The cryptocurrency market shows signs of a recovery today, with the price of Bitcoin rising again, this time by 1.25% to come closer to the $6,500 level. However, not every major cryptocurrency is a winner today – especially not Ethereum (ETH).
The second largest cryptocurrency by market cap, Ethereum, has been struggling to reach the $300 level which, according to analysts, is crucial for its short-term performance. Today, ETH dropped by more than 2% and is now stable at a price of $290.
Right now, it seems like Ethereum cannot re-attempt the yesterday’s move towards the $310 price – and is right now recording an 8% weekly loss and 37% monthly loss accordingly. Since crashing the $300 level on August 13th, Ethereum continues to trade at a price point which is quite unusual and which we haven’t seen since November 2017.
Meanwhile, Bitcoin is pushing the $6,500 level and seems to be only one of the very few cryptocurrencies that are rising today, along with Stellar (XLM), both recording sub-1% gains. Monero (XMR) surged by 4% and is now trading at $99.55, and Tezos (XTZ) has risen by 10%, now trading at $1.53 as the biggest winner this Monday.
No one knows what this week will bring to the crypto market. It is safe to say that Bitcoin has stabilized at $6,500 and Ethereum must follow BTC’s path and stabilize around $300 before new short-term rallies.
The market currently remains volatile and analysts believe this could continue – mostly because of the news of another Bitcoin ETF being expected to get approved by February 2019.
Ether Is Consolidating The Losses Against Bitcoin
Cameron And Tyler Winklevoss: It’s Bitcoin’s Bottom Of The First Inning
"We still think it’s the bottom of the first inning."The Winklevoss twins first invested in bitcoin back in 2013 and they said that at first bitcoin didn’t sound like a good idea but after a few tequila shots it started making sense. Now, they have about 1 percent of all bitcoin outstanding. The twins reportedly plowed millions from their settlement with Facebook into bitcoin of course. After they saw that the investment balloon will be estimated for billions of dollars, they claim to have taken away the sting from having Facebook kidnapped from them. The Wall Street Journal apparently asked them what happens when the twins meet with Zuckerberg at a crypto conference and the twins answered:
“Welcome to the party, what took you so long?”Regarding Libra, Facebook’s cryptocurrency is looking less as a cryptocurrency. David Marcus who works at the development center for Libra reportedly wrote to the lawmakers:
"We want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”Meanwhile, the policymakers have a hard time to understand and to find a way how to handle Libra but they can’t stop bitcoin at least not anymore. Cameron and Tyler Winklevoss noted:
"To shut down bitcoin you have to shut down the internet...like North Korea. Countries will have to play with it."As per the coming altcoin news, the twins see future where Zcash and Ethereum will have a very important role mainly because of their privacy features. As for Gemini, the competitive landscape is only warming up. Poloniex, for example, allowed purchasing cryptocurrency by using credit and debit cards, Binance is coming to the United States and CEX.io also opened a new US office.
ECB Official Warns: Libra Could Be Very Dangerous Without Rules
‘’It’s out of the question to allow them to develop in a regulatory void for their financial service activities, because it’s just too dangerous. We have to move more quickly than we’ve been able to do up until now.’’The entire ECB executive board believes that digital currencies will represent the ‘’wake-up call’’ for regulators around the world. He believes that this could result in regulatory entities making improvements in their operations. Facebook’s plan is to launch a digital currency which will trigger central banks and all policymakers across the world. The U.S. congressional committee asked the social media giant to stop the operations regarding Libra. Also, the House Financial Services Committee noted issues that touch the security nature of the cryptocurrency and Facebook’s troubled past regarding data privacy:
‘’Because Facebook is already in the hands of over a quarter of the world’s population, it is imperative that Facebook and its partners immediately cease implementation plans until regulators and Congress have an opportunity to examine these issues and take action.’’The House Financial Services Committee also warned that if Facebook decides and launches Libra prior to the legislative solutions, the result will be a new ‘’Swiss-based financial system that is too big to fail.’’ The committee also stated that it will further hold public hearings on crypto-related matters next week. As noted in the latest cryptocurrency news, the Reserve Bank Of Australia Governor Philip Lowe indicated there are a lot of regulatory issues regarding Libra. In Asia, the Bank of Japan also warned that Libra poses a huge threat to the current financial systems.
Bitcoin Binance Report Shows Market Growing Independently
“Bitcoin (BTC) became less correlated with other crypto assets in Q2 2019 relative to the first three months of 2019,” read Binance. “Correlations declined between Bitcoin and altcoins, with a decrease in the average correlation of -0.11.”A perfect positive correlation in retrospective, between two assets, shows their 100% probability of moving in the very same direction. Also, a negative one means that the two assets would run in the opposite direction so altcoins with a correlation score above 0.5 show a positive correlation between the assets. The Bitcoin Binance report shows that Ethereum came really close to Bitcoin with a 0.81 positive correlation in the second quarter of this year down by only 0.889 from the previous quarter. XRP-to-Bitcoin correlation also dropped from the 0.875 in the Q2this year to 0.69 in Q1. The statistics show the same results to the rest of the cryptocurrencies including MIOTA, Bitcoin Cash, EOS, Litecoin, Bitcoin SV and others. The leading cryptocurrency trapped more than 63 percent of the entire market valuation leaving other cryptocurrencies with small influence. Binance named it as a ‘’fight-to-quality behavior’’ which is a term used to indicate the investors’ partiality towards what they believe is the most bullish crypto asset. Excerpts from the report show:
“The overall market capitalization rose by 139%, whereas altcoin aggregated market capitalization (including stablecoins) increased by “just” 71 percent over the same period. This can likely be attributed to a “flight-to-quality” behavior by crypto investors in an early bull-market state.”The statistics followed the similar findings of the Gabor Gurbacs of VanEck since it was noted that Bitcoin left all of the top ten cryptocurrencies and smaller cap altcoins behind in the past 12 months. As noted in some of the best cryptocurrency news sites, Binance reflected a shift in the investors on the crypto market but also on their mindset. They consider Bitcoin much safer now than most of the alternative assets.
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