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Tom Lee Claims Market is Wrong, Calls for Bitcoin to be Valued at $14,800

Bitcoin (BTC), Cryptocurrency–While some are calling for the final demise of Bitcoin, with the currency exhibiting price movement that would indicate the bubble has popped, long-time cryptocurrency bull Tom Lee claims that an irrational market is to blame for the falling price of BTC.

Compared to previous predictions, which have the currency falling to $2500 with little support to turn around the losses of November, head of research at Fundstrat Global Advisors Tom Lee finds the value of Bitcoin significantly lower than what it should be. In a note to investors published on Thursday, the advisor gave some surprising and hopeful news for those who left confused over the precipitous drop in BTC pricing throughout November–a month which culminated in the worst losses for Bitcoin since August 2011.

Lee, who has been a long time cryptocurrency advocate and Bitcoin bull, claims that the fair value for the number one cryptocurrency by market capitalization should be between $13,800 and $14,800. As apart of his analysis, he cites the large number of active wallet addresses, how often BTC is used by accounts and the deflationary supply of the currency all pointing to a much higher valuation than the current price of $3400.

While some continue to chide Lee for his predictions, particularly following his oft-remarked, bullish claim in May that Bitcoin would climb to $25,000 by the end of 2018–putting the price of the currency above its most recent all time high–he remains confident in the outlook for the industry and his own valuation. As opposed to a flaw in his analysis for the worth of Bitcoin, Lee blames an irrational market for creating the current state of cryptocurrency valuation, with other indicators such as adoption pointing to a higher value,

“Fair value is significantly higher than the current price of Bitcoin,” he wrote. “In fact, working backwards, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”

Lee cites a similar argument made by analysts and supporters of cryptocurrency, that while market prices are falling the adoption and influence of the industry is expanding. Mike Novogratz, another Bitcoin bull and CEO of Galaxy Digital Holdings which is heavily invested in cryptocurrency, described a similar sentiment in a conference call to investors reported on by EWN at the beginning of the month. While Novogratz remarked that it had been a horrible year for token prices, including losses for Galaxy Digital which have exceeded $130 million in 2018, he stuck by a strong outlook for the industry in 2019 and beyond,

“I fundamentally think you’re going to see big adaption in 2019, 2020. Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”

With the potential for Bitcoin growth and cryptocurrency adoption still climbing in spite of falling prices, both Lee and Novogratz are hinting at a market turn that could happen unexpectedly. Similar to the crash in internet stocks that occurred prior to wide-scale dissemination for both Wall Street and Main Street, cryptocurrency could be in the latency phase as investors and users wait for improved development.

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Bloomberg Opinion Bitcoin Price Prediction: More FUD for 2019

Bitcoin (BTC), Cryptocurrency–While the crypto markets see a slight reversal in pricing to round out the final week of December, with Bitcoin creeping closer to $3700 after hitting a relative low earlier in the week, predictions on the outlook of the industry for 2019 continue to sour investors.

Last week, as reported by EWN, billionaire crypto investor Mike Novogratz lamented the state of the cryptocurrency markets throughout 2018, claiming in a conference call that,

“It’s been a horrible bear market in tokens. There’s plenty of reason to be depressed.”

However, Novogratz qualified his statement with some positive spin, reminding investors that coin prices may be down but adoption and general acceptance for crypto and blockchain has been on the rise throughout the year. Despite his crypto investment firm Galaxy Digital Holdings posting over $130 million in losses through 2018’s bear cycle, Novogratz remains confident in cryptocurrency extending into 2019 and beyond,

“I fundamentally think you’re going to see big adaption in 2019, 2020. Lots of the items in the digital world, the e-gaming space, are low value items so I think people will be more comfortable participating in blockchain. We’re making big investments in that area.”

While Novogratz, a long time Bitcoin bull and supporter for cryptocurrency, remains hopeful for a market recovery into next year, traditional financial outlets have fond more reason to be cynical. In a year end, opinion-based review for 2019 predictions, Bloomberg opinion column has struck a chord in crypto investors by publishing more of the FUD that has become part and parcel among mainstream publications.

Rounding out the top of the list for “egregious predictions of 2018,” the opinion piece by Barry Ritholtz lambasts Bitcoin and the litany of assumptions that were made at the start of the year in the midst of a bull run,

“The spectrum of predictions ran from the sublime to the criminally negligent to the utterly insane. It got so bad that a website was set up to track all of the Bitcoin prophesies.”

