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Bitcoin Dominance at 70% | BTC Surges Amid Economic Uncertainty

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Bitcoin Price

Bitcoin Price

Bitcoin has always dominated the cryptocurrency market. But for the first time since December 2017—when Bitcoin was valued at $20k per coin—Bitcoin dominance is nearing 70%. It’s a significant indicator of the current sentiment surrounding the world’s largest digital asset.

It also leaves a sizeable question mark over the future of the hundreds of altcoins that comprise this market.

Bitcoin Dominance Rating

Bitcoin’s market cap of $217.91 billion now covers 69.93% of the total cryptocurrency market according to NewsBTC.

Comparatively, at its lowest in January 2018, after Bitcoin price plunged from its all-time high, Bitcoin dominance was roughly 36.68%.

But especially amid 2019’s tumultuous financial backdrop, Bitcoin has built its dominance once again as investors speculate on the importance of Bitcoin being a non-governed asset.

Bitcoin will Be Tested in 2019/2020

The global economy is in the midst of certain crises, and this has brought Bitcoin’s necessity into question. For example, the US-China trade war, capital control in China, economic sanctions on Iran and Turkey, as well as hyperinflation in Zimbabwe and Venezuela are all wreaking havoc on the stock markets.

And while this is going on, many mainstream financial firms and retailers are beginning to cater to the growing number of Bitcoin traders. So it seems that while the global economy faces escalating crises, Bitcoin is becoming a more desirable asset; most likely because it is self-governed.

It also helps the coin that is the pioneering cryptocurrency, has always held the most value, and therefore holds a lot of real-world potential.

>> MasterCard to Build Crypto and Wallet Products: Team Members Wanted

The Takeaway

It is also likely that Bitcoin dominance is growing simply because the value of the currency is. In the last week, Bitcoin surged more than 30% – from $9,371 to as high as $12,320. This latest bull run was spurred on, once again, by an economic downturn. As Trump imposed further tariffs on $300 billion worth of Chinese imports, the People’s Bank of China reduced the price of the Chinese Yuan to under $7 a unit. This is its lowest in the last eleven years.

But where Bitcoin is concerned, this turmoil only caused the cryptocurrency to surge as traders begin to value the coin’s non-sovereign status.

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Bitcoin (BTC) Takes a Hit

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Bitcoin

Bitcoin

The cryptocurrency space may have been having a great time this year so far as Bitcoin started on one of its strongest bull runs since 2017 and other crypto tokens gained as well. However, it needs to be kept in mind that there are a lot of things that can disrupt the crypto space and perhaps the biggest disruption was Facebook’s recent announcement that it was going to launch its own cryptocurrency. While that was a disruptive development on its own, nothing perhaps readied the crypto sphere for an attack from the United States President.

Donald Trump Criticizes Cryptocurrencies

In a series of scathing tweets, President Donald Trump criticized cryptocurrencies and Bitcoin, before going on to add that companies like Facebook should apply for banking licenses.

In the first tweet of what is known as a ‘thread’ on the social media website, Trump said, “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 Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”

>> BitTorrent Token (BTT) to Power Expedited File Sharing on TRON Network

In the second tweet, he went on to attack Facebook’s Libra and stated that the coin neither had ‘standing’ nor ‘dependability,’ and insisted that the social media company should seek a Banking Charter instead.

In this regard, it needs to be noted that this is not the first time that Facebook’s Libra has come under for attack from powerful people in the United States. Yesterday, the head of the US Federal Reserve Jerome Powell spoke about his doubts with regards to Libra and went on to state that there is going to be intense scrutiny of the token before it could be allowed to be used in any way. The statement led to a bloodbath in the crypto sphere as the prices of all major cryptos declined significantly.

At the time, Bitcoin is trading lower by 2.50% at $11,404. The most popular cryptocurrency has fallen about $2,300 from last week’s peak price of $13,764.

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Bitcoin (BTC) Falls Back Again As Facebook’s Libra Faces Huge Setback

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Bitcoin

Bitcoin

Bitcoin (BTC) has been on a tearing run for much of 2019 after making a remarkable turnaround from its low of last year. However, the past few days have not been particularly great for the cryptocurrency as the price fluctuated quite wildly at the start of the week. Although Bitcoin did recover, the price slumped on Friday yet again as Facebook’s proposed cryptocurrency has reportedly run into trouble with the House of Representatives Committee on Financial Services.

According to reports, the committee has apparently asked Facebook to refrain from developing Libra, its cryptocurrency, and once the news hit the wires, Bitcoin’s price started tumbling.

Key Concerns

The committee has raised concerns that the usage and prevalence of Libra could eventually lead to a monetary system that could end up competing with the one in the United States. Additionally, it would undermine the importance of the dollar, and that is clearly not in the best interest of the country, as most of the global trade is done in dollars. One of the reports even quoted one of the committee members and their fears about Libra. A member said, “This raises serious privacy, trading, national security, and monetary policy concerns for not only Facebook’s over 2 billion users, but also for investors, consumers, and the broader global economy.”

