The market is again reeling – analysis courses TOP 5 assets 8.10 – 12.10.18

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Traders who had expected new growth of cryptocurrencies, were disappointed. The market has turned around and is preparing for a bearish trend. A new barrage of criticism fell on the digital assets from the Bank employees.

Elizabeth Warren, U.S. Senator and potential presidential candidate in 2020, spoke negatively about bitcoin: “Bitcoin is easy to steal. Crypto-currencies had a negative impact on smaller investors, because many of the ICO turned out to be a fraud.”

Skeptical about the future of cryptocurrencies and other senators, although many believe that the blockchain technology is very promising.

Analysis of the rate of the TOP-5 of cryptocurrency

Bitcoin. The prospect is not rosy, experts forecast that after a minor pullback that has already started, the course will go back for a correction. The reduction caused by the data about falling of interest to the industry as a whole 90%. In many countries, the rise of electricity prices for mining-farms. Bitcoin is already being manipulated, and the more power there will be big players – the easier it is to deny currency decentralization. This weekURS BTC fell 4.5 percent, pulling down other assets. The fundamental support of the asset is at $6000. Market capitalization is $108 billion.

Ethereum. There is a clear bearish trend. For a week the value of an asset has decreased by almost 12%. The immediate support is at $195. Change of trend in favor of the uptrend is possible only in case if the price of an asset will rise to $230 and above. Capitalization dropped to $20 billion.

Ripple. And again, this cryptocurrency in the ranking of the losers of the week. For seven days the rate of XRP fell by 16.2%. Now there is a slight rollback. However, large investors are set up favorably to Ripple. According to the company’s Grayscale Investments, the number of investors who bought XRP in this quarter, has increased by 5%. Ripple’s market capitalization is $17 billion.

Bitcoin Cash. But the number of people willing to invest in BCH significantly reduced. Investors prefer his “older brother” of BTC. For a week the value of the asset decreased by 13.5%. Market capitalization is $7 billion.

EOS. Cryptocurrency falls in company with others. For a week the rate has decreased by 9%. Significantly decreased trading volumes on currency pairs with EOS. Market capitalization is $4.7 billion.

Previously on this topic in the news:

06.08.2018: Why you do not need to wait for new records bitcoin in 2018? 5 reasons

2018 – not the best for bitcoin. Sluggish market demand and fluctuations in investors led to decrease of the asset price. Captainvalor Tuur Demeester sure that in 2018 there is nothing to wait for new records cryptocurrency.

Some investors and advisers, including Lee, believe that $5700 is the bottom of bitcoin, and now the asset is simply obliged to grow rapidly! Economist Turr Demeester hold opposite positions; for instance, there a clear side and a downward trend, and reversal is not expected.

The analyst said that the rapid rally, when bitcoin rose to $20 000 actually started in August of 2015 (when the asset was worth less than $200). The market needs time to review such a record.

Demeester called 5 reasons for limited growth of bitcoin:

  • Miners. Growing hash rate on the background of reducing the cost of the asset makes the mining process costly and unprofitable. Those who could not upgrade their hardware and find the cheapest electricity tariffs, retired. Bitcoin mining is concentrated in the hands of large mining farms that will soon be able to manipulate its course.
  • The decline in trading volume. Bitcoin still interested, but not so intense as before. Unlike last winter and spring, the trading volume decreased by 30%.
  • The lack of interest. American Institute of Gallup in the last quarter conducted a survey. It turned out that less than 0.5% of investors from the USA ready in the near future to invest in bitcoin. Google Analytics also confirm the decrease of people’s interest in cryptocurrency.
  • Bias of institutional investors. Funds not willing to invest large amounts, as dissatisfied with the conditions of storage and security of cryptocurrency.
  • The lack of ETF bitcoin. The economist believes that exchange traded funds (ETF) for bitcoin this year did not appear. When this happens, the assets will be available for retail investors. After the launch of ETF growth is to be expected the first cryptocurrency, because when there was a gold ETF, the price of precious metals increased by 350%!
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    26.06.2018: Why fall cryptocurrency? – 5 reasons

    Last year the digital asset has grown by leaps and bounds. During the year the capitalization of the cryptocurrency rose from $17.7 billion to $613 billion, a growth of 3300%! In 2018, the virtual currency fell to a minimum, and there are 5 reasons.