The article continues on to call out Fundstrat’s Tom Lee and the aforementioned Mike Novogratz for their predictions throughout the year,

“Fundstrat’s Tom Lee’s 2018 forecast for $25,000 Bitcoin was reduced last month to $15,000 by year-end. (The cryptocurrency recently traded at about $3,650.) As foolish as that sounds, it was modest compared to the rest of the asylum. Michael Novogratz forecast that ‘$40,000 was possible by the end of 2018.’”

While Bitcoin continues to trade close to a relative low for the year, with the digital asset slipping from near $20,000 in December 2017 to $3600 as of writing, the schadenfreude for BTC and cryptocurrency in general is mounting. From a combination of FOMO and “I told you so,” traditional finance analysts are lining up to cast stones at the number one cryptocurrency by market cap, despite failing to predict a similarly bullish run for the coin just a year ago.

Investors, still reeling from the losses of 2018’s ongoing bear cycle, have little to be excited for as we enter the final month of the year. However, they have managed to weather the storm of Bitcoin hate and claims of BTC “being dead,” which has led to the creation of websites tracking the obituaries for the coin. Time will tell if the current crop of predictions for the demise of Bitcoin will be added to the heap.

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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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Half of American Millennials are Open to Using Cryptocurrency

Bitcoin (BTC), Cryptocurrency–While the majority of the crypto industry and the market continues to feed on news out of Wall Street’s institutional money and the U.S. Securities and Exchange Commission’s ruling on Bitcoin Exchange-Traded Funds, a subset of the American population is ready to welcome cryptocurrency with open arms.

A recent published survey has found that nearly half of all American millennials report an interest in cryptocurrency, giving a strong indication for the trend of adoption moving forward. Conducted by the research service YouGov Omnibus, which polled 1200+ respondents through the last days of August, found that there is decidedly more optimism and interest towards cryptocurrency among younger generations and those just now entering early adulthood–a trend that has been confirmed by other surveys in relation to intent to invest in cryptocurrency.

“Of the people who believe that cryptocurrencies will become widely accepted, over one-third (36%) say they would be interested in converting to primarily using a cryptocurrency rather than the U.S. dollar. However, a majority (57%) say they would not be interested in converting away from the U.S. dollar. Millennials are almost equally split between being interested (48%) and not interested (50%).”

As opposed to older investors polled in previous surveys, particularly those with capital and assets equaling greater than $100,000, which rejected Bitcoin and cryptocurrency on a basis of high price volatility and lack of regulation in the market, younger investors and general enthusiasts seem to be drawn to the idea of an alternative form of money. It also shows a subtle preference for avoiding the traditional investment route of stocks and Wall Street, as the millennial generation was one that hit its stride in the U.S. around the time of the global 2008 recession and the widely publicized Occupy Wall Street campaign.

In evidence of further adoption for the industry of cryptocurrency, the vast majority (79 percent)  of respondents were familiar with at least one cryptocurrency, of which Bitcoin was listed as the most popular at 71 percent of those polled, an unsurprising fact given its position in market capitalization and general household name appeal. Ethereum, the second largest currency by market capitalization, made up the next highest currency in terms of familiarity, with 13 percent of those polled saying they knew of the coin.

Unfortunately, 87 percent of respondents who reported being familiar with Bitcoin had never actually interacted with a digital currency, again appealing to the brand-appeal of the coin while wider adoption continues to lag behind. As far as investing, 49 percent of respondents reported being glad they had not purchased Bitcoin prior to the questionairre–an unsurprising feature as the coin hits its ninth month of a bear cycle, down from nearly $20,000 at the end of last year. Some respondents reported having some regret towards the digital asset, with 15 percent stating that they wished they had bought Bitcoin earlier.

Perhaps most telling of all was 44 percent of millenials stating that they believed cryptocurrency would achieve wider adoption in the future, with only 34 percent saying that greater adoption would not occur. As outlined in the finding, the researchers conducting the survey reported believing that most of the skepticism comes from the still entrenched belief that cryptocurrency is primarily for illicit and anonymous activities–an idea carved deeply into society following the Silk Road episode.