At the time of writing, Bitcoin is trading lower by 7% at just above $11k mark.

Blow to Crypto Markets

At a time when cryptocurrencies are looking for regulatory clarity, this has come as a heavy blow for most of those. In addition to Bitcoin, other leading cryptos experienced slumps as well. Ethereum (ETH), the cryptocurrency with the 2nd biggest market capitalization after Bitcoin, slumped by 3.8% to hit $285.94 at one point. The third biggest crypto, XRP, went down by as much as 4.4% at one point to slump to $0.383. It is quite clear that it has not been a particularly good day for cryptos, and considering the fact that Facebook has been asked to not produce its crypto, it has created a bit of panic in the crypto sphere today.

>> Litecoin (LTC) Outperforms Bitcoin Ahead of Blockchain Halving

On the regulatory front, the situation was further compounded by the Financial Conduct Authority of the United Kingdom when it said crypto derivatives like futures and options should not be made available to retail investors since they are extremely volatile. This is the sort of situation that cryptocurrencies have experienced for many years, and this is not the first time this has happened. However, the backlash against Facebook’s Libra is a new frontier.

Bitcoin is still up 265% from its last year’s low of $3,200.

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Bitcoin (BTC) Slumps 27% This Month

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Bitcoin

Bitcoin

One of the biggest stories of the year has been the roaring comeback made by Bitcoin after it went through a disappointing year in 2018. Throughout the first half of the year, the cryptocurrency made hefty gains. However, the month of July has been a bit of a bumpy ride for Bitcoin as a range of factors has affected the price.

The past week has been particularly painful for the cryptocurrency. Over the course of the past seven days, the cryptocurrency has slumped by as much as 27%, and now, it has gone below the level of $10,000 as well. On July 10, the token was trading at $13,200.

Multiple Factors

This past week the President of the United States Donald Trump criticized Bitcoin and other cryptocurrencies in a tweet. In his tweet, Trump stated that Bitcoin is responsible for billions of dollars worth of illegal activity, and experts believe that Trump’s claims had a negative impact on the cryptocurrency.

If the most powerful person in the world believes that Bitcoin is a dangerous thing, then it is almost certainly going to have an effect on its price. It is particularly problematic since 2019 was supposed to be the year in which institutional money was to come in and push the price up considerably. As a matter of fact, Fidelity has already launched a Bitcoin fund that is solely meant for its institutional investors.

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

On top of that, the announcement by Facebook about the launch of Libra next year has caused its fair share of disruption as well. Libra has also come in for strong criticism from top policymakers like Jerome Powell, the head of the Federal Reserve. Those comments wrecked the crypto market last week, but the current week could be a crucial one as Facebook goes into Federal hearings about Libra. If it can come out of it unscathed, then there is a possibility of Bitcoin getting a bit of a reprieve.

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Bitcoin Sinks to Five-Month Low Following Zuckerberg Testimony

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Bitcoin

Bitcoin

Bitcoin has dropped to a five-month low of $7,435 USD following Facebook CEO Mark Zuckerberg’s testimony before Congress in defense of the planned stablecoin Libra.

The world’s largest cryptocurrency fell as much as 9% to its lowest levels since June, as Zuckerberg was grilled by congressional representatives before a sitting of the House Financial Services Committee. Bitcoin has been caught in a range of $8,500 to $7,850 since the end of September; however, analysts were expecting a bullish end to today’s decline as technical charts showed signs of seller exhaustion. This did not come to fruition, however, as a large, long squeeze led to long holders loosening their position.

Today’s drop in value for Bitcoin comes at a time when regulatory scrutiny drags down crypto values across the board. Jeff Dorman, Chief Investment Officer at Arca, described the sell-off as “a continuation of the themes that have been plaguing crypto for the past few months — increased regulatory scrutiny.” He added that the losses were further compounded by “a lack of positive catalysts” along with low trading volumes.

However, Zuckerberg’s appearance in Congress may not be the only factor hurting Bitcoin today. Brian Kelly, CEO of BCKM, believes that hedge funds were buying up BTC as a hedge to Brexit, which was due to take place on October 31, but it now appears that a delay until the new year is the likely outcome. As a result, those funds are now offloading BTC, which is having negative price implications, according to Kelly.

>> Libra Will Not Hit the Market Without US Approval, Says Zuckerberg

Facebook’s move into cryptocurrencies has put digital coins in the spotlight of regulators across the globe. Former Latvian Prime Minister and incumbent Vice President of the European Commission Valdis Dombrovskis said the EU must take a common approach to regulate cryptocurrencies, an approach that will have Libra and Bitcoin at its forefront. He said that it is vital that these regulations address issues such as unfair competition, security, and threats to the economic stability and sovereignty of the EU’s member states.

