Cryptocurrencies are undoubtedly the most volatile investment of our time and can make movements of billions of dollars in only a few hours. A particular example of this was last week; billions of dollars were wiped from the total market capitalization. Perhaps that is one of the reasons Carl Icahn criticizes the currency.
Digital currencies plunged more than 20% at the top of the selloff in early trading on today. But the markets instantly moved into the green territory after few hours of the collapse.
Why Did Prices Rebound Instantly?
Source Image: coinmarketcap.com
Prices bounced back following fading concerns over the immediate crackdown on crypto markets in the U.S. Bitcoin price jumped back close to $8,000, while Ripple and Ethereum surged 5% and 10%, respectively.
Clayton, who testified alongside Christopher Giancarlo, chairman of the Commodity Futures Trading Commission (CFTC), said: “the agencies were coordinating with the Treasury Department and the Federal Reserve on the matter, but added that lawmakers might have to clarify and enhance regulatory powers.”
It appears that regulators are in doldrums in an attempt to regulate cryptocurrency coin offerings. They need more powers and laws to regulate cryptocurrencies and avoid the illegal movement of cash.
However, regulators told Congress that they are watching those who are raising ICOs: “Those who engage in semantic gymnastics or elaborate structuring exercises to avoid having a coin be a security, are squarely in the crosshairs of our enforcement provision.”
The news of the further delay in regulating cryptocurrencies provided some relief for crypto traders. NEO (NEO) and NEM (XEM) coins were among the biggest winners; both rallied over 20%.
But Carl Icahn Looks Exceptionally Bearish
The famous billionaire investor, Carl Icahn, doesn’t share the same feelings for cryptocurrency as it’s lovers do; referring to them as ‘Ridiculous.’
“I don’t like the cryptocurrencies only because, maybe I don’t understand them,” the chairman of Icahn Enterprises said in an interview on Fast Money Halftime Report.
Previously, several other big names, including Warren Buffett and Goldman Sachs, have strongly criticized cryptocurrencies. Warren Buffett claimed that cryptocurrency craze wouldn’t end in an encouraging way. J.P. Morgan Chase Chairman Jamie Dimon believes digital currencies aren’t in a position to compete with the dollar.
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