Just like the crypto carousel. Know what you’re buying into and enjoy the ride
Off your face, tweeting, then proven wrong? Classic McAfee. Joy to the ‘unhackable’ — now hacked — BitFi hardware virality. Alternatively, Roger may need a pat on the shoulderas Starbucks may soon accept the ‘real’ Bitcoin. #WillTheRealSlimBitcoinPleaseStandUp
Another weekend, another ride in the crypto carousel. After frenetically going up and down for months, bitcoin is back to £5.4k ($7k), a level it first crossed last November. As the OKEX cloud, cleared from the crypto skies — with the exchange forcing its futures traders to give up to 18% of their profits, its price made a sigh of relief.
This was positive as some were expecting a possible clawback of around 50%. However, further positive news released that day failed to prop up the bulls: ICE, the owner of the New York Stock Exchange and the second largest exchange-group in the world, announced it is launching Bakkt, a digital assets — read crypto — exchange this November.
The famous Michael Novogratz even considered this the most important news of 2018. Note Bakkt will start by launching a custodial solution and a ‘regulated, physical Bitcoin futures contract’, provided it’s approved. It will also assist merchants to convert cryptocurrency to fiat, particularly BTC, with Starbucks being their leading partner.
However, as the common saying goes, “bull markets end on good news and bear markets end on bad news”. Soon, the short-term bullish trend’s palpitations signalled exhaustion as BTC failed to lift off from its 24h support level. By Saturday 1pm BST, bitcoin dropped from £5.7k ($7.4k) to £5.3k ($6.9k) — a 7% sour dip.
Why didn’t the bulls run? MacroScope, a popular Twitter analyst, posits the OKEX situation took a toll on the market and the “current run of good news was anticipated” already. Additionally, as Alex Kruger, another popular analyst, remarks, there’s another old saying that claims “ important news that fail to move a market should be sold”.
Besides all these interesting nuggets, sentiment is mixed. Still, DonAlt, a CryptoTwitter trader that rose to fame for shorting bitcoin earlier this year when all others were getting trapped, is strangely bullish. Moreover, since Saturday some major alts went up as bitcoin fell — namely ETH, which seems to have found support — XMR, DASH, and ADA too.
▪ In addition to ICE, Germany’s second-largest stock exchange has also announced it is creating “end-to-end infrastructure for digital assets”, including an ICO platform.
▪ In addition to previous attempts, the creditors of Mt. Gox, the infamous exchange which went bust in 2014, have proposed a revised plan to get their lost bitcoin back.
▪ Stop and Decrypt keeps churning out great articles. The latest was just published and focuses on why “ASIC resistance is nothing but a blockchain buzzword”. — futile too!
▪ Asian markets continue to be a dominant influencer of the proverbial crypto moon. Learn more with Dovey Wan’s new column: “A decentralized journey to the East”.
Mt. Gox started as an online exchange for ‘Magic: The Gathering’ cards. It took the road less traveled and became the world’s largest crypto exchange, attracting several hackers to its mismanaged platform. It lost 850k bitcoin, of which around 200k were ‘found’.