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Bitcoin Price Gains $400 in 20 Minutes Following BitMex Shutdown

Bitcoin gained some sudden momentum in the early hours of Wednesday (UTC), following the planned maintenance shutdown of BitMex – a BTC trading platform. The top-ranked cryptocurrency almost broke $7,000 before a pullback took the price back down to $6,600.

Bitcoin Climbs as BitMex Shuts Down for Maintenance

Moments after BTC derivatives trading service, BitMex went offline for scheduled maintenance, the price of Bitcoin skyrocketed. Within a 20-minute period, BTC climbed by more than $400, to almost cross the $7,000 price mark. After the rise, BTC was at a new high since July 24.

However, the price gain was short-lived as a pullback brought Bitcoin down to $6,600 as at press time. Despite the pullback, Bitcoin is still up by more than three percent in the last 24 hours. Total market capitalization now stands at $217 million with altcoins also experiencing significant price surges over the previous 24 hours as well.

All top ten coins are currently in the green. Stellar and Litecoin lead the way in 24-hour gains with 4.51 percent and 3.31 percent respectively.

Price Manipulation or Short Squeeze

The fact that the price surge happened during a shutdown of one of the most prominent BTC trading platform does raise questions over price manipulation. In a tweet posted on Tuesday afternoon, Alistair Milne predicted a short squeeze to coincide with the BitMex shutdown.

According to Business Insider, some anonymous sources claim that the scheduled maintenance instigated some frenetic trading activity.

Commenting on the development, Bitwise CEO, Hunter Horsely said:

It is a silly short-term trade. Buy when maintenance starts. Sell when ends.

Reports indicate that the BitMex shutdown created arbitrage opportunities in the market which directly led to the sharp price spike. According to CoinRoutes CEO, Dave Weisberger:

Bitfinex led it up to 6800+, but when GDAX caught up, their clients were paying over $100 too much when the other exchanges all fell back to 6700. There was a real arbitrage for a while when this all happened.

The pertinent question now is whether this price run is also a short squeeze especially with the upcoming SEC decision on the Proshares Bitcoin ETF filing. The SEC is yet to approve any BTC ETF application over concerns regarding liquidity, manipulation, and the lack of robust custodial solutions. The Proshares ETF decision is the first in a series of similar decisions before the SEC within the next few weeks.

Do you think the price movement signifies manipulation? What impact would Thursday’s Proshares ETF have on this current mini-rally? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap.


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Bitcoin Price Rally was Due to Chinese Currency Devaluation, Says Expert

Clem Chambers is confident that an influx of Chinese money into the market caused the recent Bitcoin price rally. The ADVFN CEO believes that the present economic tussle between the United States and China will cause the top-ranked cryptocurrency to become the safest bet for wealthy investors to hedge any fallout from the trade war.

An influx of Chinese Money Caused Bitcoin Price Surge

According to Chambers the explanations offered thus far by analysts and experts to explain the current BTC price trend aren’t accurate. The ADVFN chief doesn’t agree with the notions that short squeeze, sudden fear of missing out (FOMO) syndrome or any of the other reasons flying around the news are the real triggers for the price push.

Instead, Chambers identifies the situation in China as the real catalyst for the BTC price surge. Writing for Forbes, Chambers said:

However, what caused the sudden unexplained spike is now clear to me. It is [the] Chinese devaluation, the insider reaction to imminent, planned, significant and perhaps rolling Chinese currency devaluation that set off this rally. It was a group of insiders buying bitcoin for Chinese yuan before the devaluation that took place two days later struck. This devaluation process has been going on for weeks, but it accelerated last week.

Frantic dumping of Chinese fiat currency in the wake of reports of an impending currency devaluation flooded the Bitcoin market with a ton of buy orders. Predictably, the market responded to the increased demand by skyrocketing. Many of these wealthy Chinese probably didn’t care if they were paying a premium for Bitcoin as long as they could hedge their wealth against the coming currency devaluation.