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Slim Chance of Bitcoin (BTC) Hitting $20,000 USD By End of Year

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Bitcoin

Bitcoin

There is only a 7% chance that Bitcoin will surpass the $20,000 USD valuation milestone by the end of 2019, according to data published by Skew.

It’s been a pretty hectic year for BTC, which has seen its value swing from around the $3,800 USD mark at the beginning of the year to as high as nearly $13,000 USD in July. The summer months have seen the wildest fluctuations, with valuation jumping over 20% in the space of a few days. The $10,000 USD mark is seen as a major psychological milestone for the cryptocurrency, as is $20,000 USD, which we may see BTC hit at some point in the near future.

However, October promises to be a watershed moment as the US Securities and Exchanges Commission (SEC) is set to announce its decision on whether or not it has approved three Bitcoin Exchange-Traded Fund applications. Interestingly, Skew’s report is more pessimistic than many others with crypto trader and analyst Murad Mahmudov tweeting ~10K is the new ~6K, but instead of breaking down it will hold and start grinding UP. You heard it here first.” Bitcoin’s market dominance hit new highs last week, so perhaps this optimism is justified.

>> Telegram’s 300 Million Users May Be Able to Trade Cryptocurrency

Another, considerably more bullish outlook for BTC came from Pantera Capital CEO Dan Morehead, who said in July, “[Our forecast] put Bitcoin at $42,000 at the end of 2019, which I know sounds crazy but essentially, we’re halfway back there. It’s right on the trend line, and I think it’s a good shot that by the end of the year, we hit that.” While that does sound like a very optimistic view, and very at odds with Skew’s outlook, BTC value is prone to some big surprises, and so it does not look beyond the realms of possibility.

The closest BTC has come to the $20,000 USD milestone was in December 2017 when it reached $19,345, and we’re all well aware of the crash that followed. While all of these assessments are just essentially well-informed speculation, BTC remains highly susceptible to volatility. Where do you see Bitcoin going by the end of the year?

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Bitcoin Price to Reach $55K? Joe Kernen Suggests So!

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Bitcoin Price

Bitcoin Price

Once again, Bitcoin price has fallen below $10k per coin. The largest digital asset by market cap has shocked investors in the last few months with rallies that saw the coin reach highs of over $13,500 in value. The surge in price has led to multiple discussions on Bitcoin’s future potential as it once again takes center stage.

The latest bullish opinion comes in from Squawk Box’s Joe Kernen, who suggested that BTC price will surge to $55,000 by May 2020. Though many will dispute this thought, there are plenty of prominent cryptocurrency figures aligned with this sentiment.

Bitcoin Price to Reach $55k

During a Squawk Box interview earlier today with guest Katie Stockton—the founder and managing partner at Fairlead Strategies—Kernan discussed the potential of Bitcoin hitting the $55,000 mark.

One possible impetus for such an astronomical climb is the upcoming halving of Bitcoin, which is scheduled to happen sometime in May 2020. Kernan reiterated the fact of this halving; that once it happens, miners will receive 6.25 BTC per block instead of 12.5. As such, he expects traders to accumulate as much Bitcoin as possible prior to the event, and this should see prices soar.

>> Litecoin is Under Pressure Ahead of the Halving: What to Expect

The halving was implemented into Bitcoin’s code by its creator Satoshi Nakamoto in order to make BTC a deflationary asset. The maximum supply of Bitcoin is 21 million coins.

If Bitcoin is to follow past trends, then a surge prior to the halving is likely. Whether the coin reaches $55,000 per coin remains another question entirely, however.

The last halving took place on July 9, 2016, on block 420,000. Once it occurred, the block reward fell 50%, from 25 BTC to the current level of 12.5 BTC. On this occasion, the halving was preceded by a sharp rally that began the month previously. Thereafter, Bitcoin did steadily climb to its all-time-high levels of $20,000 per coin in December. It remained at this level for several weeks before tanking across 2018.

Do you think Bitcoin price can hit $55,000 per coin? Is this too ambitious, or are you on the side of this bull?

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Bitwise Withdraws Bitcoin ETF Application with SEC

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Bitwise

Bitwise

Bitwise Asset Management has withdrawn its longstanding Bitcoin ETF application with the SEC, after the proposal was rejected by the commission in October.

Bitwise first filed an application with the US Securities and Exchanges Commission for what would be the first-ever Bitcoin ETF in January of last year, after several other companies had failed with similar proposals. Bitwise’s application was seen as the greatest hope for a Bitcoin ETF given key differentiations between its proposal and ones that had gone before it. The index was intended to take Bitcoin’s value from a variety of crypto exchanges and, therefore, offer a more accurate and precise market value for the coin.

