Exposed: The Reason for Yesterday’s Dramatic Crypto Pullback

After a noteworthy rally over the past couple of weeks, Bitcoin price and the cryptocurrency market made a sharp and fast corrective move on Tuesday night and all day Wednesday. eToro’s senior market analyst, Mati Greenspan, thinks he knows the reason why.


Panic Selling or Profit Taking?

Bitcoin and the bunch have finally put in a higher high, with a higher low also in the forecast — but what, exactly, stopped the market’s bull run so quickly?

According to an email from eToro’s trading expert Mati Greenspan, the sharp correction in the greater cryptocurrency market was potentially caused by the hijacking of MyEtherWallet.com — which resulted in a largely negligible loss of funds but caused the entire industry to take note.

As explained by Greenspan:

A few of Google’s servers fell yesterday causing a disruption in Internet service in some parts of the world. This is not all that uncommon and the incident is still being investigated. The bigger issue is that it seems some hackers managed to exploit the downtime to hijack MyEtherWallet.com (MEW).

For those unfamiliar, MEW is a very popular website used my many cryptocurrency investors to store Ethereum-based tokens, as well as Ethereum (ETH) itself. As such, news that the website had been hijacked and was redirecting individuals to a copycat phishing website which managed to garner private keys, subsequently empty wallets, and make off with a negligible 216 ETH, caused minor shockwaves through the industry — potentially initiating a sell-off. As noted by Greenspan:

The crypto-market was in the thrall of a raging bull run but it does seem that the hack may have stopped it in its tracks.

Natural Correction for Bitcoin Price

However, said sell-off was likely to happen anyways.

The entire cryptocurrency market was enjoying what one may call a semi-euphoric state, where profits were rapidly and continually rising. Coupled with the fact that the market swing came after three months of doom and gloom, it was easy to get overly excited about the market’s newfound bullishness. However, when sentiment starts to get this bullish, one can usually expect some profit-taking — which is likely what happened.

Still, the news of MEW’s hijacking may have been the catalyst which triggered the profit-taking. Nevertheless, the market looks as healthy as ever — and cryptocurrency enthusiasts everywhere finally have a little reason to celebrate.

Do you think MEW’s hijacking is to blame for the sharp correction, or do you think it was bound to happen anyway? Let us know in the comments below!


Images courtesy of Twitter/@MatiGreenspan, Shutterstock

The post Senior Market Analyst: Here’s What Caused The Bitcoin Price Pullback appeared first on Bitcoinist.com.

Source: Bitcoininst

5 Reasons an Altcoin Crash is Inevitable

Altcoin cycles never go without a slide to lower prices. With a few exceptions, one day in the green is often followed by prices sliding back to lower levels. Altcoins still see their dominance in terms of market capitalization increase, while the dominance of BTC gets lower in proportion.

The trends turn quickly from buying to selling, and there are several factors behind that:

A Return to Bitcoin: Once a coin seems to peak in BTC prices, some traders will not hesitate to take profits into what they consider the best store of value and possibly the only secure coin. The current rally is significant in that a lot of coins not only gained in dollar terms, but actually drew in investments from trading against Bitcoin. This would mean that once the trend turned, traders would reap the profits.

Bot Trading: The recovery for altcoin has been robust when compared to recent low prices. This time, however, traders may be…

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My Favorite “Digital Gold” Play Costs Less Than $5

When Bitcoin was rising by $1,000 a day back in December, you didn’t have to look far to find pundits speculating on whether the crypto might “replace gold” as a “safe-haven investment.”

Of course, that was before the digital currency peaked above $20,000 and then dramatically plunged to under $7,000. That put paid to the “safe haven” talk.

By comparison, gold, that 5,000-year-old “un-crypto,” has risen a modest 7% over the past year. What’s more, 2016 and 2017 marked the first consecutive years of gold gains since 2011 to 2012. We’ve talked extensively about all the ways there are to cash in on the resurgent gold bull.

But today, I want to tell you about a high-tech game changer I’m watching – one that promises to bring gold into the digital age.

Why is this “disruptor” important?

