“Trade volumes were very noisy yesterday as the bulls and bears fought it out and some sort of calm has appeared on the markets after what has been a severe correction,” Charles Hayter, CEO of digital currency comparison site CryptoCompare, told CNBC in an email Thursday.
“New has a lot to play with this,” Hayter said, adding, “this market is now big and governments are sensing revenue for the coffers as well as a threat in some degrees. This will catalyze regulation where regimes who legislate severely will balkanise themselves to the industry.”
Hayter said that regulation of cryptocurrencies “will be good in the long run,” but warned that “unnecessary hoops and bureaucracy” could inhibit the industry’s potential.
Regulators have expressed concerns over digital assets due to their extremely volatile nature and worries that they could be used for illicit activity.
Mati Greenspan, senior market analyst at eToro, said: “Now that the reasons for the recent sell-off are more clear to everyone and the slightly sour regulatory concerns have been priced in and the Asian premiums are evening out, traders will most likely start focusing on the technicals. So barring any unforeseen breaking news, traders should start looking for a bottom.”
Greenspan told CNBC Tuesday that South Korean and Japanese investors often pay a premium of “20 percent or more per coin.”