Cryptocurrencies continue to experience high volatility after the Coinbase-induced rally fizzled out yesterday. Bitcoin hit a high of $303 before descending to a low of $241.09 today. Peercoin peeked at $0.517 before falling back and Namecoin hit $0.653 in yesterday’s trading session.
Coinbase Announcement Triggers Rally
Bitcoin hit a high of $303.30 yesterday as Coinbase launched their new exchange. The company managed to secure regulatory approval to operate in 24 US States so far. These include New York and California. The fact that the new Coinbase exchange will be available to NY residents probably means that the company is already in compliance with the proposed ”BitLicense” framework. The New York Department of Financial Services is expected to implement the new cryptocurrency rules in the first quarter of 2015. Trading on Coinbase will be free until March 30th, after that, the exchange will implement a market maker/taker formula. Market makers, traders that add liquidity by placing orders in the orderbook, will continue to trade without fees. Market takers will be charged 0.25 percent.
Bitcoin Hits $303 but Falls at 9 AM EST
The initial Coinbase announcement was planned for 9 AM EST. The company even made a special webpage for the launch called Lunar, with a caption that said only ‘’To The Moon’’ and a timer set to run out on January 26th at 9 AM. But for whatever reason, the Wall Street Journal was given the story almost a day early and published the news ahead of time. This led to a rally across the board. Then as 9 AM rolled around in a classic ‘’buy the rumor sell the fact’’ BTC/USD got sold aggressively. Prices fell from $294 to a low of $250 in two short hours.
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