In the latest cryptocurrency news, we are seeing big drops both in the price of Bitcoin and other tokens – as well as the prices of the global stock markets which crashed. The US, South Korea and China are among the countries which see red in their stock markets.
Since cryptocurrencies are considered as viable long-term investments (especially by millennials) they are still vulnerable to the weakening global economy and the asset class isn’t able to perform as a solid hedge against uncertainties in the market.
Historically, there hasn’t been big correlation between the crypto market and the global stock market and the traditional markets such as equities. The price movements were always independent, regardless of how the financial market performed.
Currently, the US stock market is seeing one of the worst sell-offs in history and the trade war between US and China led to a new decline in the valuation of the Chinese stock market. These weakening markets directly affected the economy of South Korea which was already in decline due to the low growth rate within the country.
As Alvin Cheung who is an associate director for Prudential Brokerage said, speaking with SCMP:
“There is a lot of negative news about the US criticising China before Trump and Xi meet next week, and that has dented sentiment. The mixed messages could be the US trying to win some bargaining chips for the upcoming meeting. Investors are on the sidelines, closely watching to see if the meeting will yield any concrete results.”
Crypto could easily become a store of value just like gold – used by investors to hedge against the global economy. The lack of liquidity and a solid infrastructure for retail traders, however, makes cryptocurrencies unable to operate as a hedging tool for large-scale investors. Hopefully this will change in the future and crypto could potentially work as an asset that has huge correlation with the global financial market
Analysts Confirm: The Bomb Threats Aren’t The Reason For The BTC Price Drop
“Please be advised – there is an email being circulated containing a bomb threat asking for bitcoin payment. While this email has been sent to numerous locations, searches have been conducted and NO DEVICES have been found.”Also, it is highly unlikely that the bomb threats cause the price to decline because the closing of the investigation would lead for the value of BTC to rise since there were no devices discovered that were connected to the bomb threats.
Coinbase Adds PayPal Withdrawals To Its Platform (For U.S. Citizens)
“There is new technical work to make this possible, and that was done in conjunction with PayPal.”However, this Friday Osgood wrote that the partnership provides Coinbase customers an alternative to the traditional federal wire or automated clearing house (ACH) network that they were required to use. As he said:
“These traditional finance networks can add up to two business days to a withdrawal. We’re always looking for ways to not only meet the bar set by traditional finance, but raise it. That’s why we rebuilt our integration to ensure that the speed and reliability of PayPal withdrawals does just that.”The service is for now only available to customers in the United States, but could continue to be added to other nations across 2019, as Osgood wrote.
Bitcoin Plunges To A Yearly Low, Market Is ‘Prepared’ To Go Below $100 Billion
“As BTC is approaching the target of the 2014 fractal the targets of most people change from 3k to 1k and even lower. I still think $2,700 is an excellent place to buy if we should go there. ‘History doesn’t repeat itself but it often rhymes.’”Currently, there is a big risk in shorting and longing Bitcoin and other major cryptocurrencies in the market, which is why investors are observing the short-term trend of the crypto market by holding out on their trading activity.
Circle CEO: ‘’Bitcoin Will Be Worth A Great Deal More Than Today’’
“I don’t make significant price predictions. But it’s certainly going to be worth a great deal more than it’s worth today. I am long in the market.”Allaire says that the people who lost a ton of money in the bear market will only get back into the game because of the fundamentals of cryptocurrencies and that they won’t change despite the downturn in prices. He also believes that bitcoin plays a huge role as a non-sovereign store of value. Allaire continued to explain:
“The key thing with bitcoin is that it is unique in its security and its scale. As an idea that we need a scarce, non-sovereign store of value that individuals can hold in a protected fashion — that’s attractive all around the world.”However, he thinks that some of the digital currencies will eventually die off due to overcrowding of the market but this doesn’t mean that if one digital currency succeeds that the rest will cease to exist. When asked about the burning question of regulation, he says that the United States has one of the most transparent regulation since most of the digital currency and banking systems have already been regulated, many of which this year only. Circle is already regulated under the Bank Secrecy Act and money transmission laws and this is a very important element for all the customers and users.
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