The statement will come as a welcome relief to crypto investors and traders because it is a sign that the world's most important economies will lead the rest of the world into a new era of friendly regulation and cooperation with crypto markets. Earlier in March 2018, the G20 postponed any plans to take action on cryptocurrencies until it had more information on the subject. The economic power bloc said at the time that its goal was to synchronize international financial regulations and standards on cryptocurrencies. Over the weekend, it gave the Financial Action Task Force (FATF) an October 2018 deadline to "clarify how its standards apply to crypto-assets." The big takeaway from the G20 summit for crypto investors this is that the nightmare scenario of a China-style general clampdown on cryptocurrencies is improbable.
Everyone who has ever had even the slightest brush with cryptos knows that they are volatile. The question may well arise as to why? Most often, the growth of a particular coin is due to one of three reasons, and they can be news, pumps and listings. Positive news is the most obvious reason for a price hike. In recent weeks, we have seen a jump in the price of Litecoin after the announcement of its fork, we saw a twofold rise in VeChain rates due to the news of its partnership with DNV GL, and we have even noted a 10% increase in Ripple amid reports that Saudi Arabia's central bank had signed an agreement with the company on the application of its technology.
The market for cryptocurrency is booming, with bitcoin and ether tokens turning early buyers into millionaires. Now hedge funds are getting in on the blockchain game. Forbes reported there are now well over 15 hedge funds managing digital assets and cryptocurrency investments, including Polychain Capital, which manages assets worth $200 million and was founded by former Coinbase employee Olaf Carlson-Wee. That's great for uber-rich people who were already making tons of money. But will it have any impact for the rest of us?