After several years of relatively slow growth, cryptocurrencies have exploded through 2017.
Are prices set to fall drastically as many warn, or can growth continue throughout 2018 and beyond?
What do you think and why?
Just for the record, Bitcoin today stands at $19, 343 (Coindesk)
With recent parabolic moves, the cryptocurrency market is purely speculative at this point.
That said, we’re in a perfect macro environment for such bubbly speculation.
Central banks have been supplying the world with easy money by suppressing interest rates and printing billions of new money every month (via buying bonds and/or equities) for years.
Global liquidity (the availability of money) has been abundant to say the least.
This creates the perfect environment for asset bubbles.
As long as this liquidity is there, one can ride the rising bubble.
So keeping an eye on global liquidity is key.
If liquidity tightens, this usually means that credit conditions are getting tighter (harder or more expensive to borrow money).
And when global liquidity starts to disappear, volatility follows.
And when volatility rises, the market begins to reprice risk.
The repricing of risk leads to lower demand.
Lower demand means less buyers to sell risky assets to.
And less buyers in a momentum-driven market like crypto, leads to more sellers.
And the more sellers, the bigger the plunge in prices. Which causes all the cryptobulls to panic and try to cash out all at the same, causing prices to plunge even deeper.
So it’s really up to the central bankers to decide whether they want the bubble to pop (by tightening/normalizing) or shoot for the moon!
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Here’s a well-balanced article on Bitcoin from the Huffington Post
$18, 457 currently, -3.30% today. Quite a drop
Can Bitcoin maintain rally?
Bitcoin futures started trading on the CME overnight, which is the world’s largest futures exchange. This is the second exchange to offer bitcoin futures, further cementing the crypto currency’s legitimacy. The launch has gone fairly smoothly so far, which should bolster investor confidence. But with the noticeable rise of other cryptos, such as Bitcoin Cash, Etherium and Ripple, can Bitcoin continue its impressive rally or has it gone up too high, too fast? So far, sentiment remains positive and investors’ appetite unquenchable despite Bitcoin’s extreme volatility and past vulnerability. I personally do not think that Bitcoin is in a bubble yet, but once every Tom, ■■■■and Harry starts talking about it then you will know it is in a bubble. Even then, who coulf possibly know what the ultimate high will be?
https://www.forex.com/~/media/forex-image-import/171218-bitcoing.png
Source: TradingView and FOREX.com. Please note, the prices on the chart may be different to those offered by FOREX.com
But for now, BTC/USD still remains in a strong uptrend despite today’s consolidation. While Bitcoin futures climbed above the 20K market overnight, the underlying asset has yet to hit that hurdle. But the relatively tight consolidation below this level means it could be a matter of time before price potentially tests this level. Indeed, we haven’t seen any distinct signs of reversal so far and all the key support levels remain intact. In fact, after the overnight drop, the crypto currency bounced nicely off a key support at 17900, which was previously resistance. In addition, a short-term bullish trend line which cut through this area also held firm.
Thus, going forward, 17900 will be the pivotal level to watch now as the bulls and bears battle it out. Only a decisive break below this level would mean the short-term bias would turn bearish. Meanwhile, on the upside, the key area to watch is between 18975 and 19275, which was formerly support, now offering a bit of resistance. The bulls require a move above this area soon, as this would indeed confirm that the overnight break below Sunday’s low of 18465 was just a run on stops rather than a break in market structure. If and when price breaks above here then there’s little further resistance until the 20K mark. Beyond this psychological hurdle are the Fibonacci extension levels of the most recent drop, at 20165 (127.2%) and 20800 (161.8%), where we may see some long-side profit-taking, should price get there in the first place.
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Bitcoin looks like it may well rest $20000 in the coming day or two, will be interesting to see if it breaks thru or not.
I wouldn’t be surprised to see some selling off before the year end, but not massively
IMO, prices of cryptocurrency will continue to surge next year, specifically Ripple (xrp) why? Bc Ripple works for banks and other FIs, in fact the Fed Reserve working with Ripple and also the BoE.
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Been watching and dabbling some in the crypto market for a bit over 12 months. Has the bubble burst? Far from it. Look at trends of past in fast rising stocks that pretty much sat dormant for years. They jump and anything associated to it for about 6-8 months. Bitcoin will go up over 20k but I don’t see it going much more. Ethereum has been steady but I see that and ripple being the next two to jump substantially in the next 20-30 days. I do see prices dropping thou in feb-march. That’s just my opinion anyways.
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Steady so far today at@18, 384…
…but this is the highest “prediction” I’ve seen
That’s a monster prediction. My question is what is he basing that prediction on? Because the rise right now is all due to hype.
How do you buy Ripple?
Alot of exchanges offering xrp, you may visit this page
personally im using bittrex to buy ripple.
For sure btc will to surge in the incoming years, btc as a store of value. But i prefer to choose Ripple (xrp) for it is the choice of govt and regulators.
Thanks dear. Most of the sites deal in currencies other than GBP. Is there any UK based website which deals in ripple in GBP? I am in UK.
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You can try registering on bitstamp. Its a UK exchange, but im not sure if they have GBP. You can try also Cex.io
Big pullback today, been down to $15, 500 and currently on $16,257
Testing recent support levels, will be interesting to see if it holds
It appears to be based on his view of bitcoin’s scarcity factor.
His aggressively bullish call — a near-$380,000 dollar appreciation on today’s prices — is based on the idea that since only 21 million bitcoin can ever exist. Increasing demand for the digital currency will naturally drive its price up, he said.
“I don’t know how much gold there is in the ground, but I know how much bitcoin there is, and in two years there will be 300 million people in the world trying to get their hands on a few million bitcoin. This mind-boggling supply and demand imbalance is what is going to drive the price higher,” Moas said.
I doubt the Bitcoin and Altcoin market isn’t going to be regulated by politics in the next few months. Just look at this crazy stuff that happened this morning:
Just take a look at this API output:
https://api.gdax.com/products/BCH-USD/trades?after=10
https://api.gdax.com/products/BCH-USD/trades?after=100
https://api.gdax.com/products/BCH-USD/trades?after=4000
3362 individual trades
Adding the values we get 24.27900661 total BCH traded. So 25 BCH bumped the market by
~300 percentage points after only ~3000 trades.
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Another 4% drop, now down to $15,700
