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So Much for $6000 Resistance, Bitcoin Price Dominance Reaches Sixteen Month High

Bitcoin BTC Price 7000 2019

After a week of bullish price movement, U.S.-based investors awoke May 11 to the sight of Bitcoin up 8 percent, approaching a relative high of $7000.

Despite April’s bullish turn in the crypto markets, analysts were calling for substantial resistance in BTC surmounting $6000. In November 2018 the price of Bitcoin plummeted from the market uncertainty of the BCH contentious hard fork and general investor fatigue. Retail investors fled the crypto markets in droves, cashing out at a loss. The remaining investors were thought to pose tough resistance for Bitcoin eclipsing $6000, marking the point where traders could recoup on losses incurred in the sudden plummet.

Instead, the price of Bitcoin has smashed the $6K mark and continued steadily towards $7000. Some analysts are calling for even greater price gains ahead, with the bullish sentiment and overwhelming effect of FOMO at a near-high not seen since 2017’s epic price rally. Others are pointing to the coin in danger of being overbought, after more than doubling in price since the start of the year and generating a near-continuous upward climb since the beginning of April.

Facebook, for what it’s worth, has played a role in the renewed interest in the crypto markets. While Bitcoin had likely reached a point of being oversold, falling close to 90 percent from it’s all-time high, the social media goliath has injected confidence and renewed interest in the industry. Prior to 2019’s string of adoption for cryptocurrency, which includes Wall Street bank J.P. Morgan Chase, retail giant Rakuten and Facebook, the industry was in danger of suffering from the backlash of 2018’s ‘crypto winter.’ Developers and crypto enthusiasts may have remained bullish on the outlook for the technology, but outside investors remain wary.

Facebook’s show of confidence in digital currencies has brought the interest of both institutional and retail investors, giving crypto a base that extends beyond 2017’s constant news headline of Bitcoin as an empty “get rich quick scheme.” Investors are finding more reason to be bullish on the long-term prospect of cryptocurrency, as opposed to cashing out at the first sign of market downturn. The Facebook Coin may eventually come to compete with BTC, as some analysts have predicted, but the more likely situation is synergistic for the price of Bitcoin due to increased exposure.

Compared to the price rally of 2017, this year’s bullish turn for cryptocurrency could receive a substantial boost from the foundation of adoption that has been slowly built over the last sixteenth months. Investors are responding to the belief that Bitcoin will continue to lead cryptocurrency, with the number one coin by market capitalization also achieving an increase in market dominance. BTC’s >58 percent market dominance is at its highest point in sixteenth months, dating back to the last bull rally of December 2017.

Altcoins might be making a general resurgence on the day, but investors are clearly putting their confidence in BTC as the coin that will continue to lead throughout the rest of the year.

The post So Much for $6000 Resistance, Bitcoin Price Dominance Reaches Sixteen Month High appeared first on Ethereum World News.

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Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise

Bitcoin BTC Market Dominance 2019

On April 23, the crypto markets took a turn that have some questioning the outlook on altcoins. While the altcoin market has been holding its own against Bitcoin, with currencies like Binance Coin posting 300 percent gains since the start of the year, the market appears to be swaying in favor of Bitcoin.

Long time cryptocurrency investors will be familiar with the the tug-of-war price movement between Bitcoin and altcoins. At times, the entire cryptocurrency marketplace buoys on positive sentiment and increased investment. However, a shifting between the pool of capital in alts and Bitcoin is also a common occurrence. For one, investors avoid the headache generated by taxes and capital gains by trading between currencies.

But for the most part, investors have recognized that Bitcoin tends to be a more price stable currency relative to the rest of the market, while also offering the ability to appreciate during periods of positive price movement–a feature that stablecoins are unable to offer. In times of bullish market sentiment, such as what is brewing for the industry at present, investors grow fearful of missing out on massive BTC leaps, such as the epic run which took Bitcoin to $20,000 in December 2017.

Despite the development interest and growth into platform currencies such as Ethereum, EOS and TRON, the marketplace for cryptocurrency continues to flow through the original cryptocurrency. Bitcoin holds a wide margin in market capitalization over the second highest coin Ethereum, a gap that is greater than $80 billion. In addition, Bitcoin market dominance has continued to climb throughout 2019, up from 51 percent at the start of the year to over 53 percent. Today’s price action has taken BTC dominance to just under 54 percent, its highest point since September 2018.

In fact, Bitcoin dominance has largely been on the rise over the last 12 months, with the coin reaching a relative low of 35 percent dominance in May 2018. While BTC experienced a slight retraction during the market fall of last December, the coin is making a recovery that could be trending towards the >80 percent dominance the coin historically experienced prior to early-2017.

More than likely, Bitcoin will not be able to eclipse its 2017 dominance of 85 percent, given the changing landscape of cryptocurrency. While BTC is by far the most recognizable currency in the industry, with Bitcoin holding household-name status familiarity (the coin is largely synonymous with cryptocurrency in mainstream markets), altcoin projects like Ethereum and EOS have carved out a substantial amount of developer interest. With Bitcoin yet to overcome the hurdle of scalability, its price is likely to stall again at upper limits in the absence of a solution like Lightning Network.

