Connect with us

Bitcoin

Ethereum Classic Is Down 30% Since Its Listing on Coinbase

Published

on

The price of ethereum classic (ETC) has depreciated more than 30 percent against the U.S. dollar since its listing on Coinbase.

Prior to the August 7th listing date, ETC’s price surged on two recent occasions, the first of which began on June 11th when Coinbase announced its intention to add ethereum classic to its platform. ETC’s price went from $12.19 to $16.40 over the next 48 hours, printing a 34 percent gain.

The next and most dramatic boost began on August 3rd, following another announcement from Coinbase which stated that ETC trading would finally go live on August 7th.

From August 3rd to the 7th, the price rose more than 50 percent in U.S. dollar terms, hitting a peak of $21.25, according to data from Bitfinex.

It’s not exactly a surprise when prices rise significantly after news of this nature is released, as investors would regard an asset as undervalued when taking into account the potential for a large cash flow increase that may accompany an exchange listing.

That said, this period of volatility often causes prices to rise to an amount where the asset is no longer considered undervalued, setting the stage for a market sell-off.

Ethereum classic was no exception to this reality. After the recent price high of $21.25, the price has fallen more than 30 percent versus the US dollar and is currently trading at $15.

That said, it’s worth noting that the entire cryptocurrency market has been in a major slump as of late, shedding billions of dollars worth of market capitalization value during Wednesday’s trading session.

Ethereum classic emerged in 2016 following the divisive collapse of The DAO, the ethereum-based funding vehicle that failed following a debilitating code exploit. An eventual “fork” of the ethereum blockchain to unwind losses tied to the DAO resulted in two distinct blockchains.

Disclosure: The author holds BTC, AST, REQ, OMG, FUEL, 1st and AMP at the time of writing.

Image via Shutterstock; Graph via TradingView 

This article has been updated for clarity. 

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.

Join 10,000+ traders who come to us to be their eyes on the charts, providing all that’s hot and not in the crypto markets.

Advertisement

Bitcoin

Crypto market overview: Tether issues drag Bitcoin and major altcoins down

Published

on

  • Bitcoin and major altcoins continue to drag out their miserable experience in tight ranges.
  • Tether is losing popularity despite that the volatility is over.

Cryptocurrency market is still trapped in a range, however, all major coins seem to be creeping down with the total value of digital asset market reduced to $209B.

BTC/USD is changing hands at $6,406, losing about 0.44% since this time on Monday. Listless trading evaporates speculative interest towards the digital coin No.1, though both volatility and trading activity might return once $6,400 handle is broken.

Ripple’s XRP is down 1.5% in recent 24 hours, changing hands at $0.4578 with a bearish bias. More downside may be in store for XRP/USD, once $0.4500 is cleared.

Ethereum in unmovable at 204 handle. The second largest coin by market value shows no signs of squeezed in the range between $200 and $207.

Litecoin is trading at $52.21, mostly unchanged both on a day-to-day basis and since the beginning of Tuesday.

Ripple effect of Tether issues

Unexpected Tether volatility caught traders by surprise at the beginning of the previous week. While the dust settled and all major coins returned to the safety of their ranges, the incident can have more profound consequences than a couple of wild swings on the market. Traders are spooked by such behavior of a stable coin that is meant to be just that – stable. That’s why many of them have opted out for other digital assets or other stable coins,

“For traders, the instability of Tether provides an interesting conundrum of whether to opt into other more regulated stable coin options such as Gemini dollars, Circle dollars or True USD, which offer the same 1:1 to USD option to Tether, but with more apparent robustness and security,” says Aditya Das, economist at Brave New Coin.

“Liquidity and availability have likely been Tether’s greatest driver of value and popularity, but with a new number of stable coin options tradable on major exchanges like Huobi and Okex, the stablecoin flippening may continue to unfold.”

What will come out of it? We shall wait and see.

 

Continue Reading

Bitcoin

Bitcoin slides under $6,400 as Dogecoin creator says institutional investors will kill the industry

Published

on

  • BTC/USD is creeping lower, but the momentum is weak so far.
  • Jackson Palmer believes institutional investors will do more harm than good.

Bitcoin is changing hands at $6,393. Despite range bound trading, the biggest cryptocurrency has lost over 2% in recent 7 days and moved to trade at the lower line of the recent channel. While the longer-term picture confirms the indecisiveness on the market, the further decline may tilt the balance in favor of Bitcoin bears.

Bitcoin’s short-term technical picture

BTC/USD has moved under SMA200 (1-hour) and psychological $6,400, which might lead to a more extensive sell-off once the breakthrough is confirmed. The next downside target is produced by $6,355 (October 19 low) and $6,300 handle. Once below, the bears will have a chance to push the coin towards critical $6,200 and possibly $6,060 (the recent low).

On the upside, we need to return above $6,400 and see a sustainable movement above $6,480. In this case, the recovery may be extended towards $6,500 that capped the upside since  October 16.

No institutional investors, please

While the industry is frantically waiting for institutional money, Jackson Palmer the creator of a joke coin Dogecoin believes that it will kill the industry by turning in into Wall Street 2.0. Recently he posted a tweet where he confessed that he did not understand why people were so enthusiastic about institutional investors.

“The institutionalization of cryptocurrency will heavily re-centralize both power structures and token distribution. So you can say goodbye to much of the original vision for the technology.”

He is also worried by the fact that 1% of all cryptocurrency wallets hold 55% of all the Bitcoins in the circulation. He is sure that institutions will deepen the divide and inequality of digital assets distribution.

BTC/USD, 1-hour chart

Source: fxstreet

Continue Reading

Bitcoin

Physically settled Bitcoin futures to go live on ICE’s Bakkt platform on December 12

Published

on

  • ICE published a press-release with a proposed date of Bakkt platform launch.
  • The futures will be traded in dollar terms with settlement agains USD, EUR, and GBP.

The Intercontinental Exchange, a parent company of the New York Stock Exchange revealed that it would launche Bitcoin Futures on Bakkt platform on December 12, according to the official press release published on Monday.

Bakkt will offer physically settled bitcoin futures contracts and hold Bitcoins to back the futures in the ICE Digital Asset Warehouse. The contracts will be cleared through anouther ICE subsidary, ICE Clear US.

“Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day,” the press releas goes.

The minimum price movement will be set at $2.5, while  Block Trades may be executed at $0.01 per Bitcoin.

Why is it important?

Bakkt is supposed to provide a regulated ecosystem for institutional players that want to get exposure to digital assets and stay compliant with the regulatory requirements. Moreover, the unlike the rival platforms, Bakkt will offer deliverable futures against three major fiat currencies (Euro, USD, GBP). CBOE and CME have only non-deliverable futures for Bitcoins.

Source: fxstreet

Continue Reading
Advertisement
Advertisement
Open

Close