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PwC Partner: Central Banks Should Leave Cryptocurrency to Corporations

PwC Central Bank Cryptocurrency

The contention between the industry of cryptocurrency and banking institutions may have been furthered by an unlikely third party, with an even more unsuspecting alternative proposed as a substitute.

According to Pauline Adam Kalfon, a financial partner at PwC France, Central Banks should leave cryptocurrencies to corporations like Facebook and JPMorgan, as opposed to issuing their own digital asset. Kalfon cautions that institutions with as much political and economic sway would be wise to wait on the sideline before tokenizing fiat currencies themselves, and allow the emerging host of players such as Facebook test the waters first.

Kalfon does not rule out the potential for future monetary tokenization by Central Banks, with governments potentially re-issuing fiat currencies in the form of digital assets and cryptocurrencies–a move that has been proposed for inflation struck countries such as Venezuela. Instead, Kalfon says to observe the hurdles of transitioning assets to a digital equivalent, allowing cryptocurrency to become “battle-tested by corporations.”

By waiting, central banks can more effectively navigate the landscape of developing into cryptocurrency, potentially learning from the mistakes that JP Morgan & Co. are likely to encounter, and overall doing their best to avoid the negative consequences that could stem from governments adopting cryptocurrency en masse.

Included in her talk, Kalfon advised the Banque de France, in particular, to avoid testing fiat-to-cryptocurrencies before the rest, outlining that country’s economic landscape is even more precarious for such a transition. She explained,

“France’s central bank may not be the best entity to drive forward such a digital currency project, which would sit within the prerogatives of the European Central Bank, Kalfon added. Having said this, Banque de France could seize technological leadership by following European Central Bank guidance.

It is clear that a European-level project would be very complex and challenging governance-wise, requiring alignment and the political consensus of all relevant stakeholders from each Member State.”

In January 2018, the French minister of economy Bruno Le Maire warned his country about the dangers and speculative risks involved in cryptocurrency. However, by year’s end he had changed his tune to support the innovation of blockchain and the potential for crypto adoption in conjunction with better regulation.

Last month the French equivalent of the Securities & Exchange Commission echoed the comments of Le Maire and warned that cryptocurrency has the potential to disrupt the finance industry on a broad scale, necessitating the need for increased regulation.

However, the tune for both cryptocurrency and blockchain development in France appears to be in line with that growing across the globe, with French minister’s urging their government to adopt a proposal that would invest €500 million into blockchain development over the next three years.

The more interesting result of Kalfon’s remarks will be if Facebook and JP Morgan, among others, succeed in a large way in implementing digital assets on their platform. In such a situation, central banks may be even more compelled to consider the potential of issuing fiat through blockchain and digital currencies.

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BitMEX CEO Arthur Hayes Turns Bullish! BTC at $10,000 “Is My Number” For 2019, He Predicts

It seems that crypto bears are losing ground and the strong 2018 bearish trend is giving way to a period of relative stability prior to an upcoming bull run. Arthur Hayes, CEO of BitMEX expressed this in his “Crypto Trader Digest” of March 22, 2019

Arthur Hayes is known in the crypto verse for his
controversial opinions, which on many occasions have gone against the trends
and sentiment of the community. However, time has proven him right, showing
that as an investor, he knows when to be long or short without letting his
feelings affect his judgment.

The Worst Times Are Over… BTC is [Slowly] Heading To Green Days

After predicting a drop in the BTC to sub-5k figures, Mr. Hayes seems to have joined those who consider that Crypto Winter is over. In the publication, Hayes explains that although it is not yet possible to speak of a bull run, there are signs that point to a small growth by the end of 2019.

“All is not lost; nothing goes up or down in a straight line. 2019 will be boring, but green shoots will appear towards year end.”

The market has already surpassed the critical levels of 2018. This behavior, coupled with the growing enthusiasm around altcoin trading may result in a stimulus that protects the BTC from retesting 2018 supports changing trends for the coming months.