Cryptocurrency, assuming it can gain price traction again as in 2017, is still in need of proven usability. Investors and speculators may continue to drive up the price of Bitcoin and contribute to its market share dominance, but the entire landscape of currencies have to generate scalability in order to become an accepted technology.

The post Altcoin Trouble Ahead? Bitcoin (BTC) Dominance On the Rise appeared first on Ethereum World News.

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Respected Wall Street Strategist Says Bitcoin (BTC) Will Reach 25k in 2018

The cryptocurrency space has witnessed many FUDs, it has witnessed uncountable ups and downs, but it seems there is a promising future for cryptocurrencies this year. With just a two-day surge in the price of bitcoin, enthusiasts are raising trust in the cryptocurrency space, saying there is igh possibility the space receives increased boost than it witnessed last year.

One very noticeable, respected Wall Street strategist who believes that bitcoin is on the verge of tripling in price is Thomas Lee, co-founder and head of research at Fundstrat.

Mr. Lee reinvented his bullish forecasts on Thursday, April 12, while conversing on CNBC’s program, “Futures Now”. Lee says the price of bitcoin could reach $25,000 within eight months.

“We still feel pretty confident that bitcoin is a great risk-reward and we think it could reach $25,000 by the end of the year.”

Commentators have weighed in on the sudden surge in the price of bitcoin from around $6,800 to over $8000. Many of them are of the opinion that the beginning of the much-awaited bull run has started.

Lee, who also believe it is time bitcoin increased in price, made known that the time is “overdue”.

“It’s overdue. Bitcoin was incredibly oversold,” he said.

“When you look at metrics like price-to-book, which is money cost, or our bitcoin misery index, it’s pretty much what you saw at the end of the 2014 bear market, not the start.”

If bitcoin rises to $25,000, it amounts to a 225 percent increase using its Thursday value as a yardstick.

Meanwhile, the increasing price of cryptocurrency is not only helpful to Bitcoin alone. It reflects in the value of Ethereum, Litecoin, Ripple and so many other altcoins. However, none can really say what is behind the sudden increase after many months of decline. Many are of the opinion that it is just time for the cryptocurrency world to witness another sudden increment.

Ed Cooper, head of mobile at fintech startup Revolut, in a conversation with The Independent, also holds to this assertion. He said the rise “doesn’t appear to be driven by any significant news stories.”

“Most likely there was a change in sentiment today and traders started to buy thus raising the price.”

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Bitcoin’s Market Cap Surpasses New Zealand’s Economy

Bitcoin has been enjoying a continued upward trajectory of late. So much so, that its total market value now surpasses that of New Zealand’s economy.

Despite continued speculation of bitcoin’s rising value, with naysayers calling it a bubble, the digital currency maintained its march to higher prices over the weekend. On Sunday, bitcoin’s value rose to within touching distance of $12,000, at $11,858, pushing its market total to $198.2 billion, according to CoinMarketCap.

Such unprecedented highs now see the cryptocurrency’s value higher than that of country economies, data from the World Bank suggests. If bitcoin were a country, it would rank 47th, putting it ahead of Greece ($194.5 billion), the Czech Republic ($192.9 billion), Peru ($192 billion), Romania ($186.6 billion), and New Zealand ($185 billion).

Interestingly, the combined digital currency market cap, at $338.1 billion, would rank the market at 31st, ahead of Egypt ($336 billion), Hong Kong ($320 billion), Israel ($318 billion), Denmark ($306 billion), the Philippines ($304 billion), and Singapore ($296 billion).

Already the total market value of all digital currencies has surpassed those including Goldman Sachs ($94 billion), Visa ($251 billion), Wells Fargo ($276 billion), and the Bank of America ($293 billion). However, it remains to be seen when, and not if, the cryptocurrency market will steamroll past that of JPMorgan Chase at $363 billion.

This rise in bitcoin’s value is due to the announcement that the Chicago Mercantile Exchange (CME) Group are to launch their bitcoin futures contract on the 18th December. After receiving approval from the U.S. Commodity Futures Trading Commission (CFTC), Terry Duffy, CME Group Chairman and CEO, said at the beginning of December, that:

“We are pleased to bring bitcoin futures to market after working closely with the CFTC and market participants to design a regulated offering that will provide investors with transparency, price discovery, and risk transfer capabilities.”

Nasdaq, the world’s second largest stock exchange by market capitalisation, has also revealed that it is aiming to launch a bitcoin futures in 2018. According to sources familiar with the situation, Nasdaq’s bitcoin futures contracts will be listed on Nasdaq Futures.

However, unlike the four indexes that bitcoin will be based on with CME, Nasdaq will, reportedly, base its bitcoin futures indexes on 50, making it more robust.

With the tide appearing to be turning for the better, bitcoin’s future looks good. It remains to be seen what 2018 will bring for the currency and what country economies the cryptocurrency will surpass next.