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Should Crypto Investors Fear after Yesterday’s Selloff

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If there was one thing common between Crypto markets and stock markets, then that was a sell-off. Crypto investors lost $13 billion in the latest selloff.

If there was one thing common between Crypto markets and stock markets, then that was a sell-off. Crypto investors lost $13 billion in the latest selloff.

The cryptocurrency market has plunged in Asian markets on Thursday led by the most valuable digital coin, bitcoin. Significantly, all the top ten virtual assets are trading in the red with considerable losses. As a result, the overall market has shed a valuation of approximately $13 billion in a span of a few hours. Interestingly, this came on the back of a sharp plunge in stock markets after an overnight drop in stock values in Wall Street.

 

Negative Factors

The question which is lingering in everyone’s mind is whether there is a correlation between Cryptocurrency markets and stock markets?

Well, the answer to that is a big “No.”

 

However, the most common problem plaguing both markets is lack of liquidity. The fact that Bitcoin price dropped down below $6,300 level price whereas the second-placed Ethereum witnessed 10.8 percent fall to about $200. As far as the third-placed XRP is concerned, the virtual asset price plunged 24 percent. In the same way, prices of bitcoin cash dropped 14.38 percent whereas EOS fell 6 percent. Following this, the overall cryptocurrency market has seen its value erosion of close to $13 billion.

The key point here is that the drop in digital coins comes at a time when financial authorities have issued a fresh warning. They were more concerned about the increasing growth and the potential threats it could pose to the general economy. Only recently, the International Monetary Fund viewed, “Continued rapid growth of crypto assets could create new vulnerabilities in the international financial system.”

 

No Positive Catalysts

The cryptocurrency market dropping like this is not new in the current year though it was opposite to the trend seen in the previous years. The year 2017 witnessed a whopping and unimaginable gain from digital currency market and reached the peak towards the Christmas season in December. However, the current year is witnessing more sell-off since regulators have entered the space in full swing to put it straight. Also, there were no positive catalysts to reverse the trend, and there have been only unfavorable factors or events that are only hurting the market. At the same time, the regulators are cautious and do not want to curb innovation.

The entry of regulators has raised the hope that they will come out with measures to professionalize the sector and encourage virtual assets-linked exchange-traded funds (ETFs). However, that did not happen and on the contrary, the United States SEC has rejected ETFs based on cryptocurrencies. They did not spare the popular Winklevoss brothers supported ETFs too. Aside from these, the current year has seen some of the high-profile cyber attacks on cryptocurrency exchanges, and they have to bear the brunt of it. Similarly, fraudsters have tried to take advantage of the emerging asset class and tried to raise money through initial coin offerings (ICOs). These events or factors have continuously posed threats to the stability of digital coin prices.

#Bitcoin

Bitcoin institutional adoption rising: BTC price analysis

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Amidst the crypto winters which led to the price of bitcoin falling massively, institutional adoption is on a rise with many analysts predicting that the bear market was being manipulated by large institutional investors in order to buy bitcoin at the cheapest rates before the entering into the markets.

Greg Tusarm an ex Goldman Sachs executive is comparing the current situation in the cryptocurrency market as early days of equity trading according to Bloomberg. The ex Goldman Sachs executive sees a great future for bitcoin and other cryptocurrencies ahead and believes that there are a lot of opportunities for businesses in the crypto space. Greg has also launched his own crypto brokerage called Tagomi Holdings which is backed by large investment firms such as Founders Fund.

Just a few days back, Jeremy Allaire, the CEO of Circle predicted that the price of bitcoin along with other cryptocurrencies will be rising tremendously in the next 3 years.

Paypal Co-founder launches Tagomi Holdings Inc

Peter Thiel, the head of ‘Paypal Mafia’ which is a group of former Paypal employees and founders who have since founded and developed companies such as Tesla motors, Linkedin, Youtube etc. has successfully launched an electronic brokerage startup Tagomi Holdings Inc. The company will help to overcome operational challenges in relation to trading digital assets such as bitcoin. The launch was announced by the company in a press release. Peter had also claimed that Bitcoin can be a hedge against economic downturns. The Founders Fund led by Peter has made huge a massive fund allocation in cryptocurrency startups all around the world.

