Bitcoin bounces back strongly, Verge (VRX) jumps 54% but too soon to call bottom

Bitcoin has bounced strongly off lows and if this progress continues over the next few days then it is possible we are back above $5,000 in short order.

But the danger in the situation now is that the traders will take their gains and bitcoin starts shedding value again.

Momentum is picking up though, with Bitcoin now trading at $4,300, 22% above its 14-month low at $3,500.

Verge up 53% on Bithumb listing and porn traction

Two continues to race higher, up 24% at $0.0154, but the standout best performer this morning among top alts is Verge, which is 52% the better at 0.009959. Its price surge has been helped by a Bithumb listing. Bithumb is among the larger South Korean exchanges, ranked at number two in the country.

Verge (XVG)can be used to pay for services on the largest porn site in the world, pornhub.

The adoption by the porn industry of crypto tokens such as XVG is significant in as much as the industry is always a leader in technology,, for example pioneering video on demand. The privacy features of certain crypto is attractive to punters although being paid in crypto for services rendered holds exchange rate risk, although porn stars are likely to convert most of it as quickly as possible into fiat.

Steem layoffs

Steem is 14% higher at $0.3879 despite the news that it has had to let 70% of its staff go. That’s a negative for crypto, given that Steem is one of the most successful blockchain currently in existence in terms of usage.

Explaining the move, chief executive Ned Scott said: “Weakness of the cryptocurrency market that has resulted in low fiat returns on our automated selling of STEEM diminishing.”

Scott seems to changing direction for the company by looking for other use cases for the Steemit blockchain over than social media.

“Steem can be by far the best – and lowest cost – blockchain protocol for applications

“Over the next several weeks, I hope to share the assets we have created with you, including showing you how their success would be a benefit to Steem and cryptocurrency in general.”

Back to more positive news, searches for bitcoin are at their highest level since April, although “buy bitcoin” searches haven’t budged, so we can infer that consumers are following developments but not yet ready to buy.

Coinbase has just set up an over-the-counter trading desk for institutions and high net worth individuals, in a sign of where the next wave of buyers will come from.

Looks like 2019 is shaping up to be the year of the institutions. The retail investors will come along later.

Crypto here to stay

Jeff Sprecher, chairman of the New York Stock Exchange says crypto is here to stay. Asked  at Consensus Invest whether bitcoin and crypto days were numbered he said: “The unequivocal answer is [digital assets will survive],” but added “as an exchange operator, it’s not our objective to opine on prices”.

About the Author

Gary McFarlane
Gary has been writing about cryptocurrencies since 2013 and currently works as the cryptocurrency analyst at interactive investor, the UK's second-largest online investment platform. Gary contributes for Coin Intelligence News in a personal capacity and none of his commentary should be considered investment advice. Gary is the winner of the ADVFN International Financial Awards 2018 Cryptocurrency Writer of the Year. Contact Gary on twitter at: @gary_mcfarlane

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