Strong price movements with double-digit percentage changes over the next 24 hours attracted many speculators to the crypto market at the turn of the year. The subsequent downward slide caught many adventurers on the wrong foot. And also the small price movements for some weeks rather deter investors. Bitcoin has long since ceased to dominate the headlines on the major news portals, and search queries on Google have reached their lowest level since spring 2017, depending on the region.
The consequences can be seen clearly in the course of the price: Since the turbulence surrounding Tether and Bitfinex last Monday, the range of fluctuation has continued to decline. Over the past six days, the range has been around 150 dollars. Fresh chart technical signals are scarce, the price continues to run below the downward trend existing since the beginning of the year. Heading south, on the other hand, is the broad support zone below 6000 dollars.
What remains are many open questions. The rumours about Tether and Bitfinex are receding into the background, but the all-clear cannot yet be given. Currently the price is 0.97 dollars, so tether is still traded at a discount.
It is also skeptical that those responsible tend to keep a low profile and that hardly any clarifying facts are communicated. In such a situation, transparency should be at the top of the agenda in order to regain confidence. In addition, Bitcoin continues to be priced at a premium over other exchanges such as Coinbase and Bitstamp on some exchanges such as Bitfinex and exmo.
But there are also hopeful signals. The countdown for Bakkt’s Bitcoin futures is gradually beginning. The exchange operator Intercontinental Exchange (ICE) launches new Bitcoin futures on 12 December. Unlike the CBOE and CME products, these are physically backed futures. Volatility could then rise again. There is also hope that fresh money will flow into the market and that new investors will discover Bitcoin as an investment alternative.
Only yesterday Coinbase came out with a big announcement of their approved Trust Fund that will be able to offer custodial services for institutions and offer support for 6 biggest cryptocurrencies.
Also interesting: Despite the lethargy of the Bitcoin, the number of transactons per day has been rising noticeably for several months now and is back at its highest level since the end of January. According to Mati Greenspan, Senior Market Analyst at CFD broker eToro, this has been a typical indicator in the past that a flat cycle is being completed.
Ripple keeps adding new partners to their products – mostly to the XRP unrelated xCurrent but there have been couple of announced partnerships with institutions that will also use the XRP-based xRapid. The high-roller team that is behind the Ripple company swims well in the waters of traditional system and chunk by chunk keeps fortifying Ripple position in the financial world.
It is calm on the surface but the machine is rumbling and getting warm in the background. The bulls are in sight.
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