Altcoins Forging Fresh Highs While Bitcoin Remains Stagnant

  • A “very positive sign” that market is consolidating the gains but hasn’t retreated much
  • But “less volatility, less action, equals less excitement and less trades”
  • Altcoin index “bullish AF,” while larger-cap cryptos outperforming, smaller caps are flat

The crypto market is experiencing a green wave. Bitcoin might be in the red, hovering around $8,600 but is up just over 18% to date in 2020.

The crypto market is currently testing the highs to see as Mati Greenspan, founder of Quantum Economics in his daily newsletter explains “if this rally has enough steam to breakthrough into something bigger.”

Though the market has started to see some flecks of red, the fact that we are still consolidating the gains made last week and hasn’t retreated by much is a “very positive sign,” said Greenspan.

However, what can’t be ignored is the declining volume. Last week, Bitcoin managed the daily trading volume of over $1 billion which has now dragged down to less than $500 million on top ten exchanges with real volume.

So, while sentiment remains good exchange volumes are trailing off with “less volatility, less action, equals less excitement and less trades.”

But Greenspan notes that “while bitcoin remains stagnant, we have seen a few altcoins cautiously forging fresh highs.”

As can be seen, while Bitcoin stayed still over the weekend, altcoins like Tezos, Cardano, and Stellar Lumens made slow but steady gains.

As Greenspan questions aloud, “Is this the start of another altseason?”

Alt-Season or Not Yet?

There are still 10 days let in the first month of 2020 but altcoins are the ones leading the market.

Among the top 10 cryptocurrencies, Bitcoin SV (BSV) is at the top with 232% gains YTD that reached a new all-time high. BSV is followed by the cryptocurrency from which it was hard forked, Bitcoin Cash. BCH is up 64% in 2020 to date trading at $340.51, a bit higher than BSV’s current value of $314.60.

Other big gainers have been Dash which is up by 160.35%, Bitcoin Diamond (BCD) 114%, Bitcoin Gold (BTG) 107.7%, Ethereum Classic (ETC) by 96.62%, Zcash (ZEC) 86.67%, DigixDAO (DGD) 81.88%, Civic (CVC) 68%, Horizen (ZEN) 60%, and Augur (REP) 50.31%.

Analyst Benjamin Blunts notes, the altcoin index is “bullish AF.”

Analyst Ceteris Peribus notes 40 of the altcoins with market capitalization more than $50 million, excluding stablecoins, are up 25% on an average. In comparison, 29 altcoins are down on an average of 14%.

While larger-cap cryptocurrencies are outperforming, smaller caps are flat or underperforming. This is why the analyst is “Not close to saying alts are back yet.”

Read Original/a>
Author: AnTy

Bitcoin FOMO Pushing Price Higher to $8,860 Amidst an ‘Epic’ Difficulty Adjustment

  • Bitcoin makes the best start of the year since 2020 with over 19% gains YTD
  • Trader calls a “classic bull exhaustion move,” another one says just FOMO driven
  • Bitcoin difficulty to increase by about 9% to reach ATH at 15 trillion
  • Strong mining activity and miners HODLing will push price higher but unabated increase in hash rate not good for the price

In another bullish explosion, BTC price has charged through $8,800. On Bitstamp, the price climbed as high as $8,863.

In 2020, to date, BTC has recorded gains of 19.20%, which is the best start of the year since 2012. Meanwhile, the trading volume on top ten exchanges with real volume is surpassing $2 billion.

It’s not only the BTC price that is surging, but altcoins are also soaring but much higher with BSV in the lead registering 90% gains. EOS, Dash, and ETC are also seeing sound gains of over 20%.

The market, however, is not feeling good about this move as veteran trader Peter Bradt says this is FOMO (Fear of Missing Out) driven. Trader CryptoWolrd also feels weak hands are feeling the FOMO here.

Trader Majin meanwhile says, “Blow-off top into rekt. Classic bull exhaustion move. rip in advance.”

Bitcoin Difficulty to Climb to an ATH of 15 trillion

This move came amidst one of the biggest Bitcoin difficulty adjustments of as much as about 9%. The difficulty of the Bitcoin network adjusts every 2,016 blocks based on how difficult it was to mine the previous block.

The difficulty is the number of hashes taken to find a solution below the global block difficulty target. If finding block is easy, miners will overproduce and if too difficult, no one would be able to mine the lock.

The design of Bitcoin’s difficulty is such that it adjusts itself based on the market changes. From Jan. 2 to Jan. 13, the difficulty was set at 13.79 trillion, about the same level as in November 2019, which would see an increase of about 8.9%.

Coin Metric also notes that this increase will take the difficulty to a new all-time high at approx. 15 trillion. This it notes, “is due to the implied hash rate of Bitcoin maintaining ATH levels since Jan 1.”

Bullish or Bearish

Bitcoin’s hash rate also hit an ATH at 117.15 Th/s on Jan. 5 and is currently at 104.9 Th/s. The increase in difficulty and hash rate shows that mining continues to increase.

Given that, after Bitcoin halving in May 2020, about 4 months away, miners’ reward will be cut down into half, BTC miners would want to keep on mining and earn 12.5 BTC than the upcoming 6.25 coins.

With so much activity going on the Bitcoin network, the demand for available coins has risen. But the supply is falling short of filing that up. This is leading the price higher.

If miners also HODL their coins in anticipation of the halving and increase in prices, it could further pump prices.

However, if the hash rate continues to rise, this unabated increase could cause miners to capitulate.

