Kyle Chapman, a partner of the tech venture capital company Cosimo Ventures stated that if a recession happens Bitcoin will likely survive it but Ethereum would very much suffer. As for Ripple, it will remain unaffected and this prediction is what we are reading about in today’s altcoin news.
Chapman believes that a recession won’t hurt bitcoin because of its decentralized nature and because of its independence from the stock market’s cyclical movements. However, the Federal Reserve chairman Jerome Powell believes that there won’t be a recession in the US anytime soon. Other economists agree with the statement.
As for the crypto market, Chapman says that Bitcoin can become a safe-haven asset while its price could increase during an economic crash. He stated:
“Faced with a recession, Bitcoin may serve a market function similar to that of a safe-haven commodity, rather than an equity, due to its inherent scarcity and decentrality. Bitcoin, by design, is not intended to be used as a foundation on which developers could build a platform or enterprise. Because its supply is not controlled by any one person or entity, it’s more likely that Bitcoin will perform independently of broad market pressures.”
On the contrary, Ethereum is expected to underperform during a recession because it is closely related with the equity markets than other cryptocurrencies. Also, ETH follows the stock market trends. Chapman continued:
“Because Ethereum is a developer-focused blockchain, it’s very much dependent on how many companies use the Ethereum platform to build their projects. If those companies were to go out of business, Ethereum’s relevance and, subsequently, its price, would undoubtedly be affected.”
As for Ripple, XRP would be unaffected by the recession because it is more alike as a medium of exchange that operates independently on the market:
“Because XRP functions outside the purview of mainstream markets, it’s certainly reasonable to believe that XRP would act independently in the event of a recession.”
Chapman believes that the recession is not really close yet. However, the digital asset industry should expect it because it’s overdue for one. If this happens, Chapman says that this is a good thing for the industry since when a disruption happens, wheat is separated from the chaff.
Analyst: BTC Will Break Higher In The Next Move Based On Yearly Trends
BTC Can Imitate Last Year's BounceCurrently, Bitcoin is over $4,000 and trading at around $4,057. The $4k mark and milestone was successfully passed after four months - BTC did not manage to make a sustained break above this price zone since late November of 2018 when it fell through it in an almighty dump. BTC has made it to $4,100 three times in four months and has fallen back pretty quickly. However, many predict a new breakout - and the good thing is that BTC did not fall below $3,000 which was another important milestone. According to the analyst with a Twitter handle ‘fil₿fil₿’ - BTC will rally from 25% to 50% if this formula holds. Previous rallies have all been over 25% and the highest was over 50% during April 2018 when Bitcoin managed to bounce from $6,600 to more than $9,000. https://twitter.com/filbfilb/status/1107791661491515392 "This tweet will self destruct in 7 days," the analyst noted.
Can Bitcoin (BTC) Visit The $5,000 Region: Trading Volume Says SoSince the current BTC volume is up, many are predicting the next move to be to $5,000. A similar ratio of over 25% would put BTC back to $5,000 over the coming weeks, which may echo a previous prediction using a different metric - when one analyst named Josh Rager predicted a move up to $5,000 by May 2019. Yesterday, Rager wrote: https://twitter.com/Josh_Rager/status/1107690544069836800 The daily volume has been a strong indicator of possible reversal into bullish territory. However, recent reports of fake volumes and manipulation by exchanges brought a lot of figures into question. Compared to the boom months of late 2017, this trend is still nothing and the trading volume is around half of what it was back then. Still, it managed to build up pretty fast and may be a strong indication that Bitcoin's next movement will be a break higher - eventually to the $5k waters - as many expect.
New Report Shows That Bithumb Is Laying Off 50% Of Its Staff
“Voluntary retirement is part of our support program for former employees and is intended to provide assistance and training for job placement. Apart from that, [Bithumb’s] trading volume has decreased compared to the previous year, [so] we are trying to provide internal measures. We will continue to add necessary personnel for various new businesses.”Bithumb still hasn't responded to the requests for comment. However, many speculate that this move is right because of the crypto winter which led to a lot of minuses all over the market. Still, what's interesting is that Bithumb has been preceded by many other firms in the sector - such as the mining giant Bitmain, the blockchain software company ConsenSys, the decentralized social network named Steemit as well as the similar crypto exchanges Coinsquare and Huobi - all of the companies which have decided to make significant cuts in the recent months. According to data from CoinMarketCap (CMC), Bithumb has seen more than $1.3 billion in trades over the past 24 hours. The exchange, however, was removed from the CMC global exchange rankings in January 2018 mostly because of the concerns that the site had over the reportedly "extreme divergence in prices from the rest of the world" and its fellow exchanges in South Korea. Currently, everyone is waiting for an official confirmation about the layoff from Bithumb. The respected exchange hasn't confirmed anything yet but will probably do that over the next couple of days.
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Bitcoin ETF: SEC Receives 84% Negative Feedback On Application
“It is in my opinion that Bitcoin to date has no solid ground on which to base a serious product such as an ETF on. It is volatile, manipulated by the very few and has no real use case.” “I can see a lot of people getting hurt both financially and in other ways by you accepting this proposal. It is in my humble opinion that this proposal be rejected.”Another commenter named D. Darnwell sent a letter in which he wrote:
“I would like to voice my disapproval of this Bitcoin ETP and would ask the SEC to take a much longer time horizon to take a ‘watch and wait approach’ to see if Bitcoin is worthy of becoming a financial product with all the positives and draw-downs it entails.” “Decline this ETP without hesitation.”However, one Bitcoin ETF proponent named Sami Santos was confident, stating:
“Regarding the argument of the SEC that has not yet approved an ETF because of manipulation and mainly appreciates the protection of investors is contradictory, because without an investment fund, the investor is susceptible to buy bitcoins in deregulated exchanges and lose their investments (bitcoins). VanEck already offers insurance to cover possible losses and as such, the investor will show interest in investing in an ETF fund. So I see no reason not to approve VanEck ETF and Bitwise.”To remind you, the September (2018) Bitcoin ETF application for VanEck SolidX Bitcoin Trust received more than 1,400 comment letters - of which 99% were positive. However, because of the crypto winter, this enthusiasm has dwindled. Currently, no one knows if this Bitcoin ETF will be withdrawn. If that's the case, the 240-day deadline clock will reset itself and be set once a new filing is submitted.
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