Bitcoin (BTC) Price in BitMEX during 2019. courtesy: Tradingview

Hayes is optimistic. He explains that because of the same
market sentiment, it may be difficult to quickly get out of this “boring”
period of stability. However, once we surpass the 10k mark, 20k seems to be an
easier goal to achieve:

“The 2019 chop will be intense, but the markets will claw back to $10,000. That is a very significant psychological barrier. It’s a nice round sexy number. $20,000 is the ultimate recovery. However, it took 11 months from $1,000 to $10,000, but less than one month from $10,000 to $20,000 back to $10,000.

Melissa Lee peep this. $10,000 is my number, and I’m stickin’ to it.”


Altcoin Season is Here?

Another interesting comment relates to altcoins. Hayes shares the opinion of other analysts like Mati Greenspan, who are confident that the market is reacting positively to trading. Despite some sarcasm, Hayes seems to be positive that the alt season is here:

Do not despair. CRipple is still worth more than zero. And Justin Sun’s new age religion TRON, paired with the Pope CZ, tells us there are those still willing to eat shitcoins with a smile.

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JP Morgan Exec: More Partnership Than Competition Between Banks and Crypto

JP Morgan Cryptocurrency Banks

A JP Morgan Chase executive has put forth an interesting compromise between cryptocurrency and the banking framework–two industries that have long been put at odds.

Speaking in an interview with CNBC’s Squawk Box on Mar. 20, JP Morgan’s Global Head of eCommerce Solutions Ron Karpovich made the claim that there is “more partnership instead of competition” between existing financial establishments and what has often been viewed as a banking disruptive market in cryptocurrency.

Karpovich’s comments for collaboration between the two industries comes just a month after his bank announced the development of the JPM Coin, a blockchain-based stablecoin that will function on J.P. Morgan’s internal payment network for clients. While some analysts at the time made the comparison to the role of XRP in Ripple’s payment protocol, Binance Research subsequently dispelled that notion. Instead, Binance’s team pointed out that JPM Coin will be limited in scope and more than likely only available for the use of JP Morgan clients as opposed to inter-bank operability.

Nonetheless, Karpovich’s comments appear to give an indication of reaching across the aisle, with the executive contending that blockchain-based payments will increase the utility of JP Morgan transfers. However, he also goes on to claim that cryptocurrency innovators and entrepreneurs should avoid shunning the banking industry all together, and that they will have to rely upon banks to move funds.

Karpovich told CNBC,

“Ultimately behind the scenes, they [crypto innovators] are going to have to use a bank to move funds. There’s more partnership instead of competition in that space. When it comes to margins and capabilities — payments is never something that grows in margin, nobody wants to pay for a payment. That’s one of the hardest parts of this process: you have limited resources in the capability to sell, so you need highly efficient and large players.”

The JP Morgan executive stressed the need for more efficient and cost-effective payments as the primary driver for innovation in the space of both banking fintech and blockchain-based cryptocurrencies. However, Karpovich finds blockchain somewhat poised to fade into the back-end of technology, as opposed to achieving mainstream adoption by forward-facing cryptocurrencies.

In the case of the JPM Coin, blockchain makes up a component of the technology that will ultimately be used by clients without them directly engaging in the process, as some believe will propel the adoption of cryptocurrency.

Karpovich also dispelled the idea that JP Morgan had contradicted its stance on crypto with the development of the JPM Coin, particularly given anti-Bitcoin comments from the bank’s CEO Jamie Dimon,

“I think there’s a difference between trading a cryptocurrency that’s in the market that’s ubiquitous versus using the technology to enhance your payments infrastructure. We look at the technology as being a means to doing things faster and cheaper: every CEO would like to make things faster and cheaper. So from that standpoint I think it represents a buy into the concept of using blockchain.”

Overall, Karpovich remains positive on the development of blockchain and blockchain-based payments as a field of interest for banks to develop upon.

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Former CFTC Chair Calls For More Cryptocurrency Regulations

CFTC Cryptocurrency Regulation 2019

A report published by the Brookings Institution and authored by Harvard University fellow Timothy Massad calls for improved regulation of cryptocurrency.