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Charlie Shrem, Founder of BitInstant: ‘Just Have Fun’ With Crypto Investing

Bitcoin (BTC), Cryptocurrency–Charlie Shrem, Bitcoin advocate and founder of now defunct BitInstant, has some words on the current price volatility of the market and how investors should respond to the constant ebb and flow of cryptocurrency: “Just have fun with it.”

Shrem, who spent one year in prison for charges related to money laundering and aiding and abetting unlicensed money-transmitting in the Silk Road controversy, has been a mainstay in both Bitcoin and cryptocurrency since 2011 when he founded BitInstant, one of the first marketplaces for the purchase of BTC and facilitating BTC-based transactions. While the industry has come a long way since Shrem’s founding of BitInstant and the subsequent fallout that involved the Silk Road court case, he was seen at the time as an innovator in the field, providing users and investors with a more simplistic means for purchasing and using cryptocurrency.

Now, speaking in an interview with Yahoo Finance at the MoneyShow Conference in San Francisco, Shrem shared his feelings towards how investors–particularly those new to the industry–should handle the rampant price volatility that has come to characterize the market. Rather than attempting to day-trade, time the market or stress over the daily price fluctuations, Shrem advocates selecting a high profile project with a large market capitalization and taking a long-term approach. Compared to the myopic view imposed by most of the industry, in particular when it comes to price predictions, Shrem takes a decidedly unique approach to crypto-investing by supporting a long position and holding coins for several years,

“Pick something in the top 10 or 20, and look at those, learn about them, and take a stake in them. Any crypto you’re going to buy, hold for five years. Say, ‘I’m going to lock this, and this money is locked for five years. There’s a high probability you’ll come out ahead in five years, because usually, these bull and bear markets go in two-year cycles.”

Shrem’s method of investing not only avoids creating a daily price-centric view of the industry, but it also provides relief from the masses of investors who track Bitcoin and altcoin pricing hourly through smartphone tickers and coinmarketcap. Shrem’s opinion of crypto-investing also puts more responsibility on the investor for researching their currencies of choice, as opposed to being swayed by the daily fluctuation of the market. Cryptocurrency has been criticized by Warren Buffett in the past as being more similar to gambling than investing given the endemic lack of a diligence that goes into the average asset purchase.

Shrem does contend with the volatility of the market, and how it can backlash despite taking a long-term approach. However, he also believes investors should be more comfortable with the risk of their crypto investment, echoing the typical financial advice to not invest more than a person is willing to lose,

“You’re putting your wealth in these things, and they break. Things happen. The values go down 90%, then the values go up 100%. I always tell people if they want to get into crypto, ‘How much money, if you lost it right now, would you be OK with?’ ‘$500,’ they tell me. So invest $500 in a basket of crypto, and then just have fun with it. Just enjoy it, learn. There’s a lot of good ones: bitcoin, Ethereum, Dash, Litecoin. Just learn what makes them different.”

Shrem also sounds off on the current conversation surrounding a Bitcoin Exchange-traded Fund that has dominated the industry. While he believes a BTC ETF approval by the SEC is eminent, he warns that the industry must prepare itself to handle the responsibility of such a monumental new asset class, stating,

“We only have a ‘first shot’ at it. If we have an ETF, something happens, we get screwed. They shut it down. You know hard it’s going to be to have an ETF again?”

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Poll: 8% of Americans Invest in Cryptocurrency

Bitcoin (BTC)–A poll released by the analytics firm Harris Insights earlier in the month has revealed that roughly 8 percent of American adults are invested in cryptocurrency. While this number pales in comparison to a similar Gallup poll figure conducted in 2016, which found about 52 percent of Americans own stock, it does show a substantial makeup of investing for the relatively young industry.

The results come from a survey first circulated in June 2018, in conjunction with the cryptocurrency app Gem. In addition to finding 8 percent of adults currently invested in cryptocurrency, a large response to digital assets was negative, with 41 percent of the 2,000 polled stating they were not invested in crypto and nothing could motivate them to change their mind into doing so. Similar to previous reported findings, the largest reason for the lack of interest in cryptocurrency was price volatility and belief that the current market is still in a ‘Wild West’ phase, two risky features that make the form of investment less appealing to older generations. However, the poll did find that younger investors and those with less overall capital were much more willing to participate in the risky market, with Gem’s founder and CEO Micah Winkelspecht saying,

“We find that younger people with less income are more willing to put money in crypto,. My guess is that crypto is of the digital age. And the younger generation is of the digital age and used to doing everything on the internet.”

