Bitcoin
Here Are Today’s ICO Losers: Storj (STORJ) and Quantum Resistant Ledger (QRL)
We’ve had a busy week in the token space this week so far and it looks as though there could be plenty more volatility on the cards as we head into the weekly close. As ever, some of the action has been positive (as relates to the price and direction of the tokens in question), while some have been negative.
For our views on the tokens that are gaining strength this week, check out this piece.
On the other side of the market, here’s a look at two of the tokens that are taking a hit in the markets this week, with a discussion of what we’re expecting from each near-term.
The two tokens up for discussion today are Storj (STORJ) and Quantum Resistant Ledger (QRL).
Let’s start with STORJ.
Many reading will likely already be familiar with this one – it’s one of the most well-known companies in the ICO space and grabbed headlines not just in crypto but also in the mainstream financial and business news/media back in May this year on the back of a $30 million raise in its initial offering.
For those not familiar with the company, however, it’s a cloud and network storage company that offers incredibly cheap storage solutions for its customers, priced at somewhere in the region of one-tenth of the more well known commercial outlets.
Anyway, STORK is a token that actually has utility in that it is used to pay for storage and it’s used to reward so-called Farmers, who are individuals that offer up space that acts as storage for the company’s clients.
As a side note, this is an interesting distinction that many people in this space don’t really think about – the difference between tokens and coins. One has utility, the other doesn’t. Anyway, more on that at another time.
So, STORJ has qualified for a position on this unfavorable list by serving up a negative 74% ROI in the last twenty-four hours. This seems substantial but – when you consider that the token is up nearly 2000% over the last six months (the period subsequent to its ICO) then the shift isn’t all that bad.
What’s driving the action is unclear. The company’s CFO published a piece in Forbes this week, which should have boosted sentiment. We expect this is a temporary move and one that should rectify going forward. After all, this is one of a relatively small number of companies that has a respectable and actionable business model and this should override any short-term sentiment hits longer-term.
Moving on, QRL.
This is actually one that made our list yesterday as being one of the top movers in the space, so to see it on today’s list of major decliners is something of s surprise – well, sort of. More on that in a minute. Before that, however, and for anyone that missed our previous coverage of this one, QRL is the token that underpins an effort by the token’s eponymous parent company, Quantum Resistant Ledger, to create a blockchain type system that’s immune to attacks by quantum computers.
The token had been running over the last few weeks as news that IBM and Google are coming close to realizing quantum computing devices and – in turn – expectations that a QRL system will be in high demand over the coming ten years or so.
So why is it declining now and why is it not that much of a surprise?
Well, this sort of action is something we see pretty often in the equities markets. A company runs towards some pretty substantial gains, then turns around and corrects, giving back a portion of the gains. It’s nothing to be concerned about and is almost always just representative of shorter-term operators pulling profits off the table subsequent to the run.
As such, we expect this one to pick up again post-correction and return to the overarching upside momentum.
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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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