After Bill Gates heavily critiqued Bitcoin in his latest AMA on reddit, the price of Bitcoin declined by 2.5%. This is apparently how crypto market works. Any news has the potential to generate FUD and people start panic selling.
At present, the cryptocurrency market cap is valued at $445.4 billion, down from $459.6 billion on Tuesday. This represents a single-day decline of approximately 3%.
Despite experiencing a minor pullback against the dollar, though, Bitcoin continued to rise against its peers. On the last day of February, Bitcoin dominance – the cryptocurrency’s share of the total market cap – hit 40% for the first time since late December, indicating that trader and investor capital is beginning to rotate back into the flagship cryptocurrency.
The Ethereum price matched the index, falling 2% to $865 on Bitfinex after briefly testing $900 the previous day. At present, Ethereum has an $85.3 billion market cap, which translates into an 18.6% market share.
The good news is, a breakout of the $12,200 levels will complete an inverted head and shoulders pattern, which can propel the BTC/USD pair back towards the $18,000 levels.
The altcoin markets were characterized by widespread declines, but two large-cap tokens managed to swim against the current.
Ripple, the third-largest cryptocurrency by circulating market cap, posted a three percent decline, reducing its price to $0.90. Bitcoin Cash, ranked fourth, was hit with a four percent pullback that forced its price down to $1,225.
Top Stories from the Crypto World
1. SEC launches cryptocurrency probe
The US Securities and Exchange Commission (SEC) has launched a probe into cryptocurrency business, according to a report by Wall Street Journal.
Undisclosed sources told WSJ that the regulatory agency has a currently unknown number of subpoenas and information requests to advisers and technology companies active in the United States’ cryptocurrency market.
Among the subpoenas from the top US securities regulatory agency are demanded regarding the structure for sales and pre-sales for ICOs, which do not fall under the same rigorous scrutiny of public offerings.
The increased pressure follows previous inquiries from the SEC, which have suggested that many token sales and ICOs may be violating securities laws.
2. Porsche begins testing Blockchain with its vehicles
In a partnership with XAIN, a tech startup located in Berlin, Porsche is reportedly working on developing blockchain applications with its cars. Things like locking and unlocking a vehicle, parking, or even enterprise usage such as loaning out the company car to an employee are all made easier by way of the blockchain.
Car owners would theoretically be able to monitor who accessed their vehicle, by whom and when. This could play a major factor in expanding the “sharing” economy which has exploded over the past few years.
Furthermore, it opens up a world of possibilities with P2P transactions between vehicle owners. Instead of using a credit card to refill their gas tank or recharge their car battery, drivers could send each other the equivalent of “PorscheCoins,” to pitch in for a night out on the town.
3. Crypto bubble burst will only affect 1% of global GDP
The chief investment officer (CIO) of the Investment Strategy Group at Goldman Sachs, Sharmin Mossavar-Rahmani, said in an interview with Business Insider that cryptocurrencies are in a bubble, which, when it bursts, will impact only 1 percent of global GDP.
Mossavar-Rahmani, who guides investment strategy for clients with over $10 mln in assets, said that cryptocurrencies are “the hot topic” among her clients and colleagues. She said that Goldman Sachs acknowledges the opportunities that can be brought by Blockchain technology to many fintech companies, but cryptocurrencies “in their current format” are “in a bubble.”