While we all still remember record heights, recently it has established its new year record. But it’s better to say “anti-record”. The world’s largest cryptocurrency by market cap has fallen to its new year bottom.
New Year Low
Earlier today, bitcoin has fallen to $5,165 which has become its new lowest mark since October 18, 2017. In the framework of its down trend, its market cap dropped to a low of $89.74 billion.
According to the data provided by , at the press time, the leading cryptocurrency is traded for $5 162,45 having lost more than 7% over the time period of the last 24 hours.
On June 11, bitcoin dropped to $5,750. But after that it was rather successful in defending the established $6,000 support level. At the same time, BTC trading in the exchange market remained rather high which ensured sufficient trading volume. Since that time $6,000 is considered to be a resistance level for the major cryptocurrencies.
Possible Scenario
In the context of such changes crypto gurus are trying to predict what will happen further. For example, Crypto Rand, an experienced crypto trader and analyst, made a forecast that BTC would be traded for $4,800 – $5,200. In his opinion, this variant is especially possible if BTC doesn’t manage to reach its resistance level of $6,000.
Looking at the current situation on the market, it is possible to say that the continuation of the negative trend is very likely. Quite soon we will probably see BTC below the $5,000 mark.
CoinSpeaker has already that on November 15 the BTC fell below $6,000. And it was the first time since the beginning of August. At that time several analysts explained that situation by purely technical reasons.
Nevertheless, it was viewed in a rather positive light. “Looking forward, today’s price drop may be a blessing for the asset as it could help push the market to a bottom, after which it can bounce back,” said Blockforce Capital CEO Eric Ervin.
Within a seven-day period, the price of BTC has fallen down from around $6,400 to $5,160. It is was a rather significant and intensive drop that could be followed by another one, this time below the $5,000 level.
Possible Trends for Other Cryptos
While BTC continues to get closer to the high $4,000 region, it is expected that other top cryptocurrecies will also enter their negative trends. It can be already seen from the prices.
For example, has lost around 12% within the last 24 hours and now it is traded for $154,76 as it is provided by .
Nevertheless, according to experts, the situation with bitcoin can become a real for to become the world’s crypto number 1 by market cap.
November 15 will definitely be remembered as one of the worst single-day corrections in all of 2018. The crypto market then saw a wipe-out of more than $27 billion and the market extended losses throughout the past two days.
The talks about ‘flippening’ the came along as Twitter user called “The Ripple Shadow” tweeted an interesting message saying:
Screenshot this, retweet this, like this. Do whatever you want with this. Here we go…
Before EOY, XRP will be #1 for market cap. No riddles, straight up message. Big things are right around the corner…
— The Ripple Shadow (@therippleshadow)
Also, the CEO of in his Tweet the strength of the XRP community, and asked its brethren to send him their best pitches for why he should pair every coin on the exchange with the digital asset.
He was also responding to suggestions from the XRP fans who believe that doing so would help cushion most altcoins from bitcoin’s volatility. Additionally, an XRP base currency would allow cheap and efficient movement of value between exchanges.
, even with the combined value of bitcoin Cash SV (BCHSV) and bitcoin Cash ABC (BCHABC), has fallen by more than seven percent. Subsequent to the fork, the price of BCHABC, the original bitcoin Cash chain with the roadmap set forth by bitcoincash.org, dropped by more than 15 percent to $250.
Last week, Crypto Rand, a cryptocurrency technical analyst and trader, said that the probability of a $4,800 to $5,000 bottom for bitcoin (BCH) is increasing.
Both major cryptocurrencies and small tokens have already started to demonstrate independent price movements by breaking its correlation with BTC, a further 12 percent drop from $5,500 to $4,800 what could result in intensified downward movements for cryptocurrencies with lower daily volumes.
The Crypto Dog, another prominent analyst, said that a bottom at $4,800 has become more likely for BTC.
Same target I've held since February of this year, I think there is a strong possibility that ~$4800 is the bottom.
Let's see what happens.
— The Crypto Dog📈 (@TheCryptoDog)
Ran Neuner, host of the TV show “Crypto Trader” on CNBC and founder of OnChain Capital, explained via Twitter that crypto investors should distance themselves from bitcoin and bitcoin Cash and invest exclusively in XRP.
“These hash wars show why everyone should get rid of BTC and BCH and just put all their money into XRP.”
I can't tell if this is a joke or not…
— Fuadiansyah (@fuadviking)
He also made a Twitter poll:
The results of this poll really surprised me – they show we really have a big problem in Crypto. I REALLY thought American Airlines miles would do way better!!!
— Ran NeuNer (@cryptomanran)
This has attracted comments both in favor and against. For instance, a tweet from Crypto Bull believes that NeuNer is not serious. The tweet added,
“XRP over BTC, REALLY, what makes bitcoin special? Not much really other than being the 1st cryptocurrency ever, but that’s enough to keep it around longer than a ripple.”
The truth is, the numbers speak clearly for an investment in XRP. As the Twitter user Christian Schneider stated, the XRP price is very good in comparison to the 17th November 2017 by +113%. bitcoin, on the other hand, fell by -29%, Ethereum by -46% and bitcoin Cash by -64%.
Positive developments for Ripple firm and its token have made XRP one of the few cryptocurrencies to make a gain over the past month. It has made over 10% in the last thirty days while bitcoin and have nosedived 14 and 16 percent respectively.
KPMG: Cryptocurrencies Are Still Not Real Currencies
These gains have pushed XRP above $20 billion market capitalization and into second place as Ethereum continues to slide. The crypto twitter-sphere is awash with talk of a ‘flippening’ today as the notion of XRP catching bitcoin becomes more valid. It still has a long way to go however with a market cap gap of over $75 billion and many observers are commenting in jest.
