Interest in the cryptocurrency market is increasing, but the market is falling!Aug 29, 2019
After a long consolidation of the BTC price above the psychological level of $10000, there was a wave of sales. It is difficult to call the current decline of BTC and most other coins unexpected. According to CoinMarketCap, all 15 coins with a capitalization of more than $1B are being traded in the red zone. The average loss over the past 24 hours is in the range from 5% to 9%, while TRON has already fallen by almost 11%, showing the worst result.
Jeff Dorman, the manager of investment at Arca, argues that new money will come to the market through companies like Bakkt and Fidelity. According to him, during the current uncertainty in the global market, bitcoin looks like an attractive asset for large hedge funds.
The Bakkt cryptocurrency platform from Intercontinental Exchange Corporation (ICE) has announced that as early as September 6, customers awaiting the launch of trading in Bitcoin deliverable futures will be able to make deposits.
At the same time, the full launch of the trading of daily and monthly deliverable bitcoin futures on the platform will take place on September 23.
As a result, cryptocurrency market growth may resume from the beginning of September.
BTC as a protective asset
Most of leading experts, investors and crypto enthusiasts noted that the trade war between the United States and China provides significant support to BTC. The BTC uptrend began at the time of the increase in US tariffs on imports of goods from China.
Even though there is no direct connection or correlation between these events, we recall that last Friday, August 23, US President Donald Trump announced another increase in tariffs on imports of goods from China to the United States. This time it was a significant increase of previously introduced tariffs, as well as the tariff package, which will come into force next week.
This decision of the American president provoked a strong decline in US stock indexes and the strengthening of protective assets such as gold and JPY. At the same time, BTC reacted with restraint to this news.
Based on this, we can assume that the trade war supports the BTC and the cryptocurrency market in the long term. However, at the same time, it is essential to understand that the correlation between a specific change in trade relations and the price of BTC is not very high in the short term.
“Ethereum is a technological dead end”
Samson Mow, Blockstream’s Strategic Development Director and staunch bitcoin maximalist has criticized Ethereum’s smart contract platform and its ability to scale.
“The more it’s used, the faster it dies,” tweeted Mow.
Ethereum founder Vitalik Buterin did not leave this tweet unattended, but Samson argued for his position.
We recall that earlier, Vitalik Buterin admitted that the Ethereum blockchain is almost full, and scalability is one of the most problematic sections of the network. He said that it is one of the biggest obstacles for large organizations interested in the Ethereum ecosystem.
Such comments are negative for individual cryptocurrencies in the short term but may have a positive effect in the long run. Competition contributes to the survival of the stronger ones by constantly improving and correcting existing defects.