Bitcoin staged something of a recovery Tuesday, rising 6% to claw back some of the loses of the past two weeks, while Arthur Hayes at BitMEX is kicking Ethereum while it’s down. However, altcoins are bouncing back strongly today.
If bitcoin and the rest of the crypto market is to go higher from here then much greater momentum needs to be seen.
The news flow has been pretty good for bitcoin, with evidence of institutional interest growing and regulators indicating they plan to take a pro-innovation tack when it comes to oversight, with an emphasis on keeping individual investors safe.
What will move the price higher?
Undoubtedly the delay to a decision on the VanEck Solid X exchange traded fund was responsible for the latest episode of the downtrend following July’s false start to a renewed bull run. Those hopes were overdone in the first place, but once the expectation has been let loose it is hard to think of news that could be as market-moving as a bitcoin ETF approval. So what will drive the market higher?
Part of the answer to that question comes down to: what is an attractive entry point? In that regard, prices in the $5,000-6,000 range should be seen as “buy the dip” territory, although there are many doing that already if today’s mini-bounce is anything to go by.
From Willy Woo to BitMEX’s Arthur Hayes, there are plenty of respected analysts who see better days ahead for bitcoin but not before the cryptocurrency falls closer to $5,000.
BitMEX’s Hayes sees Ethereum at double digits
But good news for bitcoin is not necessarily a good thing for alts. Hayes for one thinks Ethereum could be about to implode. Hayes argues in his newsletter to BitMEX clients that ether prices have been artificially inflated by initial coin offerings and that venture capital firms that bought into to many of the more popular ICOS may start offloading their Ethereum-compliant tokens, pushing Ethereum back into double-digit pricing.
However, alts are fighting back today. Ethereum is up 16% as it climbs back above $300. Other hard-hit alts bouncing back strongly are Ripple up 15% to $0.297, EOS 12% higher at $4.85, Dash has come back 19%, rising to $161, and NEO is 20% the better at $17.42.
In other news, as of Monday the Petro must be used as a unit of account by the state oil company of Venezuela, the PDVSA. Japanese messaging giant LINE has set up a token venture fund. It will have initial funding of $10 million. BitBox, the crypto exchange owned by LINE, also announced that it was listing the TRX token of the Tron network, pushing its price 17% higher to $0.020.