Well, it’ll eliminate most of the old “hassles” – security, portability, storage – that have kept gold’s potential “vaulted” and bottled up for centuries.

This promises to make gold incredibly easy to use as cash, with no more difficulty than we encounter using banknotes or plastic today – easier and as secure as Bitcoin, in fact, with none of the volatility.

Now, this exposes physical gold to extreme upside potential – that’s a given. But what’s more, this disruptor will act like rocket fuel for the small company I’m going to show you. Read more

Early investor in Tesla, Skype and Hotmail has this prediction about Bitcoin

Not only does venture capitalist Tim Draper think bitcoin is here to stay, he says it could be bigger than the internet.

When asked during a debate how the digital currency compared to his early investments in Tesla, Hotmail and Skype, Draper said bitcoin will be “bigger than all of those combined.”

“This is bigger than the internet. It’s bigger than the Iron Age, the Renaissance. It’s bigger than the Industrial Revolution,” Draper said at Intelligence Squared U.S. debate presented in partnership with Manhattan Institute’s Adam Smith Society on Saturday. “This affects the entire world and it’s going to be affected in a faster and more prevalent way than you ever imagined.”

Draper, founder of leading venture capital firms Draper Associates and DFJ, reiterated his bullish call for bitcoin to hit $250,000 within four years and elaborated on use cases.

“In five years you are going to try to go buy coffee with fiat currency and they are going to laugh at you because you’re not using crypto,” the early internet investor said. “I believe that there will be a point at which you will…

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Learn Why This Crypto Surged 20% in Less Than 24 Hours

Ripple (XRP) prices rallied lately, generating notable gains as the broader cryptocurrency market pushed higher.

The XRP token reached $0.8768 early this morning, according to CoinMarketCap.

At this price, the digital token was up more than 20% over the last 24 hours, and had climbed to its highest since early March, additional CoinMarketCap figures show.

XRP appreciated as several other digital currencies moved higher. At the time of report, every one of the top 10 cryptocurrencies by market value were up over the last 24 hours.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

When explaining what fueled the recent gains in the price of digital assets, analysts cited several factors…

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3 Must-Read Predictions for the Future of Bitcoin

Many predictions have been made regarding Bitcoin’s price which, after jumping from around $1,000 to $20,000 in 2017, decreased to lows of around $6,000 before climbing back to $8,000.

This huge volatility makes it very challenging to predict the price in the short-term. Nonetheless, a fundamental analysis of the evolution of Bitcoin’s price in the longer term could be more reliable. Several predictions are analyzed and discussed below to estimate the most likely direction of Bitcoin’s price in the medium to long-term.

Prediction 1: Institutional investors’ money will increase Bitcoin’s price

The CEO of American Express-backed startup Abra has predicted that big investors will make “all hell break loose” in a recent interview with Business Insider. He mentioned that there is currently little large-scale institutional money in cryptocurrencies and when this changes the impact on Bitcoin’s price will be very positive.

So, what is preventing this institutional money to flow into Bitcoin and cryptocurrency markets in general? The current technological limitations of Blockchain could be a key reason, especially those related to scaling. However, right now there are scientists and software developers building trailblazing innovations that could take Distributed Ledger Technology (DLT) to the next level, as pointed out by Don Tapscott, author of the book ‘Blockchain Revolution’.

Decentralization, scalability and security are the trilemma in DLT meaning that if you were to improve scalability then security would be compromised, and so on. However, this trilemma, which has been the limiting factor for the technology, is about to be overcome.

Sharding, interoperability and formal verification

Ethereum and Zilliqa are working on a process called “sharding” which could greatly improve their throughput and their number of transactions per second – matching or surpassing those of Visa or Mastercard.

Other projects are creating the ‘Internet of Blockchains’ by allowing interoperability among  Blockchains, both public and private. They would also offer shared security and instant finality meaning that it will not be necessary to wait for several confirmations to validate a transaction.

