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New Research Shows Bitcoin (BTC) Conversation Has Matured Dramatically

Bitcoin BTC Conversation 2019

The recent price rally for Bitcoin and cryptocurrency has a number of analysts and investors scratching their head and asking the question: what’s different between now and 2017?

While coin prices fell through the majority of last year, leading analysts to label 2018 a crypto winter, the market reached an all-time high in late 2017 following a massive bull rally for Bitcoin. Despite currently trading at under $8000, the price of BTC reached an all-time high of $19700 in the final weeks of December 2017. At the time, it appeared that Bitcoin was finally receiving the adoption and investor interest it deserved after nearly a decade on the market.

However, it quickly became apparent that market prices had outstripped valuation and usability, and the entire landscape of cryptocurrency collapsed with coin’s falling 80 percent or more over twelve months. In the aftermath of the price fall, analysts pointed to Fear Of Missing Out (FOMO), unrealistic expectations and greed as primary contributors to the spectacular boom and bust cycle for Bitcoin.

Bitcoin Conversation Evolving

Compared to eighteen months ago, alternative data provider Indexica believes that Bitcoin has matured as an asset since the last bull rally, and has published research supporting their claim. The group created a custom index processing the language contained in thousands of text documents related to cryptocurrency and Bitcoin, and found that the industry, as a whole, has matured greatly over the last several years.

According to their findings, professional discourse around Bitcoin has continued to grow throughout 2019, marking a key price indicator for the currency’s rally since the start of April. As outlined by Bloomberg, Indexica’s findings show three main drivers for growth:  “a more complex conversation surrounding Bitcoin, fewer concerns about fraud and a shift in the tense of how Bitcoin is talked about from the past to the future.”

‘Complexity of Bitcoin’–defined as a measure of the quality of discourse surrounding the asset–made up the majority (24 percent) of the conversation related to BTC. Indexica attributes the increased quality of discussion to the growing pool of academics and professional investors now populating the space of cryptocurrency, moving beyond the niche technology market it represented just a few years ago.

Bloomberg cites the entrance of Fidelity Investments getting into the cryptocurrency game for institutional investors as one strong indicator that the marketplace for Bitcoin has changed dramatically over the last eighteen months. In addition, Wall Street investment bank JP Morgan Chase has also given a vote of confidence to the utility of digital assets, by creating the in-house JPMCoin.

Interestingly, Indexica’s study also found that the tense of conversation surrounding cryptocurrency has changed within the last month. Futurity of Bitcoin, which logged 15 percent of the indexed conversation, gives an indication that discussions are geared towards the future of BTC–as opposed to what has already transpired. SInce the start of April, the future for Bitcoin and the crypto markets has been a dominant topic of conversation, providing another indicator on the direction of the industry.  

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JP Morgan Analyst: Bitcoin (BTC) Trading Above Intrinsic Value

JP Morgan Bitcoin BTC Price 2019

Analysts at Wall Street investment bank J.P. Morgan Chase believe that the price of Bitcoin has soared above its intrinsic value throughout 2019’s rally.

According to new details emerging from the banking giant, JPM strategists are claiming that Bitcoin is trading above what they consider to be the digital assets intrinsic value, giving investors some pause as to whether the market will heed such a metric. Similar to the argument for gold and precious metals, Bitcoin and cryptocurrency has struggled with the tug-of-war concept over what constitutes ‘intrinsic value.’ For the folks on Wall Street–regardless of continued price movement–the price of BTC has seemingly outstripped what it offers in terms of industry value.

Bloomberg was the first to report the JPM news on May 20, making the claim that BTC is possibly entering a similar period of trading that accompanied the bullish rally to end 2017. Similar to current market conditions, the JPM analysts found BTC to have surged well beyond its intrinsic value by the time the price began to collapse in December 2017.

Three month climb for Bitcoin (BTC). Image courtesy of CoinMarketCap

According to JPM strategist Nikolaos Panigirtzoglou in a note to investors on May 17, Bitcoin should be considered as a commodity, thereby allowing cost of production calculations using the estimates of mining electricity and hardware costs as a factor in valuation.