Another important difference was Bitwise’s plan to regulate the ETF by having a trusted third-party bank or company hold its physical Bitcoin. In March, the company released the Bitwise Report on exchange volume, claiming that 95% of Bitcoin trading volume is fabricated. Bitwise used this as an argument for the SEC to accept its ETF proposal. By disregarding the majority of the exchange volume, the firm maintained that price formation for BTC occurred mostly on regulated exchanges, according to Cointelegraph.

However, the proposal has now been rejected after the SEC said it did not meet the necessary legal requirements to prevent market manipulation or other illicit activities. “This is the next step towards our long-term goal of bringing a bitcoin ETF to market, and we plan to refile our application at an appropriate time. We are currently working hard on answering the questions that the SEC raised in its 112-page response to our initial filing,” said Matthew Hougan, Bitwise’s global head of research.

>> Bitcoin Jumps to 2-Month High on CME Futures and Options Boost

The SEC has rejected at least a dozen Bitcoin ETF proposals, with another application from Wilshire Phoenix, which will combine Bitcoin and US Treasury bonds, expected to be ruled on by February 26.

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Bitcoin Supply Now has 85% in Circulation

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Bitcoin Supply

Bitcoin Supply

As of today, August 1, Bitcoin has 85% of its supply in circulation. This means there are only 3.15 million new coins left to be mined for the next 120 years.

Bitcoin is currently trading at $10,044 USD according to CoinMarketCap.

Bitcoin Supply

Data from monitoring resource Blockchain said that earlier today, Bitcoin miners extracted the “17,850,000th unit as part of the transaction validation process.”

Now, because the number of coins awarded per block decreases over time, Cointelegraph says, “the remaining supply will only be unlocked in the year 2140.”

Bitcoin’s entire supply is fixed at 21 million units.

The fear surrounding the lack of coins has already started. Comments on Twitter include one from the prominent crypto trading account, Rhythm, who said: “Scarcity is about to kick in.”

Now, the current supply means a maximum of 17,850,000 people can own an entire Bitcoin coin. But Cointelegraph furthers on this:

“In reality, however, some of the existing mined supply is not in circulation and never will be, as users lose access to private keys.”

Bitcoin Mining Competition Heats Up

There is something called “the halvening” on the horizon for Bitcoin. This is an event written into Bitcoin’s code that cuts all mining rewards in half. The halvening is expected in 2020, and when it does, it will, effectively, diminish supply. As with anything, as supply goes down, demand and price tend to go up, and we can argue that Bitcoin is no different.

>> Bitcoin Mining Manufacturer Canaan Files for IPO in US Worth $200 Million

So it’s likely that miners and investors will begin hoarding as much Bitcoin as possible now before the halvening occurs and supply is lessened. The halvening will reduce miner payouts from 12.5 BTC to 6.25 BTC per block.

What do you think about Bitcoin supply hitting 85%? Does it concern you? Will a “scarcity” fear hit the market?

Let us know your thoughts!

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Bitcoin Falls to Hold $10K Mark on Political Uncertainty

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Bitcoin

Bitcoin

The month of July has been a month to forget for Bitcoin (BTC) so far as the cryptocurrency has repeatedly struggled to hold on to gains and failed to kick on from the highly impressive run it enjoyed in the first half of the year. Some of the issues that have dogged the cryptocurrency are not actually due to any particular weakness in the market. The introduction of Facebook’s Libra and the associated criticism it has attracted from the highest levels has created a drag on the entire crypto space.

Political Uncertainty

In addition to that, United States President Donald Trump’s comments about Bitcoin have also been a major blow. Today, the token declined further after the Treasury Secretary of the United States stated that the government is exploring ways to bring in regulatory frameworks in order to deal with the sector. He stated that the aim of the regulations will be to ensure that cryptocurrencies do not end up impacting the financial system as a whole.

After the comments were made, Bitcoin nosedived by 4% and hit $9,786 today. It is also necessary to add that in an interview on Wednesday, the Treasury Secretary stoked more fear by implying that Bitcoin could be used to finance criminal activity. He said, “We’re looking at all of the crypto assets. We’re going to make sure we have a unified approach and my guess is that there are going to be more regulations that come out from all these agencies.”

>> Bitcoin Bull Dan Morehead Predicts BTC to Hit $42K By End of 2019

While the current situation could be cause for pessimism, Michael Novogratz, the head of crypto investment firm Galaxy Investment Partners, has remained bullish on his stance. He has been correct about Bitcoin price movement over recent months, and during an interview with Bloomberg yesterday, he stated that the token is going to attain its former peak again. He stated that the token is going to be in the $10,000 to $14,000 range for some time, with the lower threshold being $8,500. However, eventually, Bitcoin is primed to hit $20,000, according to Novogratz.

What do you think?

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