Bitcoin’s price limbered up slightly from yesterday but still failed to break the $12,000 barrier. According to Coindesk’s index, a single bitcoin could set you back by $11,222.71, an increase of 3.53% from its price 24 hours ago, at 13:55 UTC.
The mostly sideways movement in bitcoin’s price occurred even after UBS Chairman Axel Weber told Bloomberg at the World Economic Forum that the bank will not offer bitcoin investing services to clients as government regulation of the cryptocurrency might result in a “massive correction” and an implosion in its price.
Gains for other cryptocurrencies outpaced that of bitcoin. Among the top 10 most-traded coins, Stellar’s Lumens was the biggest gainer, rising by 26.13% to trade at $0.57. The cryptocurrency, which shares technology with Ripple’s XRP, might soon be on payments processor Stripe’s network.
At 14:09 UTC, the overall market capitalization for cryptocurrencies was $552.7 billion, up from a low of $515.5 billion earlier this morning.
Ratings For Cryptocurrencies
The volatility of cryptocurrency markets has stumped even the best analysts. Now, there are efforts to bring some science and method to the madness.
Florida-based firm Weiss Ratings released a ratings assessment of cryptocurrencies, assigning letter grades to them, today. Bitcoin received a C+ grade and Ethereum, the second most valuable cryptocurrency, received a B. According to the firm, bitcoin has excellent security and “widespread adoption.”
It did not make clear whether that adoption related to bitcoin’s use as an investment vehicle or as a medium of exchange. Industry data indicates that bitcoin is struggling to gain traction as a medium of exchange. According to the company’s press release, none of the cryptocurrencies listed in the markets obtained an A grade. That is understandable, given the market’s nascent nature.
In an interview with Marketplace, Martin Weiss, the president of Weiss Ratings, said his firm had used “thousands of data points” and four factors to determine the ratings. The first two are risk and reward indices, which are based on price risk and profit potential.
Then, there is the technology index, presumably an assessment of a coin’s underlying blockchain and its future potential. Finally, the firm also uses a “reality test” of the technology’s applications in the real world “to make sure that people are actually using it and it really works,” said Weiss.
Admittedly, that’s a pretty broad set of criteria, and most of it fails to provide clarity. This is especially important as the jury is still out on factors driving price movement in cryptocurrencies…