Chat with us, powered by LiveChat

Bitcoin is growing in the bear market

Apr 24, 2019

The high correlation in the cryptocurrency market has been previously noted. It is many times higher in comparison with the currency or the stock market. Usually, BTC sets the sentiment in the cryptocurrency market as its growth stimulates the strengthening of most tokens. We are now witnessing a completely different situation. The growth of BTC, by almost 2% in the last 24 hours, is accompanied by a much more significant weakening of almost all coins with a capitalization exceeding $1 billion. Bitcoin Cash (BCH), Litecoin (LTC) and Cardano (ADA) lost more than 6%.

Most likely it is a temporary phenomenon, and in the coming days, the market will return to its usual position with a high correlation of tokens and the main cryptocurrency – BTC.

BTC overcame $5600 level

The price of the main cryptocurrency has overcome the next resistance level, and what is more important, the annual highs have once again been updated. It is worth noting that  ETH and XRP are traded below the highs of the current year. Thus, there is a high demand for the main cryptocurrency, while the second and third cryptocurrency by capitalisation, have lack of the investors’ attention. This situation may be due to investors’ expectations.

What can they wait for? It is evident, that all traders, investors and crypto enthusiasts are waiting for a tool for the most reliable and convenient way to invest in the cryptocurrency market.

ETF fund and/or regulated trading platforms may serve as such tools. Bakkt, platforms from Fidelity and LedgerX are waiting for approval from the Commodity Futures Trading Commission (CFTC).

The Bakkt platform is developed by Intercontinental Exchange (ICE), the parent company of which is the NYSE (New York Stock Exchange). Thus, launching a platform that will become an ecosystem where customers can buy, sell and store their digital assets can provide a solid support for BTC. If CFTC approves the applications, institutional investors (“whales”) are likely to invest more actively in the cryptocurrency market, and primarily in BTC. This may explain the strengthening of BTC, while the overall optimism in the market remains weak.

Proposal  to increase the  reward for PoS validators

Vitaly Buterin, The creator of Ethereum,  published on GitHub a proposal on changing the reward scheme for validators after the transition to the second most capitalised cryptocurrency to the Proof-of-Stake consensus mechanism (PoS).

The more assets are fixed for validation, the lower is the interest rate. Therefore, 134 217 728 ETH will bring crypto investors only 1.56% per annum. At the same time, the maximum annual emission volume will be 2,097,152 ETH.

According to Justin Drake, a researcher at the Ethereum Foundation, if, after implementing PoS,32 million ETH are allocated for stacking,  the income of validators will be 3.2% per annum. At the same time, the annual emission indicator will be 1% ( the current indicator of Bitcoin inflation is 3.94%).

Recents posts

No Hint Of a U-turn
No Xmas for Crypto Market, But It Started To Grow
Before $10000
Load more