One of the more surprising results from the survey was the reluctance of polled adults, of any age, earning over $100,000 annually to invest in cryptocurrency, with the percentage of crypto investors increasing with decreased yearly income. In addition to cryptocurrencies being more in vogue with younger generations, Winkelspecht also posits that the upside of crypto investing outweighs the risk of loss and volatility to younger adults with less overall capital. He also admits that the trend of less wealthy investors putting money into cryptocurrency could be an effort to ‘get rich quick,’ ignoring the significant risks posed by the market in an effort to cash in on the regular double-digit swings of the industry.

“The cryptocurrency space is still in its Wild West phase, so there’s potentially some of that going on. When you have less to protect, you are more willing to take the risk.”

As Fortune points out, the survey was conducted in the middle of an extremely bearish year for cryptocurrency, with Bitcoin falling from an all time high last December of near $20,000 to below $7000, making the investment appear far more volatile with less enticing upside than if the same survey was conducted during last year’s bullish fourth quarter. Rather than continuing to build excitement for blockchain, Bitcoin and crypto adoption, most of the conversation surrounding the industry in 2018 has shifted to increased regulation and the possibility of a Bitcoin-based Exchange-Traded fund.  

Despite only 8 percent of polled investors currently participating in cryptocurrency, the survey found that 50 percent of American adults are interested in trying out the asset class in the future, similar to a finding reported earlier in the month that cryptocurrency will make up 5 percent of all investments in 2019. With the SEC still planning to weigh in on the debate over Bitcoin ETFs, it is possible that the market will continue to grow exponentially in response to increased regulation enticing institutional investors.

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Bloomberg: $500 million in Tether (USDT) Has Made No Impact on Bitcoin (BTC) Price

Bitcoin (BTC), Tether (USDT)–Despite Tether (USDT) printing over half a billion dollars worth of new coinage throughout the month of August, financial news outlet Bloomberg reports the move has had little to no impact upon the crypto markets.

While the company behind the most popular stablecoin cryptocurrency, now ranked 8th in total market capitalization with $2.84 billion in circulation, has been the target of numerous investigations, particularly those pertaining to the assets backing the coin, August’s massive influx of new tethers is apparently not swaying the crypto markets. Despite adding an additional $500 million worth to the total market capitalization, a move that has in the past brought accusations of Tether and its partners artificially propping up the price of the industry, Bloomberg reports that the link between new USDT hitting exchanges and an increasing Bitcoin price has eroded over the past year. Whether because of the prolonged bear cycle of 2018, which is already drawing attention for its investor fatigue, or a new market force at work, Tether no longer has the same impact as in the past.

Several economists and market analysts, most recently a group out of the University of Texas, have been observing Tether, it’s regular injecting of USDT into the market and the impact that has upon crypto prices to conclude that some form of manipulation or price stabilization is occuring. With the massive influx of freshly minted Tethers throughout the month of August, Bloomberg feels confident concluding that the input of the high-profile stablecoin is no longer swaying prices. Bloomberg also refutes another paper by the research group Chainalysis, which made the claim that USDT is influencing prices of altcoins and smaller capitalization cryptocurrencies, even if the stablecoin fails to move the price of BTC as it did with some regularity throughout 2017. Citing as an example, Bloomberg looks at August’s push of half a billion dollars worth of USDT into the crypto markets, without a corresponding price increase–or stabilization–for Bitcoin, in addition to other popular currencies such as EOS and NEO. Instead, altcoins have been largely in decline, with the price of Bitcoin fluctuating throughout the $6000 – $7000 range since the beginning of the month.

Whereas past injections of Tether, particularly to the tune of half a billion dollars (or roughly 17 percent of the total Tether now in circulation) would have corresponded to a significant price movement for Bitcoin, and the crypto markets in general. Instead, August 2018 has seen one of the steepest declines across the board for BTC and altcoins, with most currencies experiences double-digit losses in an already prolonged bear market. This has led some to the conclusion that either Tether is not directly manipulating the market with its timing and method for USDT injection–or at the very least not attempting to do so–or that the same forces that coupled Bitcoin rallies so closely with Tether injections have evaporated from the market.

