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Weekly crypto report

The majority of the outgoing week can be summed up by the phrase "target of $10,000" and we may soon see this target reach its conclusion as, at the time of writing, Bitcoin is trading at around $ 9,950.

For almost the whole week Bitcoin's price remained above $9,000. It was only the beginning of the week and Wednesday that saw a small dip below this level. Slowly but surely, the flagship of the cryptocurrency market is moving towards a five-digit value. A break through the $10,000 mark will mark new goals for the renewal of the previous peaks and, at the same time, open up many new doors for the crypto market in 2018 as a whole.

It is also worth noting that the BTC chart clearly displays the "head and shoulders" pattern. Confirmation of this pattern can give a strong push to the price and indicate promising new targets. It only remains for us to continue closely following the market as the trend continues looking more and more optimistic.

The growth of the cryptocurrency market can’t be called unanimous, however; some coins from the TOP-100 have certainly lost value, but the overall market capitalization has demonstrated positive dynamics.

Despite all of this, the spring on the market of altcoins continues. Many coins have demonstrated an excellent weekly growth, including such giants as Ethereum and Bitcoin Cash, showing a weekly growth of more than 20%.

Setting aside the fact that the cryptocurrency market is manipulative, what were the fundamental prerequisites for the overall upward trend of the market and, in particular, the rise in Bitcoin's price? The fundamental background was saturated and dense, as always, but remained more neutral than positive, lacking any one particular powerful impulse. This is likely the reason why the market hardly came out of the flat, that is broad, but rather protracted. However, there were extremely positive moments that cannot be ignored.

Perhaps this trend is primarily a result of the rise in confidence in the asset due to the statements of some major financial institutions. For example, one of the largest investment banks, Goldman Sachs, confirmed that it is preparing to launch a trading platform for the Bitcoin futures trade, explaining this decision by saying that the number of customers who want to purchase Bitcoin as an alternative asset has increased. If Goldman Sachs, who was very skeptical about cryptocurrencies in general and Bitcoin in particular, takes such steps, the future could be bright for the market.

A large investment has been made by investor Peter Thiel's Founders Fund, which plans to service warrants for the purchase and sale of cryptocurrencies. By investing $15.5 million in the project, the fund is betting on the plans of institutional investors to enter the cryptocurrency market.

We heard positive news from the other sectors of the crypto market, too. Despite the conservative approach, blockchain technology is being introduced by JPMorgan Chase, which, in cooperation with several other banks and large investors, began testing the Quorum blockchain-platform, developed by itself since last year. The innovation is designed to improve the effectiveness of financial instruments. The testing participants have already assessed the platform's capabilities, and JPMorgan Chase itself stated that they had seen an excess of customer applications. In this regard, the platform expects the further development and expansion of the development team.

The central banks of the countries participating in the Eurasian Economic Union are also planning to incorporate the use of blockchain technologies. In the near future, there are plans to begin developing a prototype of a unified banking system based on the blockchain, within which an internal exchange of messages will be organized.

Clearly, this trend is an indicator of the scale of all that is happening in the market. In conjunction with the trend of large specialists transitioning from the stock market to the cryptocurrency market, all this has provided some much-needed optimism to all participants, increasing public confidence as a result.

Opinions:

  • John McAfee, creator of the antivirus program of the same name and an active participant of the crypto market, said that Bitcoin will reach $150,000 before the end of this year.
  • Fundstrat Global, led by a well-known analyst, Tom Lee, conducted a poll, which found that 82% of investors believe that the bull market has already begun and will actively gain momentum.
  • Charlie Shrem, co-founder of the Bitcoin Foundation, believes that May 2018 will mark the last time we ever see $10,000.
  • Financial analyst Alexander Kupitsikevich (FxPro) remains cautious even now, calling the recent growth of Bitcoin to about $10,000 speculative. He notes that an optimistic trend could be triggered by news from South Korea, where officials are slowly beginning to realize what they have lost after the ICO ban.

Regulations:

  • The Portuguese Parliament will be discussing the regulation of cryptocurrency payments to adopt a new legal framework for cryptocurrency payment services, while ensuring the safety of users.
  • In South Korea, the development of legislation to legalize the ICO begins.
  • The Australian Securities and Investments Commission (ASIC) closes suspicious ICO.

To summarize, we can say with certainty that the overall mood of the market is much better than it was a month and a half ago. However, do not forget that the market is extremely speculative and manipulative, so you should be extremely careful not to draw any hasty conclusions, taking only weighted and cautious investment decisions.

07 May 2018 г.