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Second Half Cryptocurrency Market Outlook: Why You Must Own Them

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By now we all know the unwelcome statistics. In the first half of the year, cryptocurrencies have been awful investments. The big guys like bitcoin lost 60% while Etheeum  owners suffered just as much. Ripple that wants to call itself anything but a crypto security gets the award for the biggest loser, having fallen 86%, If you are a believer in so called Gen III projects, you were lucky to have escaped with minimal damage.  Two of the so-called Ethereum killers NEO (-68%) and EOS (-15%) showed that when it comes to Ethereum, it is kill or be killed.

So, why is that going to change anytime soon?  An honest answer is that no-one can predict the next move.  Since the spring rally in April, psychology toward cryptocurrencies has been horrible.  Technical patterns have confirmed this over and over. Whenever signs of a market rally appear, sellers come into to quash your enthusiasm.

The Bullish Case Based On Value

Crypto prices may have taken it on the chin so far this year but they are entirely alone. Conventional investors that have been accustomed to double digit stock and bond market gains for years now are having their woos in 2018. If you played it safe in Dow Jones or S&P 500 stocks, you basically have made no money while taking on the risk of holding highly valued securities.  

There was one group of stocks that stood out in this dismal period: technology. As a whole the gang was up over 10%. Interestinglym companies like AMD (up 50%) and Nvidia (up 22%) were among the star performers.  The fact the both design and forge ASIS chips for high speed cryptocurrency processing didn’t hurt them a bit.

As for the rest of the year, today MarketWatch carried the following headline: Brace For A Lost Decade For U.S. Stocks. The story centers on a forecast by Morningstar analyst Dan Kemp.  Here is a quote from Kemp: “Our expectation at the moment is that you won’t have any real return from U.S. equities over the next 10 years”. “The U.S. equity market looks both extremely expensive and very unattractive relative to other markets”.

The key to Morningstar thinking is not just the ogur of higher interest rates but the record high market valuation.  Of course, this is just one opinion in a field where everybody holds their own ideas. Nevertheless, the fact is, Kemp is absolutely correct.  The U.S., and for that matter global markets, are very expensive.

Investors are constantly seeking the best returns and there is no question that cryptocurrencies are at the low end of the price spectrum. But does price alone define value? The answer is no, of course not. What is creating value is the ever growing respect for blockchain technology and the progress of crypto project participants.

The Fundamental Case

Let’s start with the case of mass market appeal for blockchain technology.  In recent days news outlets have reported how Mastercard, the mammoth payment processor, has been filing patent applications left and right for “anonymous distributed ledger transactions via a third party processor.” Skeptics will point out that Mastercard doesn’t need bitcoin or Ethereum to develop its own blockchain.

Absolutely true, but there is one important thing to remember.  Not all blockchain applications are created equal. The moves by Mastercard as well as Visa are designed to preempt competition from cryptocurrencies.  Nevertheless, Mastercard with over $13 billion in revenues from transaction processing fees is not going to start giving away their services just because it is on a highly secure blockchain.

Promising Rookies

For all of the criticism lately of the ICO class of 2017,  some are beginning to justify their existence. Why is it that EOS was one of the better performing crypto assets in the first half of the year? In June version 1.0 of the EOSio blockchain open source software was released.

Among the long list of virtues, EOS offers block confirmations in less than 0.5 seconds.  In today’s world, that is smokin’ fast.

This is just one of many and their progress is attracting a huge increase in capital.

ICOs Are Alive And Growing

So far, 2018 is shaping up as a banner year for ICOs.  Estimates vary as to the exact amounts of capital raised. The figures range between $12-$14 billion based on about 900 offerings.  This is more than twice the amount raised for all of last year. All this in spite of all of the regulatory uncertainty.

It would be easy to dismiss the huge increase as the result of more offerings but the truth is the average amount of capital raised has doubled so big institutional money is finding its way into crypto and recent depressed prices have to be taken into consideration.

