Crypto Rebounds (Slightly), Bitcoin (BTC) Still Under $3,500
To say that crypto’s past 24 hours have been chaotic would, frankly, be putting it rather lightly. While Bitcoin (BTC) recently underwent a slight recovery to move above $3,400, the past day has seen the aggregate value of all cryptocurrencies range between $100 billion and $115 billion. The $100 billion figure, seen for a few fleeting minutes on Friday, has been lauded as a “make or break” level for this nascent industry at large.
This tumult, which is undoubtedly a worrying sight for crypto’s bulls, was backed by a jaw-dropping $20 billion ($10 billion adjusted) in 24-hour volumes, which comes directly after a relatively measly $14 billion Thursday. Interestingly, Friday’s action was backed by the highest daily volume in December so far.
Now, as always, let’s talk about BTC, the asset that dictates crypto’s day-to-day.
After yesterday’s Ethereum World News market update, BTC continued to falter, somehow reaching $3,300, a new year-to-date low. But, after this foreboding candle, the asset found a semblance of support, finding itself trading around $3,300 for a matter of hours. And eventually, in classic cryptocurrency fashion, bitcoin shot up, just as fast it came down, moving to $3,500 in a few minutes.
While the digital asset, often deemed the world’s next “store of value,” stumbled after the move, colloquially dubbed call a “Bart” after the Simpsons character, BTC has now found itself above $3,400, a seeming short-term support level. At the time of writing, BTC is valued at $3,450 a pop, posting a gain of 1.5% in the past 24 hours.
This move in Bitcoin catalyzed a number of intriguing action in altcoin markets. Stablecoins, for instance, quickly saw an influx of buying pressure, as traders sought solace amid a seemingly endless market downtrend. As noted by CoinDesk’s market analysis team, four Tether (USDT) competitors, TrueUSD, USD Coin, and the Paxos Standard, all entered the crypto Top 30, finding themselves around a ~$190 market capitalization.
There’s about to be four #stablecoins in the world’s 25 largest #cryptocurrencies by market capitalization.
Tether $USDT is already #5, but TrueUSD $TUSD is now #25 with USD Coin $USDC and Paxos Standard $PAX right behind. pic.twitter.com/SsKKtrCNo2
— CoinDesk Markets (@CoinDeskMarkets) December 7, 2018
Interestingly, altcoins underwent a stronger recovery than BTC. Ethereum (ETH), after falling under $100 to $84, has now recovered to $96, posting a 9.5% daily gain. EOS, Tron (TRX), NEM (XEM), and Monero (XMR) posted similar results, causing the Bitcoin market dominance figure to fall to 54%.
Crypto Analyst Attributes Sell-off To Cockroach-like News Cycle
Although BTC bounced by 5% off its lows, an analyst still painted a bearish picture for cryptocurrency markets. Issuing a note to MarketWatch’s Aaron Hankin, Naeem Aslam, chief market analyst at Think Markets U.K., explained that BTC, with current momentum and technical indicators in mind, is “crippled” as could fall below $2,000 to $1,500 in due time.
Citing reasons for this bearish prediction, Aslam drew attention to the “bad news” cycle seen in the crypto industry, adding that such negative developments are “coming just like cockroaches out of a hole.” One such development may be the SEC’s recent verdict regarding the foremost Bitcoin ETF application.
As reported by Ethereum World News previously, the SEC delayed its decision on the VanEck-backed application for the umpteenth time, and in the midst of a crypto bear market no less. In an SEC-stamped document published Thursday afternoon, the governmental agency claimed that it would be exercising its right to delay a verdict on the application until February 27, 2019.
Although the release of this document didn’t directly produce any red candles, such a decision likely instilled some semblance of fear in naive investors. Speaking with Bloomberg on the impact of negative industry developments, Timothy Tam, CEO of CoinFi, stated:
“Sentiment in the [crypto] market is really bad, any negative news has an exponential effect.”
Regardless, the Think Markets representative still noted that Bitcoin and cryptocurrencies, in general, have ground-breaking potential, echoing calls he made on CoinTelegraph TV. He stated:
This is a crypto market which has the ability to blow your mind and the downside is limited and the price at its current level represents an opportunity of a lifetime.
Title Image Courtesy of Hektor Ehring Jeppesen via Flickr and Bitcongress
