Bitcoin and the wider crypto market lost around $5 billion over the weekend as the bear market rolls on.
The chances of bitcoin again falling below $3,500 are fairly high given the failure to hold above $3,700.
The delay in the launch of the Bakkt physically backed bitcoin futures product has removed that from the agenda as a prop for the market.
Negatives have come from usual suspect – exchange hacks, this time with New Zealand’s Cryptopia falling victim to fraudsters.
And the failure of the Ethereum hard fork to materialise after a bug was found in the Constantinople code, has served to remind market participants of the potential vulnerabilities lurking in upgrades to blockchain protocols.
Elsewhere, doubts are emerging about the Apollo project which has been accused of being a scam by a horde of redditors, but John McAfee reckons it’s the best privy coin out there McAfee bases his comments on its IP masking abilities.
Apollo is a fork of Nxt and not a very good one according to its critics. They say founder Steve McCullah has built an army of shills on telegram and keeps them juiced by feeding them fake news, all with the happy result of pumping the price. It is up more than 400% in the past seven days.
Apollo is solidly in 68th place in coin rankings.(I am obviously biased). Most privacy coins aren't private because your IP address is still available for all to see. Apollo has the best IP masking solution on the market, offering true privacy which equals true freedom
— John McAfee (@officialmcafee) January 20, 2019
The coin has come from nowhere to now be ranked 77th on coinmarketcap:
On the positive side of the balance sheet for crypto, Tron seemed to be gaining wider retail attention with high profile articles on Bloomberg likening the recent hype around its NiTrOn Summit event to some of the fever last year around bitcoin. That seems somewhat overblown, but Tron is 6% higher today.
Overall crypto trading volume has slipped to $14 billion from $17 billion before the weekend, an ominous sign for future health.
If BTC fail to hold at $3,500 then the next stop could be $3,170 and a fall below $3,000 open up the road to a descent into the $2000s. The nearer we get to $2000, the nearer is the end of the bear market.
BTCUSD 1-day chart, Bitstamp (TradingView)
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