Traders swung between the optimism and gloom over bitcoin’s future prospects as cryptocurrency markets crashed below $300 billion before recovering this morning. The price of a single bitcoin, which had been on a steady decline since the middle of last week, wobbled to $7,370 Sunday morning. At 15:05 UTC, it had recovered to $8,635. The top 10 most-valuable cryptocurrencies mirrored bitcoin’s price trajectory. After a bout of declines Sunday morning, they embarked on a recovery path.
Several news reports attributed swings in cryptocurrency markets over the weekend to rumors that social media network Twitter might become the latest platform to ban advertising related to cryptocurrency products. That would make Twitter the third major online platform, after Facebook and Google, to institute such a ban.
But that bit of bad news was offset by news that the G20, a grouping of the world’s 20 largest economies, does not consider bitcoin and cryptocurrencies to be a threat to financial stability. The pronouncement was stated by the organization’s Financial Stability Board (FSB) in a reporting detailing risks to the global system. “The FSB’s assessment is that crypto-assets do not pose risks to financial stability at this time,” stated FSB chairman and Bank of England governor Mark Carney. Several members of the grouping had earlier asked the FSB to put rules in place to regulate cryptocurrencies.
The FSB’s assessment follows reports earlier this week that South Korea, which has taken an increasingly harsh stance on bitcoin and cryptocurrency trading this year, is planning regulation to allow initial coin offerings in the country. South Korea is the third-biggest trading venue for cryptocurrencies after Japan and United States.
Meanwhile, Tom Lee of Fundstrat Advisors, has forecast a price of $91,000 for bitcoin by 2020 in a new report out Thursday. The analyst has based his price target on extrapolations of bitcoin’s gains from previous price declines.