How is the slippage of popular cryptocurrency explained despite the initial "immunity" to the panic caused by the coronavirus. The role of impending halving, sales and how the market is moving today.
Bitcoin disappointed on the weekend and Monday. This time he did not follow the gold, which was moving decent. The digital currency, like all cryptocurrencies, has drifted to lower prices, following the course of other traditional brokerages. Why have we had this development, in addition to the diminished appetite for investor risk?
The first reason is the period we are in, just before halving. The history of the previous two cases shows that there has always been a strong price volatility. But beyond the particularity of the period, the crypto market has this feature. There are often times of great volatility. Some see it as an advantage because it often gives opportunities, some as a disadvantage, because it upsets them and makes it difficult for them to trade, while others disregard daily fluctuations because they are long-term investors.
On the other hand, these days and which market is not highly volatile! Whatever the case, under no circumstances can we say from now on that Bitcoin has lost its upward trajectory. It is still within range, as shown in the diagram below.
The second reason is about something we have mentioned again. The wallets of the PlusToken Ponzi system fraudsters still have plenty of banknotes, mainly in Bitcoin and Ethereum. On Saturday, it was found that they were transferring 13,000 Bitcoin worth $ 120 million to the so-called "mixers". That is to say, a process was followed where the route of the coins was difficult to detect. It is therefore very likely that they sold this quantity, which created pressure and enticed the market.
Six of the PlusToken executives have been arrested since June 2019, but have managed to ship 180,000 Bitcoin, 6,400,000 Ethereum 111,000 Tether, to other wallets. Most coins have already been sold. There were only 20,000 Bitcoin left, of which, as we have said, 13,000 appear to have been moved and liquidated over the weekend.
The outlook for Bitcoin has not changed
Markets are often irrational, short-term confusing. The important thing is what will happen over time. Bitcoin is still a new technology. It takes time for the conditions to mature. It's like the first planes. People couldn't imagine before that things and people could be transported without the need for roads or seas, so we couldn't imagine until recently that we would not need intermediaries or banks. Only the journey is digital.
To get into the world of cryptocurrencies, you need to be properly informed, so as not to be misled by those who put their money on PlusToken or OneCoin or other scams. They lost all the money they invested, either because they were given counterfeit coins for pay (out of pure ignorance, since Bitcoin itself cannot be time-barred by nature), or because they believed someone was proficient in selling them a "miracle" idea of a trustworthy compogiannite that sells medicine for all diseases.
Those who have been harmed are understood to have a negative predisposition to cryptocurrencies and to be disconnected when they hear about them. However the crypto site has as much responsibility as the stock market institution if you lose the money you have invested. To avoid repeating it, there are only two ways. Whether trying to find out, learning, getting to know the peculiarities of space, or finding it and trying to get revenge.
Important legal decisions
The news includes very positive news, which has been overshadowed by panic in the stock markets. In recent days a French court has officially recognized Bitcoin as money. As an exchangeable, intangible asset. It is the first time a French court has made such a decision, according to The echoes. The decision stemmed from a dispute between the Paymium exchange and the BitSpread investment company. According to legal circles, the decision enables not only legal transactions but also borrowing!
Our next news comes from South Korea, where we had the law amended to report and use specific financial information, after a long two-year consultation process. So far, anyone could open a currency exchange in South Korea, resulting in more than 70 semi-finals. This has led to a series of problems as many have fallen victim to fraud. They will now officially operate, with special permission from the authorities.
Do these news remind you of anything? Did we have similar legal developments in Germany and India? All this is not going to launch the Bitcoin price in one day, but they are mortgaging the next big step.