Úno 22

Bitcoin Price Under $10k As Big Resistance Triggers ‘A Few Days Of Bears’

· February 22, 2018 · 10:30 am

Bitcoin price dropped below $10,000 again Thursday as analysis warns traders to prepare for “FUD” from detractors.

$11,700 The Target To Beat

Data from Bitstamp showed a sudden $500 dip over three hours, taking Bitcoin from around $10,300 to current lows of $9677.

Having traded as high as $11,762 this week, markets appeared to encounter a lack of support closer to $12,000 Wednesday, creating a rapid drop and reversing gains which began around February 17.

“We’re seeing some weakness; this is not good,” analyst Tone Vays told viewers during a Bitcoin weekly chart performance analysis Thursday.

Others mirrored the sentiment behind a temporary fresh downturn, with the altcoin trader known on Twitter as Squeeze forecasting that “bears are likely to take over for a few days.”

Bitcoin’s turbulence continues to have a more profound effect on altcoin markets. A glance at the top 50 assets tracked by Coinmarketcap shows declines in line with Bitcoin but around 30% steeper in the past 24 hours.

Ripple, Bitcoin Cash, Litecoin and others in the top ten all lost around 13%.

Sore Losers Wait For Cashout

“This rebound took a lot of pressure off of BTC owners, but we will start running into overhead resistance,” Jani Ziedins of Cracked.Market meanwhile said in a research note quoted by MarketWatch.

“Many premature dip-buyers jumped in between $12k and $15k and we should expect many of those regretful owners to sell when they can get their money back. Their selling will slow the assent over the near-term.”

The lackluster performance of Bitcoin so far in 2018 has also served to temper the outlook for some of the community’s most ardent proponents.

Ronnie Moas, who led the charge of the bulls during the all-time highs in December 2017, most recently stated the likely finishing point for BTC/USD at the end of this year would now be around $28,000 – nonetheless a record high in itself.

What do you think about Bitcoin’s price dip? Let us know in the comments section below!

Images courtesy of Shutterstock, Twitter

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Úno 08

Cameron Winklevoss Predicts 40x Increase for Bitcoin ‘Someday’

· February 8, 2018 · 9:00 am

Bitcoin has come a long way since the time 10,000 coins were allegedly used to buy a pizza— and if you ask Bitcoin bull Cameron Winklevoss, the gold standard of cryptocurrency still has a long way to go.

‘It’s Actually a Buying Opportunity’

Today, one Bitcoin is worth just over $8,000 USD. But according to Cameron Winklevoss, investors can expect it to go up 40x “someday.”

Cameron made the bold prediction on Wednesday this week to CNBC at the Milken Institute’s MENA Summit while claiming Bitcoin is better than gold. He stated:

Taking bitcoin in isolation […] we believe bitcoin disrupts gold. We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. Its sort of equals a better gold across the board.

By Winklevoss’ logic, the argument that digital gold is actually superior to physical gold means the total market capitalization of Bitcoin should match, if not surpass, that of gold. He explained:

So if you look at a $100 billion market cap today, now last week it might have been more like 200, so it’s actually a buying opportunity, we think that there’s a potential appreciation of 30 to 40 times because you look at the gold market today, it’s a $7 trillion market. And so a lot of people are starting to see that, they recognize the store of value properties. So we think regardless of the price moves in the last few weeks, it’s still a very under-appreciated asset.

Whether or not Bitcoin is better than gold has been an especially contentious debate as of late. The World Gold Council has even published a report which claims Bitcoin could undermine central banks.

Skin in the game

Of course, the twins’ view is not an unbiased one. Since both brothers hold a significant quantity of bitcoin, and recently became one of the first Bitcoin billionaires, they do have a skin in the game when it comes to the success of the world’s first cryptocurrency. 

Tyler Winklevoss has also come to Bitcoin’s defense against critics like J.P. Morgan CEO Jamie Dimon, Warren Buffett, and Goldman Sachs.

Dimon Nowhere To Be Seen

Dimon infamously called Bitcoin a “fraud,” while investing giant Buffett has claimed cryptocurrency “will come to a bad ending”—despite admitting he doesn’t really understand the technology. Goldman Sachs has even gone so far as to claim that most cryptocurrencies will drop all the way to zero.

“You know the criticisms are just a failure of the imagination,” said Tyler Winklevoss.

Do you agree with Camron’s prediction? Let us know in the comments below!

Images courtesy of Bitcoinist archives, Shutterstock

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Úno 02

Diversify They Said: Bitcoin’s Drop Sparks Double Pain For Altcoin Holders

· February 2, 2018 · 8:30 am

Bitcoin has proven its worth in a fresh market downturn as altcoin assets across the board dramatically overtake its losses.

