Is There A Bubble In The Cryptocurrency Market?

New Ukrainian Bill Provides Regulation Of Cryptocurrency Market And Stimulation For Miners

Evidence is growing that a recent rally in bitcoin prices may be nearing its end. To capture this market, bitcoin exchange Okex is setting up its own over-the-counter trading platform in Hong Kong, which Lai expects to attract customers primarily from China, Russia and the U.K. They’re now trying to recruit people to act as third-party market makers, who’ll chaperone deals, make money off a spread and then split the revenue with Okex,” the publication detailed.

When comparing cryptocurrencies to fiat money, the most notable difference is in how no group or individual may influence significantly the production of money (in the case of crypt it is called mining), instead only a certain amount of cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is bounded by a value both prior defined and publicly known.

There are over 1000 different altcoins, and the liquidity of these markets can range from peanuts, even some with 0 trading volume over 24h, to highly liquid cryptocurrencies like Ethereum, and more recently Factom, Dash, Monero, MaidSafe, and several others that have also been trading at significant daily volumes of 1000 BTC and above.

Cryptocurrencies, such as bitcoin and its successors, are backed by a system of miners”, who race to be the first to solve tricky computing problems in exchange for a reward for doing so. The rewards are large – the bitcoin network, for instance, gives away coins worth $7m to miners every day – but to be in with a chance, miners need to gather an extraordinarily large amount of computing power.

In 2014, the European Banking Authority defined virtual currency as “a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency , but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically”.

When asked about how to know which altcoin to buy, when to sell it, or the classic “how to become a better trader”, this is my usual reply: It’s a combination of a complex and inter-related web of factors, including understanding the market crash cycle structure, learning about the different phases of the emotional cycle, analyzing price action, understanding price structures that represent various phases of a crash cycle, such as accumulation, distribution, pump, dump, and how they look like.

Governments can choose to either do nothing – which is okay; make things worse for cryptocurrency trading – like what Australia did by imposing sales taxes on all cryptocurrency transactions; or they can make things easier for companies by reining in the banks and encouraging companies by creating a level playing field,” said Antonopoulos.

It’s true that a relatively small number of popular general-purpose tokens like Litecoin , Dash , and Monero , and a few domain-specific tokens like STEEM (for content creation), NameCoin (for decentralized Domain Name Services), and PotCoin (for… well, that should be obvious) are used at least some of the time for currency-like functions.

The quarterly growth in total cryptocurrency market capitalization in the first three quarters of 2017 equaled 46.47%, 267.39% and 54.03%, respectively (see Table 1.1). The deceleration in growth in the third quarter was due to the restrictions (bans) on circulation of cryptocurrencies introduced in several countries, most notably in China.

It’s also important to realize that although crypto prices presently align themselves well with the likes of S&P and Nasdaq, there really is no way to accurately predict what will happen to the cryptocurrency market as a result of the next financial crash seeing as cryptos are relatively new and have not yet weathered a recession – not enough historic data to make a proper assessment in correlation; if such correlation even exists.

The fork event that is expected at the end of the month have come about as philosophies towards Bitcoin diverge and it ultimately comes down to the responsibility of each and every miner to ensure that the pooling and increased hashpower goes to the appropriate network and not one that looks to move Bitcoin in a direction in which, you as a miner, are not aligned.

But staying aware of pattern analysis as well as common trading patterns such as retests” (see our educational section for more retest examples) can help you learn trade safely, to include PATIENCE as part of your trading strategy when it makes sense, and to avoid FOMO which is very hard to do in the fast moving crypto market.

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That China’s ICO ban had little impact on the most popular cryptocurrency, bitcoin (priced at $5720 at the time of writing, despite a short-term minor slump), demonstrates the global popularity of digital currencies and thus partially underpins governments’ unease at the negative aspects it could entail.

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