Read Original/a>
Author: AnTy

The Asset Class of the Decade With 9,000,000% Gains Is Still in Danger of A Crash to $5,500

  • Bitcoin is ending the year at gains just below 90% around $7,150
  • While the asset class of the decade was recording 9,000,000% gains, mainstream media has been writing an obituary for the digital asset
  • $1 million might be on the horizon as per Bitcoins but in the short term, $5,500 still a possibility until we break $8k

Bitcoin is officially closing the month around $7,150. We started the year at about $3,360 that took us to $13,900 at the end of June. But ever since, BTC continued its descent, falling to $6,200 in mid-December.

Now, we have capped the 2019 gains just below 90%.

Despite these gains, in comparison to the 2018 losses when we crashed 84% from the all-time high, this hasn’t been a spectacular year but it’s a start that looks better on a log scale.

Overall, with 9,000,000% gains, Bitcoin has been the best performing asset of the decade. While Bitcoin has been enjoying its parabolic rise, during that time, the mainstream media has been writing its obituary.

From being labeled “expired” by Wired when BTC was trading at $13 to Reuters writing an “early obituary” at $821 and “Fool’s gold”, Wrong”, “Ponzi,” “Joke,” “Ash heap”, “Disappointment”, and “Spells doom,” from news sites like Bloomberg, NYTimes, Business Insider, USA Today, and CNN, among others, Bitcoin has heard it all.

And while BTC has rising to be the best performing asset class of the decade, the S&P 500 just tripled in that period and gold has been up a mere 25%.

But now moving into 2020, Bitcoin would be in its next stage as David Tawil, president of ProChain Capital told Bloomberg,

“Certainly the numbers are what appeals to investors. The next 10 years need to be a totally different stage of growth based on totally different factors than the first stage.”

During its next decade, CoinList’s Andy Bromberg said,

“Bitcoin is finding its own narrative as digital gold. It feels like that narrative is picking up steam and it’s breaking away on its own. I would define success for most crypto assets as doing exactly that.”

As for the BTC price, Bitcoiners see it climbing to $1 million dollars.

In the short term meanwhile, trader Cold Blooded Shiller says on the basis of Bitcoin Wyckoff schematics, from a volume perspective BTC’s drop to $6,200 didn’t scream that it was the bottom. He is expecting to see $5,400 that would be the bottom of the flagship cryptocurrency.

TraderXO is of similar opinion who sees BTC going to $5,500.

“Apparently they say the lows are in after a few weeks of consolidation…Might want to zoom out a little, break the channel and reclaim 8k first,” he said.

Read Original/a>
Author: AnTy

South Korea Seeks to Tax Transactions Involving CryptoCurrencies In 2020

Capital gains from transactions involving virtual currencies such as bitcoin may soon be taxed in South Korea, according to a report by the Korea Times.

The publication refers to government sources, and confirmation received from the Ministry of Economy and Finance. According to the report, a ministry official stated that related discussions have been occurring, and that there is a revised bill that will be “drawn up” by the first half of next year.

In addition, at the subcommittee level, there is a bill that will enhance transparency of virtual asset trading. If the bill were to pass, it will go into effect a year after the regulation is established.

The wrinkle, according to the report, is that there is still a less-than-clear definition of virtual assets. That is, the government has still not clarified if gains from virtual asset trading are considered gains from stock trading or real estate transactions.

Read Original/a>
Author: Silvia A

“It’s Alt Time, Whether you Like it or Not,” Analysts on the Start of Alt Season

  • Weekends are for altcoins to make gains, this time it’s BAT, IOTA, Cardano, and EOS’s turn
  • Altcoins will continue to catch up but investors getting “picky” about cryptos

This week has been a good one for altcoins as they surged in a long time while Bitcoin remained flat around $10,000.

If we take a look at the past 7 days performance of cryptocurrency market, while Bitcoin is in the green by just over a half a percent, top altcoins, Ethereum and XRP are still up by more than 17% and 10% respectively.

Stellar (XLM) is the biggest gainer with 22.54% gains followed by IOTA which is enjoying a rise of 20.65% in its value.

Other prominent gainers in terms of 7 days performance are Cardano (13.11%), LINK (14.37%), Maker (15.46%), BAT (18.67%), VeChain (14.14%), and ABBC Coin (1884%), as per Coincodex.

Today, altcoins are in the red with a few exceptions like BAT (6.66%), IOTA (3.04%), Tron (0.66%), Cardano (1.40%), and EOS (2.96%).

“Altcoins will continue to catch up”

Bitcoin is the king of the cryptocurrency market. In 2019, Bitcoin price soared more than 160% and BTC dominance went from 53% to 73%.

But now as Bitcoin takes a breather and its dominance start dropping below 70%, it might be time for altcoins to catch up “Altcoins will continue to catch up,”

Scott Freeman, co-founder of JST Capital told Bloomberg.

“With the realization that these technologies now are being adopted, they’re starting to solve real problems, and it’s coming to fruition at some level where the value proposition of these things is being recognized more broadly.”

But have to wait for a Bit Longer

Market analyst and trader CryptoWolf says while Bitcoin is expected to trade sideways for the next few months as the trading range gets thinner with possibly of dumps, “It’s alt time. Whether you like it or not.”

However, not everyone is sold on the idea of alt-season. It could be a bull run for some of the altcoins but not a massive one, for that matter.

For Mati Greenspan, eToro’s senior analyst, it’s too soon to call it the start of an alt-season.

“People are getting a bit more picky about what they’re investing in as far as cryptocurrencies. Seems like those who’ve been waiting patiently for the emergence of a new altcoin season are just going to have to wait a bit longer.”

Read Original/a>
Author: AnTy