Bitcoin Price Analysis:

BTCUSD Bitfinex 24 hour chart

BTCUSD Bitfinex 24 hour chart

After being bearish for a over a month, bitcoin started a bull run yesterday rising over $200 in just a matter of minutes. Though time volumes are quite low in comparison to last year’s trading volumes, the current volumes are quite higher than the last few months. Since yesterday Bitcoin is continuing its bullish pattern currently trading around $3641 on Bitfinex (at the time of writing). The price is expected to rise further as a major bullish pattern is formed with the new key support at $3550 (In accordance to Bitfinex Chart). The major bullish pattern line formed will most likely push bitcoin price above $4000 in short term.

 

Bears turning bullish

Market analysts who were earlier predicting bitcoin to fall below $3000 have now started to make bullish predictions stating that the price of bitcoin can soon reach its original position above $6000 where it was trading earlier before the start of the bearish trend in November this year. More and more institutional investors are buying cryptocurrencies at the current price which is the lowest price for bitcoin for more than a year. Diar has reported that more and more institutional investors are shifting to large over the counter trades for buying bitcoin and other cryptocurrencies lately. The total market capitalization of cryptocurrencies has risen more than $12 billion in 2 days. On Monday, the total market cap was around $103 billion which today stands at around $115 billion.

 

The following article is not financial advice. The readers are advised to do their own research and analysis before making any investment decisions in the cryptocurrency markets. The following are the viewpoints of the writer and not Coinnounce.

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#Bitcoin Price Analysis

Is Bitcoin ready for the Santa Rally: Off to $4400.

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After trading in the red for a larger portion of the last 34 days, Bitcoin's value is seeing a small surge and the coin's price exceeded $3,500

The constant losses Bitcoin has been experiencing in the past month were sharply interrupted yesterday, December 17th.  After trading in the red for a larger portion of the last 34 days, Bitcoin’s value is seeing a small surge, and the coin’s price exceeded $3,500 yesterday and is currently trading at $3469 according to CoinGecko. Many are now wondering whether this is a start of a recovery, or simply Bitcoin’s last attempt to resist the bears.


 

Is the shift in the market real?

BTC is also not the only one, as nearly all coins within the top 100 are currently trading in the green, some of which are experiencing massive 22% gains, such as EOS. XRP, the second largest coin by market cap, is currently experiencing a 13% surge, while Ethereum’s growth remains at 7%.

The new surge, appropriately named the “Santa rally”, has impacted the entire market, and the total crypto market cap has just exceeded $112 billion. Even Bitcoin’s own market cap climbed back up to over $61 billion at the time of writing. The price bounce is expected to fuel investors’ hopes that the worst might be over, despite the fact that recent predictions said that BTC might drop to around $2,800 before the real surge arrives.

There are also those who believe that the current price surge is nothing more than an attempt at market manipulation, potentially coming from the Wall Street itself. While this is all speculation at this point, the reason for the rally remains unclear, which is why it is not surprising that many remain untrustworthy towards such a sudden change.




Right now, Bitcoin is around 83% below its all-time high, while the total crypto market cap lost around $700 billion in the last 12 months.

Following the start of the surge, Bitcoin trading volume also picked up and has risen by around $2 billion within the last 24 hours, currently being just above $6 billion. Considering the fact that investors and traders around the world took this opportunity to return to the market, many are hoping that the shift will be a long-term one.

If true, it will match the expectations of numerous experts who have been predicting a bull run in the final weeks of 2018. However, as mentioned earlier, the majority of analysts did not expect a real bull run before 2019, at best. To many in the crypto community, this is just further proof that the crypto nature remains extremely unpredictable, which is why nothing can ever be said with certainty.

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#Blockchain

Bitcoin Coffee: The first blockchain coffee is a fact!

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Blockchain technology makes the massive inequality in the coffee chain transparent for consumers. Token embraces this transparency and offers a solution.

Blockchain can be used for beautiful things. You can arrange and settle a lot through blockchain. Property rights, identity, but also, for example, the origin of products. How about coffee on the blockchain? Today you can buy the world’s first blockchain coffee: Token. This newly established coffee brand is an initiative of Moyee Coffee and FairChain Foundation that want to offer you full transparency about where your coffee comes from. Thanks to the blockchain, more money can go to the poor farmers. And that must make the world a little more honest. The token is the first coffee brand that is entirely transparent with blockchain technology.

