Analytics / Forex and Crypto News
This week after a long period of bearish pressure, Bitcoin managed to rebound from a minimum to $4300 and with the altcoins that follow him, establish some stability in the market. In the last 24 hours, with a price of $4314, Bitcoin has reached a market capitalization of more than $75 billion, showing an increase of 2.64%.
Ripple, having fallen down by 0.67%, remained just above $0.380, retaining the second position in the ranking. Ethereum (ETH) showed the price $ 118.94, lowering the level of supposed resistance to $120. In general, the main cryptocurrencies published insignificant profits. However, as usual, there were several notable price spikes.
Popular ZCash (ZEC), focused on confidentiality, grew by 10.39%, which, according to experts, was the result of news about the addition of cryptocurrency to the professional exchange platform Coinbase Pro. Over the past day, Stellar also managed to continue its bullish trend and climb by 7.79%. This gives investors hope for a possible listing of Stellar Lumens (XLM) on Coinbase Pro.
The Bitcoin support line fixed above $4200, it’s a bull sign, but experts disagree about the bullish breakthrough and believe that the difficult times for both Bitcoin and the following altcoins are not over.
Fred Wilson, a well-known venture capitalist who saw the times of prosperity and the collapse of the dot-com, recently spoke about “what a bear market for new industries means” in his popular personal blog. Referring to his many years of experience in the emerging markets, Wilson noted that, despite the shrinking market of critical assets, investors don’t intend to retreat.
Comparing the early stage of the Internet development with the emergence of the cryptocurrency ecosystem, Wilson gave the example of Amazon (AMAZ), whose share value, after the bubble burst, fell by 80% from $90 per share, and during 2 years decreased more. Amazon shares could even be bought for $6. And only six years later, in 2007, the value of the shares exceeded the maximum of the dot-com times.
The cost of cryptocurrency in dollar terms has decreased by 80-95% over the current year. Stating this fact in the context of historical experience, Wilson, with some hesitation, warned crypto enthusiasts about a possible deeper subsidence. But, by analogy with the development of the Internet, he confirmed the idea that all innovations are subjected to cruel testing in order to create true value.
Michael Buchella, BlockTower Capital’s partner, also took the view that the fall cycle would continue, but he was optimistic that it was about to end.
The former executive director of Goldman Sachs Canada, referring to the history of the Bitcoin development, noted that the last stage of crypto assets is usually the most unstable, but short-lived.