Accounting giant last week warned bitcoin and other cryptocurrencies not ready to be classified as real currencies and that using bitcoin as a store of value is a “fool’s errand.”
They noted that there are real problems in the global financial services ecosystem that cryptoassets are looking to address.
“More participation from the broader financial services ecosystem, will help drive trust and scale for the tokenized economy and help the crypto market grow and mature. Examples of crypto use cases bitcoin, which is becoming an investible asset class like unallocated gold, has the potential to become a store of value that is natively digital, generationally relevant, and an alternative to traditional asset classes.”
KPMG seem to be a great believer in cryptoassets. As said, the staying power of many cryptoassets will be defined by their ability to reduce friction and inefficiencies that currently exist within the global economy. And while volatility is certainly a problem, it is important to recognize that these assets are still fairly immature and will become less volatile as they mature.
There are also significant efforts that are underway across the industry for the creation of what are called stablecoins to address the volatility problem.
Analysts think that XRP needs to be decoupled from bitcoin which has driven the state of crypto markets since they began. The only way to do this would be for more exchanges to offer trading pairs in XRP in addition to BTC, ETH and stablecoins. Weiss Ratings tweeted that BTC should not dictate the outcome of every single project in the industry.
What's it gonna take for to decouple from ? Simple: XRP-based trading pairs. The sooner we add more diversity to the crypto space, the safer we'll all be. shouldn't dictate the outcome of every single project in this industry. , are you listening?
— Weiss Ratings (@WeissRatings)
bitcoin – A Calm Before the Storm?
Mainstream media, renowned economists and other crypto critics have killed bitcoin more than 300 times since its launch. But the digital currency always come back from the dead.
The latest bitcoin crash was more intense presumably because of analysts. Almost every prominent bitcoin bull had pushed $6,000 as an unbeatable bottom. Miners recognized it as break-even level based on their return on investments.
However, the market can extend its selling action, for the correction appears weak. In short, BTC is bleeding and in need of blood bags.
bitcoin bull Tom Lee almost doubled down his price prediction for the digital currency, from a whopping $25,000 to a modest $15,000 by the end of this year. Whether the market will be able to recover to a five-figure value cannot be known yet, but it certainly has enough going on in the background.
The possibility of XRP hitting 400% growth and overtaking bitcoin’s market cap of $97 billion does seem somewhat unlikely. That would require XRP to hit a coin price of $2.50, while BTC would have to remain anchored to its current valuation.
Positive Aligments for BTC Market in Sight
Over the past 24 hours, more than $14 billion has been wiped out of the crypto market as bitcoin (BTC) dropped by five percent. bitcoin, the most dominant cryptocurrency in the market in terms of price, market cap, and volume, demonstrated the smallest loss out of all major cryptocurrencies. bitcoin Cash (BCH), Ethereum (ETH), Ripple (XRP), Stellar (XLM), Litecoin (LTC), EOS, and many other cryptocurrencies recorded losses in the range of 7 to 15 percent.
Cryptocurrencies have been in a bear market since January 2018 and have not initiated a proper mid-term recovery since then.
There are several positive developments lined up for the BTC market including the BTC futures market launch by Bakkt and ICE, the parent company of the New York Stock Exchange.
Dissimilar to existing futures markets operated by CME Group and CBOE, Bakkt physically delivers BTC to its buyers and as such, Bakkt could have a real impact on the supply of BTC and ultimately, its price.
“ICE entering crypto feels like a big deal. It’s an established, respected & powerful player in the finance industry. In other words, large institutions trust ICE with their money, including those institutional investors who many people think are key to the next bull run. Also noteworthy is the fact that Bakkt will custody & deliver real bitcoin. That means institutional inflows would reduce supply & thus (maybe) increase price too,” said Jake Chervinsky, a government enforcement defense and securities litigation attorney at Kobre & Kim LLP.
Central bankers have been talking about issuing their own digital coins ever since they first saw the appeal that bitcoin holds for many people. However, the latest indications point to it being a very long time until we will see national crypto assets coming from any stable economies.
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Don’t Hold Your Breath for a Digital Baht
The governor of the Bank of Thailand, Veerathai Santiprabhob, has revealed that a switch to digital currency will not happen in the country within the next three to five years, according to . The central banker said that the use of digital currency is complicated and people in developing countries need to be well prepared for it beforehand. He also argued that the technology needs to become more efficient first.
For these reasons, Thailand’s central bank has not yet introduced a national cryptocurrency to the public, and only plans to test digital currency for payment settlements between financial institutions. Its pilot intrabanks system will likely reach full implementation during the first quarter of next year, according to the Bank of Thailand governor.
A Mixed Message From Global Bankers
The news out of Thailand follows what seems to be a recent cooling trend toward national cryptos. Last week, Alim Guliyev — chairman of the Central Bank of Azerbaijan — in Baku that his institution would not issue its own cryptocurrency due to the risks involved. And earlier this month, a Bank of Israel team recommended .
The development of central bank-issued cryptocurrencies has also become a focus of the International Monetary Fund (IMF). The Washington-headquartered organization recently issued a stark warning to the Marshall Islands about its plan for the Sovereign, which has caused a . But maybe just to further obfuscate the matter, IMF Managing Director that central bankers actually need to consider issuing their own digital instruments to improve financial inclusion, consumer protection, privacy and fraud prevention.
Are you looking forward to national cryptos? Share your thoughts in the comments section below.
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