Bitcoin, Etereum, Ripple Need to Know News
$BTC.X $ETH.X $XRP.X
Bitcoin bounced back over 30 percent to $8,500 after falling below $6,000. It is still 60 percent off the $20,000 peak seen on December 17. Bitcoin’s jump has positively affected other cryptos, as the overall market cap rebounded by nearly $100 billion in 10 hours. All 100 top currencies from G-BiT X were trading higher Wednesday, after nearly a month of declines. Ethereum added 30 percent to $824, ripple rose to wave of 20 percent to $0.78.
This is a cycle that has been repeating, heavy shorting on futures Monday, Covering Wednesday, this will lead to many shorters being burned in the near future.
Wednesday’s uptick comes despite Goldman Sachs’ prediction that most cryptocurrencies will fall to zero, repeating what other analysts have said about the absence of intrinsic value in them. Prominent economist Nouriel Roubini also said Tuesday that investors “will hold their melting bitcoins all the way down to zero.”
This week, a Finder.com website has polled several entrepreneurs and investors in cryptocurrencies, and despite the recent bearish news, they forecast that bitcoin will reach $15,000 by March and exceed $43,000 by year-end.
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Be Careful Which Cyptos You Buy
Most digital currencies are unlikely to survive in their current form, and investors should prepare for them to lose all their value as they are replaced by a small set of future competitors, said Goldman’s Steve Strongin in a note.
“The high correlation between the different cryptocurrencies worries me,” he said, adding: “Contrary to what one would expect in a rational market, new currencies don’t seem to reduce the value of old currencies; they all seem to move as a single asset class.”
According to the expert, cryptocurrencies aren’t likely to be winner-takes-all but some level of consolidation is extremely likely. When that happens, the coins which lose popularity will diminish in value to zero, leaving investors with nothing, Strongin explained.
“This is actually an important distinction between cryptocurrencies and fiat currencies; if a government decides to phase out a currency, it will typically determine a residual value for that currency and exchange that currency for a replacement one,” he said.
Strongin also said that today’s virtual currencies lack long-term staying power because of slow transaction times, security challenges and high maintenance costs. He added the introduction of regulated bitcoin futures hasn’t addressed those concerns.
“Are any of today’s cryptocurrencies going to be an Amazon or a Goggle, or will they end up like many of the now-defunct search engines? Just because we are in a speculative bubble does not mean current prices can’t increase for a handful of survivors.
“At the same time, it probably does mean that most, if not all, will never see their recent peaks again,” said Strongin.
He added that Goldman remains optimistic about how blockchain could make businesses more efficient, especially banking. “It’s only a matter of time,” Strongin concluded.
Currencies like G-BiT are very different from the rest of the crypto market.
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— JGauthierot (@JimmyGauthierot) January 31, 2018