Bitcoin Steadiest Top-50 Asset

A glance at Coinmarketcap’s top fifty cryptocurrency asset prices Friday reveals even Ether (ETH) to have lost around 7% more than Bitcoin’s 15.5% daily minuses.

Ripple shed 31%, Bitcoin Cash 20% and Cardano 37%, putting it just behind Ardor’s 39% as the top fifty’s biggest loser as of press time.

The only asset to buck the trend in the top one hundred assets is Digix DAO, which in an unlikely opportunistic growth spurt appreciated 90% in the last 24 hours.

As mainstream media once again raced to celebrate the popping of the Bitcoin ‘bubble,’ cryptocurrency industry insiders showed no signs of panic.

In what has become a common sequence of events for 2018, fresh downward corrections are being met by tips to “buy low” concerning Bitcoin, its lesser fall making it the ideal holding currency for purchasing even lower altcoins.

Meanwhile, investment platform BankToTheFuture creator Simon Dixon led forecasts of where Bitcoin’s price bottom would eventually appear, considering $7300 as the site of a future upward correction.

Korea Ditches ‘Kimchi Premium’ Arbitrage

Downward selling pressure had been mounting through last week for Bitcoin. Regulatory overhauls in South Korea, reiteration of government stance in India and the misrepresentation of both in the mainstream press led to an  infiltration of ‘fake news’ which appeared to frighten markets.

The flurry of media speculation produced fertile ground for naysayers, with popular monitoring site 99bitcoins now containing almost 250 Bitcoin ‘obituaries.’

At the same time, conditions in jurisdictions which contributed to negative sentiment are showing signs of marked improvement.

South Korea, which had previously been famous for mismatched crypto prices and associated arbitrage opportunities, has reinvented its landscape as new regulations deliver changes.

Data from Bloomberg and CryptoCompare shows the price of a bitcoin in the country now de facto matches global averages.

What do you think about crypto markets’ current performance? When will Bitcoin bottom out? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter

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Led 18

5 Reasons Why January’s Price Slump is Nothing to Worry About

· January 18, 2018 · 6:00 am

With more people entering the crypto markets than ever before, the seeds of fear, uncertainty, and doubt has a greater impact on price volatility. Newbie traders jumping in and out on the whims of social media hype, and then panic selling, causes what happened over the past couple of days. However, looking at historical crypto charts, this January dip is nothing new.

There are a number of reasons why the markets crash in January, and many originate in Asia where the bulk of crypto trading occurs. According to Coinmarketcap, which no longer includes South Korean exchanges, the total market capitalization of all cryptocurrencies fell from $750 billion to $420 billion in four days. At the time of writing, they have since recovered and are on the way back up again, currently sitting at a total of $575 billion.


Reason #1: A lot of the impetus for crypto price action comes from Asia where the news has not been good in recent weeks. China is constantly trying to quash the entire industry, and South Korea just can’t make its mind up with regulatory hype and clampdown fearmongering emerging on an almost weekly basis. The FUD is as infectious as the FOMO, and panic selling over the past few days has sent all coins into freefall, with some losing as much as 40%.

Looking back on historical Bitcoin charts reveals that a January selloff has happened before, several times in fact. Bitcoin is the gold standard for crypto, and a lot of the altcoins did not even exist back then.

Crash Catalysts

Reason #2: It has been speculated that one factor causing this is the Chinese Lunar New Year, which usually falls in February. It is a time of year when people take time off work and travel to visit family, and for this, they will need fiat, not crypto. Since nations in Asia are responsible for the lion’s share of crypto trading, it stands to reason that this could contribute to the annual selloff.

Reason #3: Another factor could be the end of the tax year approaching where investors are planning to pay their annual taxes. Again this has to be done in fiat, not crypto. While not the only catalyst, it could have some influence over price action.

Reason #4: The ending of the first ever Bitcoin futures contract may also have contributed to traders shorting the asset. Once the big players, such as CBOE and CME, get involved, smaller markets can be manipulated by the institutionalized investors, and we could see more of this action until things stabilize.

CBOE Announces Increased Bitcoin Futures Margins Amid Market Manipulation Worries

Reason #5: As more new and inexperienced traders enter the market, these chart oscillations will amplify. Only when they realize that this is a natural cycle and crypto is not dead will things settle down a little. Since total market investment in cryptocurrencies has jumped over 2500% in less than a year, we are still at very early stages of what could be a game changing industry.

Did you panic sell your crypto or hodl it? Share your experiences below.  

Images courtesy of CoinMarketCap, Bitcoinist archives, and Pixabay.

