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How Bitcoin is Faring So Far

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Bitcoin

Bitcoin

The coronavirus crisis has seen Bitcoin price nosedive in one of the greatest Bitcoin price crashes since its inception. With a 52% drop in price in a single week, the coronavirus has left many Bitcoin enthusiasts scratching their heads. Even the legendary crypto trader, Peter Brandt, who predicted Bitcoin’s peak way back in 2017, tweeted that he wouldn’t be shocked if it crashed to $1,000 and below.

Will Bitcoin recover from such a huge crash? And can it still be trusted to store value over time? These are just some of the questions that people are seeking to answer, and the uncertainly over the answers is part of the reason behind the huge sell-off. But before judging Bitcoin too harshly, it is worth noting that even fiat markets have crashed thanks to the coronavirus mayhem. In fact, equity markets have seen their worst crash since 2008.

Here are some logical reasons why Bitcoin is crashing:

People Prefer Holding Cash When in Crisis

The huge sell-off in both equities and cryptocurrency can be explained by the notion that cash is king. When people panic, they quickly resort to hoarding cash due to fear that the prices of their investments will nosedive. Investors are taking back their money with the intention of buying back into the market at the bottom, while the rest of us are just responding to fear and uncertainty. Additionally, Bitcoin is yet to be fully accepted as a mode of payment, and people want to have enough paper money to buy food and medicine just in case the crisis worsens by the day.

Non-Hodlers

Late adopters of Bitcoin and cryptocurrencies may not appreciate the value of hodling their Bitcoin amidst the swings in the market. Analysts believe the huge sell-off is from investors that got into Bitcoin in the last 1-2 years. In their fear of losing more than they have already lost, they are cutting their losses and cashing out. Serious hodlers have been into Bitcoin for years and have already seen huge dives before, so the current crash shouldn’t make them quite as nervous. The early adopters understand from experience that every time Bitcoin goes down, it inevitably bounces back.

Speculation

Cryptocurrency is a highly speculative market. This, compounded with the fact that it is relatively new when compared to other markets, makes it very volatile. Additionally, there is no central body that regulates prices. When trading on the stock market, regulating authorities can suspend trading sessions when there is an unprecedented sell-off. In fact, trading was put to a stand-still quite a number of times on the NYSE this past week to safeguard investors from losing too much due to traders that are responding to fear. Since Bitcoin doesn’t have any such body regulating it, sellers can dump their shares of Bitcoin anytime. Bitcoin is also one of the easiest markets to enter. Traders and investors do not need to have a brokerage account in order to participate in the market. This also attracts investors of all kinds of experience levels, and that contributes to the huge speculative nature of Bitcoin.

>> Bitcoin (BTC) Soars 10% on Strong Momentum: A Change Coming?

Bitcoin price has dropped significantly as a result of the coronavirus outbreak. However, price surges are anything but new in cryptocurrency. Once this crisis is over, Bitcoin and other cryptocurrencies will most likely recover as they have always done after a sharp decline. It is not clear how far Bitcoin price will drop, but, however far it drops, it will most likely bounce back. This could be a great time to buy Bitcoin and just wait for the bounce back.

This article was curated through CryptoCurrencyNews’ Contributor Program. If you would like to write for us, send us your submission!

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Bitcoin (BTC) Soars 10% on Strong Momentum

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Bitcoin

Bitcoin

The coronavirus pandemic has had a highly damaging effect on the capital markets, and eventually, the effect was felt in other asset classes like cryptocurrencies as well. While this did affect the world’s biggest cryptocurrency, Bitcoin has made a remarkable recovery over the past 24 hours.

BTC gained 10% in the last 24 hours, and the total value of the entire crypto market soared by $14 billion. Bitcoin was trading at $6,580 this morning in Singapore, and it seems likely that the cryptocurrency is going to be in focus among traders today.

Rally Across the Board

It should be noted that Bitcoin was not the only major gainer in the crypto market in the past 24 hours. Other than BTC, Ethereum (ETH) soared by 7%, while Ripple (XRP) gained 5%. Ethereum is the world’s second-biggest cryptocurrency by market cap, while XRP is the third-biggest, and this sort of a move suggests that the tide might be turning for the crypto space as a whole.

Earlier in March, the crypto space took a massive beating as it suffered from a damaging sell-off due to the oil price crisis. Back on March 12, the entire cryptocurrency market lost $93.5 billion in value due to the aforementioned sell-off.

>> Is Bitcoin (BTC) a Buy After the Recent Market Sell-Off?

The surprising thing for many crypto analysts has been the fact that Bitcoin, which ultimately is the bell weather of the crypto market, suffered in conjunction with the stock markets. In the past, BTC had been regarded as ‘digital gold’ and as a ‘hedge’ against the equity markets by many experts, a safe-haven stock if you will. However, BTC has not behaved in this manner over the past weeks, and even after the recent rally, it is still trading at a lower level than it was at the start of this year.

