Competition drives young traders’ crypto investments, says UK watchdog
Young investors assume the crypto market is regulated, new research by the Financial Conduct Authority reveals.
Most young investors in the United Kingdom are entering the crypto market thanks to the hype on social media and news, but they are not aware that the market is not regulated, a new study published by the United Kingdom's Financial Conduct Authority (FCA) revealed.
The survey revealed that a majority (69%) of the investors under the age of 40 mistakenly believe that crypto markets are regulated. More than three-quarters (76%) of young investors who put money on risky assets like cryptocurrencies, forex or crowdfunding are driven by competition with friends and family.
The financial watchdog surveyed 1,000 British investors aged between 18 and 40 who invested in high-risk investment products in a bid to promote its five-year InvestSmart campaign, The Independent reports. Launched with a $15 million budget (£11 million), the campaign aims to raise awareness among young people about high-risk investments. The FCA estimates that more than a million investors in the U.K. have bought high-risk investments during the COVID-19 pandemic.
The research found that more than half of the participants use social media, other people and news stories as key drivers when investing in specific products. While a majority prefer more stable returns than dramatic price movements, only 21% consider holding their most recent investment for more than a year.
Commenting on the results, FCA executive director of markets Sarah Pritchard stressed that more people are chasing high returns with higher risks. “We want to give consumers greater confidence to invest and help them to do so safely, understanding the level of risk involved,” she added.
The FCA survey follows Jon Cunliffe’s remarks on crypto regulations. Cunliffe, deputy governor for financial stability at the Bank of England, urged regulators to pursue crypto as a matter of urgency.
Cunliffe said that the price volatility of crypto assets “could trigger margin calls on crypto positions forcing leveraged investors to find the cash to meet them, leading to the sale of other assets and generating spillovers to other markets.”
Crypto market cap hits new all-time high as BTC, ETH soar
Bullish momentum has returned to the cryptocurrency market, with Bitcoin leading the charge towards new all-time highs.
The total market capitalization of all cryptocurrencies rose to new all-time highs on Wednesday, capping off a dramatic months-long recovery that reaffirmed the bullish narrative for Bitcoin (BTC) and Ether (ETH).
The crypto market cap — an important barometer for the overall health of the digital asset economy — reached a high above $2.63 trillion on Wednesday, according to Cointelegraph Markets Pro. That represents a gain of 5.9% over the previous 24 hours.
A buying frenzy in the market lifted Bitcoin to new record highs, as the flagship cryptocurrency touched an intraday peak of $67,016.50. Ether, meanwhile, crossed the $4,000 mark for only the second time since May. With the exception of stablecoins, every cryptocurrency in the top-ten market cap rankings printed gains.
The new market cap peak marks an important milestone for digital assets after a months-long correction during the summer threatened the bullish narrative. During the low point of the summer correction, the crypto market cap plunged below $1.2 trillion.
A pair of Bitcoin ETF approvals in the United States appears to have sparked the latest rally for BTC and the broader crypto market, though bullish momentum has been building for months. A favorable macro environment, strong on-chain fundamentals and technical confirmation of a July bottom helped to secure Bitcoin’s relief rally over the past three months.
That Bitcoin has been the major catalyst for the relief rally is further reflected in the BTC dominance index, which has increased to 47.7% Bitcoin dominance bottomed near 39% in May during the height of the altcoin rally. Cointelegraph’s Altseason Indicator, which tracks the extent to which altcoins outperform Bitcoin, is only at 15%. (In crypto, “altseason” refers to a period where altcoins outperform Bitcoin.)
Altcoins take the next leg up as the total crypto market cap tops $2.63 trillion
TRAC, KDA and CTSI booked double-digit gains after BTC hit a new all-time high and the total crypto market cap hit $2.63 trillion.
Bitcoin's surge to $67,000 also helped to spark double-digit gains for multiple altcoins as the age-old adage of a rising tide lifting all boats appears to be in full effect.
OriginTrail makes a move
OriginTrail is a protocol that operates on the Ethereum (ETH) network and specializes in harnessing blockchain technology to improve logistics and supply chain management.
According to data from Cointelegraph Markets Pro, market conditions for TRAC have been favorable for some time.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for TRAC began to pick up on Oct. 19 and reached a score of 72 around one hour before the price increased 48% over the next day.
The spike in price for TRAC comes as the project is in the process of rebranding its image as the “world’s first decentralized knowledge graph” and has been collaborating with Dr. Bob Metcalfe as part of its advisory board.
Kadena undergoes a revamp
Kadena, an enterprise-focused blockchain project, has seen a healthy price breakout over the past 24 hours as momentum across the market increased.
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low at $2.60 on Oct. 19, the price of KDA reversed course and surged 33.65% to an intraday high at $3.47 on Oct. 20 following a spike it is its 24-hour trading volume.
The rise in the price of KDA comes following a revamp of the project’s website and partnership with Immutable Records that aims to bring a fully functioning nonfungible token marketplace to the Kadena network.
Cartesi bridges to Avalanche
Cartesi is a blockchain protocol focused on integrating the traditional tools used by the developer community with decentralized tools that will help to evolve smart contracts and make them widely accessible to all.
Data from Cointelegraph Markets Pro and TradingView shows that the price of CTSI has rallied 51% from a low of $0.70 on Oct. 19 to an intraday high at $1.07 as its 24-hour trading volume spiked 587% to $288 million.
The spike in the price of CTSI comes as the project announced the launch of a bridge to the Avalanche network and prepares for its mainnet launch, which will include delegated staking.
The overall cryptocurrency market cap now stands at $2.637 trillion and Bitcoin’s dominance rate is 47.5%.