Panigirtzoglou wrote,

“Over the past few days, the actual price has moved sharply over marginal cost. This divergence between actual and intrinsic values carries some echoes of the spike higher in late 2017, and at the time this divergence was resolved mostly by a reduction in actual prices.”

Despite pounding the table over Bitcoin exceeding its calculated intrinsic worth, the strategists at JPM  caution that valuation can be a subjective quality, particularly through the lens of retail investors and market behavior.

“Defining an intrinsic or fair value for any cryptocurrency is clearly challenging. Indeed, views range from some researchers arguing that it has no fundamental value, to others estimating fair values well in excess of current prices.”

Previous years would have brought about investor skepticism towards the views of JP Morgan Chase in relation to cryptocurrency, given CEO Jamie Dimon’s acerbic comments towards Bitcoin. However, the investment bank has had a change of heart in the industry of cryptocurrency digital assets, with the development of the JPM Coin. While the currency is likely to be a private blockchain contained to the in-house banking network and clientele, it stands as a vote of confidence for both Bitcoin and the broader crypto markets that Wall Street is willing to hedge its bets in the technology.

After reaching as high as $8250 in the early morning hours of Asian trading, the price of BTC has slipped below $8k on May 20. As of writing, Bitcoin is hovering around $7700, with sellers starting the trading week by forcing the currency into a correction following the weekend rally. Fundstrat’s Tom Lee previously listed thirteen reasons why the crypto winter is over, giving his belief that the markets are entering a bullish phase even in light of last week’s price correction.

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Tom Lee Updates Bitcoin Misery Index, At Highest Level in Bear Market

Bitcoin Misery Index BTC Tom Lee

Popular cryptocurrency pundit and Fundstrat Global Advisors analyst Tom Lee issued an update on his “Bitcoin Misery Index” in an interview with CoinTelegraph published on April 19. According to the analyst, Bitcoin is reaching new heights by the BMI indicators, establishing new markers that have yet to occur in a bear market.

While analytics firms differ in the market indicators they follow, Fundstrat uses the cleverly titled Bitcoin MIsery index as a way of gauging investor sentiment for the leading cryptocurrency by market capitalization. Lee designed the BMI as a way to inform investors on the relative misery of Bitcoin holders based on values such as coin price and volatility.

On April 2nd, the currency hit a BMI of 89 out of a maximum score of 100 (with the upper limit being associated with positive sentiments and 0 being outright misery). According to Lee, Bitcoin did not once break the 50 during all of 2018, despite the coin entering an extended bear market. In fact, Lee reports that Bitcoin has never achieved a BMI of greater than 67 in the midst of a bear market, giving some indication into the current state of cryptocurrency prices, leading Lee to conclude,

“It means that a bull market is likely starting.”

Lee had previously reported that the Bitcoin’s massive leap in BMI was giving mixed signals, saying

“Good–> Since 2011, BMI >67 only seen during $BTC bull markets. More evidence bull starting. Bad –> BMI >67 after peak, $BTC falls ~25% = Profit taking ST.”

However, he cautioned in the interview that elevated BMI values have traditionally correlated with a market drawback. Values above 67 have been an indicator to sell BTC, despite the positive sentiment for Bitcoin and its future outlook, as such elevations tend to be short lived. Values below 27 have been associated with buy signals, and give some indication that the currency is bottoming out and ready to swing in the other direction.

The index has not been full proof in predicting short term market movements, but has done fairly well in indicating longer trends. The last time BTC logged a score of 67 on the BMI scale was August 14, 2017. Selling at that time would have caused investors to miss out on Bitcoin’s epic bull run which took the currency to nearly $20,000, but did fall within several months of the coin turning bearish after positive price movement throughout 2017.

However, BTC’s last relative low in BMI was November 27, 2018, generating a score of 24. Following the buy signal at the time would have led investors to catch the relative bottom for Bitcoin as the currency traded near $3000–which would have result in over 80 percent profits at current price levels.

