For a brief moment yesterday morning, the market showed signs of possible temporary stability. That false sense of promise was ripped away from the market yesterday afternoon as all of the top ten coins, excluding Tether, began reporting the red again.
Negative double digit numbers were achieved by some coins, and Bitcoin’s value hit a new low of $3,600 yesterday afternoon. Bitcoin also temporarily peaked back up to $4,00 over the past 24 hours but has since fallen back into the 3,000’s. At time of writing Bitcoin’s value is currently sitting at a highly unstable $3,700.
Ethereum is currently managing to maintain its triple digit status as it currently sits a value near $104. What makes ETH currently superior stability wise compared to XRP, XLM and EOS, is its volume. ETH’s volume is currently larger than XRP, XLM and EOS combined. Though ETH’s price has fallen a great deal, it’s volume has remained high indicating a that there is low sell pressure which in turn makes it less likely to experience a free fall.
XRP, XLM, and EOS all have relatively small volumes with falling prices, indicating high sell pressure and a possibility of a free fall due to future sell offs. Bitcoins volume is holding steady in the vicinity of $6.5 billion.
Is it time to buy or sell?
Many different answers to the above question have been circulating throughout the crypto space for the past weeks. As you and the market may have noticed, the general course of action most investors are taking is selling. The large amount of selling that has been taking place has only created more sell pressure on the market and driven it further down. When an asset begins to tank, the most common response it to sell it. But it’s important to remember to look at more than the short game, it’s the long game where you win.
Veteran Bitcoin and crypto investors have expressed their humorous notes on the sell off panic that has struck the market over the past two weeks. Many of them laughing at the mayhem as they themselves have sat through many of Bitcoin’s dips, hodled, and watched it skyrocket once again. Some calling Bitcoin’s value wave an oscillating parabolic curve that gets more drastic with every passing year.
That being said, this is by the most dramatic sell off we have witnessed since the creation of Bitcoin. But could that mean we’re in the market for the most dramatic gain ever seen by Bitcoin? While some are convinced that Bitcoin is dead, there are still multiple reasons why you should continue to hodl your tokens and maybe even buy some more.
Why Bitcoin won’t freeze to death this winter.
Do you remember all the hype surrounding Bakkt and Nasdaq nearly a month ago? While the spotlight may have been stolen by the crashing market, both corporations plans have not been cancelled. In fact, both of them hold promise that could greatly change the course of the current market.
Bakkt is an exchange that’s built by ICE (the parent company of the New York Stock Exchange) and is expected to launch on January 24th 2019. Bakkt was originally scheduled for launch here in November of 2018, but had to be rescheduled due to demand of its futures product.
“ICE Futures U.S., Inc. will list the new Bakkt Bitcoin (USD) Daily Futures Contract for trading on trade date Thursday, January 24, 2019, subject to regulatory approval. The new listing timeframe will provide additional time for customer and clearing member onboarding prior to the start of trading and warehousing of the new contract,” Bakkt announced.
Bakkt will be one of the first institutional investors to enter the crypto game.
Nasdaq also holds great promise in the possible turnaround of the bearish crypto market. With plans to launch in the first quarter of 2019 along with Bakkt. Nasdaq’s exact plans for their futures market has remained obscure, but still holds great promise to improve the liquidity of Bitcoin.
If an ETF is approved for Bitcoin, it could have a dramatic positive effect on the market as well. Though all previous ETF applications for Bitcoin have been denied by the SEC, the head commissioner recently spoke out that an ETF for Bitcoin is ‘definitely possible’.
Tha last possible reason to not panic over Bitcoin’s current market, is its market history. Bitcoin is always going up and down in value and oscillates between record highs and record lows. When Bitcoin experiences a drop from a high, it usually drops 85% from its all time high (ATH). during this market decline, we have dropped just over 80% and we’re nearly at the 85% mark.
This is ofcourse all speculation, but could we see a reversal in Bitcoins demand and value when we drop below that 85% mark? Maybe, maybe not. But if you see Bitcoin close in the green two days in a row, that’ll be the time to buy if it’s not to late. Let us not forget that there is a finite number of Bitcoins, and as Bitcoin becomes more widely adopted and demand increases, its value can only go one way. I predict we will see Bitcoin reach a new all time high and surpass it greatly sometime over the next few years.
I wouldn’t buy now, but the time to buy the dip is fast approaching.
Read about Nasdaq: https://www.cryptochats.io/microsoft-and-nasdaq-inc-bond-over-blockchain/