After successive tests of $4,000 bitcoin has fallen to $3,790 on Coinbase. As we reported earlier, the $3,000s were likely to come into play this weekend and so it has come to pass.
Sentiment in the markets seems to be lets get this over and the quicker the better, that’s assuming a bull market will indeed follow. Given we now have five drops of greater than 75% in bitcoin’s short life of many corrections, it is reasonable to expect
It dropped $500, from $4,167 to $3,666, in minutes, for a loss of 10%, with all other crypto falling in sympathy. Bitcoin s now trading at levels not seen since September 2017. Crypto market cap is now $124 billion.
Bitcoin Cash SV price jumps on spike in hashrate
Surprise outperformer is Bitcoin Cash SV (BSV), 13% higher at $61, while Bitcoin Cash is trading 16% lower at $167 for its lowest price ever. The hidden hashrate we exclusively revealed that the SV team were holding back now seems to have come into play.
Both sides (ABC now using the BCH ticker and SV) used up huge amounts of cash to mine the coins at a loss but seemed to have declared a truce a couple of days ago. Maybe that was a fake on SV’s Craig Wright and Calvin Ayre’s part.
Tether not stable
The only coins in the top 100 in the green are the stablecoins, USDC ,True USD and Dai. That’s in contrast to the grandaddy of stablecoins Tether. When the going gets rough Tether seems to lose its peg. That’s happening again with Tether flashing a price of $0.979250. TrueUSD and USDC are both trading slightly above their peg.
Leonardo Real, Tether’s chief compliance officer told cryptonews.com that there was an “organised campaign” against the company, reiterating that tere was no market manipulation using Tether and confirming that the coin is 1-to-1 backed by dollars.
He told the website: “We stand by the fact that all outstanding USDT are backed 1-to-1 by fiat USD. This has been confirmed on numerous occasions, by unrelated parties and at unconnected points in time.”
Real gave the interview as a rebuttal to a story carried by Bloomberg on 22 November revisiting allegations that Bitfinex and Tether were working together to manipulate the market.
What’s going to turn this around?
With the sell-off in crypto showing no sign of halting let alone reversing, market participants should now expect the pace of decline to accelerate further.
The only factors that might stop the rout is clarity on the regulatory front, the approval of a bitcoin ETF (that seems even less likely today) and positive news on institutions.
Bakkt and Fidelity, the mutual fund giant, will both have their crypto products and tools ready for early next year by all accounts but that does nothing for the markets. Maybe folks are going to give it up as the bitcoin price deflates all the way back to just below $1,000 seen at the beginning of 2017.
But the critical factor that could change the direction of the market is how low bitcoin goes. We predict that prices slipping below $2,000 will attract buyers.
Already interest in bitcoin is rising again on Google Trends, although admittedly that is likely people checking out what’s happening with the crash, but as they say in PR, there’s no such things as bad publicity.
Bitcoin billionaire Zhao Dong has set a price target for bitcoin of $50,00 to $100,000 by 2021.
It’s probably a good time to remember Warren Buffett’s famous maxim (not the one about crypto being rat poison squared): “Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”
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