The Current State of Crypto is a weekly examination of events and market movements in the cryptocurrency economy.
Bitcoin breaks $5K, bullish predictions abound
These are all predictions from various “experts” for Bitcoin’s price by the end of 2019. The moment the market broke the downtrend and began its positive climb, a parallel revival took place in the rabidly speculative realm of crypto media. Throngs of analysts crept out of the woodwork to make their bold predictions, the most extreme being a claim of a $2 million BTC value based on Russians buying up billions of the coin as a reserve and as a tool to skirt various possible sanctions. While not entirely implausible, it does seem at the very least, to be an improbable number, especially within the year, yet few in the crypto realm would have reason to complain if such a value was achieved in such a brief period.
The Bitcoin price breakthrough has been attributed to what appears to be a single buyer, yet the market value has been maintained with higher volumes among real-volume markets. Thus, many have now turned to altcoin predictions as the next natural step in the ebb-and-flow of crypto trading, declaring any of a broad variety of small market-cap projects to be the next big thing. This pattern — a flow of Bitcoin profits to a library of altcoins — is typical and it stands to reason that one might see excellent profits by being lucky enough to pick the right obscure coin in which to
invest speculate. Meanwhile, major assets like Ethereum and XRP have not seen as much price action, with many predicting it could be their turns next.
Observing the top-most profitable coins is like taking a walk down the 2017 memory lane with Litecoin, Bitcoin Cash, and Dogecoin seeing huge gains. Dogecoin undoubtedly saw growth due to Elon Musk’s declaration of it being his favorite cryptocurrency, which caused the comedic community to elect him as “CEO of Dogecoin” — a title which he soon relinquished, following a brief acceptance of the role.
Bitmain behind the BCH pump?
Bitcoin Cash led the massive market explosion over the same period, leading some to wonder if Bitmain — a corporation with gargantuan holdings of BCH — could have contributed to pumping the coin in an effort to inflate its value. Following the initial pump, the large entity could subsequently dump assets in order to recover funds lost over the painfully bearish period of the past year and a half. Having allowed its IPO to expire and recently undergoing severe financial stress, it would be logical that a holder of such large quantities of BCH would be motivated to recoup some money. Mathematically speaking, Bitmain could single-handedly manipulate the relatively illiquid market with its dominant holdings.
It should be noted that all of these observations are just that — observations I have made about the market over the past week. This is not professional financial advice and is intended only to act as a quick examination of some of the week’s events for you to enjoy. Please do your own research before doing any investing and never risk more than you can afford to lose.