Although fluctuations in wilderness are the norm with cryptocurrencies, the last few days have been more volatile than usual due to a series of measures taken by governments around the world. The prices of bitcoin and altcoin, after a slow decline in recent weeks, have evolved tremendously because of rumors and speculation that crypto can be banned or restricted by the world's most influential nations. Other concerns about currency security and other technical disruptions have also led to fluctuations in value.
Last week, fears emerged that countries at the G20 meeting, scheduled for March 19, would collectively agree to crack down on the adoption and use of cryptocurrency. These fears caused a significant drop in cryptographic values shortly before the weekend. Bitcoin fell below $ 7,500, a new low for the year, and many declines were also observed. The meeting ended, however, with little action taken other than a vague statement calling for collective regulation by July. As a result, prices rebounded quickly, with Bitcoin breaking $ 9,000 on March 21st.
A second wave of concern struck on March 22 when Japan's Financial Services Agency announced that Binance, the world's biggest stock exchange, was failing to meet its registration requirements. Although such a statement would generally be insignificant, Binance recently suffered a wave of negative incidents, including a hacking attempt earlier this month that briefly disrupted the trade. Bitcoin prices fell after the news, briefly falling below $ 8,400, although a recovery appears to be underway.
It should be noted that despite the concerns of recent days, most cryptos have seen a rise in value. Many altcoins have also started to win against Bitcoin since the beginning of the week. It is still too early to determine if this trend will continue.
The rapid recovery of the G20's concerns and other legal fears serves to demonstrate how state actions have a diminishing degree of influence over cryptographic values. There was a moment when the anti-crypto movements of big nations, or even their rumors, could lead to abrupt and lasting market declines. Now, markets are getting rid of such movements in a few days or even hours. A number of factors could explain such a change, but it is certainly reasonable to assume that more investors have come to understand that cryptocurrency is a permanent asset that can not be effectively banned. Abrupt price declines are therefore seen as a buying opportunity rather than a source of concern.
As always, more volatility in the cryptographic space is likely to continue, but overall crypto investment and blockchain development will go forward. As prices rise as a result of the G20 meeting, it is becoming increasingly clear that the crypto-market is becoming the decentralized economic entity it was supposed to be. Although state actors are influential, it is not the entities that shape the movement.