This year has definitely not been a good time for crypto. In fact, during the first two quarters of 2018, we saw how the whole market alongside its king, Bitcoin (BTC), struggled with clear-cut dips that launched the prices of several coins to worrying heights. In this sense, both enthusiasts, and investors were waiting for a moment where things started to change, one of the generalized trends of the market.
And to say the least, we all felt calmed when the situation began to improve a few days ago as it all seemed like the market was giving an upturn, which, of course, was reason enough for all of us to celebrate that the market was proving one more time to be resilient. However, the sad part of the story is that it was just a momentaneous thrill, one that, as of now, is shaking the whole community.
The market capitalization crashed down to a value of 192 billion dollars, one of the lowest values the market has had during its existence.
Nonetheless, we all need to recall something similar occurred back in 2015 when the market broke to pieces by decreasing an 80 percent of the market cap and reached a value of 170 billion, a situation that someway gives us a relief considering the fact that back then the sector managed to survive… but what can we really expect to happen this time? Let’s see an introspective of what is happening with the market right now!
Public opinions on the crypto market
It’s true, we have recovered from losses of this kind before, and is also true that the market simply tends to be a volatile environment. But are we really gonna recover again this time?
Well, one of the crucial factors we need to keep in mind is the utility of the virtual coin we are holding. As long as the currency we own has a purpose and an individual utility, we can count for sure that the coin will surge one more time as people will continue to buy the coin to use it.
This is something we can be sure of with cryptos such as Bitcoin (BTC), which actually has proven to be one of the most used coins for shopping purposes.
On the other hand, the landscape is entirely different for altcoins. It is likely that some of the altcoins existing will manage to create a strategy to survive, but the sure thing is that we can only be secure that Bitcoin will make it.
With relation to this, Vitalik Buterin, co-founder of Ethereum and Bitcoin Magazine, has stated recently that the crypto strategy needs to change to see a different response from the community.
According to him, we are not in a place where we cannot have a growth of 1000 times the current prices anymore. He said, that Instead of creating hype, the industry should actually focus on building coins with real purposes.
The declarations of Vitalik result intriguing considering the fact that Ethereum (ETH) went down by 34% percent in the last three to four days, and that ICOs being the first utility of the Ethereum network, it seems like people are not investing in ICOs anymore as this is not profitable in the long run. To say the least, it can be considered a risky thing to invest in Ethereum as of now.
Regarding the topic, many users on Twitter have given interesting opinions on the situation. @Apompliano tweeted a message saying that despite the drop in the prices of the market people continue believing it will recover very soon. But this is actually not true; we need to accept and “truly believe crypto is over” to see a recovery.
Crypto prices keep dropping but people still believe the price will rebound quickly.
There is no blood in the streets.
There can’t be a recovery until people forget about the last bull run and truly believe crypto is over.
— Pomp 🌪 (@APompliano) September 8, 2018
On the other hand, another Twitter user published a message that worths paying attention to. The message read:
The British pound is the oldest fiat currency in existence at 317 years. The pound was originally defined as 12 oz. of silver. It's now worth less than 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value
— Dan Hedl (@danheld) September 8, 2018
The utility can be guaranteed in coins like Bitcoin, people from all around the world can actually buy Bitcoin and then use it freely as they want, so we definitely can be sure that the coin will continue to grow and it will recover soon.
On the other hand, the story is a completely different one for altcoins… It’s not a matter of the market to be over; it’s just a matter of the number of offers that actually has not a purpose. As I see it, the fourth quarter may be the time the market (Bitcoin first, apparently) takes off again. So stay tuned.
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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 thorough research before investing in any cryptocurrency and read our full disclaimer.
Photo by Jacco Rienks on Unsplash
Ethereum Flippening Bitcoin In 5 Years?
The dominance of Bitcoin (BTC) in the crypto markets due to the bear market, currently stands at 55.2%. Ethereum’s dominance is a distant second at 10.8% of the total cryptocurrency market capitalization. This is despite the fact that the value of ETH is still shaky with many traders postulating that it could get worse for the digital asset before it gets better. Ethereum’s decline has been blamed on three factors outlined below:
- Congestion issues on the network
- ICOs cashing out the ETH raised in the ICO boom of last December to late February this year
- Traders shorting ETH due to the above two reasons
Ethereum Flippening Bitcoin?
In a tweet on the 18th of September, Weiss Ratings stated that ETH will grab 50% of Bitcoin’s market share in 5 years. Doing the math, this means Ethereum flippening Bitcoin in the markets with a dominance that will be around 38%. BTC would be at half its current value, and at 27.6% of the total crypto market cap.
The full tweet from Weiss Ratings would go on to explain why this would happen:
“#Bitcoin will lose 50% of its #cryptocurrency market share to #ETH within 5 years, due to it offering more uses and being backed with superior #blockchain technology. We completely agree – unlike #BTC, which is a one-trick pony, the limit of…
Crypto News: What Happened To Bitcoin?
The crypto news of the day is what the heck happened yesterday in Bitcoin? In a matter of 2 hours, we saw the Bitcoin price go from 6320 to 6080 on Bitmex and then rocket higher to 6580. In the process, stops were cleaned out for both longs and shorts.
For all of 2018, Bitcoin has been a perfect vehicle for swing traders. The market has been playing support and resistance levels perfectly. The play has been to buy Bitcoin around the 6000 level and sell above 7000. Until this pattern changes, it’s what traders and investors need to keep doing. Yesterday’s price action, while crazy and extreme, does still support this strategy.
Why the crazy move in Bitcoin?
There are a number of thoughts as to why Bitcoin made the move that it did. They are technical related and don’t involve a fundamental reason. The first is that there are bots on Bitmex that go hunting for stops. The bot utilizes inside knowledge of where the orders are clustered. If the bot can move the market to where the stops are, it can get filled.
The second is that yesterday was the expiration of the CBOE futures contract. I am an ex-futures trader (now crypto) and know that expiration days can see some crazy moves. This is because it’s the last day to close a position on that futures contract.…
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It’s quite surprising to be writing this, but the XRP rally lifted Bitcoin and Ethereum off yesterday’s lows. As I wrote yesterday in covering Bitcoin, my bullish enthusiasm was dampened by Bitcoin’s $300 drop. XRP rising has given renewed hopes that the lows for the year are in and higher prices are ahead.
The most frustrating part about the XRP rally was the news put out by our competitors. We read the XRP rally was due to xRapid launching soon and also that a major Saudi Arabian bank had joined the Ripple network for international payments. I’ve been trading cryptocurrencies long enough to know that no one knows the exact reason why something happens in the market. This is a major buy spike that came out of left field.
I am certainly feeling better about Bitcoin now than I was 24 hours ago. The lack of volume and the price action felt like the market was heading lower. Today, however, we are back around the 6350 levels.
The problem is that it still not enough to make me buy more Bitcoin. We are still in the middle of the range between 6100 and 6500. This neutral zone is not an area that I want to be putting on trades. Yesterday’s jump was indeed positive, but need proof that it was not…
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