The big news today in cryptocurrency markets came from European Central Bank (ECB) President Mario Draghi. The head of the ECB said in a statement that the central bank of the world's largest economic bloc has no power to regulate Bitcoin.
Speaking to the European Parliament, Draghi said that "it would actually not be in our powers to prohibit and regulate" Bitcoin and other cryptocurrencies, according to CoinDesk.
The statement comes after controversy emerged in September over a proposed plan from some developers in Estonia to create a national cryptocurrency called "estcoin." Given that Estonia is part of the European Union, the nation would technically be violating the currency laws of the European bloc.
"I will comment on the Estonian decision: No member state can introduce its own currency," Draghi said. "The currency of the Eurozone is the euro."
Below is a recap of the top cryptocurrency prices at 11:00 a.m. EDT.
- Bitcoin: $3,929.51, +1.22%
- Ethereum: $289.52, -0.45%
- Bitcoin Cash: $447.99, +0.47%
- Ripple $0.18, +0.53%
- Litecoin: $52.28, +2.63%
Now that we know all of today's price movements, here's what has been moving these cryptocurrencies…
Cryptocurrency Markets Today
On Tuesday, the market capitalization of the total cryptocurrency market hit $137.2 billion.
Top performers from the largest 50 cryptocurrencies by market capitalization included Gas (up 46.75%), GameCredits (up 27.7%), BitShares (up 14.7%), TenX (up 13.7%), and Dogecoin (up 12.7%).
The worst performers from the top 50 largest cryptocurrencies by market capitalization included Kyber Network (down 14.2%), Veritaseum (down 4.3%), Populous (down 2.9%), and IOTA (down 2.7%).
Bitcoin Prices Today Tick Up 1.2%
The Bitcoin price remained below $4,000 again after a bearish weekend continued to place pressure on the cryptocurrency markets. Over the last 24 hours, trading volumes have been smaller than usual.
Just $1.1 billion in Bitcoin has exchanged hands over the last day, a sign of muted buying in the wake of China's decision to ban over-the-counter trading and shutter local exchanges.
While Bitcoin prices are off more than 20% from their record highs, there is one market where the price is getting into the stratosphere.
In Zimbabwe, one Bitcoin is worth $7,200 thanks to ongoing hyperinflation, according to Tech Juice. Bitcoin is trading at an 80% premium to global prices as more residents try to protect the value of their money.
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The price exploded on a local Bitcoin exchange called BitcoinFundi after the Zimbabwe government banned credit card transactions and prevented the amount that citizens can transfer internationally.
Ethereum Can't Break Through $300 Level
The Ethereum price was still holding under $300 as the cryptocurrency struggles to break through this critical support level.
No major developments in the global markets leaves the digital currency trading in a range between $280 and $300.
This sets the market capitalization at around $27.6 billion for the day.
Litecoin Back Above $50, and Ripple Prices Climb Higher
The price of Litecoin was pushing past $52.00 per unit as traders hope that the cryptocurrency can find some stability in the wake of China's crackdown.
Meanwhile, Ripple was pressing higher after the company behind the coin announced plans to open a new office in Singapore.
Global Cryptocurrency Update
While the European Central Bank may be more lenient on Bitcoin than China, another central banker is taking a stand.
Oleg Churiy, the deputy head of the National Bank of Ukraine, said last week that Bitcoin is "definitely not a currency."
Top 5 Cryptocurrencies to Invest in Today
Churiy said that because there is no central issuer of the currency, the Ukrainian central bank cannot recognize the cryptocurrency as a form of payment. The deputy head also said that recent efforts by central banks to regulate or outright ban Bitcoin and other tokens have more to do with concerns about fraud and the threat of capital losses for a nation's citizens.
"World regulators are not concerned with any threat of cryptocurrency because of their small volume," Churiy said at a conference on Friday. "They are concerned only with the fact that people can lose money [through investment in cryptocurrencies]. And fraud that can [happen] with them."
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.