In our article “Ethereum Price: Calm Before The Storm?“, we shared how it is suspiciously quiet in the Cryptocurrency market. In fact, Both Bitcoin and Ethereum were trading in a tight range today. Ethereum in an even tighter range since the price is under the pressure from the upcoming Bitcoin fork as well as the new announcement from The Securities and Exchange Commission issuing an Investigative Report concluding that DAO Tokens are Digital Assets and considered Securities, therefore U.S. Securities Laws may apply to Offers, Sales, and Trading of Interests in Virtual Organizations.
According to Stephanie Avakian, Co-Director of the SEC’s Enforcement Division
“The innovative technology behind these virtual transactions does not exempt securities offerings and trading platforms from the regulatory framework designed to protect investors and the integrity of the markets,”
In simpler words, this means the regulations of DAOs (Decentralized Autonomous Organization), thus the regulations of ICOs (Initial Coin Offering) therefore less ICOs and since July’s ICOs were Ethereum based and the trend was likely to continue, this announcement definitely put pressure on the price of Ethereum. The announcement was made on the 25th of July.
Back to our charts and this is what the price action looks like for the last 24 hours for Ethereum and Bitcoin:
Ethereum actually managed to recover most of the losses from the 27th of July towards the end of the same day, whereas Bitcoin’s price closed the day slightly trending up. Although the prices of both seem to be holding up, caution will be of essence and volatility inevitable.