close to fork again. This is due to the fact that over the last week the number of SegWit transactions has grown 2 times, from 3.5% to 7%. This is a very big number, especially considering the fact that Bitcoin Core developers do not support this type of operation.

The feature of SegWit is the increased block size. At first glance, this is good, but things are not that simple. The question of whether it is necessary to increase the block size in the bitcoin network is still open.

In conclusion

These were the main events that occurred in the crypto industry in September and the first days of October. The beginning of autumn has become indicative in many respects, as it is now clear that crypto currencies can be quite stable and effective if they get proper support.

The pace of development of the industry largely depends on the policy of the state, although this is an independent system. In any case, if we look at the situation as a whole, the dynamics are quite positive, and in the future, the crypto currencies will only be more active and develop faster.

Choose your language:

Terms of Use Privacy policy

© Copyright 2017 by Sun Mining | All rights reserved