U.S. – China Trade War Will Establish Bitcoin as the New Gold

With the current standoff between the United States and China and the latter’s decision to devalue its currency, Chambers expects BTC to become the de facto haven for wealthy individuals. The ADVFN CEO believes Bitcoin is more convenient for people in comparison with gold.

Chambers believes that if the status quo vis-à-vis the trade disputes continues, BTC would be well on its way to knock gold off its perch saying:

If the trade wars go into meltdown, then bitcoin will ‘moon’ because huge amounts of Chinese currency will be swapped for BTC as the yuan-denominated super-rich move to be hedged from the wealth privations of devaluation. Bitcoin, not gold, is and will be the asset they will run to first.

Based on Chambers’ analysis, it seems the current price rally will last for a little while unless a catastrophic market event like a high-profile hack occurs.

Do you agree with Chambers’ reason for the BTC price surge? Let us know your thoughts in the comment section below.

Image courtesy of Coinmarketcap.


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Cryptocurrency Stocks Stage a Comeback Amidst a Resurgence of Bitcoin Hype

As Bitcoin continues to perform well in recent days, the prices of cryptocurrency stocks are once again in the green. The value of small to medium firms that rebranded with blockchain in 2017 is seeing a significant value boost coinciding the present BTC price rally.

Bitcoin, Cryptocurrency, and Blockchain are the Magic Words Once Again

In 2017 cryptocurrency was a buzzword that meant astronomical growth. While the likes of BTC, ETH, and other virtual coins were steadily gaining new all-time highs, some company executives came up with a brilliant plan. They decided to rebrand their companies using blockchain.

It didn’t matter whether the firm had anything to do with decentralized technology. Some merely added blockchain to their company name, while others branched out into the technology itself. By so doing, many were able to ride the wave of crypto price surge of late 2017.

However, the start of 2018 brought with it a massive decline in cryptocurrency prices. The bear run caused the market to lose more than half of its market capitalization with coins like BTC shedding over 60 percent of its value. As crypto prices tanked, the share prices of these “crypto stocks” also declined significantly, showing that there was some coupling between the two.

Shares of companies like Marathon Patent Group Inc., NXT-ID Inc., and Riot Blockchain Inc. have increased significantly over the past few days as can be seen in the chart below. Riot Blockchain Inc.’s stock rose by more than 40 percent when BTC price surged on July 17.

Bitcoin Hype Reaching Fever Pitch

So far in July, Bitcoin has gained close to 30 percent moving from $6,300 to just above $8,100 (at the time of writing this article). Apart from the price rally, there is a palpable buzz of excitement in the market at the moment due to a raft of positive developments.

Today, the top-ranked cryptocurrency has managed to break above $8,000; a milestone last achieved on May 22. BTC is currently up more than five percent, and traders will be hoping the price can test the $8,300 and $8,500 resistance levels given the positive sentiment that is awash in the market at the moment.

What are your views on the apparent coupling between the BTC and crypto stock price performance? Do you think other companies will elect to adopt the once trending practice of attaching blockchain to their brand identity? Let us know your thoughts in the comment section below.

Image courtesy of Bloomberg.


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Bitcoin Set for Largest Bull Run in History, Says Mati Greenspan

Mati Greenspan, a senior analyst at eToro, thinks that Bitcoin seems to be on the cusp of a massive price rally. The top-ranked cryptocurrency has begun the week strongly despite a three percent decline over the weekend.

Monday Begins with $300 Bitcoin Recovery

Today (July 23, 2018) Bitcoin has moved up by $300, eroding the three percent loss suffered over the weekend. Trading volumes during the weekend period are notoriously low, so it was no surprise seeing the top-ranked coin slipping to $7,399 on Sunday. At present, BTC is back above $7,600, and bulls are hopeful of an $8,000 push today as the market progresses.