According to Lee, BTC trading at such a high level (>67) has led to a downturn in market prices “six out of six times,” with the average drop in price around 25 percent. Lee also pointed out that price retractions for Bitcoin following elevated BMI could be investors moving their profit into altcoins, as the market cycle for cryptocurrency has historically followed bullish runs for BTC followed by an elevation in alts.

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Adamant Capital: Bitcoin in ‘Accumulation Phase’ Before Next Bull Run

Bitcoin Price Prediction 2019

A new report by Adamant Capital concludes that the bear market for Bitcoin might be nearing an end, with the currency entering an accumulation phase before the next big bull run.

Compared to the crypto winter of 2018, during which investors were forced to shed BTC or suffer losses as the currency fell from $20,000 to a relative low of $3000, the current market has traders much more optimistic about on the price outlook. Investors are now accumulating Bitcoin, putting pressure on bears who may be selling just ahead of another big price rally.

Tuur Demeester and Michiel Lescrauwaet, co-authors of the report, said that the current price point for Bitcoin should be appealing to investors,

“Now, at 75% below its 2017 all-time high, we believe the current bear market represents an exceptional opportunity for value investors.”

In what Adamant Capital refers to as the ‘accumulation phase’ for Bitcoin, the analytics firm expects BTC to trade in a range of $3000 and $6500, as bears unload their coins to willing bulls who are looking to lock in a discounted price for the number one cryptocurrency by market capitalization.

The report also concluded that retail investors took a bath in November 2018, capitulating any previously made gains–or submitting to significant losses–in a capitulation event that saw the price of Bitcoin fall 48 percent. While some of the cryptocurrency price fall can be attributed to the market uncertainty of Bitcoin Cash’s hash war, investors were also fatigued from nearly 12 months of bear market prices. The end result is a glut of investors looking to re-enter the market at a favorable condition, especially if they sold out at Bitcoin’s relative price low during last November.

Adamant Capital has made a point of tracking unrealized Profit and Loss and indicator of market performance, and reports that the most recent price rally has had a substantial impact on that metric,

“The recent price rally from $4,000 to over $5,000 markedly improved HODLer’s Unrealized P&L improving our reported sentiment value from capitulation to hope,”

The report, in particular, looks at the claim that retail investors (individual investors as opposed to professional traders or institutions) have largely left the market following the last year of losses. Such a situation would indicate that the well of bearish sellers for Bitcoin may be smaller than previously thought. Adamant Capital points to Google Trends data that indicates “apathy and disinterest” on behalf of retail investors, with searches for Bitcoin dropping to as low as March 2017 values.

Adamant also points to gradual decline in Bitcoin price volatility over the last several months, a factor that has historically been attributed to the actions of retail investors,

“High Bitcoin volatility can be a proxy for the involvement of trigger-happy retail speculators, whereas low volatility tends to coincide with phases of consolidation, apathy, and accumulation.”

With finicky retail investors gone, long-term holders have come to make up the majority of the market, a group that will be looking to accumulate more BTC at current prices and avoid succumbing to the bearish sellers.

The combination of price anticipation and investor makeup has led Adamant to conclude that Bitcoin, at its current price point, is back in “undervalued territory.”

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Analyst: Bitcoin Moving Average Points to More Gains Ahead

Bitcoin BTC 200 Day Moving Average

While the crypto markets are showing slight contraction, with Bitcoin holding trading above $5000 in the hope for renewed price action, several analysts are pointing to the 200-day moving average as a bullish indicator.

The most recent bull run for Bitcoin and the larger cryptocurrency marketplace gave BTC its best day of trading since the massive valuation increases seen during the final month of 2017. After a strong weekend of growth, BTC price shot to $4700 on April 1, and continued to gain an additional 20 percent on April 2 to take the currency above $5000. The next two days brought about a consolidation in trading, with the price of BTC fluctuating around the $5k as both bullish and bearish investors weigh in on establishing a new floor or ceiling for the coin.

