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ETH Price Surges Despite IMF “Inevitable” Comments

ETH Price Surges Despite IMF “Inevitable” Comments

By Gaurav S. Iyer, IFC Published : February 12, 2018

flickr.com/Marc van der Chijs

Ethereum News Update

Something has modified in cryptocurrency markets.

In lower than per week, traders have gone from agonizing over pending rules to not caring about huge bulletins.

For instance, there was zero response to International Monetary Fund (IMF) Chairperson Christine Lagarde saying that regulatory motion on cryptocurrencies is “inevitable.” (Source: “IMF chief: Cryptocurrency regulation is ‘inevitable’,” CNN, February 11, 2018.)

She added:

“We are actively participating in anti-money laundering and countering the financing of terrorism. And that reinforces our dedication to work on these two instructions.”

Investors didn’t panic. In reality, cryptocurrency markets have been upbeat after her feedback went public, which is surprising given latest historical past.

After all, final month’s ETH worth crash started when South Korea’s Justice minister promised his nation would ban cryptocurrencies (which it didn’t, by the way in which). His wayward feedback began an enormous sell-off that was solely stopped when two U.S. regulators gave testimony in assist of cryptocurrencies.

How can traders haven’t any response to the IMF chief promising extra regulation?

Ethereum Price Chart

eth price chart for 12 feb

The IMF is worldwide. It is much extra prone to affect world rules than South Korea, which means it might consequentially wreak extra havoc in the marketplace. The logic doesn’t comply with.

I’ve two theories that designate this phenomenon:

  1. Investors don’t suppose the IMF will damage Ethereum. If you take a look at most feedback made by regulators, they appear to take problem with Bitcoin’s forex ambitions, not Ethereum’s blockchain purposes. In reality, “blockchain, not Bitcoin” is actually the mantra for regulators who need seem each prudent and tech-friendly.
  2. Or traders suppose it’s all simply noise. Have you ever heard a sound for thus lengthy that it slips into the background? Something comparable occurs with information. Oversaturation of a topic makes it much less pressing, much less related, and positively much less surprising. Investors get numb. It’s potential that right this moment’s tepid response to Ms. Lagarde’s feedback merely displays an enormous shrug from the market, as in: “Whatever, we’ve seen this movie before.”

Analyst Take

Most doubtless, there’s a mixture of the two components at work. We don’t but know the way lengthy this phenomenon will final, however we’re optimistic that the market exorcised most of its pessimism in January. As a end result, we keep our Ethereum worth forecast of $1,500 by the tip of Q2.

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