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Led 15

South Korea Won’t Ban Bitcoin Trading as Price Chart Turns Bullish

· January 15, 2018 · 7:00 am

Bitcoin pundits are forecasting a fresh bull run as news from South Korea and the cryptocurrency’s price turn markets increasingly optimistic.

Seoul To Regulate After ‘Sufficient Consultation’

After the South Korean justice minister caused “confusion and anger” last week by saying the government would ban cryptocurrency exchanges, local news media report, the latest statements from Seoul indicate a significant U-turn.

“The proposed shutdown of exchanges that the justice minister recently mentioned is one of the measures suggested by the justice ministry to curb speculation,” Yonhap News Agency quotes a statement from the Government Office of Policy Coordination today.

A governmentwide decision will be made in the future after sufficient consultation and coordination of opinions.

Politicians had previously sought to impose strict controls on Bitcoin and cryptocurrency trading activities within a seemingly very short timeframe.

South Korean Prime Minister Warns Youth That Bitcoin is a Gateway to Illegal Activities

In December, new laws were passed which would have significantly limited exchange activities from as early as January 20.

After mass public uproar and most recently accusations lawmakers were “ridiculing the Korean people,” the outlook for cryptocurrency regulation in South Korea has suddenly begun to look notably more constructive.

“Monday’s announcement suggests that a shutdown is not likely in the near future,” Yonhap concludes.

Bitcoin 50-Day Moving Average Dip Excites Investors

Across global markets, Bitcoin prices are already reacting in kind to the new hope, with one analyst noting Monday’s dip below the 50-day moving average is characteristic of an impending move upwards.

Korea had been the most active trading community in the world for Bitcoin, its influence still conspicuous; a petition even calling for senior ministers to be fired over legislation mismanagement accrued over 130,000 signatures in days, Bitcoinist reported last week.

Meanwhile, details of the style of regulation that could take hold in the coming months remain sketchy.

Across the water in Japan, a more advanced model of permissioned exchange trading appears to be delivering positive economic results. Analysts have even said that Bitcoin investors alone could already be contributing as much as 0.3% to the country’s GDP.

What do you think about the latest developments from South Korea and their impact on Bitcoin? Let us know in the comments below!

Images courtesy of Shutterstock, Twitter

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Led 11

The Noose Tightens? US Senate Meeting with Market Regulators Over Cryptocurrency

· January 11, 2018 · 6:00 am

Bitcoin regulations may be on the way as the US Senate Banking Committee is scheduled to meet with top market regulators in February over cryptocurrency.

The noose may be tightening around Bitcoin and its digital brethren in the United States in the coming months. According to Reuters, the Senate Banking Committee will be meeting with some top financial regulators in early February. Their topic of concern – cryptocurrency.

Are Regulations Coming?

Right now, there are no federal regulators that oversee cryptocurrency within the US. The government (and most importantly, the IRS) view crypto as property that’s subject to capital gains taxes.

However, this may change in the future. The Senate Banking Committee will be talking to Commodity Futures Trading Commission (CFTC) Chairman Christopher Giancarlo and Securities and Exchange Commission (SEC) Chairman Jay Clayton to discuss Bitcoin and other cryptocurrencies, along with any risks that crypto trading can bring to the public.

Will this meeting lead to future Bitcoin regulations? My magic 8-ball says that it’s a distinct possibility.

Governments Yearn for Control

The reality is that the CFTC and SEC have been staking out some jurisdiction over crypto. The CFTC did allow both CME and CBOE to begin listing Bitcoin futures contraacts last month. However, they are now reviewing their process for this after receiving some criticism.

It should be noted that both the SEC and CFTC have issued warnings about the volatility of cryptocurrency and that they may not be able to protect investors from crypto scam artists. There are always those looking to earn some ill-gotten gains by using crypto as the lure. Case in point is BitConnect, who were shut down by the state of Texas over their claims of monetary rewards.

Yet any time government committees get together, it should be a cause for concern. The reality is that any national government will not be too friendly with an economic system that lies outside of their control. To that end, you can bet that regulations are at the forefront of every senator’s mind when that meeting rolls around.

Of course, one of the chief draws for cryptocurrency is its lack of centralization and regulation. Many view virtual currency as an expression of economic freedom, but governments look at crypto in a different light: something to control and to tax.
Shidan Gouran, president of Global Blockchain Technologies Corp. summed up the thought that one of the reasons why cryptocurrency was so valuable was due to a lack of regulation. He said:

We believe that the greatest threat is regulation. Several governments across the world have clamped down on exchanges, some halting trading altogether. Others have gone on to outright ban the use of Bitcoin. Sudden government actions in major Bitcoin trading hubs stand to disrupt the market, with the potential to severely affect the utility of bitcoin — and accordingly, the value.