Massad, who served as chairman of the United States Commodity Futures Trading Commission (CFTC) during President Barack Obama’s administration, outlined the need for regulations on digital currencies, including their use in illicit activity, as well as providing a way to reduce the risk of cyber attacks.

In the report, Massad explains that the current landscape of cryptocurrency leaves the market open for fraud due to the absence of traditional market standards imposed on securities and derivatives, a feature which only serves to hurt investors via the lack of protection. Massad also targeted cryptocurrency exchanges and their lack of oversight, which has led to repeated instances of fraud, market manipulation and conflicts in interest. He then stressed the need for regulations imposed on exchanges in order minimize operational risk while putting into place measures to safeguard investors.

“Crypto exchanges are not required to have systems to prevent fraud and manipulation, nor are there rules to prevent or minimize conflicts of interest. Crypto exchanges can engage in proprietary trading against their customers, something the New York Stock Exchange cannot do. Regulations to minimize operational risk and ensure system safeguards are needed, just as with securities and derivatives intermediaries.”

The 60 page report also took a shot at the shortcomings of Bitcoin, namely the failure of cryptocurrency to fulfill its original intention. Instead of providing trust, Massad wrote that Bitcoin and other cryptocurrencies have created “regulatory distraction” which has contributed to an even greater problem in lack of accountability,

The hype surrounding Bitcoin and other crypto-assets has contributed to regulatory distraction. Bitcoin’s creators promised it would solve the “trust problem” and reduce our reliance on centralized financial intermediaries. However, it has not reduced our reliance on financial intermediaries or eroded the power of our largest institutions. Indeed, crypto-assets have created new financial intermediaries that are less accountable than the big banks.

The former CFTC Chairman called upon the powers of the U.S. Congress to address the issues related to crypto market fraud and the looming problem cybersecurity and potential illicit use through digital assets. As for handling the lack of regulation in cryptocurrency exchanges, Massad is not alone in advocating for reform.

The Winklevoss Twins, who recently made headlines for their comments about Facebook’s stablecoin, have been a driving force for cryptocurrency regulation through their crypto exchange Gemini. While the twins have previously been denied in their attempt to create the first U.S. Securities & Exchange Commission approved Bitcoin ETF, they believe self-policed and self-generated regulation to be the surest path to enticing institutional investment.

However, some community members have continued to embrace the lack of regulation for the cryptocurrency industry. While diminished oversight does allow for manipulation and fraud, it also prevents coin projects from making concessions in their decentralization, thereby fulfilling the original promise of crypto as an alternative to government-run fiat. In addition, the fear is that greater regulation will make the industry no different than that of the traditional financial markets, including the uneven influence imposed by established banking players.

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UK Regulator: Most Crypto Investors Driven By “Get Rich Quick” Mindset

A series of studies published by the United Kingdom’s Financial Conduct Authority (FCA) reveal some of the mentality driving cryptocurrency investment interest. While all investors, whether it be the traditional markets or cryptocurrency, are motivated by the pursuit of profit, the U.K. studies found that a “get rich quick” mindset was pervasive in the crypto investing community.

In one of the studies, conducted by research firm Revealing Reality, a series of interviews was used to quantify the focus and motivation for the broader crypto investing community. Of the crypto traders interviewed in the study, the overwhelming majority reported cryptocurrency as a way to “get rich quick,” and saw investing in digital assets as an easy path to fortune. While the crypto markets are entering their thirteenth month of “crypto winter” with many coins price still down over 80 percent, the sheer volatility in daily price movement for crypto has allowed some investors to capitalize despite the falling market–and an even larger majority hoping to go long in the event of another bullish run like the one which ended 2017.

It’s worth noting the UK firm’s research centered around 31 cryptocurrency investors, with 17 of them actually being interviewed for their motivations. Of the group that mentioned being driven by a get-rich-quick mindset, social media and the behavior of other cryptocurrency investors in the space were cited as more evidence of their FOMO mentality. Interestingly, the study also found that the majority of investors interviewed had a general lack of understanding about cryptocurrencies, with researchers reporting that one investor did not even realize digital assets could be bought in fractions as opposed to the whole coin.