However, the market price for BTC represents a substantial increase over prices experienced earlier in the year, when Bitcoin appeared to be destined for $3000 or lower. The recent price rally has given a strong indicator to analysts that the top cryptocurrency by market capitalization likely found its bottom at $3000, with the next movement representing a broader trend in how the coin will proceed into the remainder of the year.

New York-based Fundstrat Global Advisors finds that Bitcoin could be about to extend into a 200 percent price surge, making the currency worth $13,500 if current indicators hold true. According to the research firm, Bitcoin closed above its 200-day moving average on April 2nd for the first time in more than a year, mostly due to the massive price rally that initiated the price kick-off.

In a note to clients, Fundstrat explained that closing above the 200-day moving average has been a historically bullish indicator for BTC, with a win-ratio of 80 percent compared to that of 36 percent when the coin trades below,

“Based on bitcoin’s trading history, a move above the 200-day moving average for bitcoin is meaningful statistically. When bitcoin is above its 200-day moving average its win-ratio is 80% compared to a mere 36% when it is below its 200-day.”

Fundstrat continued that trading above the 200-day moving average significantly increases six-month forward returns, which average 193 percent compared to a “measly 10% when below its 200-day moving average–hence, being above the 200-day moving average is a big deal.”

While investors, both bullish and bearish, attempt to sort through what the most recent price rally means for the valuation of Bitcoin, most community members are looking at market conditions differently than they did in 2017. Compared to that time, cryptocurrency adoption has grown substantially, with major companies such as Facebook and J.P. Morgan Chase now providing a new face of confidence for the industry.

The fear that cryptocurrency may once again find itself over-extended, with coin prices vastly outweighing the actual valuation and impact of the technology has been dwindling since the start of the year. Already industry hopefuls and cryptocurrency enthusiasts are finding reasons to own crypto outside of what they can accomplish through price speculation.

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Parliament Blocks Brexit No-Deal But Bitcoin (BTC) Still in Play

Brexit Bitcoin Cryptocurrency Price Prediction 2019

On April 3, UK lawmakers were able to pass a preventative measure by one vote that would stop the possibility of No-Deal Brexit. Compared to alternative outcomes over how U.K. transition away from the European Union will occur, No-Deal has been hailed as one of the more catastrophic. The move would have entailed an immediate cease in relations between the U.K. and E.U, with no clear path forward on how the two would interact going forward–in effect producing massive economic, trade and travel uncertainty.

However, cryptocurrency analysts have pointed out that such a situation would likely have a favorable impact on the price of Bitcoin. Historically, Bitcoin and top cryptos have thrived in markets of volatile fiat. Thus far, Venezuela has been the primary testing ground for cryptocurrency adoption as an alternative currency, with digital assets also being an attractive store of value during times of high economic uncertainty.

Even with the most recent movement to prevent a No-Deal Brexit situation, Bitcoin is likely to thrive regardless of the plan of action Theresa May creates for her country by April 12th’s looming deadline. For one, the monumental event of Brexit and the economic implications it holds for the majority of Europe is likely to impact the price of both the Pound and Euro. Given the uncertainty of what is to follow a U.K. transition away from the European Union, Bitcoin could find itself in a favorable trading position relative to the Pound, with the latter at risk of entering into an inflationary period.

Bitcoin and cryptocurrency prices may have seen some retraction on the day following their monumental bull run, but the price of BTC could receive an injection of investment if Brexit negotiations continue to falter. Cryptocurrency has been pointed to as an alternative vehicle for investment in the event of another economic recession in the United States, similar to the 2008 stock market crash.

While some analysts think economic downturn could prove fortuitous to cryptocurrency investors, it also highlight the necessity of digital assets and an alternative currency market to government fiat. Cryptocurrencies provide citizens with a global means of operating outside their individual fiat, including a removal of the geopolitical ties and policy making inherent in U.S. Dollars and British Pounds.

