7 days that shook the crypto world

The cryptocurrency market has been slow but steady since last Monday as it crawled out of the big slump. At the time of writing this article (11/28/2018), it hit market capitalization of $ 132 again, and that made traders happy, as “crypto” only lost a whopping $ 50 billion last week. Currencies rolled down the hill and one of the frontrunners in depreciation was bitcoin cash, which lost around 50% of its price. Since the beginning of the week, this process also stopped – all price actions no longer looked so spastic and became somewhat predictable: BTC began to grow, the dynamics of the market showed slightly positive growth and maybe not all as bad as it was at the beginning seemed. or at least the price move would likely move sideways. XRP, Ethereum and Stellar have managed to find their support levels or have been able to put the negative trends on a steady footing. But that’s not true with BCH. According to some experts, it will keep dropping – unless it tests the $ 150 level and jumps up to break through $ 285 and keep growing. It will continue to be forgotten under $ 130.

Basically – when BCH grows it is worse than the other crypto. When it falls, it goes a lot faster than other top cryptos on the list.

The recent hard fork may explain this instability: some of the most prominent people within the network failed to reach consensus on the future of BCH, and this led to a full-blown war for hash power. However, these are nothing but details. The most important thing is – this resulted in a massive drop in the value of Bitcoin cash.

Just a day before the hard fork, many traders started dumping their bitcoin for some liquidity in hopes of scoring a goal on the upcoming ride. However, this plan failed a bit – a lot of people knew about this pre-planned hard fork and as a result, far too many people were doing it and that led to the point where BTC crashed from $ 6,345 to $ 3,746 and people were apparently “excited” provoked them Panic caused by headlines like “Bitcoin slump below $ 5,000 is the end of the crypto dream!” can be explained. But that was just the starters – even more so, traders involved in the BCH dropped it like it was hot as they decided to play it safe. And they were the only ones making the right call – on the hard fork day, the BCH value dropped a hundred dollars. Some of the people who were late for the party decided to shop at BCH and enjoy the show: with their help, the price went up on November 15th. It all came at a normal pace, however, which was no longer right – the currency plunged headfirst into the market low and lost another $ 100 from its price.

In theory, this should have been a moment of joy and happiness in the church – “The greatest deceit in history is going down” and such. However, there was no celebration or lavish party by the pool with lambos and spaceships. In fact, nobody was happy about it and they had good reasons: First – it showed how fragile every agreement and “rule” on the network is when two people within the network managed to spin that “medical” hardfork that was used, to solve some of the problems in utter “poison” for the entire cryptocurrency ecosystem.

And the end of the “hash war” within the BCH did not lead to anything. Nothing, other than Bitcoin SV’s inexplicable pump that rolled it up 300% and got nowhere, didn’t do anything for the network. Additionally, their total market cap is lower than it used to be: at the moment (of post) the idea of ​​fakeToshi is $ 1.68 billion, and ABC has a little over $ 3 billion, which is fine if you can forget the fact that their price before The “Most Beautiful Hour” was $ 9 billion.

And finally – their epic battle, which literally cost millions, was completely pointless. The consensus of the community and the owners of cryptocurrencies will decide the fate of the crypto. And this time they were on the side of Roger Ver and his Bitcoin ABC and not on the vision of Satoshi (or the fakeToshi opinion). ABC camp can celebrate and rejoice as they are victorious if that can be called a victory.

Basically, BCH bigwigs have made themselves uninteresting for the market that tries to regulate itself. Bitcoin remains the front runner in the cryptocurrency kennel with a strong market share of 53.4%. It’s cool with the Bitcoin crash of 2018: Since 2013 to 2015, the number one cryptocurrency has lost 85.4% of its value. And that wasn’t the worst moment for the king of the crypto jungle: in 2011 and 2010, Bitcoin lost 93.8% and 94.1% of its value, respectively. And one of the most important things – institutional interest in crypto stayed the same despite the slump and Deloitte reports that investors are concerned about the “bad news from the market.”

Once again the ETF, one thing that was a bit forgotten but remained very relevant: The SEC will make a decision regarding the VanEck SolidX Bitcoin ETF in early 2019. Its ease of use and ease of use guarantee that the market will receive a massive surge of liquidity that it desperately needs. The launch of Bakkt on January 24th and the start of sales of Bitcoin futures by Nasdaq have a good chance of taking the market to sky-high levels that the market desperately needs.

One of our comments, Martin JANDA, blockchain and cryptomining expert, thinks there is no real reason to worry about the market. “The 2017 bull market was followed by a bear market. It can also extend into the first quarter of 2019. But that’s pure speculation. After that, Brexit is on the agenda. This event has the potential to shift capital towards cryptos. Blockchain starts shouldn’t appear in the list. The Hypeword blockchain can lose weight, but most blockchain business models have nothing to do with cryptocurrencies. The success of this new niche will continue or is yet to come. ”

Read the best crypto news analysis here! bitnewstoday.com Bitcoin, investment, regulation and other cryptocurrencies


Found a bug? Select the text and press CTRL + ENTER

Read something else important

Comments are closed.