Similar to comments made in the past by Warren Buffett, who has referred to crypto traders as “gamblers” instead of investors, the research team reported that the majority of investors engage in risky practices, such as failing to conduct research prior to making their investment and relying upon the advice of so-called “experts.”

A larger study cited by the regulatory body, conducted by research agency Kantar TNS, polled 2,132 United Kingdom consumers on questions related to cryptocurrency. Of those polled, only ¼ reported being familiar with cryptocurrencies, with 58 percent of respondents stating that they had never heard of the concept. Kantar TNS reported that the majority of those familiar with cryptocurrency were male respondents, falling into the age range of 20 – 44, a finding that is consistent with what other agencies have reported as the key demographic for crypto investors.

Of those respondents who could identify cryptocurrencies, 23 percent first heard about digital assets from online news, while 16 percent reported hearing about the industry from friends or family.

Given the consistent theme of risk and general lack of understanding–or, at best, failure to conduct adequate research-associated with cryptocurrency investing, the FCA issued a warning to U.K. investors about the high volatility of the industry. The government agency followed up with a reminder that crypto is still not regulated in the U.K., and that investors were putting themselves at greater risk by pursuing digital assets.

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Iran Declares Telegram Crypto Aspirations an Act Against National Security

Iranian officials have declared any cooperation with Telegram to develop a cryptocurrency to be an act against national security.

The Iranian government has taken further steps against Telegram’s cryptocurrency development, the Tehran Times reports Dec. 31.

Secretary of the Criminal Content Definition Task Force Javad Javidnia has declared that any cooperation with the encrypted messaging app to launch its Gram token will be considered an act against national security and a disruption to the national economy. Javidnia stated:

“One of the most important factors in banning Telegram was a sense of serious economic threat from its activities, which was unfortunately marginalized and neglected due to the fuss in the political atmosphere of the country.”

Iran first banned the app in April when supreme leader Ayatollah Ali Khamenei said that government agencies would no longer use the app. The country’s judiciary subsequently forbade its use altogether. In December 2017, Iran temporarily blocked Telegram and photo-sharing app Instagram in order to “maintain peace” amid widespread protests.

Prior to the ban, Iranian officials criticized the app, stating that its initial coin offering (ICO) was potentially “undermin[ing] the national currency of Iran.” Hassan Firouzabadi, the secretary of the High Council of Cyberspace approved the suggested ban due to Telegram’s potential for bringing cryptocurrency to all of its Iranian users.

Firouzabadi referred to Telegram as an “enemy of the private sector,” since “Telegram never [agreed] to have an office in Iran and refused to work with the private sector.”

The go-to messaging app of the crypto industry was also banned in Russia due to concerns over its ICO, with the possibility of a “completely uncontrolled financial system” reportedly leading to the block.

Telegram raised nearly $1.7 billion in two funding rounds earlier this year, one of the industry’s largest. The ICO sought investment to support the development of the Telegram messenger app and its own blockchain platform Telegraph Open Network.

Russian billionaire Roman Abramovich reportedly took part in the first round of the ICO. Persons familiar with the matter told Russian media that Abramovich invested $300 million. Jon Mann, Abramovich’s spokesperson, made no comment as to whether Abramovich took part, but denied the $300 million claim.

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If Bitcoin (BTC) Falls Under $3,200, HODLers Should GTFO: Bearish Trader

Former Bitcoin Short Seller Paints Bearish Picture

Recently, Mark Dow, a preeminent hedge fund manager and skilled chartist, took to Twitter on Tuesday to make an unexpected declaration. In a tweet seemingly poking fun at crypto’s zealous bulls, Dow wrote that he would be saying goodbye to his Bitcoin (BTC) short, which he purportedly opened during the asset’s peak in late-2017.

In a phone interview with Bloomberg, the ostensible Bitcoin bear made it clear that his tweet wasn’t made in jest, adding that he was “done” with the position. Speaking to the outlet, Dow explained that he doesn’t “want to try and ride this thing to zero,” potentially indicating that he sees some semblance of value in BTC. Equating his anti-BTC forecast to a lemon, he stated:

“I don’t want to try to squeeze more out of the lemon. I don’t want to think about it. It seemed like the right time.”

