On August 8th, the SEC announced they are not ready to emit a decision on the Bitcoin ETF and that it will have to wait until next September 30th. The market reacted to this news by falling like a lead balloon.
There has been a bearish run on Bitcoin since last December 18th that hasn’t stopped ever since (if some fluctuations have been observed) and Bitcoin’s slippery slope has dragged the whole market behind it. But even in the current prolonged bearish trend, last Wednesday’s losses are nothing short of the epic which is prompting the question of how low can Bitcoin go before it bounces back?
It’s a relevant question for sure, but it’s also one that nobody can answer unless you believe in crystal balls. We don’t. Many crypto commentators are advancing predictions about the lowest possible threshold for the asset.
Numbers such as $3,000.00, $5,800.00 or $6,200.00 (the value about a few days ago is $6,330.18) are tossed around like if nothing but very little if any, evidence or reasons are given to support such hypotheses.
So let’s take a moment to consider the current situation and give it some calmed, rational thought so we can figure out what the heck is going on and put things in perspective.
Let’s start with the ETF issue. Let’s realize something. We don’t need any ETF at all. Don’t get us wrong, it would be good to have one and, when the SEC finally approves at least one of the nine current proposals for an ETF, it will be a good thing, and it will probably be interpreted as an endorsement for Bitcoins in particular and digital assets that have never held and ICO in general. But the fact remains that there are plenty of accessible ways to buy and trade with Bitcoins so the ETF would be a sweet cherry on top of the crypto cake but it’s not the cake by any means.
Also, there’s not that much proof that it was the SEC announcement that prompted Wednesday’s (Aug 8) drop. It’s an assumption based on timing. Weird as it may seem, the crypto markets have shown themselves to be indifferent to the news for the most part so there is a chance that it could just be bad timing or a strange coincidence. We are not saying that we can explain the sudden drop in value that happened last day 8th. We are just saying that timing is not the same as cause and effect.
The next thing to consider is that the current market is driven by speculation and irrationality, as is usually the case in bearish trends in most markets. It’s the fear and perception that dominate the market instead of the objective value in it.
But the most important thing to realize is that today’s Bitcoin is not any worse than it was the last December when it went over 16,000 USD per token. It’s better, if anything because the hash difficulty is increasing thus improving security and the Lightning Network is online and working very well (with a few routing glitches that are being fixed as we write). Nothing is happening with Bitcoin in the real world that could suggest that is any less valuable now than it was nine months ago.
So the recent market (we are in green for a couple of days now though) could look like a nightmare but is, in fact, a dream come true. It could end up being the chance of a lifetime to buy low and sell high a few months or years down the road.
It’s also worth remembering that, historically, in the crypto and every other market known to man, everytime a bearish run finishes, the following bullish run brings the market to higher levels than it had before.
While we are not going to give you any financial advice at all, we are confident that speculation and irrationality can be made to work to the advantage of the players that go for value and act with rationality, discipline, and patience. Don’t despair because, even if Bitcoin hits the 3,000 USD mark, sometime in the future it will surpass last December’s levels.
In the end, it doesn’t matter all that much how low Bitcoin goes except for the opportunity it affords us to buy cheap. The important thing is that, sooner or later, it will bounce back.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Yannis Papanastasopoulos on Unsplash
Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC
The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.
The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.
Musk’s Tweets also impacted Dogecoin’s price
Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.
He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.
But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…
XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange
Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //
Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.
Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.
The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.
NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.
NFTs are already being actively traded in markets globally. For…
Wisebitcoin Launches Professional-Grade Crypto Exchange
Infrastructure is developing rapidly in the cryptocurrency industry, but the recent launch of the Wisebitcoin cryptocurrency exchange is nonetheless significant in terms of the immediate value it provides to cryptocurrency users. That’s because the exchange has had a beta version available since 2018 while continuing further developments in stealth mode, and already serves over 1.2 million end users with $6+ billion in 24 hour trading volume at the time of its official launch.
In addition to the large user base and deep liquidity, Wisebitcoin also stands out by offering up to 100x leverage to margin traders, with the ability to open a long or short position in their futures market. In the current bullish environment, leverage is a key way that experienced traders increase their exposure and try to profit from volatility.
For example, if a user opened a long position on ETH on January 2nd at a price of $750, they could have greatly multiplied their profits with even a small amount of leverage such as 5x as ETH reached over $1,100 within 48 hours. A simple unleveraged position would have netted $350 in profit, but a 5x position would have netted $1,750 and a 100x leveraged position would have netted an incredible $35,000 in profits from an initial investment of just $750.
Beyond leverage, Wisebitcoin additionally offers a simple and…
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