Caution Civilians, Professional Traders Are ‘Playing’ Bitcoin
$BTCUSD, $CME, $CBOE
Bitcoin faced one of its biggest tests this week, losing almost 20% of its value after the world’s largest cryptocurrency marked a record high Monday.
Friday, the digital currency plunged as much as 30% before paring losses, as this week’s selloff extended to a 4th day running.
The weekly decliner is the biggest in almost 3 years.
Bitcoin dropped to as low as $10,776, before recovering to $14,303 at 4:04 p in New York.
Currently Bitcoin is trading at: 15,405.5146, +1,584.10, or +11.46%, as of 11:06p GMT, the market is open.
Other cryptocurrencies also tumbled: ethereum dropped as much as 36% and litecoin slumped as much as 43%, according to composite prices on the markets.
It last traded below $10,000 on 1 December when the US Commodity Futures Trading Commission (CFTC) agreed to allow trading in Bitcoin futures.
The price of the ‘token’ had more than 2X’d in the prior 3 weeks.
The Bears cast doubt on the value of the virtual assets, with UBS Group AG this week calling Bitcoin the “biggest speculative bubble in history.”
Bulls argue the technology is a game changer for the world of investment and finance.
Both will be closely watching the outcome of the current selloff.
Bitcoin price has been heavily driven by retail ‘civilian’ investors who really know the game, and there be aggressive players looking for the right opportunity to hammer it further, as there is no asset backing Bitcoin, price is not an asset.
Participants who bought the cryptocurrency on futures exchanges using collateral may start facing margin calls following the price decline.
Coinbase, 1 of the world’s largest cryptocurrency exchanges, said all buying and selling was temporarily disabled during today’s meltdown, after having delays in processing wire transfers and verifying new customers for the past week due to higher traffic.
Bitcoin transaction volume jumped more than 30% on Coinbase’s GDAX exchange, while fees to approve and record the transactions on the blockchain surged to a record $55, according to Bit Info Charts.
Bank of Japan Governor Haruhiko Kuroda said Thursday Bitcoin isn’t functioning like a normal means of payment and is being used for speculation.
Nevertheless, cryptocurrencies are attracting established players.
Goldman Sachs Group Inc. (NYSE:GS)is setting up a trading desk to make markets in digital currencies such as bitcoin, according to people with knowledge of the strategy. The bank aims to get the business running by the end of June.
All of the above being the case, we have been recommending GBIT our favorite crypto-coin exchange, where professional traders and civilian participants alike can trade securely on the world’s most innovative digital asset exchange.
Worth the Investment
Daphne Diaz, a struggling single Mother from the Bay Area expresses her gratitude about GBIT.
I like most single mothers living in the Bay Area struggle pay check to paycheck on a $60k salary trying to figure how I am going to continue taking care of my 3 children. As they get older I find that it takes more money than I can afford to provide basic needs each month and at the end of that month there is nothing left for me. Like most single moms, my kid’s father does not help with any of our expenses.
Everyone at my job talks about cryptocurrency. Those that understand it dump a lot of money into it and those that do not understand put what they can afford to try and be a part of the instant wealth group.
With Christmas coming in 2 weeks I sat my kids down and explained that Santa may not be able to come with all of the things they wished for this year and it was very heart breaking news. The social pressure at school alone had my 11 year old daughter in tears. When this happened I told her do not worry, we will be okay.
That evening I started reading up on cryptocurrency and how it works. The next day I got involved in the conversation at work and people were suggesting all of these different currencies to get into and they all seemed like a risk or a gamble but I had to get into something.
With over 1,000 different cryptocurrencies on the market today, the average person does not know where to go to find that right investment. With all of the fraud and greed in the crypto markets it’s, I figured it’s about the same risk as the stock market.
During lunch I spoke with one of my close friends Jessica who is married and lives a comfortable life. Jessica told me about GBIT. She said GBIT has two planned forks, one on Valentine’s Day and the next on December 21, 2018 and if I could raise $5k I could get in as a founder and receive founders coins.
Immediately I said I cannot afford 5k, what is a fork and what are founder’s coins? Jessica says if you find 5k, you will not have to depend on this job to help you make it through each month. A fork is a planned direction of the coin that affects the current owners of the coin.
After my conversation with Jessica I pulled 5k together by asking my family members to get the founder’s coins so I could take advantage of the first fork coming up on Valentine’s Day.
$5,000 gave me 250 founder’s coins for me and my family. When the Valentine’s Day fork comes, our 250 coins will be multiplied by 20 which will turn into 5,000 coins. 5,000 coins at the purchase price of $20 alone is $100,000. Yes we will have to pay tax on the funds but it puts $75,000 in our pocket which is more than my yearly salary.
GBIT has created a cryptocurrency that will help people create a comfortable lifestyle. Thank you very much Jessica for introducing me to GBIT.
Have a Happy Christmas Holiday Weekend.