The price jumped experienced today comes hard on the heels on positive news from the G20 as well as clear signals from BlackRock. The G20 yesterday gave cryptos the greenlight only calling for careful observation against fears of its use in illegal financial activities.

This positive news seems to have put a stop to the sharp selling seen on the market especially on Sunday (July 22, 2018). Despite the surge, the asset doesn’t seem to have gone overboard which is a sign that the rally might be sustainable over a significant period.

Market Analyst Predicts the Start of a Bitcoin Bull Rally

Based on these positive signals, Mati Greenspan, a senior analyst at eToro thinks that the good times are here again for Bitcoin. In a tweet posted today, Mati said that the BTC might be on the cusp of its largest bull run in history. If this happens to be the case, then the top-ranked cryptocurrency might set another all-time high (ATH).

The previous BTC ATH of $19,500 was achieved in mid-December 2017. Since the start of 2018, the BTC price has tumbled by more than 60 percent. During that bear run, Bitcoin has thrice slipped below $6,000, and the top-ranked crypto has endured a barren 2018.

Institutional Investors Will Eventually Enter the Market in Droves

One of the highlights of many a discussion in the crypto space has revolved around the entry of big money players into the sector. Many analysts believe that the entry of institutional investors will likely cause a spark in the market resulting in a sustained bull run.

Commenting on the situation with mainstream investors, Romal Almazo, the crypto lead at Capco said:

Any signs of the big players entering the market will cause huge waves. Though my personal belief is that we are still a few years away from reaching this tipping point, we are in what I would refer to as an exploratory phase when it comes to institutions and crypto.

Almazo also said that the lack of regulatory clarity and the absence of custodial tools are part of the reasons why big-money players still shy away from the market.

Do you agree with Mati Greenspan that BTC is on the cusp of a bull run? What is your end of July price prediction for the top-ranked cryptocurrency? Keep the conversation going in the comment section below.

Image courtesy of Coinmarketcap and Twitter (@MatiGreenspan).


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Bitcoin Prices Will go Even Higher Once Regulations Become Clearer, Says Market Analyst

Ryan Rabaglia isn’t ready to stop being bullish about Bitcoin any time soon. The Octagon Strategy trader believes that the top-ranked cryptocurrency can still hit new highs. BTC prices have risen above $6,500 after twice dropping below $6,000 in June 2018.

Regulatory Certainty Will Take Pressure off Bitcoin

In a recent interview with CNBC, Rabaglia declared that clearer market regulations were the likely catalyst for a sustained Bitcoin price rally. According to Rabaglia, regulatory uncertainty was putting immense pressure on the market. He also said that mainstream investors were reticent on committing fully to the market since the laws guiding crypto commerce are still somewhat vague. Rabaglia went on to call for regulatory clarity, saying:

Once we actually establish that regulation, the professional players that are going to be entering the market and that have already going to continue and they’re going to get that support from the regulatory environment that they have been looking for.

Despite the struggles of Bitcoin and the cryptocurrency market in general in 2018, Rabaglia remains bullish saying:

There is still a lot of growth to [sic] sort of get through and to go through. That there are going to be a lot of obstacles in something so young and immature. But yes, we are still bullish, and we are still upgrading this space in a bullish manner.

The Octagon Strategy trader reiterated the fact that cryptocurrency is still in its infancy, saying:

Year-over-year we are up well over a hundred percent still, and the markets are still in a growth phase, which I know a lot of people have been saying and have said and will probably continue to say – you have to be reminded that the industry is still only eight years old.

A Temporary Relief Rally

In another development, David Garrity, the CEO of GVA Research believes the current BTC price surge is a temporary relief. Speaking to Bloomberg recently, Garrity opined that trading levels had come under pressure in the market. Thus, a “relief rally” was inevitable.