The current head of a Southern California family office then explained that he already took profits twice this year, making the covering of his controversial short more than logical, especially from a risk management standpoint.

Just a few weeks later, Dow has taken to Twitter again, this time to paint a bearish picture for BTC’s prospects, specifically from a technical analysis outlook. The American economist recently wrote that BTC’s chart remains “beautiful,” but noted that if the asset cannot breach the $5,000 or $6,000 prices levels in a bounce, “cyberbulls” will be in for a tough time.

Dow added that if BTC breaks below $3,200, a long-term line of support as stipulated in the chart below, “even HODELers need to GTFO,” likely accentuating the importance of this line of support.

Maybe Not… Bitcoin Fundamentals Still Booming

Although Dow’s call shouldn’t be fully disregarded, his use of traditional markets analysis in crypto threw some for a loop. One Twitter user, who goes by the moniker InvestmentWizard, noted that Bitcoin’s fundamentals are stronger than ever, adding that even if BTC break through the “scary yellow line” the end wouldn’t be nigh for the flagship cryptocurrency.

This isn’t an isolated outlook, far from, in fact. Armin Van Bitcoin, a pseudonymous, yet prominent cryptocurrency zealot, recently claimed that Bitcoin has undergone a handful of developments that made 2018 the project’s most successful year.

Bitcoin saw the 0.16.0 and 0.17.0 installments of its core software go live, the former of which aided SegWit’s arrival to the mainstream. Blockstream also made strides, allowing offline consumers nearly all across the globe to access the Bitcoin blockchain via a series of satellites. And even while the network’s hashrate has recently stumbled, it remains up by 400% year-on-year, accentuating the fact that miners still see value in BTC. The SegWit protocol has also seen an adoption uptick, moving from 10% to 40% from January to now.

Moreover, there is a mass of traders who believe that BTC could break under $3,000, but still have a positive future ahead of itself. Anthony Pompliano, for instance, recently stated that BTC could fall under the aforementioned level, but he remains bullish on the cryptocurrency. He explained that in the end, when you boil cryptocurrencies down, they’re driven by math and software, rather than the nefarious individuals that can plague traditional industries. This is, of course, crypto’s underlying value proposition, and this industry’s fundamental narrative since its earliest days, or blocks if you will.

Title Image Courtesy of Ben O'Sullivan on Unsplash

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Facebook Cryptocurrency Shows Path Forward is Integration, Not Domination

Blockchain, Cryptocurrency, Facebook–Last week, EWN reported on an industry rumor that Facebook, the social media giant with over 2 billion active users, was in the process of developing a new stablecoin cryptocurrency. Details on the token included an emphasis on being used for payments via the WhatsApp messaging service, with a particular focus on expanding into the largely untapped digital payments market of India.

Some pundits have used the Facebook development as an opportunity to cast stones at the broader industry of cryptocurrency, with the argument that Big Tech is now taking the reins of the blockchain away. As opposed to cryptocurrency being used as a tool of subversion for the established tech industry, in a similar way that the digital asset side has the potential to circumvent traditional fiat, the rise of Facebook Coin is putting the more libertarian narrative into a flux.

However, the adoption of cryptocurrency by a company as large and entrenched in the global social system as Facebook is an indication that the technology is reaching a critical point of validation as opposed to being swallowed by the zeitgeist of established platforms. The road to Main Street, like all technologies, is paved through integration, not domination. Cryptocurrency and the underlying proof of blockchain is a multifaceted conceptualization, made up of tenets of usability and belief.

Will the crypto anarchists be upset that a mainstream corporation is co-opting their beloved technology? Possibly. The advent of Google and internet conglomerates did not slow down the juggernaut of file and data-sharing for those who saw the technology as a portal to freely distributed information. Cryptocurrency will find a similar footing for different groups based upon their necessities. Stablecoins provide Facebook and like-minded social media platforms a secure means for transferring value globally, while also providing the innovation of truly digital money. Bitcoin, like many other cryptocurrencies, holds a distinct position as a digital asset, one that can be freely traded, speculated on and treated as an investment property in addition to currency.

