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| January 16, 2019

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Prices Archives -

St. Louis Federal Reserve Predicts ‘Flood’ of Altcoins Will Drive Down BTC Prices

January 15, 2019 |

The St. Louis branch of the Federal Reserve bank has published a report seeking to examine the long-term prospects of BTC as an investment. The paper is highly critical of bullish outlooks for bitcoin, asserting that a “flood” of altcoins will deflate the price of all cryptocurrencies relative to fiat currencies over time.

Also Read: Marshall Islands Updates 2019 Roadmap for Sovereign Cryptocurrency

Economic Research Arm of St. Louis Federal Reserve Assesses Bitcoin’s Prospects

St. Louis Federal Reserve Predicts 'Flood' of Altcoins Will Drive Down BTC PricesThe St. Louis Federal Reserve has published a paper that seeks to assess the prospects of bitcoin as a long-term investment.

According to the paper, the bullish argument for bitcoin core is that it will appreciate “indefinitely” due to its “capped supply and an ever-growing demand.” The bearish case for bitcoin, the St. Louis fed asserts, is that “Bitcoin’s price will fall to zero, as it’s an intrinsically worthless asset.”

Ultimately, the paper predicts that the future price action for bitcoin is likely to remain bounded between the aforementioned “extremes.”

St. Louis Fed Argues ‘Ever-Expanding’ Altcoin Supply Will Diminish Bitcoin Prices

The St. Louis Federal Reserve describes the bitcoin bull scenario as “too optimistic,” emphasizing the expectation that the “ever-expanding supply of alternative cryptocurrencies” will drive down the price of BTC relative to fiat currencies.

The paper asserts that the bullish outlook for bitcoin “assumes that the nominal exchange rate between bitcoin vis-a-vis other cryptocurrencies will adjust in proportion to their relative supplies,” adding that “Bitcoin is expected to appreciate relative to its competitors or, equivalently, its market capitalization share will stay constant over time.”

St. Louis Federal Reserve Claims Bitcoin ‘Has No Fundamental Value’

St. Louis Federal Reserve Predicts 'Flood' of Altcoins Will Drive Down BTC PricesThe bearish outlook is predicated on the assertion that “Bitcoin has no fundamental value” and that the market will “recognize this fact” sooner or later.

While appearing to make concessions for the possibility that bitcoin will not crash down to zero, the paper notes that “one can accept that bitcoin trades above its fundamental value without claiming that its fundamental value is zero,” adding that “many securities trade above what might be considered their fundamental value.”

In concluding, the paper asserts that the price dynamic of an unbacked asset will likely produce significant volatility and is “inherently unforecastable.” While the St. Louis Federal Reserves adds that the price of bitcoin is “not likely” to fall to zero, the paper repeatedly emphasizes the authors’ expectation that the proliferation of altcoins “is likely to place significant downward pressure on the purchasing power of all cryptocurrencies, including bitcoin.”

What is your response to the St. Louis Federal Reserve’s predictions regarding the long-term outlook for bitcoin? Share your thoughts in the comments section below!


Images courtesy of Shutterstock, Wikipedia


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post St. Louis Federal Reserve Predicts ‘Flood’ of Altcoins Will Drive Down BTC Prices appeared first on Bitcoin News.

Bitcoin News

CNN

Zimbabwe fuel protests turn violent after prices more than double

January 14, 2019 |

Protests have broken out in Zimbabwe’s two main cities over a sharp hike in the price of fuel announced by the government.
CNN.com – RSS Channel – World

Disneyland Resort tickets and parking prices are going up again, as much as 25%

January 6, 2019 |

Only months before the opening of its $ 1-billion Star Wars expansion, the Disneyland Resort announced price increases of up to 25% for daily tickets, annual passes and parking.

The increases, which take effect Monday, come less than a year after the resort adopted price hikes of up to 18%. Under…


L.A. Times – Business

Manhattan Home Prices Fall Under $1M—but Why?

January 6, 2019 |

What a deal, folks: You can now buy a Manhattan home for less than $ 1 million. The city’s median price for condos and co-ops in the fourth quarter slipped 5.8% from a year before and hit $ 999,000, the first sub-million mark since 2015—and those who sold cut…
Newser

Pay-TV giants plan to raise prices for customers who haven’t cut the cord

January 6, 2019 |

Another year, another increase to your monthly pay-TV bill.

Giants including Comcast Corp., Dish Network Corp. and AT&T Inc.’s DirecTV plan to raise rates again in the new year, a move that could boost revenue but risks alienating subscribers, who have been ditching their traditional TV subscriptions…


L.A. Times – Business

Manhattan home prices fall under $1 million as sellers cut deals

January 3, 2019 |

Manhattan home prices fell in the fourth quarter, with the median slipping to less than $ 1 million for the first time in three years. Ample inventory continued to allow buyers to demand sweeter deals.