Some have found stablecoins to be an interesting caveat to the high volatility, high risk of cryptocurrency investing. Compared to BTC and other altcoins, USDT and its brand of stablecoins provide the benefits of cryptocurrency while pegging the valuation to a fixed amount–in this case the U.S. dollar. Some find that the currencies exhibit too much centralization, and lack the departure from government fiat that has been so enticingly portrayed in the majority of cryptocurrencies. However, with the slumping crypto markets throughout 2018, Tether has become a safe harbor for investor funds, particularly those left on exchanges to ride out the price volatility of the market.

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Top 10 Cryptocurrencies See Green After a Tumultuous Week

Bitcoin (BTC)–After one of the hardest hitting weeks to the crypto markets in an otherwise bearish year, the top ten currencies by market capitalization appear to be in recovery.

On Monday, the total market capilization of cryptocurrency dipped below $200 billion for the first time since last year, signaling a relative low from January 2018’s near-trillion dollar valuation. Altcoins in particular experienced a severe decline, with currencies across the board posting double-digit losses throughout the week.

Ethereum, an otherwise stalwart coin that has both developers and investors excited over, dropped to a valuation not seen since last year, making for a full retraction in value following the bull run to start the year. Various analysts disagreed over the exact reason for the plunging price of Ether, but two predominant theories emerged. The first was proposed by Biswas Das, director of crypto hedge fund BloomWater Capital, who blamed the ICO market for causing a decline in Ethereum. According to Das, the falling crypto markets in addition to jumpy venture capitalists were leading to a mass sell-off in the Ether collected for ICOs–in part to cover costs, but also to lock in profits ahead of a total market collapse,

“These startups are raising a lot of funds but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year but right now the the market is so fragile that it causes a lot of pressure.”

Arthur Hayes, CEO and co-founder of crypto exchange BitMex, echoed the sentiment that ICOs were hurting the price of Ethereum, making a bold claim that he believed price depression would lead to Ether dropping below $100.

While Ethereum benefited through most of 2017 and early 2018 from the massive boom in ICO development, of which almost every project is built upon the ERC-20 platform, the plunging price of crypto has led the initial coin offering venture capitalists to force sell Ether. However, in a statement to CCN, eToro’s Mati Greenspan blamed the sinking price of cryptocurrency and Ethereum on a strengthening dollar. According to Greenspan, efforts to stave off inflation in the United States is leading to a stronger dollar, which means investors have less incentive to shelter their funds from inflation in cryptocurrency, particularly with the massive price volatility currently wreaking havoc on the market,

“As the United States moves to tighten its economy and avoid strong inflation, they’re taking action that is strengthening the Dollar. Because the US Dollar is the global reserve currency, many smaller economies rely heavily on a stable exchange rate with the greenback. So too, as the Dollar is being seen as a stable store of value at the moment, there really isn’t much incentive for people to store their money in digital assets.”

Most of the market is still hinging upon a decision by the United States Securities and Exchange Commision (SEC) over whether to approve a Bitcoin Exchange-Traded Fund. The belief is still that institutional investors and most Wall Street players are waiting for greater government regulation in the cryptomarkets before entering, which has produced a large amount of interest over ETFs.

As of writing, total market capitalization was holding at $210 billion.

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Analyst: Strong U.S. Dollar Hurting Cryptocurrency

Bitcoin (BTC)–While most of the cryptomarkets and its investor base scramble to find the cause over the recent bottoming-out in the market, which has made only a modest recovery in the past few days, one analyst has an interesting take on the falling price of Bitcoin and altcoins: a strengthening U.S. Dollar.

Since the start of August, the cryptocurrency market has been experiencing a roller coaster ride in terms of volatility. While the end of July seemingly signaled a recovery in the market, and possibly a bullish return for investors, subsequent price action has shed a different light. Following widespread faith in the passage of a Bitcoin Exchange Traded-Fund by the U.S. Securities and Exchange Commission (SEC), the market made a decent recovery, with Bitcoin rising above $8000 and holding its position. However, a series of events led to a decrease in investor confidence, beginning with the SEC’s denial of the Winklevoss Twins’ proposed ETF.

New York-based firm VanEck has been the leading candidate for approval in the creation of the world’s first Bitcoin ETF, but also saw a setback in the form of the SEC delaying decision from early August to the end of September. Following news of a delay and another potential denial of a regulated ETF, the bears pushed the price of Bitcoin down to $6000, with altcoins getting obliterated in the fallout and posting double-digit losses on an already hurting industry. At this point, the norm among the altcoin market is 95 percent or more losses since the all-time high experienced at the beginning of January, creating a market that has been very bearish throughout 2018–and possibly little end in sight.

