The main cryptocurrency on the night of Monday, November 26, unexpectedly for experts and traders, changed the dynamics of movement and began to grow aggressively.
Just a day before, Bitcoin, on the contrary, was rapidly losing in price, and some crypto opponents were expecting the coin to trade below $3,000 by Sunday evening. However, Bitcoin changed its direction and began to gain value.
According to the latest information, the weighted average rate of Bitcoin rose by 5,66% to $3,993. The market capitalization of the coin exceeds $69.469 billion. The bitcoin cash (BCHABC) and XRP token of the Ripple project have become the growth leaders among the top-10 largest cryptocurrencies, rising up to 28% to $213.77 and $0.376 (+9.29) respectively.
Ether was also able to significantly strengthen its position and over the last 24 hours has added more than 5% to $114.4 in value. The bitcoin dominance index is currently at 53.7%, and the market cap of the entire cryptocurrency market has grown to $129.3 billion.
Most of the top-100 cryptos are following the trend and are trading in the green zone this morning.
The decline in the attractiveness of the main cryptocurrency occurred after the U.S. Department of Justice initiated a criminal investigation. The authorities are inclined to believe that the price of the first crypto has grown aggressively and before the new year it broke through the $20,000 mark due to a market manipulation related to the behavior of tether, the stablecoin that is claimed to be 1:1 backed by the American dollar.
The Asia-Pacific head of trading at Oanda, Stephen Innes, in a conversation with Bloomberg, suggested that the recent events that called for surrender may be premature as if we observe a fall to $3,000, terrible things will start to happen and people will run to the exit.
The situation causing the decline in rates of the first cryptocurrency is actually a combination of problems that bitcoin faced recently.
As such, the main negative factor could be the hard fork of bitcoin cash, which took place two weeks ago and supposedly crashed the market. Despite the fact that everything went well, splitting the cryptocurrency into two blockchains - bitcoin ABC and bitcoin SV, destabilized the market.
Another reason for the bitcoin to go deeper below a $4,000 mark can be the fact that some unknown hackers got access to an e-mail of the Uphold exchange and sent out letters on its behalf advertising bitcoins for free. The fake distribution of coins was presented as an ad campaign, which the exchange allegedly organized on the occasion of “Black Friday”.
Ten days ago when bitcoin was just starting its decline analysts were noting that the current situation resembles what happened in 2014, or the so-called "death cross". It appears when the gap between the moving average bitcoin rate indicating the medium-term trend and the two-hundred-day moving average is minimal or absent, the turning point was expectable.
Despite the mentioned factors some of the opinion makers like Changpeng Zhao, the founder and CEO of Binance crypto exchange are thinking that it is not the time to bury the market. In the recent interview with TheStreet he shared his vision of the near future:
“The fact that Fidelity is moving in to the space (by launching digital asset trading services last month) suggests the crypto market cap will grow a lot more. When the market cap grows bigger, the price is going to go up; when the price goes up, it's going to attract a lot more people in. It's basically a very net positive,” he said.
Recall that last month Fidelity Investments, the top-5 largest financial holding company in the world with $7.2 trillion of assets under control, announced the opening of Fidelity Digital Asset Services division, which will enable institutional investors to store and trade cryptocurrencies. The move of the company is not so unexpected considering their confession to be involved in cryptocurrency mining since 2015. The company admits that it has closely watched the crypto market for the last five years.
Experts are confident that institutional investors will be very actively involved in crypto trading in 2019. So what is happening with the market right now can be the reason for speculators mass abandoning it. Countries’ authorities started to create the laws for the relatively new financial system, it means that crypto mass adoption is near, and there will be no space left for the manipulations. According to Sonny Singh, one of the executives at BitPay, bitcoin has all chances to hit $20,000 by the end of 2019, if institutional investors enter the crypto industry.
Mike Novogratz, the CEO of crypto investment firm Galaxy Digital shares the same forecast saying the first crypto will rise to $10,000 in the first quarter of 2019:
“By the end of the first quarter [of 2019], we will take out $10,000. And after that, we will go back to new highs — to $20,000 or more.”
Among the sceptics of the positive scenario is Michael Moro, Chief Executive at Genesis Trading. Moro believes that the current position of the first crypto is “really difficult” but it is far away from the bottom it can go to. The head of Genesis Trading is convinced that people won’t find a further price falling after bitcoin hit $3,000 flat level.
At the same time Anthony Pompliano, founder and partner at Morgan Creek Digital, an investment management firm, is optimistic about the future, and has something to tell those who are FUDding the community:
Pay attention to the Bitcoin haters taking victory laps right now.— Pomp 🌪 (@APompliano) November 25, 2018
Screenshot their tweets. Bookmark their blog posts. Remember the names.
They’ll be wrong just like every other time. Bitcoin isn’t dying.
Those who believe and remain disciplined will be rewarded handsomely.
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