Are you worried that the upcoming Senate Banking Committee meeting will lay the cornerstone for increased Bitcoin regulation? Let us know in the comments below.

Images courtesy of Pixabay, Wikimedia Commons, and Bitcoinist archives.

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Led 07

Bitcoin to the Rescue in Economically Unstable Countries

· January 7, 2018 · 5:00 am

Bitcoin seems to be the knight in shining armor for countries suffering distress due to corrupt governments and volatile economic climates.

Bitcoin’s race to the top of the crypto charts has been filled with record-breaking prices, mainstream integration into the financial industry, and overall sitting-on-the-edge-of-your-seat excitement.

In waiting for the currency to reach the next price milestone, it may be easy to forget what it’s actually there for. Even though it may have a somewhat infamous reputation as being the preferred medium of exchange for shady deals, Bitcoin’s goal is to completely revolutionize and disrupt the global economic industry.

Paying Salaries in Bitcoin is Becoming Trendy

Bitcoin Offers a Welcome Respite From Corrupt Institutions

This is especially true in emerging markets, or in countries where the political and socio-economic sectors are fraught with corruption and an iron-grip control on finances. In addition, it could be the potential answer to the huge problem facing the unbanked population.

According to the Wall Street Journal, crypto users in Sudan, Kenya, and South Africa are fast latching on to Bitcoin as a lifeboat while navigating the choppy waters of economic uncertainty in their respective countries.

Circumventing Sanctions in Sudan

Mohammed Mahgoub, who is a Sudanese web developer and early Bitcoin fan, had this to say:

The main attraction in Bitcoin is the ability to transfer money without any restrictions or going through a bank, this was very important as there were US sanctions imposed on Sudan.

The country has been subjected to financial sanctions for nearly 30 years, negatively impacting cash outflow and making the purchasing of international imports extremely difficult. In addition, because it is seen as a sponsor of terrorist activities, the country is still on the blacklists of most Western banks.

A Facebook group called Bitcoin Meetup Sudan consists of a range of members hoping to learn more about the cryptocurrency. One member wants to raise funds for her NPO by using Bitcoin, while another wants her dowry to be paid in bitcoins.

On the flip side of the bitcoin, financial institutions in developed countries have cautioned people on the risks of using digital currencies as they are not backed or supported by a bank or by the government. However, this is the exact reason that cryptocurrencies have become so popular in emerging markets as it cannot be controlled by untrustworthy authorities.

Arnaud Masset, an analyst at Swissquote, which is a brokerage offering Bitcoin trading to retail clients, further explained:

Buying cryptocurrencies is seen as a protection by people who have been constantly disappointed by central banks and politics.

Masset went on to add:

When conventional money fails, Bitcoin wins.

Masset also touched on using virtual currencies as a way to alleviate sanction stress:

It’s a convenient and fast way to skirt sanctions.

The supply-and-demand principle is clearly evident with the super crypto. Because its demand is so high in developing countries, its price is well above the global average. On some exchanges in Zimbabwe, like Golix, one Bitcoin traded at $22k, compared to the $15k it was trading at on CoinDesk.

Bitcoin Finds South African, Brazilian, and Kenyan Fanbases

eToro reported that phenomenal increases in Bitcoin usage were seen in South Africa and Brazil in 2017, with trading in the former increasing by 671% over less than a year. This massive growth was likely as a result of the country’s president axing the well-respected former Finance Minister, Pravin Gordhan. The South African rand was also downgraded to junk status by S&P Global Ratings in November last year.

Mati Greenspan, an analyst for eToro, stated that Bitcoin usage grew in Brazil as a result of ongoing corruption involving both the country’s former and current presidents.

Kenya is another country experiencing massive Bitcoin growth, 1,400% in 2017 alone. They use the currency to place bets, and people even use it to pay for and gain access to services not available to Kenya, such as Spotify AB.

Smartphone Growth Is a Silver Lining Despite the Dark Cloud of Volatility

However, the currency’s volatility is a real problem in these developing countries. Being in a somewhat precarious position financially can be even more frightening when your Bitcoin investment is losing value every hour, as was the case with the currency’s price correction last month.

Digital currencies may be increasing in popularity in these countries, but they still have a long way to go before being adopted as a common medium of exchange. However, the growing smartphone market in Sub-Saharan Africa is a positive factor in a faster integration. According to GSMA Intelligence, this growth is predicted to happen at a rate of 50% faster than the global average over the following five years.

Do you think emerging markets will continue to increase their usage and adoption of digital currencies? Would this result in more aggressive regulation efforts by the governments in these countries? Let us know in the comments below!

Images courtesy of Pixabay, Pxhere, and Bitcoinist archives.