The severity of economic collapse that could occur in the event of a contentious Brexit or another stock market collapse would be devastating and unwanted in the broader financial landscape. However, it does provide an opportunity for cryptocurrency at a time when digital assets and coin adoption are reaching their historic zenith.

The advent of Facebook Coin and the J.P. Morgan Chase JPMCoin in development send a positive message that the industry of cryptocurrency is every bit legitimate and capable of handling real world issues. Many investors and outside analysts may look at the erratic and volatile price of BTC and see a currency failing to thrive, while those within the development space would argue that adoption for the technology is following a typical curve of finding its acceptance.

Either way, the April 12th deadline for Theresa May and the U.K. legislators to decide upon the Brexit handling is looming large over both the traditional financial markets and those of cryptocurrency.

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Analyst: Brexit No-Deal Will Favor Price of Bitcoin (BTC)

Brexit No-Deal Bitcoin BTC Price

Theresa May and the U.K. parliament are 9 days away from deciding upon the fate of the country in regards to Brexit, a decision that could have widespread and impactful results for the price of Bitcoin.

According to Jefferson Nunn, analyst and contributing author to Forbes, a no-deal Brexit decision will ultimately have the largest effect on Bitcoin. In terms of how the U.K. can handle its withdrawal from the European Union, a no-deal decision would result in the immediate withdrawal of the United Kingdom from the EU, with no negotiations in place to determine what that relationship would be like moving forward. Such a decision would lead to a massive disconnect in border flow between the UK and its European counterparts, leading to a disruption in trade and the ease of which people are currently able to travel.

If a no-deal goes through, Nunn predicts that the U.K. will enter a hyper-inflationary market, conditions that cryptocurrency has typically thrived under (look no further than the adoption of crypto in Venezuela and Argentina). Nunn continues,

“Unemployment will rise, the already strained UK central bank will be forced to “print cash” and Bitcoin will rise against the Pound.”

In addition to raising the value of Bitcoin against the British pound, Nunn finds it likely that cryptocurrency will find a favorable exchange rate against the Euro. The U.K. ranks 5th in terms of world economies, contributing a significant portion to the economy of the European Union. Brexit would cause a dramatic shift in the economic output of the EU, including the interchange between member countries such as Germany with the United Kingdom going forward, thereby contributing to the Euro’s decline against BTC.

Nunn also cites the contribution of the most recent bull run for Bitcoin and cryptocurrency, which is now caught inexorably with the proceedings of Brexit. Fears over the state of both the British Pound and E.U. Euro have likely contributed to the sudden investment in BTC. In a bizarre twist of fate, cryptocurrency may prove to be more price stable in the coming months than the market uncertainty that is being imposed over the Brexit ordeal. Decisions made in the coming weeks will contribute further to the price change of Bitcoin, however the groundwork built for BTC pricing throughout 2019 is already significantly different than that of the previous year.

December 2017 brought about a bullish sentiment and exponential price increase for cryptocurrency that was driven primarily by FOMO and hyper-inflated investor expectation. To put simply: cryptocurrency was not ready for the flood of capital that entered the market at the end of 2017, with adoption lagging behind valuation. Predictably, market prices tumbled in the following months, leading many analysts to refer to 2018 as the “crypto winter.”

The first quarter of this year has painted a different story for cryptocurrency, with figureheads and companies pushing adoption and industry growth ahead of price speculation. Brexit could force Bitcoin prices higher as both individuals and firms alike look to the usability of cryptocurrency as a more attractive means of currency than the uncertainty of their fiat alternatives.

At the very least, the next several weeks should prove to be even more exciting for cryptocurrency, and set the stage for potential BTC breakout adoption if the Pound and Euro falter.

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Bitcoin (BTC) Subreddit Surpasses One Million Subscribers

Bitcoin (BTC), Cryptocurrency–While most investors run for cover amidst the falling crypto prices, as the bear market of 2018 extends into the final month of the year, the Reddit based community for the number one cryptocurrency by market capitalization has hit a new milestone.

