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Bitcoin (BTC.X) price manipulation: does it really matter?

7:02 pm ET, 24 May 2018

Bitcoin (BTC.X) recovered today to a price level above $7,500.  The coin price dropped yesterday because of the criminal probe into whether traders are manipulating the price of Bitcoin and other digital currencies. 

Should this concern impact investors' thought process about investing in Bitcoin?  One thing is certain--in this red-hot market for cryptos, there is a lot of misconduct.  The illegal practices that can influence prices include spoofing or flooding the market with fake orders to trick other traders into buying or selling.

Federal prosecutors are working with the Commodity Futures Trading Commission to identify the cases of spoofing.  

Virtual currencies are susceptible to fraud because of the lack of regulations that govern cryptos (in contrast to those that govern stocks and other assets).  Also, there is a good number of 'cheaters', who create wild price swings that could make it easy to push valuations up or down. 

Should you worry as an investor?  It depends on your investment mentality.  If you're a trader--perhaps this is a time when you want to be careful. 

However, if you're a long-term investor, and believe in the value proposition on Bitcoin, this is just a blip on the radar--HODL may be the right strategy.  

Follow BTC.X on Finstead--just type "BTC.X news" or "BTC.X price" to get the latest Bitcoin information and news.

Bitcoin (BTC.X): why is the price stagnant?

11:01 am ET, 20 May 2018

Bitcoin (BTC.Xhas lost almost 15% of its value since two weeks ago. At the peak around Christmas holidays, it was trading at over $19,000. 

What is happening in the Bitcoin world?  What is the near-term price forecast for Bitcoin? 

Bitcoin investors have been predicting that meteoritic rises will commence any day now. But the price has been hovering in the $8,000-$9,000 range with surprisingly low volumes.

In absence of any significant news, the price has failed to move.  Even bold statements from the cryptocurrency analyst Funstrat completely failed to move the price.  (Fundstrat predicted the price of $36,000 by the end of the year.)

Bitcoin pessimists claim that the cryptocurrency trades much like a commodity. Over the long-term, commodity prices move towards their marginal cost of production.  Since the mining profits for Bitcoin will eventually fall to zero, miners will eventually stop producing, claim people who are pessimistic about Bitcoin.

However, viewing Bitcoin as a commodity is incorrect. Miners provide a service, called transaction verification, that Bitcoin users critically depend on.  So miners are not producers; they are laborers who perform a certain service. 

Our view is, Bitcoin has reached a local equilibrium price.  It will move up or down on some significant news.  For now, it may stay in the $8,000-$9,000  until a 'big event' occurs. 

Follow BTC.X on Finstead--just type "BTC.X news" or "BTC.X price" to get the latest Bitcoin information and news. 

Bitcoin Cash (BCH.X): price analysis and prediction

12:56 pm ET, 12 May 2018

Bitcoin Cash (BCH.X) is widely touted in the cryptocurrency community as an altcoin that can avoid many of the mistakes Bitcoin (BTC.X) made.  

One of the things that went wrong about BTC.X is the centralization of protocol development.  Bitcoin is distributed in many ways, but for quite some time there was only one main core group of developers (a.k.a., Bitcoin Core) on it.

Bitcoin  Cash, on the other hand, is completely decentralized (e.g., nodes, wealth and mining pools).  There are several independent teams of developers along with multiple full node implementations.

The value proposition for Bitcoin Cash is as strong as ever.  

But why is the price going down?  What is the Bitcoin Cash price analysis and prediction?  

At this point, we think that the cryptocurrency may be forming a bottom, which can take anywhere from a few days to a few weeks.  Prices in the $1,000 -$1,200 range should not be a surprise.

The price is likely to remain volatile as the bears and the bulls battle it out to establish their reign. The latest news about the investigation of South Korean exchange Upbit by the country’s Financial Supervisory Commission (FSC) triggered the decline of Bitcoin Cash.  Also, negative statements from the likes of Warren Buffet and Bill Gates also influenced retail investors' opinion about cryptocurrencies.  

We will see a positive price movement for BCH.X when commercial institutions publish their plans to use the cryptocurrency.  Stay on top of the latest developments, and keep checking Finstead for news and price updates (just type "BCH.X news" and "BCH.X" price).

