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Ethereum, Altcoins and Bitcoin: What’s Happening?

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It’s certainly is a sea of red in the markets. Lord Rothschild famously said to buy when there’s blood in the streets. However, we don’t think that time has come yet. ICOs, which raised money in Ethereum, are dumping their ETH. Most of these ICOs raised when ETH was $800 and higher from between late last year to early this year. The price was pushed further up due to demand created by regular traders who wanted to participate in the ICOs using the most efficient method of ETH. Most ICOs had the conversion rates of their ICO tokens pegged to the value of ETH making it easier for an investor to calculate his buy-in amount of the said tokens.

Now, some of these projects are cashing out to cover expenses that involve project development, operations, marketing and more. This has resulted in the concern we are now seeing of the bear market being dragged out longer than is necessary and with ETH continuing to drop in value.

Biswa Das, who runs cryptocurrency quantitative hedge fund BloomWater Capital, summarized the series of events as follows:

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

Is Ethereum going to survive?

The current pressure from ICOs cashing out on their ETH has further put a load on the current crypto bear market. The total market cap has been shaky at levels around $200 Billion with each morning being a puzzle as to whether it will go lower or higher.

With respect to the continued dominance of ETH in the markets and smart contracts industry, more projects are springing up that were ironically funded through the platform. These projects of Tron (TRX) and Zilliqa (ZIL) aim at offering faster, efficient and more cheaper alternative platforms for developers to create DApps. Therefore, the rest of the year could be one of constant decline for Ethereum. As a matter of fact, some Wallstreet firms had already predicted the gradual downfall of ETH and have been shorting the digital asset.

Possible continuation of the bear market

Spencer Bogart of Blockchain Capital LLC is quoted as saying the pain might not be over in the cryptomarkets especially for ETH. ICOs will probably continue to liquidate a large percentage of the over $5 Billion they raised last year and early this year.

Perhaps this is why traders are preferring Bitcoin (BTC) over Ethereum – or any other Alts – during this bear market. What we have seen is that BTC has increased its dominance in the markets from 36% back in mid-May, to its current levels of 53.5% as investors look for a safe haven to ride out the current stormy market.

BTC has proven to be less volatile than Alts and even surpassing the Turkish Lira in terms of market stability. With lots of Wallstreet interest from CBOE and the Intercontinental Exchange with its Bakkt project, BTC might be the wisest option for traders to ride out the bear market.

To trade cryptocurrencies, sign up with BitMex or Binance!

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.

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Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

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Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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Altcoins

3 Cryptocurrencies Most Likely to Follow Bitcoin’s Performance

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For more than a year, the cryptocurrency market has been dominated by bearish influence, with most coins seeing constant drops, or stagnation, at best. This all changed in the past few months, starting with Bitcoin which once again started leading the market up, bringing one minor rally after another.

BTC itself experienced massive losses in 2018, with its price going down by around 84%. Most other coins among the top 10 mirrored its performance, and some of them experienced even greater losses. However, now that Bitcoin sees gains again, these cryptocurrencies are still following its example, and many of them have seen massive breakouts. Some of the more notable altcoins that followed Bitcoin’s recent example are Ethereum (ETH), Stellar (XLM), and Cardano (ADA).

Ethereum performance mirroring Bitcoin’s price

As mentioned, Bitcoin led every rally so far, but before it did, its price first went through what is known as an ascending triangle pattern. The pattern held for around five months, which is exceptionally long for the crypto world. However, once the pattern was finally broken — the coin’s price skyrocketed, more than doubling itself within only two months.

One thing to note is that Ethereum performed in pretty much the same fashion. After five months of struggle and confusion for investors, the second largest cryptocurrency also managed to break the pattern and skyrocket as well. It…

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