    5 reasons for the fall of cryptocurrency:

  • Technologies are not yet popular. The most important technology in the cryptocurrency is the blockchain, a decentralized block chain, which is responsible for processing, conducting monetary transactions and saving data. Blockchain technology can be implemented in the field of transportation, medicine, Finance, logistics, but experts do not hurry. While businesses and organizations are not willing to use unproven technology that has not demonstrated the ability to scale. News of intentions go out every day, but real examples yet.
  • Cryptocurrencies have no purpose. There is no catalyst, or the need for investors to switch to digital currency. That is Fiat money and traditional translations in the foreseeable future will dominate. Take the bitcoin. Most often it is bought in exchange for other digital assets and quick profits, but not in order to use in real life. Without the expressed usefulness of the cryptocurrencies are unlikely to be popular.
  • A hacker attack. Breaking the Bank is unlikely to collapse the price of gold or currencies with cryptocurrencies it is not so simple. According to the analysis of Carbon Black just for 5 months was stolen cryptocurrency worth more than $1 billion. This is followed by important consequences: firstly, it is an indication that the blockchain and cryptocurrency is not as protected as the developers say, secondly, without additional precautions it is impossible to obtain the trust of retail investors and financiers on wall street.
  • The interdependence of cryptocurrency. Regardless of how many crypto currency is your portfolio most of the assets follows the movement of bitcoin. No traditional fundamental indicators that investors can use to assess asset. Long-term course of cryptocurrency to predict, no one can.
  • The disinterest of institutional investors. Most investors on wall street are sitting on the fence. They are not eager to invest in decentralized assets, because of the high risk of theft or fraud. Companies that have already reached the cryptocurrency market, actively manipulate the course and contribute to its further decline. Thus, in particular, occurred after the introduction of futures on bitcoin.
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    13.06.2018: 3 reasons for the recovery of bitcoin prices

    Hacking crypto currency exchange and pressure from the financial institutions has negatively affected the course of bitcoin. However, experts believe that bitcoin will recover, and there are 3 reasons.

    The TOP 3 factors that will contribute to the recovery of prices:

  • Protection from hacker attacks. The news about the hacking of the largest exchange can negatively impact the entire cryptocurrency market. But what doesn’t kill bitcoin makes it stronger. Repeated break-ins and hacker attacks will lead to the fact that bitcoin and other digital currencies will be improved. Christian ferry, President BlockStar, said: “As with any technology for cryptocurrency break will be painful, but it will be an important factor in strengthening the cryptosystem, which will make her more secure. This is key for mass adoption of the digital asset”.
  • Investment giants. Major financial institutions are already investing significant funds and hire professionals to research trading opportunities of bitcoin. NASDAQ has announced the launch of the futures market of cryptocurrencies. Already this month under the control of NASDAQ will be running platform-exchanger DX.Exchange. Company Goldman Sachs last month, has offered its customers future contracts bitcoin. ICE, the parent company of the new York stock exchange (NYSE) is developing its own trading platform that will allow investors from wall street to trade cryptocurrencies.
  • Cheaper transactions. From the point of view of technology, bitcoin has made significant progress in solving the basic problems of network scalability. Technology SegWit, Lightning Network and Multi-Path Lightning Payments reduce the fees for transactions and provide better throughput. We should also mention the launch of Bitcoin Core 0.16.0 activated Protocol SegWit. Currently, about 40% of the bitcoin transactions are processed using SegWit.
  • The cryptocurrency, which is more than 300 times predicted the collapse and death, a very interesting future. Experts believe that the history of bitcoin is not yet completed, and should expect new highs.

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