 

No more hard time for coffee farmers

Nowadays, many coffee farmers have a hard time. They can barely cover their production costs, let alone social and environmental costs. According to the recently launched coffee brand Token, blockchain could provide the transparency and efficiency needed to change that.
Blockchain technology makes the massive inequality in the coffee chain transparent for consumers. Token embraces this transparency and offers a solution. The first cargo of 60,000 kilos, produced by small coffee farmers and blockchain-traceable, is going to prove that an honestly distributed value chain is possible.

 

Transparency

Token attempts to become the world’s first complete end-to-end blockchain coffee.

The token is a collaboration between Bext360, Moyee Coffee and the FairChain foundation. Their blockchain system makes it clear precisely what everyone deserves in every step of the chain. Inefficiencies and unnecessary intermediaries can thus be identified. According to the organizations, this transparency makes a fairer distribution of value throughout the chain possible. Blockchain technology makes the massive inequality in the coffee chain transparent to consumers. Token embraces this transparency and offers a solution.

 

Does blockchain make coffee more honest?

Most coffee is produced by a handful of large coffee companies that do not distribute the profits equitably. For example, the vast majority of the 25 million coffee farmers in the world can barely cover their production costs. Fortunately, there are more and more coffee brands who believe that blockchain can be used to make coffee more honest. This technology provides the transparency and efficiency needed to change this unfair system.

 

The coffee chain

Cryptocurrencies provide various modern opportunities; you can use on your daily basis. Presently, you can easily gamble with cryptocurrencies or invest your money in betting with crypto. For example, you can use a betting site Fairlay to bet on anything you want. You can also choose to build up more gradual assets by investing in the blockchain technology that lies behind all cryptocurrencies. The success of digital coins is possible thanks to the revolutionary blockchain technology. You can see that there are great opportunities for companies that develop blockchain services and for other companies that benefit from the digitization of the financial sector.

To make the benefits of blockchain real, each bag of Token coffee is provided with a token. Every token is worth 50 cents that you can invest in part of the coffee chain via the KrypC Technologies platform. You can give it to the farmers who produce the coffee, but also to yourself by offering yourself a discount on your coffee.

 

Gradual growth instead of a supercharger

It is, of course, nice if you have made a significant profit with cryptocurrencies. Earning a lot of money gambling with crypto is possible. However, the chance that you have burned your fingers on the bitcoin is also quite significant. If you are tired of waking up every day with the uncertainty of having become 10% richer or poorer with a digital currency that night, you may want to consider putting your money in mutual funds. You then become for a tiny part owner of a large number of companies that make all kinds of articles and provide services. To be honest: you will not get rich with an investment in the fintech sector. Although the underlying trend is healthy, you run the risk with your assets, and it is essential to build a financial buffer and invest only with money that you can miss for a long time.

 

How blockchain makes the world fairer?

The blockchain ensures that the world becomes fairer. It offers safety and transparency. This technique can be used for all kinds of applications.

How does blockchain work?

The blockchain can be seen as a ledger containing the accounting of each transaction that has ever been done. Every time a new transaction is registered, it comes to a chain of existing data blocks of transactions. That is why we call this chain the blockchain. Information about companies can be recorded on the blockchain. This increases the chance of fair trade. Scandals can be prevented because the right information is available.

Just think of the fraud with software in cars. That would not have been possible if all the information had been recorded on the blockchain. Multiple parties check the information. It would immediately have been discovered that something is not right. The registration on the blockchain would, therefore, be rejected. With such a discovery you are almost assured that it is made public.

The blockchain can also work with clothing manufacturers. There could be registered where sweatshops are located. If a piece of clothing comes precisely from that area, it could be observed on the blockchain that it was not produced with respect for the man.

Another example: elections are not fair all over the world. By registering votes on the blockchain, no more results can be tampered with. The blockchain tracks the information and verifies that the information is correct. Voice fraud is then impossible

 

Fair gambling

These days, we see that blockchain technology is being used more and more often in online casinos. Not only to be able to support payment instruments such as Bitcoin and altcoins but also in games themselves. For example, players can check whether a round in a game has been fair.

 

We thank Davey Cross for this guest post.

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