If cryptocurrency continues to gain footing in mainstream corporations–a revelation that few investors in the industry would be sad to see–the rise of privacy coins could be a logical extension. While Facebook, Twitter and other casual operations will prefer the lack of volatility found in stablecoins, others users of crypto may seek it out as a means of private transactions, finding more utility in anonymous coins such as Monero and the like.

The watermark for Bitcoin and other cryptos is being used to buy a coffee at Starbucks, not overthrowing governments. Facebook is not taking away from the industry by building their own coin–they’re contributing to the recognition of the industry as a legitimate technology and providing validation for its use.

The staunch libertarian and anarchic ethos that has been entwined with cryptocurrency since its conception was the radical, passionate fuel that was needed to light the fire of development. It’s not casual interest that would give someone belief in an industry down over $600 billion in one year–but a belief for the potential of a technology and a futureseeking vision of what it could become in society. Facebook adoption is the integration that will lead to crypto-ubiquity, not the nail in the coffin that some see it as.

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Bitcoin (BTC) Hit $20,000 One Year Ago Today: “Happy Mooniversary”

“Happy Mooniversary,” Yell Bitcoin Enthusiasts

One fateful year ago, Bitcoin (BTC), the world-renowned digital asset, hit $20,000 on a majority of exchanges amid 2017’s jaw-dropping, unprecedented “speculmania” that took the entire globe by storm. Now, on December 17th, 2018, a number of crypto’s most prominent commentators have taken to Twitter to commemorate that day in Bitcoin’s relatively short ten-year history.

(Altcoin) Thoreau, who goes by the handle “PrintingUSD” in a likely reference to the U.S. FED’s devious practices, took to his following of 23,000 to remind crypto’s segment of Twitter that approximately one year ago, BTC eclipsed the $20,000 price barrier. Just days later, the aggregate value of all cryptocurrencies hit an all-time high of $814 billion. In closing, Thoreau added that he hopes that cryptocurrencies can go to the moon again, subsequently coining the term “Happy Mooniversary.”

Although prominent traders and commentators, like Thoreau, painted their Mooniversary in positive lights, pundits took to Twitter to remind skeptics that this event isn’t a good thing. Peter Schiff, the CEO of Euro Pacific Capital and a diehard fundamentalist, noted that Bitcoin’s recent uptick, which he thought was catalyzed by the Mooniversary, wasn’t worth buying into.

Schiff later appeared on Fox Business, discussing his distaste for BTC and cryptocurrencies, while being pitted against Andy Bromberg, co-founder of CoinList, a platform and service for promising ICOs and prospective investors.

The traditional markets specialist said that just like stock market investors, “Bitcoin HODLers” don’t want to admit that the bull market is over, clearly touching on the controversial sentiment that continual hope in the crypto market is nonsensical. Schiff then noted that while BTC is young, “it will have a very short life,” adding that Bitcoin’s proposed use case as “money” is “flawed.” The Euro Pacific even went as far as to say that Bitcoin doesn’t have the characteristics of a store of value, and as such, doesn’t have prospects for another ten years.

And interestingly, the crypto public at large was mixed at this celebration of what would call a “non-event.” In a Reddit thread, which quickly rose to the top of /r/cryptocurrency’s leaderboards, pseudonymous commenters indulged in the use of humor to douse their pain. One user, who goes by the moniker “Joetromboni,” joked that “there’s going to be a lot of ‘Remindme’s’ showing up in our inboxes,” touching on the fact that one year ago, many traders predicted that BTC would be far above $20,000 today. Others reminisced, stating that last year was a golden time for cryptocurrencies, before making it clear that they missed the unprecedented run-up.

Some ignored price talk entirely. Jameson Lopp, a cypherpunk and zealous Bitcoiner, took today’s occasion to remind the cryptosphere about Bitcoin’s inherent value and ability to alter the world — alluding to the fact that fiat values of BTC should be disregarded. Lopp, who is an advocate for a decentralized ecosystem, noted that he, a libertarian and cypherpunks, sees Bitcoin as the “promise of privacy” and “freedom.”