Guilty Until Proven Innocent

It is getting easier to point out encouraging news favoring the long term mass acceptance of crypto.  But the truth is the whole group needs to demonstrate lots more of this sort of progress to overcome the negative psychology that has crushed prices so far this year. Nevertheless, it doesn’t hurt that stock and bond prices are finally hitting a wall of resistance. This is why crypto is so likely to be the asset class of choice at least for the balance of this year.

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 87 rated postsJames Waggoner is a veteran Wall Street analyst and hedge fund manager who has spent the past few years researching the fintech possibilities of cryptocurrencies. He has a special passion for writing about the future of crypto.




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TenX Price Up 47%; Anomaly Detected on Bithumb Crypto Exchange

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TenX (PAY) was at the nice round number of one dollar last night before triggering a run which saw it spike to $1.47 by 2am (UTC). Since then the price has dropped back down to the $1.30 mark, but that still represents 30% gains for the day.

Just last week, TenX was priced at a value of $0.58 per token, with a market cap of $60 million. But in the last few days the PAY token has soared into the market cap top-100 and has hit 153% growth for the week. A daily volume of around $4 million at the start of the week has been replaced by peak volumes of $70 million over the last 24 hours.

The price may have dipped in the last few hours, but a glance at the daily volumes actually shows an increase, suggesting that TenX’s movements for the day aren’t over yet.

Bithumb Anomaly

PAY tokens were temporarily unable to be withdrawn on the Korean exchange Bithumb in the early hours of this morning. The lack of influx of new funds created a supply shortage on the platform, thus pushing the value of PAY tokens to a value of $7.32 – that’s a 632% growth in value, purely because of a temporarily disabled withdrawal system.

The volumes being traded on Bithumb amount to $200 million, and predictably all come in the form of direct trades between PAY and KRW (South Korean Won). That volume alone in 11 times the total recorded by CoinMarketCap at this given time.

Besides Bithumb, the most active exchange for TenX has been Upbit, followed closely by Bittrex, where BTC trades make up the vast majority. In fact, if we exclude the KRW trades from Bithumb (which we officially should) then we see that PAY/BTC trades make up over 75% of the total daily volume.

A History of Volatility

TenX’s overall charts make interesting reading. The ATH for PAY tokens was not in December-January as one might expect, but in August 2017 when one token was worth $5.33 and TenX had a market capitalization of half a billion. December’s peak, by comparison, only took PAY to a value of $5.00, but with the same market cap.

Barring a surge in April, TenX has been falling since January. Although the movements of the last two days may suggest a sudden change of sentiment. On July 16th, less than 48 hours ago, TenX was sitting at a price of $0.72. That means that it has grown by 104% since Monday.

Such movements usually trigger calls of the dreaded pump and dump, but TenX’s history shows a tendency for such dramatic movements, and this might just be par for the course. You can read more about TenX’s features here in this comparison against ICON.

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 23 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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Cryptocurrency Market Hits One-Week High as Volumes Spike 38%; Bitcoin Cash Jumps 10%

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The cryptocurrency market booked solid gains on Monday, as coin values and trading volume reached their highest levels in a week.

Market Update

With the exception of Tether’s USDT stablecoin, all major cryptocurrencies in the top-ten reported gains. In percentage terms, bitcoin cash was the strongest performer, rising more than 10% to a high of $804. That was BCH’s highest reading in nearly a month, according to CoinMarketCap.

The value of bitcoin reached a high of $6,691 Monday for a gain of nearly 5%. At press time, BTC/USD was trading at $6,674 on daily trade volumes of $4.6 billion. As Hacked previously reported, the $4 billion volume mark is closely associated with uptrends for the bitcoin price. Bitcoin is now eyeing resistance between $6,800 and $6,900, which is the upper end of last weekend’s rally.

Ethereum also notched one-week highs with gains of more than 5%. The second-largest cryptocurrency by market cap was last seen trading just above $476. The clean break above $450 is an encouraging sign for the bulls, who continue to target $500 as a critical inflection point for ETH/USD.

Ripple XRP showed positive momentum Monday as prices rose to fresh one-week highs. The so-called “banker’s cryptocurrency” is up 6.1% at $0.474. Ripple has been in the spotlight for all the wrong reasons lately as the San Francisco-company fends off another lawsuit claiming XRP is a security.

