Cryptocurrency Prices See Slight Drop After Nasdaq’s ‘Worst Day Since 2011’

The price of most cryptocurrencies has dropped slightly in the last 24 hours, after Nasdaq had its worst trading session since 2011, dropping nearly 4.5% in a day before traders helped the market recover after hours.

According to CryptoCompare data bitcoin, the flagship cryptocurrency, dropped about 0.5% in the last 24-hour period to about $6,470, while Ethereum’s ether, the second largest crypto by market cap, dropped about 1% to $201. Most other top altcoins are in the red by anywhere between 0.5% and 1.6%.

Bitcoin fell slightly after the equities selloff

Notably he cryptocurrency market’s negative performance dwarfs that of the equities market, which recently faced a major sell-off related to a potential China-US trade war and the European Union officially rejecting Italy’s budget.

As CNBC points out, on October 11 bitcoin’s price fell more than 4% and both ETH and XRP dropped 11% when the stock market dipped at the time, which saw some question whether cryptocurrencies could be used to hedge against financial instability.

Speaking to the news outlet Joe DiPasquale, the CEO of crypto hedge fund BitBull Capital, stated at the time that uncertainty around stocks had “blend into crypto markets.” He said:

"When we saw equity markets crumble, there was some fear in the cryptocurrency market as well. I think there was an initial jolt due to larger market activity and the sell off"

The October 11 dip notably also coincided with the release of a report by the International Monetary Fund (IMF) that argued crypto assets could lead to financial vulnerabilities. In the report it was noted that attacks and digital breaches “represent an additional source of risk.”

Cryptocurrency prices have recently seen slight gains when the equities market started dipping this week after Bakkt, the platform that’s set to be launched by the Intercontinental Exchange (ICE), owner of the New York Stock Exchange (NYSE), revealed it was going to launch its daily bitcoin futures contracts later this year.

Moreover, as CryptoGlobe covered, sources at the Chicago Board Options Exchange (CBOE) revealed “approval confidence” for a bitcoin ETF is “high,” as VanEck and SolidX reportedly solved all the issues the US Securities and Exchange Commission (SEC) had.

On the regulatory side, Albania’s government has recently revealed it’s “assessing and working” on drafting cryptocurrency regulations in a bid to become a regional hub and attract “well-paid” job opportunities to the country.

Bitcoin has been bound to a range over the past few months, and a break above its 200-day moving average at $7,200 could see it start surging again, according to analysts. In the long run, some are still extremely bullish. Jim Blasko, the founder of Bitcoin Talk Radio, has predicted BTC could hit $200,000 by 2020.

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Chinese Court Rules Bitcoin Is Legally Protected Virtual Property

The Hangzhou Internet Court, in China, has recently ruled bitcoin is seen as virtual property in the country, and as such is legally protected.

The ruling came in a case in which the plaintiff, Mr. Wu, sued the Shanghai Technology Company, which allegedly operated the FXBTC cryptocurrency exchange on Taobao, a leading Chinese online marketplace, and sold bitcoin back in 2013.

Wu reportedly bought 2.675 BTC for 20,000 yuan, about $2,900, back in 2013 from the exchange. In 2017, during the cryptocurrency market’s bull run that saw bitcoin hit a near $20,000 all-time high, the buyer wanted to access the funds, but found out FXBTC closed and could no longer get to the BTC.

According to Beijing News, the plaintiff claims the Shanghai Technology Company didn’t warn it was closing the platform nor gave him a chance to access the funds afterwards. The store likely shut down as between 2013 and 2017, the Chinese government made it illegal to trade cryptocurrencies, which in turn forced Taobao to stop vendors from selling cryptos on its platform.

While the plaintiff failed to prove Shanghai Tech was the vendor that sold him the bitcoin and lost the case, the court did determine bitcoin is legally protected virtual property.

According to Dovey Wan, this was seen as a bullish signal in China and chatter on Weibo, a Chinese microblogging platform similar to Twitter, seemed to point to this as the reason behind bitcoin’s recent price surge.

According to CryptoCompare data, BTC rose 4.8% in the last 24-hour period, and is currently trading at $10,300. Earlier today, bitcoin jumped from a $9,400 low to as much as $10,500 before facing a small correction.

Notably, this isn’t the first time a Chinese court defends bitcoin. As CryptoGlobe covered late last year, an arbitration court ruled bitcoin should be protected as property by law, and clarified at the time Chinese law doesn’t forbid owning or transferring bitcoin. Earlier this year, a prominent Chinese lawyer argued owning and occasionally trading bitcoin is legal in the country.

On Twitter, Wan clarified that while holding bitcoin as private property is legal, trading the cryptocurrency “in a systematic way” isn’t.