Litecoin (LTC.X): what to expect

11:25 pm ET, 11 May 2018

Litecoin (LTC.X) is down 10% at the time of this writing.  The price struggled to move much above $160.  Litecoin is trading in the $130-140 range now, but still above the March $115 minimum.  

What can you expect from Litecoin? What is the price forecast?  When will be a good time to jump in? 

Here is the bigger picture.  The last 24 hours have not been very favorable for cryptocurrencies.  Many cryptos have lost double-digit in the past 24 hours.  

Some of that can be blamed on the criticism from famous investors and entrepreneurs, such as Warren Buffett, Charlie Munger, and Bill Gates.  Gates even opined that he would short Bitcoin if he could. 

However, looking at the long-term, there are many analysts who believe strongly in a well-cemented future for cryptocurrencies, the technology behind them, and eventually higher prices.

About a year ago, Segwit (or Segregated Witness), a soft fork update was activated after endorsements by Litecoin.  Segwit refers to the implementation of a soft fork change in the transaction format of Bitcoin. This was considered a memorable moment for the Litecoin as well as the Bitcoin community. 

Since then, Litecoin achieved its peak at $358 in December.  

The biggest hope about Litecoin is its commercial viability:  

  • RE/MAX is listed on the Litecoin store as a place where you can buy and sell real estate using LTC.

  • You can buy pet toys, treats, accessories, and more from CryptoPet using LTC.

  •  You can buy tea straight from the people who make it on Tealet with Litecoin.

The falling knife pattern of Litecoin's price is concerning to traders.  For the latest price and news on Litecoin, please check Finstead and search for "LTC.X price" or "LTC.X news".  

Bitcoin (BTC.X): what's dragging the price down?

12:15 am ET, 09 May 2018

Bitcoin (BTC.X) price dropped 4% but is still hovering above 9,000.  What's driving the latest movement in Bitcoin price?

The price decline might have been caused by the negative sentiments of famous investors/entrepreneurs: Warren Buffett and Bill Gates. The billionaires' view of cryptocurrencies has an impact on retail investors.  Buffett has been firmly negative about bitcoin, but he also stated he didn’t understand it and would never hold any asset that he didn't understand thoroughly. 

Gates was quick to comment that he would short bitcoin if he could.

Some market analysts have noticed that bitcoin price is correlated to the stock market.  When money is being poured into the market, as it happened last week, bitcoin price is moving up. 

Analysts are starting to use Dow Jones as a predictor of how bitcoin price will move.  On May 4, when the Dow got a stick save from breaking lots of technical levels, Bitcoin started moving up minutes later.

What is the bitcoin price forecast for the rest of the year?    It varies between 0 and 200K, depending on whom you ask.  The CEO of cryptocurrency research company Brave New Coin, Fran Strajnar, sees improving infrastructure and strong fundamentals as the key reasons behind the potential price hike. 

For the latest news on Bitcoin, visit Finstead and search for "BTC.X price" and "BTC.X news".  

Bitcoin (BTC.X): will this rally sustain?

12:27 am ET, 04 May 2018

Bitcoin (BTC.X) appreciated 22% since April 17, the US tax filing deadline, but the question many investors have is whether this ride will sustain.   And what is the Bitcoin price prediction?

There are some positive news about Bitcoin.  The fact that the cryptocurrency is steadily climbing again signals that fear is not a dominant emotion among traders and investors any longer.

Another important development is that the investment banking powerhouse Goldman Sachs will start trading Bitcoin futures using its own money.

While the exact launch date of the new trading operation is not yet set, Goldman's board of directors already approved the project. Goldman will create its own, more flexible version of a future, which is also known as a non-deliverable forward.

But there are some key questions about the long-term viability of the commercial model for Bitcoin that still need to be answered.   

The payments company Square recently reported Q1 2018 earnings release: Square made $34 million in revenue in the most recent quarter from cryptocurrency purchases.  Roughly 5 percent of its revenue came from customers purchasing bitcoin through its Cash app. 

However, because of the costs of purchasing the cryptocurrency, the company's total profit in the time period was about $223,000.

The world's largest cryptocurrency approached $10,000 in price this week.  Last week, the 17 millionth bitcoin was mined. (Bitcoin was originally designed to have a limited supply of 21 million).   

Will this ride sustain?  It's hard to tell: if you haven't already jumped on the Bitcoin bandwagon, we recommend you exercise caution at this point in time. 

