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China and the Next Cryptocurrency Bull Market 

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Cryptocurrency experts from mainland China believe we are on the cusp of another bull market for digital currency, and it could be nationals from their own country who help drive the “fifth wave” of the market uptrend.

Chinese Investors Will Drive Next Crypto Bull Market, Experts Predict

In a recent interview with Tencent Technology, Sun Zeyu of Genesis Capital said cryptocurrencies are poised to continue higher in the fourth quarter as investors shake off the sentiment-laden collapses of the first six months of 2018.

Gensis Capital is a Hong Kong-based investment firm specializing in growth-stage internet companies.

Gao Kangdi of Metropolis VC told Chinese media that “the scale of the fifth wave of the crypto bull market may be far beyond our imagination.”

What these industry voices have in common is the belief that China will play a major role in the next bull market in spite of a nation-wide ban on the trading and mining of digital assets. They cite massive flows of capital into the blockchain and crypto ecosystem already underway in places like Singapore.

The tiny city-state is now home to thousands of foundations established by Chinese nationals. This has been corroborated by Chen Xianhui, a local agent helping Chinese nationals set up foundations in Singapore. According to Chen, most of these thousand-plus foundations are token investments funds.

Setting up a foundation in Singapore costs only 10,000 RMB ($1,561 U.S.) and takes just 15 days.

Singapore has emerged as one of the more favorable destinations for initial coin offerings (ICOs) and other market players. The Monetary Authority of Singapore (MAS) last month proposed changes to its current regulatory regime that will make it easier for blockchain-related exchanges to set up shop in the country.

Instability in Traditional Markets

China’s crypto analysts believe global financial instability and the growing trend toward risk aversion could play into the hands of digital currencies. Bitcoin is often posited as a non-correlated asset, which means it moves independently of the broader financial market. Although some observers noted a small correlation between bitcoin and stocks earlier this year, this was largely due to the influx of new crypto traders to the market.

While it’s far too premature to call for a bear market in global equities, a sharp rise in bond yields and growing instability in emerging-market currencies have been the source of significant tumult in recent months. The next critical test for equities will be the gradual winding down of crisis-era monetary policies.

The European Central Bank (ECB) announced Thursday it would put an end to its record bond-buying program this year. Meanwhile, the U.S. Federal Reserve is planning to raise interest rates two more times in 2018.

Bitcoin’s status as a safe haven has been contested by those who argue that virtual currencies have no intrinsic value. However, analysts at Goldman Sachs believe the opposite is true as assets like bitcoin continue to grow and mature.

In particular, Goldman Sachs analyst Zach Pandl has argued that bitcoin will follow a similar trajectory as gold in the long run as a low-return, hedge-like asset.

“We should stress that, as money, cryptocurrencies should have low expected returns in the long run, despite their high returns recently,” he wrote back in January. “Digital currencies should be thought of as low/zero return or hedge-like assets, akin to gold or certain other metals.”

Charles Thorngren, CEO of Noble Alternative Investments, believes bitcoin is also attracting a new type of investor – namely, equity investors who are looking for new options.

In an interview with Forbes, Thorngren said the following:

“The base of bitcoin has changed, in fact it has evolved, to a wider base of investors. People who have only invested in equities are now looking for options as the rumblings in the stock and bond market increase.

This new investor helps to establish a stronger Bitcoin market and adds legitimacy to the Cryptocurrencies as a whole.”

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Bitcoin

Bitcoin’s Double-Digit Loss Has Investors Searching for Answers

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After crashing to its lowest level in over 12 months, bitcoin is showing little signs of recovery Thursday. The 24-hour price ticker continues to show double-digit percentage losses as volumes on virtual exchanges surged.

BTC/USD Update

Bitcoin continues to vary markedly across exchanges, with Coinbase reporting a price-per-coin of $5,439. The San Francisco-based exchange quoted a BTC price of $5,391 earlier in the session.

On Bitfinex, the BTC/USD exchange rate is currently seen hovering just below $5,650. The exchange quoted a daily high of $5,940.