Market Sentiment Improves

A sudden shift in investor sentiment underpinned the market’s $20 billion gain on Monday. That shift was fueled by reports that BlackRock, the $6.3 trillion asset manager, is exploring entry into the cryptocurrency market.

Sometime over the past 12 months or so, the company has gone from vilifying crypto to treating it as a potential value driver. According to CNBC, BlackRock has been researching cryptocurrency since at least 2015.

At the time of writing, the total cryptocurrency market was valued at $270.5 billion. It notched $271 billion earlier in the day, the highest in seven days.

Trading volumes shot up 38% to $14.2 billion, with Binance and Huobi each processing more than $1 billion in transactions.

Coinbase – a company betting big on firms like BlackRock entering crypto – has also been a source of optimism after it announced Friday that it has short-listed five coins for future consideration. The five coins in question are Stellar (XLM), Cardano (ADA), Zcash (ZEC), Basic Attention Token (BAT) and ox (ZRX).

Coinbase remains non-committal about whether it will eventually add these cryptocurrencies to its exchange listing. However, their mention was enough to spur double-digit percentage gains early Saturday.

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 498 rated postsSam Bourgi is Chief Editor to Hacked.com, where he specializes in cryptocurrency, economics and the broader financial markets. Sam has nearly eight years of progressive experience as an analyst, writer and financial market commentator where he has contributed to the world's foremost newscasts.




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Ethereum Price Returns to Weekly High; EOS Behind ‘Fish’ Attack?

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Ethereum has regained lost ground over the week, returning to the seven day high of $475, even breaking the $476 mark just under an hour ago. For the last few days pundits and analysts marked the $450 barrier as the breakout point, but the growth really accelerated after breaching the $455 level.

In the last twelve hours or so Ethereum went from a price of $446.86 up to $476.13 – a 6.5% growth. If we look at the the strongest surge, which occurred six hours ago at 10am (UTC), we see that ETH prices experienced a 5% spike within just a few hours.

Looking at the weekly trend we see that ETH was falling in value against the dollar for six out of the seven days. Yesterday the coin tried to push upwards, but flattened out in the middle of the day. Last night into today marks Ethereum’s (and most of the market’s) first extended growth pattern for the week.

On June 16th Ethereum’s price was around $489 – not all that far off today’s level. Yet by June 21st the price had hit $543.72, meaning ETH’s value still stands at 12.5% less than during the monthly peak.

Exchange Activity

Bitcoin started the day with faster growth than Ethereum, but eventually fell away to 3.88% growth, compared to Ethereum’s 6.5%. The vast majority of Ethereum’s trades are coming against BTC right now, with ETH/BTC making up around 27.5% of the daily total.

The next most popular trade is against USDT, making up nearly 20% of the 24 hour volume.

The busiest exchange for Ethereum today has been CoinEx – the China-based exchange where the biggest trade volumes come in the form of BTC/USDT trades.

Interesting to note is Ethereum’s second most concentrated source of activity today, namely on Bitfinex where 5% of ETH’s daily total has been directly against U.S Dollars. That amounts to $80 million of the daily volume of $1.7 billion, and marks a sharp influx of new money into the markets.

iFishYunYu Attack

Spam attacks are nothing new to the Ethereum network, and are ultimately helpful in the long run due to their tendencies to highlight potential weaknesses in the platform.

The spam attacks commenced again this week as a smart contract began to overload the Ethereum network with pointless, meaningless transactions. At one point the flurry of activity raised gas prices to over 200 gwei, while some users have reported fees of several ETH at the absolute peak of the spam.

The attack was configured using Ethereum’s own token launching features. Around 5 billion ‘Fish’ tokens were created and distributed to multiple wallets, which then distributed them around to more. What followed was a senseless series of transactions between the wallets which eventually succeeded in congesting the network.

The issue has since been resolved, but already some Ethereum developers are pointing the finger at representatives, either official or unofficial, of EOS. Let the crypto wars commence…?

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 23 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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