A Small Group Of People Own Over Half Of The Bitcoin In Existence And What Could Possibly Go Wrong?
Welcome to BroBible’s regular roundup of the biggest news in the world of cryptocurrencies. We’ll be providing you with the biggest news and stories concerning Bitcoin and major altcoins to help you keep your finger on the pulse of the crypto market.
The crypto market took a hit on Monday but most coins have bounced back nicely, with Ripple and Ethereum leading the way when it comes to weekly gains.
Here’s how the market is shaping up around noon on Wednesday.
- Bitcoin (BTC): $6316.85 (up .24% in the past week)
- Ethereum (ETH): $207.95 (up 19.5% in the past week)
- Ripple (XRP): $.32 (up 21.9% in the past week)
- Bitcoin Cash (BCH): $426.75 (up .9% in the past week)
- EOS: $5.02 (up 3.5% in the past week)
- Litecoin (LTC): $53.05 (up 7.65% in the past week)
- Tether (USDT): $.9982 (down .35% in the past week)
- Monero (XMR): $108.65 (up 8.8% in the past week)
- IOTA: $.528 (no change in the past week)
- Tron (TRX): $.0194 (up 10.35% in the past week)
One Percent Of Bitcoin Owners Control 55 Percent Of The Total Market
Last week, we saw firsthand just how big of an impact Bitcoin whales can have on the entire market after someone casually transferred hundreds of millions of dollars worth of the cryptocurrency between wallets and caused prices to drop as people feared a massive selloff was on the horizon.
At last count, it was estimated the players that make up the “one percent” of Bitcoin owners controlled 40% of the market but a new study shows they’ve gained a shocking amount of ground over the past year— and it could potentially spell disaster.
There’s some speculation that a number of these wallets are controlled by exchanges who use them to hold the currency, and based on some other analysis, there’s a chance that a number of the wallets in question might be permanently in limbo.
If you’re looking for good news, it’s worth noting 42% of whales didn’t cash out during last year’s meteoric price rise, but it’s still not the most reassuring stat in the world.
At Least One Person At The SEC Is A Fan Of Bitcoin ETFs
The decentralized and unregulated nature of Bitcoin is what made (and makes) it appealing to a lot of people but there are a number of investors out there who think this Wild West is in need of a sheriff or two to help usher in a new era (kind of like Red Dead Redemption).
Thanks in no small part to the efforts of the Winklevoss twins, there’s been a major push to get the SEC to approve Bitcoin ETFs, which would allow speculators to put their money into a fund backed by the cryptocurrency without having to actually buy any coins.
The SEC has continued to avoid ruling on crypto, but according to The Motley Fool, there’s at least one ranking member at the agency who thinks it’s time to open the floodgates.
The SEC seems to be straying away from regulating Bitcoin and other cryptos because of the potential for market manipulation but commissioner Hester Peirce has gone on record as saying the agency’s reluctance has actually had a negative impact when it comes to protecting investors.
Peirce says ETFs would help legitimize Bitcoin and allow for more transparency and in addition to creating a lower threshold for getting in on the game. She seems to be in the minority but it’s a small glimmer of hope for anyone who shares the same viewpoint.
New York’s Attorney General Says Crypto Exchanges Have Incredible Potential For Manipulation
As Peirce mentioned, there’s already an incredible amount of potential for price manipulation in the crypto market— a sentiment that was recently echoed by New York’s Attorney General.
According to CNBC, the office recently issued a “Virtual Markets Integrity Report” that took a closer look at what exchanges are doing to protect investors from getting ripped off— and their analysis boiled down to “not that much.”
The report also called out three specific exchanges— Kraken, Binance, and Gate.io— for operating in New York without a license, which could have some implications for residents who rely on them to trade.
Much like Britney Spears in 2002, it looks like crypto might be coming to a crossroad as far as regulations are concerned.
Is this a good or a bad thing? As far as I can tell, no one has any idea.