On Dec. 2, the subreddit for Bitcoin reached 1 million subscribers, marking a historic moment for the community that few other groups on the site have been able to achieve. Amazingly, given that coin price have fallen 70 to 95 percent from their high in January, the community of cryptocurrency has managed to show resiliency that could pay off in the long run.

Bitcoin, in particular, has cultivated a strong a following of investors who are looking for more than just profit. The community formed through Reddit has not only found ways to give back to need-based programs through the significant wealth created in last year’s bull run (such as the Bitcoin Pineapple fund which gave away a whopping $86 million to 60 charities–all from the generosity of one Bitcoin user), to consistently finding ways to form grassroots adoption.

While some have chosen to trade Bitcoin for the price speculation alone, the technology has a struck a chord with the majority of its following which extends beyond just being another appreciable asset. Each user may have their own reason for supporting the currency, ranging from a belief in the technology of blockchain and the superiority of digital currencies over their fiat alternatives, to a politically-oriented ideology that espouses decentralization and more libertarian views. However, the vast number of Reddit users and Bitcoin supporters around the world hold opinions that are a far cry from the one being attributed by mainstream outlets and economists–one that continually seeks to label crypto investors as gamblers, pyramid schemers or the propagators of a malicious virus.

With the subreddit now eclipsing 1 million subscribers, it contributes to the growing paradox of 2018 that was touched upon by Mike Novogratz in a conference call last week. As reported by EWN, the billionaire crypto supporter made no qualms about the state of the industry throughout this year, claiming it has been, “a horrible bear market in tokens,” with “plenty of reason to be depressed.” Despite the plummeting price of Bitcoin, which experienced its worst month of losses in November since August 2011, the support and adoption for the digital currency is on the rise, creating the bedrock for the technology to perform in 2019 and beyond.

While Google searches and general excitement for cryptocurrency has eroded with the market capitalization, down from nearly $900 billion in January, the industry has moved past daily appearances on CNBC and other popular outlets which were fixated on the climbing price and overnight millionaires being created in last year’s bull run. In place of that attention is a recognition that the industry still has yet to grow, with prices outpacing real world use at the start of the year. It’s not enough for Bitcoin to grow from exchange driven, price speculation alone: the currency has to find a footing in both usability and mindset for mainstream consumers before it can hope to match last December pricing.

Until then, the growing community for Bitcoin on sites like Reddit continues to provide a window into the state of crypto adoption, and the willingness for a segment of the population to try the technology that has been hailed as the next greatest innovation since the internet.

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Bitcoin (BTC) Subreddit Surpasses One Million Subscribers

Bitcoin (BTC), Cryptocurrency–While most investors run for cover amidst the falling crypto prices, as the bear market of 2018 extends into the final month of the year, the Reddit based community for the number one cryptocurrency by market capitalization has hit a new milestone.

On Dec. 2, the subreddit for Bitcoin reached 1 million subscribers, marking a historic moment for the community that few other groups on the site have been able to achieve. Amazingly, given that coin price have fallen 70 to 95 percent from their high in January, the community of cryptocurrency has managed to show resiliency that could pay off in the long run.

Bitcoin, in particular, has cultivated a strong a following of investors who are looking for more than just profit. The community formed through Reddit has not only found ways to give back to need-based programs through the significant wealth created in last year’s bull run (such as the Bitcoin Pineapple fund which gave away a whopping $86 million to 60 charities–all from the generosity of one Bitcoin user), to consistently finding ways to form grassroots adoption.

While some have chosen to trade Bitcoin for the price speculation alone, the technology has a struck a chord with the majority of its following which extends beyond just being another appreciable asset. Each user may have their own reason for supporting the currency, ranging from a belief in the technology of blockchain and the superiority of digital currencies over their fiat alternatives, to a politically-oriented ideology that espouses decentralization and more libertarian views. However, the vast number of Reddit users and Bitcoin supporters around the world hold opinions that are a far cry from the one being attributed by mainstream outlets and economists–one that continually seeks to label crypto investors as gamblers, pyramid schemers or the propagators of a malicious virus.