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Bitcoin Could Fall Below $10,000 Mark As Altcoins Gain

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Bitcoin

Bitcoin

Bitcoin’s value risks falling below the $10,000 USD psychological mark this week after making some strong gains last week.

Bitcoin Dropped to $10,060 Today

The world’s top cryptocurrency dropped to $10,060 this morning, which is the lowest valuation since September 2. Momentum last week saw BTC recover from falling below the $10,000 mark at the end of August, as excited analysts abandoned their bearish sentiments. However, analysts now await an external event to assess Bitcoin’s current performance against, and this could come with the launch of Bakkt later this month.

Eagerly Awaited Launch of Bakkt

Filb Filb, a prominent crypto trader, said, “A lot of people are hoping to get bids filled below $9k; the market rarely gets what it wants and I wouldn’t be surprised if they are forced to buy higher. But let’s see what happens with the launch of Bakkt.” Bakkt is a highly anticipated Bitcoin futures exchange and digital assets platform that is backed by the Intercontinental Exchange, the company that operates the New York Stock Exchange and is considered a major gateway to bring wealthy investors into the world of cryptocurrency.

>> Apple Watching Cryptocurrencies, Says Vice President Bailey

Decline in Bitcoin’s Market Dominance

With Bitcoin’s drop off today, its market dominance over altcoins also dipped below a milestone marker of 70%. Bad news for Bitcoin often represents good news for altcoins, which have been languishing in recent months. Over the last few days, some major altcoins have made some considerable gains, such as EOS, which is up 18.4% in the last week and Etherum, Bitcoin’s closest competitor, gaining over 5%.

Bitcoin’s market dominance fell from 71.2% to 69.7%, which may seem like a reasonably inconsequential loss; however, some analysts are predicting that this could signal an upturn in fortunes for altcoins. The rally in altcoins, which many analysts refer to as altcoin season, has led some people to believe that the crypto market is due for another boom similar to 2017.

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Bitcoin Suddenly Crashes 8% as Momentum Fades After the Recent Rally

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Bitcoin

Bitcoin

The crypto space can be highly volatile for traders, and over the years, Bitcoin (BTC) has proven to be among the more volatile cryptocurrencies. Over the past few days, the world’s biggest cryptocurrency by market cap had managed to make a comeback of sorts, but the volatility returned once again today. Such volatility was last seen back in November 2019.

Key Drivers

At around 5 in the morning Hong Kong time, the cryptocurrency plunged by as much as 8% within a matter of 45 minutes, dropping down to $9,320 per coin.

While the meltdown in Bitcoin did come as a surprise for many in the market, the cryptocurrency clawed back from those levels and eventually hit $9,598 a coin some hours later. Emmanuel Goh, who is in charge of the crypto derivative tracking company Skew, stated that the dramatic plunge in BTC was possibly a technical move, which may have been triggered after highly leveraged derivative positions had been called in.

Despite the dramatic fall, it should be noted that BTC is still up by as much as 20% so far this year. At this point last year, the coin had been in the middle of a remarkable rally.

>> Tezos (XTZ) Outperforms in 2020: Here are the Key Drivers

The surge in Bitcoin over the course of the year so far is possibly due to the fact that many now see it as a legitimate hedge against the turmoil in the financial markets. The outbreak of the coronavirus epidemic in China has spooked markets all over the world, as fears continue about the shutdown of many factories in the country.

In such a situation, BTC has become the preferred hedge for some investors as they look to protect their capital. Investors could keep an eye on the Bitcoin price action over the coming days.

What do you think?

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Trump Attacks Bitcoin | Is the Digital Coin Immune to His Influence?

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Trump attacks Bitcoin

Trump attacks Bitcoin

When President Donald Trump attacks Bitcoin, what do you expect happens? The coin’s price falls, right? Maybe not so.

Last week, Trump attacked Bitcoin on Twitter, and that same day, the coin’s price climbed a little further. Okay, it didn’t exactly shoot for the moon, but it did prove its resilience by climbing and not tanking.

The next day, however, the coin began to fall.

Trump Attacks Bitcoin

But this is interesting because usually when Trump attacks any market or business, the market reacts negatively instantly—such is his power. We’ve seen it happen to Amazon shares when he attacked the company. We’ve seen it happen to Toyota shares and even the entire S&P 500 isn’t immune; it fell 1.5% in a single day when he posted tweets alluding to more tariffs on China.

When Trump calls ill on anything, shares in that anything fall. But not Bitcoin it would seem.