Bitcoin’s average price is reported to be $5,532 on CoinMarketCap, a decline of 12% over the past 24 hours.  Trade volumes across all exchanges surged to $8.3 billion as investors rushed to liquidate their positions.

At the time of writing, virtually all major cryptocurrencies were nursing significant losses with the overall market cap situated below $182 billion. Bitcoin and the broader market are showing little signs of recovery for the time being as investors continue to process Wednesday’s brutal drop.

No Clear Catalyst

There doesn’t appear to be a single known catalyst for the violent market-wide drop experienced on Wednesday. Although volatility in the market was observed prior to the decline, most notably for bitcoin cash and in the rival ABC/SV futures, there was no single event that caused the market to capitulate.

As Hacked previously reported, bitcoin usually exhibits weakness following prolonged periods of narrow trading ranges. A failure to break out of those ranges often invites a wave of selling pressure in subsequent weeks followed by a recovery later on. As a whole, this cycle has kept the bitcoin price elevated above $6,200 in the latter half of the year but upside remained firmly capped below $6,800-$7,000. It was only a few days ago that bitcoin’s 30-day volatility index fell to more than two-year lows.

Although manipulation cannot be ruled out, it’s possible that the latest drop reflects technical re-positioning in the market. It’s also possible that bitcoin cash’s “civil war” had an oversized impact on the broader market as investors await the outcome of the highly contentious software upgrade.

Despite these concerns, bitcoin’s fundamental picture has improved significantly this year as institutions continue to take aim at cryptocurrency. Intercontinental Exchange is set to launch its Bakkt trading platform next month, which offers institutional traders the opportunity to trade physically-backed bitcoin futures products. Meanwhile, VanEck has expressed confidence that its physically-backed bitcoin ETF will gain regulatory approval at some point in the future. The general consensus appears to be that an ETF is coming eventually but not likely in the near term. The U.S. Securities and Exchange Commission is set to deliver a verdict by Dec. 29.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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Altcoins

Crypto Market Flash-Dips 12%; Bitcoin Price Hits New Yearly Low as ETH, TRX Bleed Out

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The global cryptocurrency segment experienced a market-wide sell-off on Wednesday afternoon, losing $25 billion, or 12% of the overall market cap.

The bulk of the losses struck in a brief one-hour window, between 15:30 and 16:30 UTC. The sudden flash dip came as a surprise to say the least, and followed this morning’s $7.5 billion sell-off which, without the benefit of foresight, seemed significant at the time.

Just When We Thought We Were Out…

Now the altcoin setup looks radically different, with several coins threatening the yearly lows of August-September once again following an entire quarter of recovery.

All of Bitcoin Cash’s recent gains have disappeared, with BCH sinking 30% in the last week alone, and close to 20% in the last day. The same pattern persists among all the recent market growers, as yet another great correction unfolds.

BTC/USD Hits 13-Month Lows

Bitcoin did however strike new yearly lows, or thirteen-month lows to be precise, after BTC/USD fell to $5,765 – a level not witnessed since October 2017. That puts BTC on 9.8% losses over less than twelve hours, after falling from this morning’s $6,395.

Of Bitcoin’s $6 billion volume at time of writing, you have to look eleven places down the charts to find the first cryptocurrency that BTC has been significantly traded against. The top ten most concentrated trades are all against either fiat currency (USD and KRW), or dollar-pegged stablecoins – specifically Tether (USDT).

Ethereum Sinks Along With Mining Profits

As covered earlier on Hacked, Ethereum’s initial fall below the $200 mark resulted in Ether mining no longer being profitable. However, the $189 price quoted in the article continued to fall further, landing on $179.49 and resulting in a 14.4% crash for Ethereum from last night’s high of $209.78.

That’s still slightly above the $170 valuation recorded during the dip of September this year, and saves ETH from notching up a new yearly low along with BTC.

Tron (TRX) Threatens Yearly Lows

The value of TRX fell 16% from $0.022358 to $0.018757 for Wednesday, pushing the coin closer to the lows of August when TRX hit the eery number of $0.016666 before rebounding.

