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Bitcoin Price Surge Dampens Altcoin Rally Hopes

There has been no Monday correction for Bitcoin this week as the top cryptocurrency has held on to its weekend gains. With market dominance, a touch under 60% many traders and crypto aficionados are beginning to wonder if the altcoins will ever recover.


Bitcoin Price Holding Steady Above $11000

Bitcoin is back at its 2019 high of just over $11,200 at the moment. It has spent most of the past day consolidating around $10,800 but started heading north again during the morning’s Asian trading session. Since the same time, last week BTC has made a solid 20% and has shown no signs of slowing down.

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Bitcoin price 1 hour candles – Tradingview.com

There is a lot of resistance in the $11,700 region but that has not thwarted Bitcoin previously. A correction right now would be healthy though as parabolic charts are not. That thirty percent plus chart move that many have speculated about would drop BTC from its current high back to around $7,800. At this level or lower, there is likely to be a lot more accumulation before the next leg up.

Remember 2017? When Altseason?

Many traders on Crypto Twitter are starting to express concern about the performance, or lack of, for most of the altcoins. While some such as Litecoin have done extremely well the majority still appear to be frozen over from crypto winter. An earlier tweet by blockchain entrepreneur ‘The Crypto King’ served as a reminder from 2017.

“All the focus is on BTC… did everyone forget 2017?
BTC pumps. BTC Stagnates.
Alts go absolutely bananas.
Altseason 2.0 Tik Tok.”

This sentiment has been echoed by crypto trader ‘Moon Overlord’ who has also looked back at patterns in late 2017 when altseason took off.

“The altcoin sentiment feels eerily similar to mid to late 2017. Bitcoin just went up and up and $ALTS got smoked. Then all of the sudden WHAM, a few alts lead the way and they started going 50, 100X out of nowhere. I suspect this time will be no different, you won’t get a warning,”

It is true that many of the top performing altcoins from 2017 have done very little in 2019. Big pump coins such as Cardano and Stellar have now been dumped out of the top ten and are still down from ATH by 91% and 85% respectively. Other previously high performing altcoins such as IOTA, NEO, OmiseGO, ICON, Qtum, Lisk, VeChain and 0x are still battered and bruised showing very little sign of recovery.

Many have speculated that a lot of 2017’s tokens will fade away and be usurped by new offerings this year but at the moment Bitcoin is still dominating markets and an altcoin season has yet to begin.

Will Bitcoin give altcoins a chance to move higher? Let us know what you think in the comments below. 


The Rundown

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Suspension Of Chinese Yuan FX Trading To Set Off Bitcoin Rally

Source: bitcoin

Suspension Of Chinese Yuan FX Trading To Set Off Bitcoin Rally

If there was anyone left on this planet who thought there was nothing going on with the Chinese economy you might want to rethink that statement very soon. Over the past few months, the Chinese Yuan has been losing value, and things have taken a turn for the worse now that China suspended some foreign banks from FX trading. Capital outflows for the Chinese Yuan are getting out of hand, as investors are looking for a different safe haven.

Also read: Ukraine Economy Bailout Presents Bitcoin Opportunity

FX Trading Suspended Until The End Of March 2016

A country’s central bank does not often suspend [some] foreign exchange businesses of other foreign banks for an extended period of time. Every bank in the world is looking to diversify its portfolio at all times, and foreign currency is a big part of that. Now that the foreign exchange of Chinese Yuan is temporarily suspended, the question remains how this diversification process will continue over the next three months.

Taking such a drastic measure can lead to a variety of outcomes. First and foremost, temporarily suspending FX trading might nudge the Chinese Yuan into a more stable exchange rate on the global markets. Up until this point, the currency has been in a freefall for months, and various countries seem to be liquidating some of their Offshore Yuan assets.

Secondly, the suspension of FX trading will slow down the capital outflows of the Offshore Yuan, meaning more currency will be tied up in other banks’ reserves. This is a bit of a risky predicament for the affected banks and other financial institutions, as they have to hope the Chinese Yuan stabilizes in the next few months. If this would not be the case, they will be losing a fair chunk of wealth.

It is important to keep in mind this move could have a completely adverse effect on the Chinese Yuan value as well. “Open” capital controls are not something any country wants to publicly advertise, as it could lead to another massive devaluation of the national currency. FX traders will be keeping a close eye on the situation in China, as the result could go both ways.

Bitcoin Poised To Strike Again

The last time China unveiled their “open” capital controls, the Bitcoin price soared to very high prices. Now that FX trading is temporarily suspended for the next three months, there could be another major impact on the Bitcoin price as traders and investors will be looking to circumvent capital controls.

This is one of the reasons why Bitcoin is an interesting investment vehicle, other than for speculating on the future price point. Despite warnings by the People’s Bank of China, investors flock to Bitcoin because it’s the most convenient way to transfer value across assets, portfolios, and even the world. A major spike in Bitcoin interest will lead to another buying surge, which will only drive up the price.

What are your thoughts on the temporary suspension of Offshore Yuan FX trading? Will there be an impact on the Bitcoin price? Let us know in the comments below!

Source; Zerohedge

Images courtesy of Shutterstock, The Epoch Times

The post Suspension Of Chinese Yuan FX Trading To Set Off Bitcoin Rally appeared first on Bitcoinist.net.

Suspension Of Chinese Yuan FX Trading To Set Off Bitcoin Rally

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