A stormy week has gone by in the crypto market. Bitcoin continues its downward trend and other alt coins are crashing.
The ongoing correction brings with it the usual question of whether and where the turning point will come. It is difficult to say whether the market is nearing the end of the correction and if we rely on past experience, it appears that the market correction has been going on for about two years, and we have not yet been through a year since the last correction began.
Bitcoin is highly speculative and it is still too early to quantify the value of its technology. If and when adoption and mass use of Bitcoin appear to be widespread, only then can its price be estimated more reliably. Until then, market events and trading psychology will continue to cause volatility and possibly an ETF endorsement could trigger another upswing in the near future. This is not financial advice..
In addition, the entire market looks up to the halvening when the quantity of Bitcoin produced from mining is cut by half. In the past, the halvening effected the price of Bitcoin and the next halvening will happen in May 2020.
If all this is happening, we must be encouraged to remember that despite the market’s decline, the infrastructure continues to be built. It will take time for the market and the general public to learn about the value of decentralization and how it can change the way people conduct themselves, especially about the transparency of the monetary system with blockchain technology.
It is also important to note that the market cap shrinking to a value of 121 billion opens the possibility of large players to manipulate prices. At the same time, the hype of 2017 caught the attention of many institutional investors who are considering their entry into the market. Will they see the decline as an opportunity to buy cheaply or to forget about cryptocurrency completely?? We will not know until the near future.
For altcoins the story is different and the trend is mixed considering the relationship with theUSD. . Most alts suffer because they are traded and measured against Bitcoin and therefore the impact on them is stronger and most of them are in the red. On the other hand, when traded against Bitcoin, some of the alts are actually on the rise, or trading around their floors and do not continue to lose value in relation to Bitcoin. For example, Factom continues its rise of around 50% this week and it is impossible not to pay attention to Bitcoin SV, which slipped to 8th place in terms of market cap, with a 122% rise against Bitcoin last week. It seems that the market is still producing interest, which can stimulate another wave.
In conclusion, the nerve index is rising from the ego war being waged by Bitcoin Cash, the regulation tightening around ICOs and the media that has returned to eulogize Bitcoin as a passing bubble. In the background, the hash rate is declining after two consecutive years of steady increase. But the last word has not yet been said.
Residents of Ohio Can Now Pay Taxes Using Bitcoin. The Ohio tax department has partnered with crypto payment processor BitPay to become the first state in the U.S. to allow businesses to pay taxes using Bitcoin.
More fuel to the fire? Bakkt Bitcoin Futures Launch Date Postponed to 24 of January 2019. In the midst of bearish movements, the Bitcoin Futures proposed by startup Bakkt has been postponed yet again, much to the dismay of crypto traders.
Report: US Justice Department Probes Tether for Bitcoin Price Manipulation. Controversial stablecoin Tether was in the news once again, this time for fresh concerns raised by the DOJ that the stablecoin was used to fuel Bitcoin’s massive rise in 2017.
Bitcoin Lightning Network Explodes To New Heights With $2m Capacity. The number of channels on the Bitcoin Lightning Network hit 12,000 in the past week while the scaling solution handled over $2 million in BTC.
Numerous Bitcoin Wallets May Have Been Compromised by Rogue Developer. Many Copay wallets belonging to payment processor BitPay have reportedly been compromised after a developer updated the source code with malware.
This article was first published on: Nov 27, 2018
