Price action: smells like 2017 — so beware
I write a newsletter on Bitcoin and cryptocurrency every Sunday morning. Got this from a friend? Sign up here. — E
Price action: smells like 2017 — so beware
Bitcoin’s price rose above $7,500 (C$10,066) Sunday for the first time in over nine months, a day after the trend appeared to switch to a long-term bull market, analysis says.
If that is true, it is just like 2017 come again. Remember when Bitcoin reached heights of $20,000? The scams, the useless initial coin offerings (ICOs) to raise funds for pointless projects and the meaningless hype that drove everyone swarming into cryptocurrency — it will come back.
And then the crash at the end of 2017. Rinse. Repeat.
All that is, of course, predicated on this’s actually being a bull market.
There are indeed bullish factors this week. Fidelity Investments, one of the largest financial asset managers in the world, says it will soon buy and sell Bitcoin for institutional customers.
U.S. regulators say they are willing to approve such future contracts, a type of mainstream financial instrument, for Ethereum’s Ether, the world’s second largest cryptocurrency. Yet another Bitcoin exchange-traded fund (ETF), another mainstream financial instrument, has been filed with regulators.
Facebook reverses its policy barring cryptocurrency ads as it moves full-steam with its digital coin. Facebook’s cryptocurrency initiative now has a name, Project Libra, and the U.S. Senate is pressing it for more information.
But consider this time last year, when Bitcoin rose from the end-2017 crash to almost touch $10,000. It never did touch it and continued falling.
Bitfinex is at $6,886 (C$9,242) as of 10 a.m. Sunday, Mountain Time, up more than 20 per cent for the week. The world’s biggest cryptocurrency fell on Monday, but went on a continuous uptick the day after, breaching $7,000 on Saturday.
World: Binance hack ripples across the globe
Hackers have stolen more than $40 million worth of Bitcoins from Binance, the world's largest cryptocurrency exchange. Users are unaffected. But its founder was roundly condemned when he was late in shutting down a suggestion to use Binance’s influence to rewrite the Bitcoin blockchain to recover the funds — unprecedented and complicated, but theoretically possible.
Canada: Hut 8 losses; Quadriga assets
Vancouver’s Hut 8, which says it is the world’s biggest publicly listed mining company, has reported losses running to $136 million for 2018.
Vancouver’s QuadrigaCX, the exchange that collapsed after the death of its founder late last year, has just $21 million in assets, but owes creditors $160 million.
If you like what you've read, I welcome donations.
Bitcoin address: 1HrH18sn1fP5Fmr2RkmsFtCjcNsh2EVoxw