Litecoin price prediction: ready for new highs?

2:05 am ET, 29 Apr 2018

Litecoin is an open source software project with peer-to-peer characteristics.  This altcoin has been the industry leader since 2009 and has the reputation as the most secure cryptocurrency with unexplored potential.

Litecoin creator Charlie Lee sold all of his holdings in December last year.  He’s now regretful about his decision but thinks this was the right long-term move as he tried to make Litecoin a truly decentralized cryptocurrency.

Litecoin has lost more than half of its value since its peak times, but here are some indicators that this cryptocurrency is poised to reach new highs:

  • Coinbase is a cryptocurrency brokerage that supports only three cryptocurrencies, one of which is Litecoin. Coinbase is still witnessing a significant influx of users, which is a positive sign for the top 3 cryptos (Litecoin included).
  • As an open source project, Litecoin has the flexibility to incorporate tech enhancements such as SegWit and the lightning network.
  • It takes 2.5 minutes to execute transactions on Litecoin, whereas Bitcoin needs 10 minutes to do the same.
  • Compared to Bitcoin, Litecoin transaction fees are negligible.
  • Unlike Bitcoin, Litecoin reach is not as widespread—and there is some potential to reach additional masses. 
  • The presence of a platform known as lightning network helps with fast transactions.

On the negative side, you should be aware that Litecoin market development will be somewhat limited until scaling issues are fully resolved.

Regardless of what your position on Litecoin is, and whether you think this cryptocurrency is poised for new highs, exercise caution before making any speculative bets!  

To get the latest price and news about Litecoin, please visit Finstead and type “LTC.X price” and “LTC.X news”.

Ethereum (ETH.X): will the bull run sustain?

4:26 pm ET, 24 Apr 2018

After the market recovered from the US tax deadline, Ethereum's (ETH.X) price witnessed a continuous rise, reaching the level of $706 per coin

This depicts strong signs of a bull run. For the latest price and news about Ethereum, please visit Finstead and type “ETH.X price” and “ETH.X news”.

The deadline for filing taxes in the US caused a huge sell-off of cryptocurrencies, causing Ethereum’s price drop. This is because crypto investors and speculators paid their capital gains taxes by raising money from cryptocurrency sales.

London Block Exchange has recorded a notable rise in cryptocurrency trading. It is being seriously considered by institutional investors (from hedge funds to pension funds). This remarkable rise in the Ethereum has left its creator Vitalik Buterin surprised as he had no long terms plans for its success.

Here are some developments you need to know about Ethereum:

  • Higher volumes of complex smart contracts now can be supported by Ethereum scale through the use of a newly designed protocol.
  • The security proofs implemented by the team enhanced the safety of Ethereum. This is because the security flaws are directly associated with the cryptocurrency's monetary value.
  • There are chances that Ether would be classified as a security which would subject it to more rigorous regulatory inspection.
  • There are plans to invest funds raised in space startup projects in the ether cryptocurrency.

No matter how alluring Ethereum may appear to you, investing in it is highly speculative. You may get a huge return, but also be prepared to lose all your money.

For further guidance on investing in cryptos, read the Finstead Bitcoin investment guide.

Tronix (TRX.X): why is the price going up?

2:09 pm ET, 24 Apr 2018

Tronix jumped 25% over the last 24 hours.  What's driving this spike?

The TRON (TRX) main net is being launched at the end of May.  The launch of the TRON main net means that TRON will be eliminating its ERC20 identity and moving off of the Ethereum platform.

Crypto enthusiasts are wondering why the Tronix founder Justin Sun decided to drag Ethereum down.  There was even a Twitter fight between Justin Sun and Etherium founder, Vitalik Buterin. 

You should know that Tronix is an 8-month-old altcoin, while Etherium is now over 4 years old.

Tronix has introduced almost 3k nodes in under 2 weeks, which is fairly impressive.

The fact that TRX is already able to challenge and in many ways beat Etherium has some investors running from the hilltops screaming: "take my child’s milk money".

But a potential problem with Tronix is that it has too many day traders and a good number of bear hands.

Traders will be looking to make quick bucks from Tronix, so be careful about jumping in without having done your due diligence.  

For further guidance on investing in cryptos, read the Finstead Bitcoin investment guide.

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