With the subreddit now eclipsing 1 million subscribers, it contributes to the growing paradox of 2018 that was touched upon by Mike Novogratz in a conference call last week. As reported by EWN, the billionaire crypto supporter made no qualms about the state of the industry throughout this year, claiming it has been, “a horrible bear market in tokens,” with “plenty of reason to be depressed.” Despite the plummeting price of Bitcoin, which experienced its worst month of losses in November since August 2011, the support and adoption for the digital currency is on the rise, creating the bedrock for the technology to perform in 2019 and beyond.

While Google searches and general excitement for cryptocurrency has eroded with the market capitalization, down from nearly $900 billion in January, the industry has moved past daily appearances on CNBC and other popular outlets which were fixated on the climbing price and overnight millionaires being created in last year’s bull run. In place of that attention is a recognition that the industry still has yet to grow, with prices outpacing real world use at the start of the year. It’s not enough for Bitcoin to grow from exchange driven, price speculation alone: the currency has to find a footing in both usability and mindset for mainstream consumers before it can hope to match last December pricing.

Until then, the growing community for Bitcoin on sites like Reddit continues to provide a window into the state of crypto adoption, and the willingness for a segment of the population to try the technology that has been hailed as the next greatest innovation since the internet.

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Bitcoin (BTC) Losses in November Worst in 7 Years

Bitcoin (BTC), Cryptocurrency–With Bitcoin again slipping below $4000, the market of cryptocurrency is continuing the bear trend into the final month of the year.

After several months of low price volatility, where the fluctuation in value for the number one cryptocurrency by market cap dropped below that of tech stocks, it appeared that the crypto markets were going to make an eventful upward turn in November. Part of the influx of investment was driven by Bitcoin Cash, as buyers anticipated the minting of new coins following its hard fork on November 15.

However, the opposite occurred, with the coin plummeting in value in the hours leading up to the split and dragging most of the market with it. Instead of providing a resurgence to market prices, the forking of Bitcoin Cash into Bitcoin ABC and SV created a strong degree of investor uncertainty which in turn led to falling prices. The two camps, helmed by crypto figureheads Roger Ver and Craig Wright, created an all out “hash war,” which drew the wrong kind of attention for crypto and led to a general fire sale for the market.

Bitcoin plummeted alongside altcoins, and nearly $100 billion was wiped from the market capitalization in less than two weeks. While BTC watched a steady erosion in price throughout 2018, falling from an all time high of $20,000 at the end of last year to its stable trading point around $6500, the bottom fell out for the currency. Bitcoin dropped further to $3500, with nearly all analysts predicting a bleak outlook for the recovery of cryptocurrency prices that could continue into next year–and possibly beyond.

As reported by Bloomberg, the most recent price fall for Bitcoin was as bleak as it appeared to investors, with November constituting the worst month for BTC in the last seven years. While investors were flush in the midst of a bull run for Bitcoin at this time a year ago, November saw the currency drop 37 percent to a relative low for 2018, which constitutes the biggest loss since August 2011 when BTC fell 39 percent to $8.90. As previously reported by EWN, billionaire investor Mike Novogratz of Galaxy Digital Holdings admitted to the steep drop in valuation for cryptos and his crypto-based fund. Speaking in a conference call on November 30, Novogratz made no attempt to sugar coat the situation,

“It’s been a horrible bear market in tokens.”

However, as prices continue to find shaky ground in their lowest trading range of the year, general enthusiasts for cryptocurrency continue to find developments to be excited for, in addition to the catalyzing work of some development teams. Last week, EWN reported on a commitment by the TRON Foundation, makers of the TRX currency, to pay out $100 million over three years to spur innovation and creation of blockchain gaming for their network.

As token prices continue to cause headaches for long-term investors, adoption and blockchain growth is a positive for cryptocurrency advocates to hang their hat upon. While Novogratz, a long time Bitcoin and crypto bull, admitted defeat in 2018, even he pointed out that bubbling adoption today could lead to big moves–including institutionally backed investments–in 2019 and 2020.

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