Japan, City-Based ICOs, Scared Banks and Their Effect on Ethereum

ETH to USD exchanges rates is currently near $867.66. Furthermore, Ethereum trading volumes are relatively stable, which further implies that investors aren’t abandoning for fiat money. It is also worth noting that the Ethereum trading volumes are well dispersed across several countries which accounts for diversification- a good thing. And even though the current ETH prices are down by 1.95% against USD, we all know ups and downs are a part of the game. All in all, the Ethereum games seems to be quite stable. But here are three distinct incidents that might have an impact on ETH prices.

  1. Japan and More Regulations around Cryptocurrency: With the ever-increasing rise of ICOs as well as other cryptocurrency related problems, the Financial Service Agency in Japan is seriously looking into making some amendments to existing laws to better regulate the industry. Now since Japan is one of the most important crypto markets in the world right now, a negative repercussion is sure to follow.
  2. Cities to Raise Funds through ICOs: Some cities, like Berkeley California, is facing some financial troubles and they are considering ICOs as a possible solution to their current predicament. Two municipal officials are of the opinion that they ought to issue municipal bonds via token offerings. Here is what they have to say on the matter, “Essentially, we would like to explore some new ways of financing because we have terrific needs, and we are concerned about our ability to fulfill our moral and legal obligations for our residents here.”
  3. Banks are Becoming Scared of Cryptocurrency: Bank of America and JPMorgan Chase, both have enlisted cryptocurrencies are a high-risk factor to the existing traditional banking system. This does come as a twist, as it was JPMorgan CEO who said cryptocurrency was nothing more than “fraud” and a “bubble” soon to burst. Hence we are sure to see some defensive strategies being adopted by the banks.

Taken all these given factors into account, the current cryptocurrency market is sure to see some radical ups and downs. However, according to our source and their analysts, this should not affect the long-term trends. As forecasted, Ethereum prices may rise to $1500 by Q2 2018.

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