Furthermore, hacking attacks such as the one that affected the DAO and triggered the Ethereum hard fork could become a thing of the past once formal verification of smart contracts, such as the ones Tezos or Zen Protocol projects are using, will ensure that there are absolutely no errors in the code and therefore no way to attack it. Formal verification is already used in airplanes, medical equipment and nuclear reactors, all places where there is little scope for errors.

Xinshu Dong, CEO of Zilliqa, among the first Blockchain to use the technology of sharding with a public testnet launched on March 31, recognizes also the importance of formal verification of…

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Why We’re Seeing Bitcoin Price Predictions of $100,000 and Higher

Bitcoin price predictions of $100,000 or more have become increasingly common over the past year.

That may have seemed absurd a year ago, when the price of Bitcoin was just $1,200.

But now, a Bitcoin price of $100,000 is more than just a dream. In fact, an increasing number of experts are convinced it will happen.

Bitcoin

Saxo Bank global macro strategist Kay Van-Petersen thinks it could happen as early as the end of 2018 due to the inflow of institutional money.

“We’ll get a cascade of ETFs, mutual funds and other investment vehicles breaking out,” he told Bloomberg in December.

Van-Petersen is no stranger to bold Bitcoin predictions. In December 2016, when Bitcoin was trading at $750, he predicted it would rise to $2,000 within a year. The Bitcoin price hit $2,000 less than six months later.

Olga Feldmeier, CEO of the fintech firm Smart Valor, also has a $100,000 target BTC price, although there’s a slightly longer time frame.

Feldmeier suggested that a large institutional investor like George Soros was responsible for Bitcoin’s recent spike from under $7,000 to $8,000.

“I think this incident could become the ignition for the next bull phase,” Feldmeier told Express.co.uk. “Over the period of next 2 years I still predict we could see it reach a value of $100,000.”

But these Bitcoin forecasts are modest compared to what some other experts are saying…

These Bitcoin Price Predictions See Gains of More than 3,000%

Cameron Winklevoss, who, along with his twin brother Tyler, runs the Gemini cryptocurrency exchange, takes a much longer view – 10 to 20 years – but also has a much higher Bitcoin price forecast.

Speaking to CNBC in February, Winklevoss forecast an increase of 30 to 40 times the $7,500 Bitcoin price at the time. That would put Bitcoin prices as high as $300,000.

He compared Bitcoin to gold, calling the cryptocurrency a “very underappreciated asset” regardless of its volatility.

“Taking Bitcoin in isolation … we believe Bitcoin disrupts gold. We think it’s a better gold if you look at the properties of money. And what makes gold gold? Scarcity. Bitcoin is actually fixed in supply so it’s better than scarce … it’s more portable, its fungible, it’s more durable. It sort of equals a better gold across the board,” Winklevoss explained.

But Bitcoin could get into that price neighborhood even faster if venture capitalist Tim Draper, founder of the VC firm Draper Fisher Jurvetson, is right. Last week, Draper predicted Bitcoin would reach $250,000 by 2022. That’s a gain of more than 3,000% in just four years.

Draper famously forecast at the end of 2016 that Bitcoin would hit $10,000 in 2017. BTC went twice as high as that in December before pulling back.

“Believe it. It’s going to happen, they’re going to think you’re crazy. It’s gonna be awesome,” Draper said of his lofty target.

And it may not be as audacious as it sounds. You see, Bitcoin has numerous catalysts at work…

Why the Bitcoin Price Is Headed for Six Figures

Read more

Why is the World’s Largest Porn Site Now Accepting Cryptocurrency?

THE ADULT WEBSITE Pornhub has of late taken pride in being something of a pioneer. A year ago, it implemented HTTPS encryption, making it safer for users to click without being snooped on. Last fall, it introduced a suite of accessibility features for its blind and visually impaired users. And Tuesday, it began accepting Verge, a privacy-focused cryptocurrency

Pornhub is not by any stretch the first adult site to accept cryptocurrency. Dozens already do, as do mainstream companies like Microsoft, Overstock, and Expedia. But the significance of the move lies less in the marriage of cryptocurrency and pornography than it does in the legitimization of cryptocurrency as tender generally. After all, Pornhub’s not just the largest site of its kind. It’s one of the largest sites on the web, period.

