The cryptocurrency market continues to display strong volatility, but some coins are showing signs of recovery as of Friday morning. While drops are slowing down and becoming smaller, traders are again being offered a solid showing of just how vulnerable the cryptocurrency space remains.
Bitcoin has fallen by more than $200 since our last price piece and is now trading for $7,502. The price experienced a serious drop earlier this week, toppling from over $8,000 to the mid-$7,000 range – the lowest it has been since early April.
These sudden and continual drops have raised serious questions regarding the vulnerability of Bitcoin’s price and its exposure to outside manipulation. Authorities from the United States Justice Department are now beginning an investigation of illicit trading practices and price manipulations in both Bitcoin and altcoin arenas.
Representatives of the Department have explained that they will be examining specific tactics that can potentially cause negative swings in crypto prices. These include spoofing (also known as market rigging) and fake order market flooding, which can trick traders into poorly evaluated buys and sells. Federal prosecutors are also working with the Commodity Futures Trading Commission (CFTC) to gather relative data.
Per University of Texas finance professor John Griffin, Bitcoin and cryptocurrencies remain heavy targets of criminals and illicit activity. As a teacher of monetary policy and regulation, Griffin has studied price manipulation in the past, including manipulation in digital coin markets.
Griffin stated that there’s very limited oversight regarding crypto-trading, making it a natural target for financial schemes:
“There’s very little monitoring of manipulative trading, spoofing and wash trading…It would be very easy to spoof this market.”
Ethereum has lost nearly $20 in price since our last article, dropping from $616 to $599.
During the recent Ethereal Summit, Viant – an Ethereum-based platform backed by ConsenSys – used blockchain technology in a supply chain management project to help users track the source of their seafood in order to build a more “ethical and human fishing industry.”
The process works by attaching radio-frequency identification numbers to fish that are caught. This allows the fish to be monitored via geolocation and helps to determine if the animal was caught in sustainable waters without forced labor.
The data is accessible to virtually anyone and passes through multiple parties, creating a trustless and unchallengeable record for all to examine.
Since our previous price discussion, Ripple remains largely unchanged and is trading for about 60 cents.
Positive news emerged for XRP after London-based fintech startup Revolut announced it would be adding Ripple to its crypto-tradingapp, allowing users to purchase and trade XRP for any of the platform’s listed currencies.
Revolut chief technology officer Vlad Yatsenko explained:
“We’ve been asking the Revolut community which cryptocurrencies they would like to see next, and the demand for XRP has been absolutely overwhelming.”
Bitcoin Cash (BCH)
Bitcoin Cash also remains similar to our last price discussion and is trading for roughly $1,020.21.
BCH will be joining XRP on Revolut’s crypto-trading app, but the currency has ultimately lost about 17 percent of its value over the last 24 hours.
UK managing director at E-Toro Iqbal Gandham says that BCH is experiencing great difficulty in convincing the crypto community that it truly is a derivative of Bitcoin, and that it can provide a stable framework for transactions.
“This lack of clarity has repeatedly called into question the authenticity of Bitcoin Cash. Until that is resolved, the direction of price movement will always carry an air of uncertainty.”
Litecoin has fallen to $121. That’s two dollars less than where it stood during our previous price article.
The #paywithlitecoin movement has been doing wonders for the currency, as Charlie Lee – founder of Litecoin – recently announced on his Twitter page that LTC is now accessible to over 130,000 businesses thanks to newfound partnerships with platforms like iPayment Inc. and Aliant Payment.
The cryptocurrency market has continued to shed its weight in billions. This time, however, the total market cap sits at $335 billion – roughly $7 billion higher than our previous price piece.
Investors are warned to stay privy to these price swings and trade only what they can afford to part with.
Bitcoin ETF – Here’s what some experts see ahead
In an interview on CNBC, Todd Rosenbluth of CFRA and a top ETF consultant Chris Hempstead said to Bob Pisani about the likelihood of a Bitcoin ETF.
So the pair said that the ETF itself is not the problem “It’s the underlying asset”. The fact that some of the exchanges are abroad and the regulations in those jurisdictions are a concern for the SEC. They also cited custody and price manipulation as the main concern. Custody seems to be getting better in some cases as Bakkt has proven with their latest Bitcoin futures product. They provide physical delivery and have a safe storage solution.
They also said they dont think we will not see a Bitcoin ETF too soon as it’s hard for asset managers like Bitwise to “disprove a negative”.
The question was asked about how companies like Bitwise and SolidX get round the manipulation and the fact that some of the brokerages are overseas.
It was said that the Grayscale method should be shown to the SEC as that is a fund that has worked and not been compromised.
VanEck and SolidX went to a select few private firms after working out a way to get around the SEC’s regulations to sell the product to a select few investors and Bitwise’s latest attempt failed. This has led to some soft sentiment in the digital currency world but all is not lost as there are said to be more plans to try again in the future. Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
Bitcoin technical analysis: Support levels are in focus for now
- Bitcoin is struggling once again but the price has found some support at an internal trendline.
- Below the price level at the moment is the psychological 8,000 level.
Bitcoin is struggling like most cryptocurrencies today. The BTC/USD pair is currently trading 2.63% lower as sentiment remains weak. The price on the hourly chart is making lower highs and lower lows after the pivotal 8,233.00 support level was broken. The price is currently just under the value area now 8,164.17. This is the price where most contracts have been traded on the Coinbase exchange.
The interesting thing on the chart is the internal trendline it was respected five times in total. Two times in a previous wave series and then three more times after it was broken on October 9th. The next support level is at the 8K psychological support level and below that the consolidation low of 7701.00.
On the daily chart, the price is still firmly in a downtrend and this will only continue if the wave low of 7701.00 is broken to the downside. On the upside there is some way to go before the consolidation wave high is taken out at 8,826.00. Only when this is broken can we talk about a price recovery.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.
Bitcoin Whale Transfers Almost $25M in BTC from Binance to Gemini
A major player in the cryptocurrency space has just moved 3,000 BTC from Binance to Gemini. The reason for the transfer is still not clear.
It seems like yet another whale in the cryptocurrency market is again flaunting his or her money. A recent massive transfer was picked up by Whale Alert (@whale_alert) which notified the rest of the cryptocurrency community that 3,000 BTC ($25M) was being moved from Binance to Gemini.
There are a few possible catalysts for such a major move, but it seems most likely that someone is cashing out some BTC on Gemini through an OTC sale. Interestingly enough, the move came just a few hours after Bitcoin rebounded from the $8,280 price point to $8,380 or so.
Major whales have been making moves in the past few days. As BeInCrypto has reported on this past week, just two days ago one whale moved 1,000 BTC to an external wallet presumably to HODL. Another whale yesterday moved 650 BTC ($5.3M) from Coinbase to an external wallet as well, another indication that accumulation is happening behind the scenes. This uptick in high-value transfers to external wallets indicates that something may be brewing in the background.
However, this particular transfer of 3,000 BTC does not appear to be a whale interested in HODL’ing. Instead, this is transfer is likely for a possible sale or, at the very best, purchasing of altcoins on Gemini. The market has not responded to this transfer, but this is just one piece of the puzzle.
Recently, the market has been quiet, but the odd increase in high-value transfers makes one wonder — could we see a major move for Bitcoin in the coming weeks? Maybe the whales are giving us a hint.