In addition to weakened investor confidence via the SEC delaying its decision on a Bitcoin ETF, analysts also speculated that a mass ICO cashing out was hurting the market of cryptocurrency. Ethereum in particular took hard losses early in the week, falling to below price levels experienced at this point last year. The thought process was that ICOs, which are almost universally built on top of Ethereum’s ERC-20 token, were cashing out in volume to cover costs associated with the falling crypto market. Arthur Hayes, CEO and co-founder of BitMEx, made the claim that ICO investors would continue the sell-off, thereby driving the price of ETH to below $100. However,  eToro’s senior market analyst Mati Greenspan disagrees. Instead of ICO sell-off depressing the price of cryptocurrency, Greenspan blames a strengthening U.S. dollar as being indicative of the market turn,

“As the United States moves to tighten its economy and avoid strong inflation, they’re taking action that is strengthening the Dollar. Because the US Dollar is the global reserve currency, many smaller economies rely heavily on a stable exchange rate with the greenback. So too, as the Dollar is being seen as a stable store of value at the moment, there really isn’t much incentive for people to store their money in digital assets.”

In a statement to CCN, Greenspan continues,

“Over the course of this week, it seems that cryptocurrencies have been reacting negatively to the surging US Dollar. In this sense, they’ve been acting a lot like traditional commodities,”

As much as some in the cryptocurrency industry consider digital currencies waging a war against traditional fiat, the U.S. dollar may actually be to blame for the falling price of crypto. While being a safeguard against deflation has long been a selling point for cryptocurrency, Greenspan contends that a strengthening U.S. dollar alleviates that fear, in addition to providing security against price volatility.

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Ethereum Co-Founder: Sinking Price of Crypto Will Not Hurt Growth

Ethereum (ETH)–Joseph Lubin, one of the co-founders to the second largest cryptocurrency by market capitalization Ethereum and current CEO of ConsenSys Inc., told Bloomberg in an interview published yesterday that he is not concerned with the sinking price of cryptocurrency or the overall impact it will have upon the growth of the industry.

While investors across the world reel from double-digit losses to extend an already taxing market in 2018, Lubin is confident that the industry will continue it’s march of adoption and growth that has characterized 2018 despite the otherwise bearish atmosphere. In particular, Lubin cites last December’s massive bull run, which bled over into the early weeks of 2018, as being bubble-like developments that are similar to price increases in the past. As Lubin points out, the past occurrence of BTC and cryptocurrency in general spiking in price, followed by a crash (hence creating multiple bubbles over time) is just par for the course, and each time getting slightly worse. While the bubble makes for a terrible experience to investors having to survive the bear market, it doesn’t indicate that the industry is failing in terms of development or adoptive achievement. Lubin claims there have been,

“six big bubbles, each more epic than the previous one, and each bubble is astonishing when they’re happening.”

Despite being all consuming during the bubble, looking back on the ebb and flow of the market reveals a more steady movement in price, which Lubin refers to as ‘pimples’ on the chart. He also finds, in some small part, the severity of the crash to be indicative of the industry’s growth. The most recent crash has been that much more severe due to the fact that cryptocurrency is spreading, ICOs are on the rise, more projects are being developed with intriguing concepts compelling investors to pour money into,

“…we build more fundamental infrastructure, we see a correction, and the potential gets even more impressive… I absolutely expect that there is a strong correlation between the rise in price and the growth of fundamental infrastructure in the ecosystem and the growth of development in the ecosystem. We are probably two orders of magnitude bigger as a developer community than we were eight or 10 months ago.”  

Lubin, like other leading authorities in the industry of cryptocurrency, blames part of the crash and price volatility on the large number of speculative investors swaying the market, creating unhealthy conditions and myopic goals. Lubin, who helped co-found Ethereum alongside the outspoken Vitalik Buterin, has put his primary focus on growing the cryptocurrency industry in terms of utility and building greater adoption rather than through a price-focused discourse. Having the market dominated by speculative-driven investors is not a proper indicator of how the actual industry and underlying technology is performing,

“So we can look at the price and make growth plans and projections, and we’re still on track, basically. So this is not unexpected.”

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