Garrity also pointed to the emergence of some positive regulatory developments as the reason the current BTC price surge. According to the GVA Research CEO, recent comments by the SEC concerning the status of Bitcoin and Ethereum, in particular, have taken away some of the negative sentiment among retail investors in the market.

Unlike Rabaglia, Garrity identified end-user adoption as the critical parameter that will drive any sustained BTC price rally. He decried that lack of significant Bitcoin use cases especially in the payments market. In addition to slow adoption, Garrity mentioned a large number of government investigations into activities in the market as another reason for the price struggles of 2018.

Do you agree that clearer regulations will positively impact the price of BTC? How far will BTC rise before it finds a new bottom? Let us know in the comment section below

Image courtesy of Octfinancial, CoinMarketCap, and Bloomberg.


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Bitcoin Rallies above $6,000 as BTC Market Dominance Reaches Two-Month High

Bitcoin has rallied above the $6,000 mark in the last few hours. This surge follows the previous price dip of a few hours ago. The top-ranked cryptocurrency had previously fallen to its lowest level in 2018. Despite the price struggles of BTC in June, its market dominance has increased steadily.

Bitcoin Back Above $6,000

In a little over 12 hours since the price of Bitcoin fell below $6k, it has surged back above the $6,000. This latest movement might be indicative of the selloff saturation that experts like Kelly have been reiterating in the last few days. On the flip side, it may be a false positive – a minor surge before another significant dip which may see BTC bottom out at an even lower price level.

At the time of writing this article, Bitcoin was hovering around the $6,200 mark, falling slightly to $6,190. BTC is up by more than one percent in the last 24 hours. June has been a difficult month for the top-ranked cryptocurrency. Numerous sharp dips have eroded whatever gains were previously recorded. Thus, BTC has been unable to embark on any sustained bull run.

Bitcoin’s struggles mirror that of the general cryptocurrency market in many respects. Ethereum, Ripple, Bitcoin Cash, EOS, and Litecoin have all dropped considerably. Dash continues to have a miserable 2018, declining by more than 300 percent since the start of the year. There have also been two significant cryptocurrency exchange hacks – Coinrail and Bithumb. Both platforms are South Korean-based.

BTC Market Dominance Reaches 42 Percent

Despite the BTC price decline in June, Bitcoin’s dominance over the cryptocurrency market has steadily been on the increase. Presently, Bitcoin accounts for 42 percent of the total virtual currency market capitalization. This figure represents a two-month high – BTC hasn’t recorded more than 40 percent market dominance since April 19, 2018.

Many of the top ten cryptocurrencies seem to have declined more than Bitcoin in the last two months. Litecoin and Ripple are among two of the worst performing altcoins in the top ten bracket. If this trend continues, Bitcoin could break the 50 percent dominance barrier. The last time BTC held 50 percent market dominance was in mid-December 2017.

Bitcoin Has Abandoned its Fundamental Principles

Meanwhile, in a related, development, macroeconomist, Peter Tchir believes Bitcoin “has lost its way.” Writing for Forbes, the experienced trader and strategist said that Bitcoin seems to have lost sight of its core fundamentals. As a result, the adoption rate has plummeted, thus leading to the price struggles noticed in 2018.

According to Tchir, many of the factors that drove people to own Bitcoin in 2017 have either slowed down or have been eroded completely. Tchir believes that apart from being a store of value, BTC has failed to live up to its promise as an efficient medium of exchange and an anonymous way to store wealth.

However, Tchir asserted that BTC can recover its lost luster, saying:

BTC can regain some of its lost mojo, but I think Bitcoin in particular needs to assert its value proposition.  What it is worth over time, is a function of what value it provides its users and owners, and I for one, am struggling to see the benefits of re-entering the market.

Do you think this is the start of a sustained BTC rally or are there more price dips up ahead? How high do you think BTC’s dominance of the market will reach? Let us know your views in the comment section below.

Image courtesy of CoinMarketCap and Twitter (@Dataveteran).