Condo and co-op prices declined to $ 999,000 in the three months through December, a drop of 5.8%…


L.A. Times – Business

Drugmakers Raise Prices on Hundreds of Medicines

January 2, 2019 |

Pharmaceutical companies are raising prices on hundreds of drugs, with Allergan setting the pace with increases of nearly 10% on more than two dozen products, according to a new analysis.
WSJ.com: US Business

Markets Update: Crypto Prices Begin to Slump as the New Year Approaches

December 26, 2018 |

Markets Update: Crypto-Prices Begin to Slump as the New Year Approaches

Most cryptocurrencies took a hit on Christmas Day, losing between 5-10% after having a decent run of solid gains last week. Some traders had assumed digital asset markets would be rather dull during the holidays, but the correction was deep and fast. At the moment, the entire cryptocurrency economy is worth $ 126 billion as traders are curiously waiting for the next big move.

Also read: Year in Review: 2018’s Top Cryptocurrency Stories

Crypto Markets Show It’s Too Soon to Call the Bottom

Cryptocurrency markets have consolidated a little after taking some deep losses during the early morning hours of Dec. 25. Global trade volume for the entire ecosystem of digital assets had dropped a few billion since last week’s price spikes, and bulls are starting to show signs of exhaustion. This Wednesday, the combined valuation of all 2,000+ cryptocurrencies in terms of 24-hour trade volume is roughly $ 17.4 billion. Bitcoin core (BTC) is trading for $ 3,792 at the time of publication and its markets are capturing $ 5.4 billion worth of today’s crypto trades. BTC is down 0.14% over the last 24 hours and down 1% for the week. The second largest market capitalization is commanded by ripple (XRP) which is trading for $ 0.36 per coin. Ripple markets are down 1.7% over the last day and are down 1.5% for the week.

Markets Update: Crypto Prices Begin to Slump as the New Year Approaches
Top 10 cryptocurrencies on Dec. 26, 2018.

Ethereum (ETH) has had a much better run over the last few days, with ETH markets up 0.55% today and 21% during the course of the last seven days. ETH is trading for $ 127 per coin and has a total market capitalization of around $ 13.2 billion. Lastly, the fifth biggest market valuation is still held by eos (EOS), where each token is swapping for $ 2.52. EOS has a $ 2.2 billion market cap and is up 1.8% today but down 3.9% for the week.

Bitcoin Cash Market Action

Bitcoin cash (BCH) markets are still doing very well this week after last week’s phenomenal 140% gains. BCH is still up by 32% over the last seven days and markets are up 3.2% in the last 24 hours. At the moment, BCH is trading for $ 168 per coin and the market has an overall valuation of about $ 2.9 billion. Trade volume is about $ 100 million lighter than a few days ago as today’s global BCH trade volume is around $ 551 million.

Markets Update: Crypto Prices Begin to Slump as the New Year Approaches
Bitcoin Cash (BCH) daily chart on Wednesday.

The top five exchanges swapping the most bitcoin cash are Lbank, Binance, Huobi, Coinbase, and Hitbtc. Lbank and Binance are capturing about ⅓ of today’s BCH trades. The top currency today paired against BCH is tether (USDT), with 47.3% of trades. This is followed by BTC (20.9%), ETH (16%), USD (7.4%), JPY (3.9%), and the KRW (1.9%). Bitcoin cash is the sixth most traded cryptocurrency on Wednesday above litecoin but below the volume of ripple.

BCH/USD Technical Indicators

Even though there was a sizeable dip the other day, a few indicators on the charts still look bullish. Looking at the four-hour BCH/USD chart on Bitstamp shows the two Simple Moving Averages will be crossing hairs very soon as the 100 SMA may rise above the longer term 200 SMA. For now, the path toward the least resistance is still the downside, but in the near term it looks like a trend change may appear.

Markets Update: Crypto Prices Begin to Slump as the New Year Approaches
Bitstamp BCH/USD 4-hour on Dec. 26, 2018.

Right now the Relative Strength Index (RSI 4-H -44.96) is meandering in the middle, indicating more uncertainty. The Holidays may be inflicting a slight lull as the stochastic reports the same findings over a broad set of trading ranges. Looking at the order books shows bulls need to muster up more strength to penetrate the $ 200 region again and gain headway. On the backside, bears will see pit stops all the way until the $ 150 range and a few more speed bumps if it falls below that price zone.

Markets Update: Crypto Prices Begin to Slump as the New Year Approaches
Bitstamp BCH/USD 4-hour window.

The Verdict: Uncertainty Remains Strong

This week has seen traders perusing ideas on Tradingview, some discussions between swing traders on Twitter, and Telegram trading channels showing people think the “bottom” has not yet been reached. The dip in trade volume was to be expected over the holidays between Christmas and New Year and analyzing crypto market trade volume may not be a great source of confirmation this week.