Title Image Courtesy of Brian Garcia Via Unsplash

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Bitcoin (BTC) Stable At $3,400: Analyst Compares Crypto With Dotcom Bubble

Bitcoin Stable At $3,400, Altcoins In Similar Position 

Interestingly, after a multi-week bout of lower lows, the crypto market at large stabilized on Tuesday and Wednesday, as Bitcoin (BTC) found itself trading in a tight range between $3,300 and $3,500. Since Ethereum World News’ previous market update, released not 24 hours ago, the aggregate market capitalization of all cryptocurrencies has barely budged, up by $1.4 billion (~1.2%) to $111.39 billion in comparison to yesterday’s $109.9 billion.

Like crypto asset values, volumes posted by exchanges have begun to slow, with 24-hour volumes per Live Coin Watch amounting to $5.9 billion, down $1 billion from the $6.9 billion tallied by the platform yesterday. CoinMarketCap statistics have echoed the dissipation of volume, as its 24-hour volume statistic has fallen from $13 billion to $11 billion, where it remains now.

Although BTC underwent a small uptick on Tuesday night/Wednesday morning, with the asset moving as high as $3,460 on Coinbase, Bitcoin has been relatively laid back, failing to break out or fall throughout any key levels of support or resistance. Many eyes are looking to BTC’s year-to-date lows, and the resistance situated at $4,000 as levels of interest.

At the time of writing, Bitcoin has found itself at $3,380 on Coinbase and $3,440 as a global average, making it clear that the asset has found a semblance of stability in the $3,400 range. BTC is currently 0.57% in the past 24 hours.

XRP, Ethereum (ETH), and Litecoin (LTC) followed BTC with precision over the past day, posting gains that were all under a mere 1%. Notable outliers included EOS, which posted a 4.13% gain after a dismal week, Bitcoin Cash (BCH) and Bitcoin SV (BSV) — as the two both lost 2% — and Tezos (XTZ), as the asset surged by 15.42% presumably due to the fact that Huobi Global announced support for the up-and-coming network.

Analyst Compares Crypto To Nasdaq Boom (And Bust)

Speaking with MarketWatch’s William Watts, the outlet’s deputy markets editor, Russ Mould, an investment director at British investment platform AJ Bell, drew lines between the Dotcom boom at the turn of millennia to 2017/2018’s crypto boom & bust.

Mould claimed that crypto’s performance throughout 2018 “looks like many that we’ve seen before across a wide range of asset classes,” adding that the status of the market today propagates “vicious bear traps,” sending crypto “HODLers” even further into the ground. He explained that the Nasdaq, in the midst of its collapse in 2003, tried to break out multiple times, but failed miserably — not too different than Bitcoin’s stints at $10,000, $6,200, and $3,500 today.

Mould isn’t the only analyst to make such connections between two of history’s largest bubbles. In a post titled, “What Bear Markets Look Like,” Twitter angel investor Fred Wilson, who heads Union Square Ventures, noted that just like technology stocks in 2002/2003, cryptocurrencies have posted a more than 80% loss in a year’s time.

The prominent investor added that cryptocurrencies, even BTC, could head lower from here. Giving his statement some rationale, Wilson explained that once Amazon (AMAZ) declined to 20 percent of its all-time high, the then-startup saw its public valuation experience another 50 percent haircut, summating to a jaw-dropping 90 percent loss.

AMAZ’s debacle in the early 2000s may have been nothing but a blip on its multi-decade chart, but Wilson, a Bitcoin believer himself, is visualizing how cryptocurrencies could fall further, even while they have ground-breaking potential and seemingly endless upside.

Still, Wilson, a legendary venture capitalist, ended his aforementioned blog post with an optimistic tone, writing:

“I think some crypto asset (and possibly a number of crypto assets) will have a price chart like Amazon’s current one in 18 years. But we will have to do what Amazon did, hunker down and build value and survive, for quite a while to get there. And I think things will get worse before they get better.”

Title Image Courtesy of Alejandro Alvarez on Unsplash

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