Market overview, August 13–19, 2018
At the beginning of last week Bitcoin challenged the $6000 level again. And market total cap went below $200 billion, though only for a little while. Ethereum got as low as $250, the majority of other altcoins also renewed minimums of the year. For the rest of the week, the market was recovering, but Bitcoin price failed to consolidate above the $6500 markpoint demonstrating the sideways trend. In its turn, the altcoin market is trying to break the negative trend and Bitcoin dominance index is demonstrating a considerable pullback for the first time since April 2018. Among liquid altcoins, Ontology, Vechain and Zilliqa showed the best recovery. It seems that the market is positive about possible success of new blockchain platforms that would become alternatives to Ethereum, EOS and NEO.
If Bitcoin manages to grow above the $6500 level, we expect it to get to the $8000-$8500 range soon. The closure of short positions whose volumes reached top record levels in the middle of August could provoke fast growth. The previous bear market record was set this April. Thus, there is still a chance that we’ll see a scenario described in the previous overview. Coinbase announced its record-breaking increase in users very timely: they claim to register 50K new accounts a day despite the cryptomarket fall. We suppose that all these people would like to buy something.
Bitcoin hash rate is still growing and it already triples the level of the start of the year. Miners believe in network success and further increase in transaction number. Many erroneously believe that low income from mining will lead to massive equipment shut down that will affect transaction processing speed or Bitcoin security. Temporary shutdown of some of the mining capacities will lead to network complexity adjustment and its reduction. It will increase incomes of the rest of the miners and will attract either old or new players.
Media background was rather quiet this week. It’s worth mentioning new attempts of crypto exchanges to develop their infrastructure. Huobi is claimed to launch partner trading platforms in Russia, Indonesia, Canada, Philippines and Taiwan. Vnesheconombank is said to become Huobi’s partner in Russia. The launch of Russian platform is scheduled for the beginning of September. This announcement seems rather weird taking into account that Vnesheconombank is a state company, and there is still no regulation for the cryptomarket in Russia. Another leading crypto exchange Binance founded a new company Binance LCX in Lichtenstein. Together with the local brand, they plan to launch a new trading platform supporting swiss franc and euro.
Traditionally, we also follow survey results. Blockchain Association of Hong Kong (BAHK) revealed that 23% qualify cryptocurrency as a good alternative to traditional ways of savings. And the most interesting thing is that the BAHK survey shows that Hong-Kong residents are ready to invest in tokens if global financial situation gets worse.
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