Markets Update: Crypto Prices Begin to Slump as the New Year Approaches
Cryptocurrency & Fiat money flow over the last 24-hours on Dec. 26, 2018.

BTC/USD and ETH/USD shorts are still well above normal, but discernibly less than two weeks ago. If digital asset markets cannot hold above the 50-day exponential moving average (EMA) then traders may see even lower bottoms in the near future. Overall, uncertainty remains high for traders who won’t attempt to call the bottom. Their stance is prudent one given that price letdowns have been one of the few certainties throughout the entire year.

Where do you see the price of BCH, BTC and other coins heading from here? Let us know in the comments below.

Disclaimer: Price articles and markets updates are intended for informational purposes only and should not to be considered as trading advice. Neither Bitcoin.com nor the author is responsible for any losses or gains, as the ultimate decision to conduct a trade is made by the reader. Always remember that only those in possession of the private keys are in control of the “money.”


Images via Shutterstock, Trading View, Coinlib.io, Bitstamp, and Satoshi Pulse.


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The post Markets Update: Crypto Prices Begin to Slump as the New Year Approaches appeared first on Bitcoin News.

Bitcoin News

Asian News Headlines Exert Significant Impact on Cryptocurrency Prices

December 22, 2018 |

Asian News Headlines Exert Significant Impact on Cryptocurrency Prices

A report published by Mosaic has found the Asian region to be exerting a leading influence within the cryptosphere, despite China’s ongoing crackdown on digital asset platforms. The study finds Asian news events to have a significant effect upon BTC price volatility and highlights the increasing number of cryptocurrency exchanges targeting Asian traders.

Also Read: Bitcoin ATMs Double in Number This Year

Asian News Events Exert Significant Influence on Price

Report: Asian News Headlines Exert Significant Impact on Cryptocurrency PricesThe report asserts that major Asian news events have a significant effect on BTC price fluctuations, estimating that since 2013, “11 major headlines from the Asian region have been responsible for [BTC] price movements.”

The price moves that occurred within 10 calendar days of said news events ranged between 0.5 percent and 57.5 percent, with the average price swing found to be approximately 18.5 percent. As of this writing, the average daily volatility for BTC has been roughly 5.5 percent over the last 30 days, and 3.5 percent over the last 252 days.

The report also emphasizes the influence of Asian countries on the mining sector, asserting that Asia is home to approximately two-thirds of the world’s BTC hashrate and 11 of the 17 largest mining pools by hashrate.

A Third of New Exchanges in 2018 Are Based in Asia

Report: Asian News Headlines Exert Significant Impact on Cryptocurrency PricesAccording to the report, of the 37 exchanges that launched during 2017, 20 were found to have registered in Asian countries. The most sought-after jurisdiction was Singapore with eight new crypto exchanges, followed by Hong Kong with four, and South Korea and mainland China with two each.

However, the Mosaic notes that the proliferation of new exchanges in the Asian region may have been boosted by China’s crackdown on virtual currency trading platforms, highlighting a slowing in the number of new Asian exchanges during the first half of 2018. Of the nine exchanges identified by the report to have launched during 2018, only three registered in Asia, with mainland China, Hong Kong, and Singapore hosting a single new exchange each.

Mandarin is Second Most Supported Language Across Crypto Exchanges

Report: Asian News Headlines Exert Significant Impact on Cryptocurrency PricesThe report asserts that as of late July 2018, there were 86 cryptocurrency exchanges hosting live BTC pairings. They were found to support 24 different languages, nine of which are Asian – including Mandarin, Korean, Japanese, Cantonese, Vietnamese, Thai, Hindi, Indonesian and Malay.

Mandarin was found to be the second-most supported language, with 65 percent of the exchanges supporting Mandarin as the default or secondary language on their platform. English was the most commonly supported language among the exchanges, with 97 percent. Korean was the third-most supported with 33 percent, followed by Russian with 30 percent, and Japanese with 23 percent.

Do you think Asia is the region with the greatest influence and impact on cryptocurrency? Share your thoughts in the comments section below!


Images courtesy of Shutterstock


At Bitcoin.com there’s a bunch of free helpful services. For instance, have you seen our Tools page? You can even lookup the exchange rate for a transaction in the past. Or calculate the value of your current holdings. Or create a paper wallet. And much more.

The post Asian News Headlines Exert Significant Impact on Cryptocurrency Prices appeared first on Bitcoin News.

Bitcoin News

Plunging oil prices weigh on energy stocks. Other stocks rise

December 18, 2018 |

After two days of huge losses, U.S. stock indexes ended the day back where they started Tuesday. Energy companies sank as crude oil plunged 7%, but technology and consumer-focused companies climbed.

U.S. crude oil fell to its lowest price since August 2017, and it has now fallen almost 40% since…


L.A. Times – Business