This time the price rebounded to the $0.019 level, which is a hopeful sign for the altcoin, although TRX losses now stand at 22.5% for the last seven days.

All of the coin growth surrounding BitTorrent, record transaction volumes, coin listings and everything else that came out of Tron HQ in recent months has now effectively been wiped out.

Few coins were spared the bloodletting, and even the stablecoins were shaken by the sudden sell-off as Tether dipped to the $0.97 range once again. Despite the numbers quoted above, the worst of the losses came from the lesser altcoins, with recent gainer Basic Attention Token (BAT) now down more than 40% for the week.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.4 stars on average, based on 89 rated postsGreg Thomson is a full-time crypto writer and digital nomad. He eats ICOs for breakfast and bleeds altcoins. Wherever he lays his public key is his home.




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Altcoins

Update: Crypto Selloff Deepens as Bitcoin Hits New Yearly Low

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The cryptocurrency market underwent a massive selloff Wednesday, as bitcoin breached new lows for the year and major altcoins booked double-digit losses across the board. Bitcoin cash experienced the largest percentage drop, effectively erasing gains made in the run-up to Thursday’s hard fork event.

Market Update

Cryptocurrencies have given up a combined $25 billion in value over the last 24 hours, as markets approached new lows for the year. The selloff intensified through the late morning session, driving the crypto market cap to a low of $187 billion. At the time of writing, cryptoassets were worth $188.4 billion collectively, according to CoinMarketCap.

Trade volumes surged 33% to $17.6 billion as investors rushed to liquidate their positions amid the selloff. All major exchanges reported a sharp rise in daily turnover, with volumes on Huobi, Bitfinex and LBank surging 100% or more in the last day.

Bitcoin’s price collapsed more than 10% on Coinbase to reach a session low of $5,530. At the time of writing, BTC/USD was worth $5,675.

Bitcoin cash, the fourth largest cryptocurrency by market cap, relinquished a whopping 18.1% to reach $433. In doing so, it completely reversed all the gains made in the last two weeks.

Ethereum fell 12.1% to $184, XRP lost 11.9% to $0.4576 and Stellar XLM declined 12% to reach $0.2303. With the exception of USDT, a dollar-backed stablecoin, all cryptoassets in the top-20 lost 7% or more on Wednesday.

The following snapshot, courtesy of CoinMarketCap, highlights the extent of the selloff.

Bitcoin Dominance Grows

While bitcoin certainly wasn’t spared from the latest rout, its share of the overall market climbed back above 54% on Wednesday, a sign that remaining capital was consolidating in the largest asset store. Bitcoin’s dominance rate has since fallen back to around 53.1%.

Extended periods of volatility for altcoins and tokens have provided bitcoin with a linchpin of support since the bear market began earlier this year. This has been most recently demonstrated by narrower price ranges and sharp declines in volatility for the leading digital currency. As Hacked recently reported, bitcoin’s volatility index fell this week to its lowest level in over two years.

Although there was no immediate catalyst for the rapid decline in market prices, anxiety over the future of bitcoin cash likely factored into the equation. The protocol’s primary implementation, dubbed bitcoin cash ABC, has won support from major industry players ahead of Thursday’s hard fork. However, recent data show that the network’s hash rate has tipped in favor of bitcoin SV, a competing protocol being pushed by Craig Steven Wright, Calvin Ayre and some very large mining pools. This information may have contributed to a sharp spike in SV futures prices on Wednesday.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Important: Never invest (trade with) money you can't afford to comfortably lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here. Trade recommendations and analysis are written by our analysts which might have different opinions. Read my 6 Golden Steps to Financial Freedom here. Best regards, Jonas Borchgrevink.

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4.6 stars on average, based on 664 rated postsSam Bourgi is Chief Editor to Hacked.com, where he leads content development for one of the world's foremost cryptocurrency resources. Over the past eight years Sam has authored more than 10,000 articles and over 40 whitepapers in the fields of labor market economics, emerging technologies, cryptocurrency and traditional finance. Sam's work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Contact: sam@hacked.com Twitter: @hsbourgi




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