On the Verge

Accepting Verge does have specific value to Pornhub users, of course. Not everyone wants their credit card statement to have mature content on it, even pseudonymously. And while Verge cryptocurrency isn’t an infallible cloak of invisibility, it does incorporate more anonymity tools than traditional tender.

“It’s an anonymous additional form of payment,” says Pornhub vice-president Corey Price. “Offering privacy-focused payment options is something we have been looking to do for a while.”

Pornhub’s move is also notable because it chose to use…

Continue reading at WIRED.com

Why Bitcoin prices could Skyrocket 200% this week

Bitcoin (BTC) prices have dropped 51.15% in Q1 2018, but one Bitcoin bull proclaimed the sell-off could be over. Thomas Lee, head of research at Fundstrat Global Advisors, believes that the price drop was thanks to tax season.

And Lee believes Bitcoin prices are going to rebound 206.64% from today’s price of $8,152.66 now that tax season has ended…

According to his April 5 report, U.S. households likely owe $25 billion in cryptocurrency capital gain taxes. To pay it off, Bitcoin holders have likely been selling off some of their coins since the start of 2018.

In addition, the crypto analyst believes exchanges have been unloading their cryptocurrency holdings.

“Many exchanges have net income in 2017 [of more than] $1 billion and keep working capital in [Bitcoin, Ethereum], not USD – hence, to meet these tax liabilities, are selling BTC/ETH,” Lee said in his research report.

The head of research at Fundstrat projects for each U.S. dollar of outflow, there is a $20 to $25 impact on the value of the cryptocurrency market.

With people either selling or just holding onto their coins, there’s been less demand, which has sent prices spiraling.

Stunning: New Innovation Will Be Like “Adding Twin Turbos to the Bitcoin Engine” – and Could Send Its Price to $100,000. Learn More

The cryptocurrency market was worth $813 billion on Jan. 7, but it now sits at $329 billion.

Taxes are due on April 17, so if Lee is right that part of the sell-off was caused by tax payments, prices could quickly rebound to previous all-time highs of $20,000 on Dec. 17, 2017.

Lee believes the price of Bitcoin will return to $20,000 by July 2018.

By the end of the year, he projects the price of Bitcoin will reach $25,000, which would be a gain of 206.64%.

However, that estimate may be too conservative…

The Shocking Reason Why We Think Bitcoin Could Hit $100,000 (and How You Could Make Millions)

Money Morning Defense and Tech Specialist – and cryptocurrency legend – Michael Robinson just revealed the little-known details regarding the future of Bitcoin… and why at any moment, it could be poised for a record-breaking rebound far beyond anything we’ve witnessed already.

Michael made a prediction about Bitcoin way back in 2013 – and folks who followed his advice stood to become 253 times richer.

We’d venture to say not one in 10,000 people is aware of the massive profit potential unfolding right now.

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The Surprising Truth Behind Bitcoin’s Price Jump

Bitcoin is on a roll, with the price of one of the virtual coins up more than 17% against the dollar in just one day. On Friday morning it climbed back up above $8,000 for the first time in two weeks, with an $8,050 value at the time of writing.

Why? As ever, the causes of the cryptocurrency’s fortunes are less than clear, but some experts reckon it might have something to do with the approach of April 17, the deadline for filing taxes in the U.S. Others think it’s a function of geopolitical fears and sanctions.

The tax day theory goes like this: people needed to liquidate their bitcoin assets before the deadline in order to have enough dollars to pay their taxes; most have done this now, so goodbye sell-off.

This interpretation is supported by the fact that Bitcoin suddenly tanked at the start of this week, losing 6% of its value in just two hours and falling below $7,000.

“The selling pressure associated with tax day has subsided right now,” Ryan Taylor, the CEO of cryptocurrency software firm Dash Core told CNN. “As people get their tax returns, there may be new money entering the market.”

However, when Bitcoin suddenly shot up on Thursday, the online chatter was mostly about the…

Continue reading at FORTUNE.com