Here’s what he said on July 12:

“I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crytpo Assets can facilitate unlawful behavior, including drug trade and other illegal activity […] Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”

Trump Attacks Bitcoin, But It Climbs the Same Day

The President didn’t hold back any punches. But the diatribe had little effect on Bitcoin price; rather the coin climbed to $11,858 on the day.

The days after the Tweet, however, did see the coin tumble and now Bitcoin is trading around the mid-$10,000 mark. Whether or not Trump’s comments caused the decline is up for debate. Some believe that Bitcoin’s subsequent fall was due to technicals, and a “typical move well within bitcoin’s current price range.” Other publications, such as FOXBusiness, believe the comments spurred on a delayed reaction and hence, a decline.

>> Huobi Tokens: Huobi Group Buys Back 14 Million HT Tokens

It remains an interesting theory. Because if Bitcoin is unresponsive to Trump’s comments, then it shows that the coin is resilient in the face of government power and influence. This only serves to prove the point of the coin in the first place; a currency for the people that is beyond government control.

On the other hand, Bitcoin may have simply reacted a day later to Trump’s comments as news of his concerns spread. If so, then it is as vulnerable as any other body to influential opinion. It is interesting to note, though, that the immediate response saw the coin climb and not fall.

What are your thoughts? When Trump attacks Bitcoin, what would you expect?

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Bitcoin Continues to Face Tough Hurdle on Trade War Concerns

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Bitcoin

Bitcoin

One of the biggest events in the news cycle this year was the return of Bitcoin and the rally that went on in the first half of the year was quite remarkable. It helped in a surge of sorts in the wider crypto space as well, but many believed that the Bitcoin rally was going to continue.

However, in July, the momentum was lost, and since then, the world’s biggest cryptocurrency has struggled to reach its earlier heights. That being said, there had been hope that the rising trade war tensions between the United States and China were going to have a positive effect on Bitcoin.

At the time of a trade war, the markets suffer from extreme uncertainties and more often than not, investors look for other assets through which they can hedge their bets somewhat. Hence, many analysts believed that Bitcoin could emerge as the hedge against global uncertainties for many investors.

In August, it seemed that something like that was happening as BTC climbed after United States President Donald Trump announced the raise in tariffs on Chinese goods. It rose further when China devalued the Yuan and further escalated the tensions between the two nations.

>> Binance Coin (BNB) Tumbles Amidst Growing Competition

Just when it seemed that Bitcoin was going to continue to climb due to the rising tensions, it gave up almost all of its gains and plunged to $9325.29 by the end of August. It proved to be a bit of a disappointment for many traders who had believed that the cryptocurrency had emerged as a legitimate hedge against the economic risks.

However, it seems that it is gold that has emerged as the world’s favorite hedge at this point and it has continued to rise at a remarkable pace during this period of extreme uncertainty in the markets. It remains to be seen how Bitcoin fares in the last quarter of the year.

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Bitcoin Bulls are Back | Why 2019’s Rally is Different Than 2017

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Bitcoin

Bitcoin

July might have been a forgettable month for Bitcoin after six months of steady gains this year, but the cryptocurrency has made a remarkable comeback in August so far.

Bitcoin Near $12K

The rally started at the beginning of the month and has continued as the cryptocurrency seems poised to touch $12,000 per token. While the month of July saw Bitcoin price fluctuating due to a range of extraneous issues starting from criticism of the cryptocurrency by United States President Donald Trump to Facebook’s Libra, August has seen a complete reversal of sorts. According to the chief of Fundstrat and noted crypto bull Tom Lee, the current rally in Bitcoin is related to the economic risks that have originated at a global level.

He stated that earlier, the price of Bitcoin’s value used to be directly tied to the United States Dollar, and generally, the price rose as the dollar weakened. However, Bitcoin’s rally in 2019 has coincided with a period during which the dollar has been remarkably strong and hence, it proves that the cryptocurrency is definitely no longer so closely tied to the dollar. Lee stated that it has been the same with Bitcoin’s relation with gold, and this proves that Bitcoin is possibly now being used as a protection against the current global risks by investors.

>> Grayscale Investments to Make Biggest Transfer in Crypto History

Due to the wreckage in many markets that have been triggered by the United States-China trade war and other factors, many investors are now looking for safe assets in which they can park their money. Hence, many are now choosing the US dollar, bonds, gold, and Bitcoin.

The trade war between the world’s two biggest economies does not seem to be coming to an end anytime soon, and it escalated further after China devalued its currency. The Yuan is now at its lowest in a whole decade, and the continuation of the trade war could well prove to be a blessing for Bitcoin.

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Bitcoin Drops Below $10,000 USD in Sudden Swing

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Bitcoin

Bitcoin

Bitcoin (BTC) price slides more than $600 in just 30 minutes on Wednesday to fall below $10,000 USD for the first time in over a month.

The Catalyst Remains Unknown

Bitcoin, which is up almost 200% this year, dropped more than 5% from just under $10,200 US to around $9,600 between 17:50 UTC and 18:20 UTC. It’s the first time the world’s largest cryptocurrency has fallen below the $10,000 USD milestone since July. The catalyst for the dropoff is not yet apparent; however, one analyst believes low trading volumes exacerbated the effects of the drop. Jeff Dorman, Chief Investment Officer at Arca, said:

“It’s the week before Labor Day. Half of crypto is at Burning Man and the other half is sitting on their hands doing nothing. Volumes are low and it takes very little to move markets right now, and you have big futures/options expirations coming up at the end of the week. The only definitive thing I can point to is that the move was led by declines in [altcoins] and other large-cap tokens that have been out of favor for months. I just don’t think there are a lot of investors willing to defend price right now.”

Altcoins Drop Alongside Bitcoin

As mentioned by Dorman, several major altcoins also dropped off sharply alongside Bitcoin today. Ethereum (ETC), Litecoin (LTC), XRP, and EOS also saw declines in the region of 5% to 10%. Another reason for this could be the recent news that China is planning its own cryptocurrency, which could potentially rival Bitcoin and force the major altcoins further down the pecking order.

>> Basic Attention Token (BAT) Gains 6% After Launch of New Brave Wallet

Just yesterday, some analysts speculated that Bitcoin could potentially hit the $20,000 USD mark before the end of the year, with many more believing it will cross that threshold at some point next year.  While data published on Twitter by Skew stated that there was only a 7% chance Bitcoin would hit the milestone, these chances have surely been diminished by today’s losses.

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Bitcoin Miners Turn Profitable | Good News for Cryptos?

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Bitcoin miners

Bitcoin miners

One of the things that do not often come into the surface is the work done by Bitcoin miners when it comes to the overall cryptocurrency ecosystem. Miners are the ones who actually create the Bitcoin tokens and are given a reward for each completed block. Hence, when Bitcoin went through its downturn for the whole of 2018, it was a bad time for miners, and many had to wind up their operations.

What’s Coming Ahead?

However, when the remarkable bull run commenced earlier this year, it made for a better time for the miners and for the first six months of the year, it has proven to be profitable.

The price of each Bitcoin token rose from around $3,000 at the start of the year to around $14,000 by the end of the first six months, and that resulted in a lot of rewards for the miners. Despite the drop off in the price of Bitcoin from the highs of June, analysts have stated that Bitcoin mining is still profitable for the miners. According to one expert, the current cost for Bitcoin miners to create one token is between the range of $7,300 and $8,500. Hence, the whole thing is still profitable.

>> Tether Introduces New Yuan-Linked Stablecoin, CNHT

However, the ultimate question for Bitcoin enthusiasts is whether the profitability of the miners is going to have a bullish effect on the price of the token or not. Some analysts claim the bullish trend among miners may not ultimately be a great thing for the price of Bitcoin. One analyst stated that Bitcoin miners are going to be eager to sell the tokens in which they are already profitable in order to fund their future operations. When that happens, it is going to put pressure on the price of Bitcoin as a whole, and that is something that needs to be watched by traders. However, it cannot be denied that 2019 has been a great year for Bitcoin miners so far.

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Is Bitcoin (BTC) a Buy After the Recent Market Sell-Off?

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bitcoin

bitcoin

The coronavirus pandemic has resulted in massive turmoil in stock markets across the world, and almost all asset classes have suffered due to the deep selloff over the past few days. The same has been the case with Bitcoin, the world’s biggest cryptocurrency by market cap, and over the past weeks, its price has declined quite dramatically.

The cryptocurrency started off 2020 on a positive note, surging at a promising rate. However, over the past few weeks, it has tanked by 50%.

Hedge Against Recession?

One of the most important things to keep in mind at this point in time is that Bitcoin generally performs well when the stock market is in turmoil. Currently, the stock markets are in complete meltdown owing to the coronavirus pandemic, and so far, that has not actually seen a rise in Bitcoin price.

This has come as a surprise to many, considering the fact that BTC is often seen as a hedge against market turmoil. The reason why traders and investors are not yet sold on Bitcoin, despite the current panic, could be due to the possibility of further stimulus.

That being said, the massive government-backed stimulus could also lead to devaluation of the dollar, and that might bring Bitcoin into the picture as a “store of value.” After all, that is what Bitcoin was created for and, slowly but surely, the conditions could be created that might lead to a rally in the cryptocurrency.

>> Bitcoin Drops Below $5K Despite US Fed Slashing Interest Rates

Last but not least, the coronavirus pandemic could lead to a major reset in which digital and contactless payment systems become the norm all over the world. In such a situation, Bitcoin could prove to be a winner as well. However, investors could be waiting for some time before the cryptocurrency can fulfill its primary use cases—if it ever does.

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