Bitcoin was going bonkers in the middle of the week, jumped from $11,000 to as high as $19,000 in a span of 24 hours before retracting to the $15,000 level to end the week.
The price action for ether was also very interesting – it dropped to as low as $400 at one point, bounced back to over $500 on certain exchanges before ending the week at $480.
From the price action of different coins, it looks like bitcoin is where the new money flows into. When bitcoin price stabilizes, investors look elsewhere for profit, which pushes altcoin prices up, until more new money comes in, at which point bitcoin price pumps again. This has been the trend for the last few weeks.
Another observation from the week is that if you look at the chart for bitcoin and other cryptocurrencies, they are moving at completely different directions. Therefore, it is good to diversify into different cryptocurrencies as it would reduce the overall volatility of your portfolio.
With trading of bitcoin futures starting tomorrow on CBOE, many people are speculating what will happen when large institutional investors can participate in bitcoin. The bulls say that most investors want to long bitcoin and that everyone who has shorted bitcoin before have been wrecked. Bears say that bitcoin futures is the first time investors can finally short the currency.
To be honest, I don’t think many people really know what will happen so I’m just going to take the contrarian side and predict that the whole thing will be anticlimactic – bitcoin price will not move much. Either way, it should be interesting to see how crypto whale vs. Wall Street whale will play out.
UK Treasury crackdown on Bitcoin over concerns it is used to launder money and dodge tax: https://www.theguardian.com/technology/2017/dec/04/bitcoin-uk-eu-plan-cryptocurrency-price-traders-anonymity
Mining Service Nicehash Hacked, $60 Million in User Funds Stolen: https://cointelegraph.com/news/mining-service-nicehash-hacked-60-million-in-user-funds-stolen
World Bitcoin Community Showers the Great Explainer Antonopoulos With Love: https://news.bitcoin.com/world-bitcoin-community-showers-the-great-explainer-antonopoulos-with-love-and-700000/
Apmex, the World's Largest Online Seller of Gold, Now Accepts Bitcoin: https://www.apmex.com/faq/bitcoin
South Korea (Pre)Issues Ban on Bitcoin Futures Trading: https://www.cryptocoinsnews.com/breaking-south-korea-preissues-ban-bitcoin-futures-trading/
South Korea Unveils Plans to Tax Crypto Users and Get Their Data from Exchanges: https://news.bitcoin.com/south-korea-plans-tax-crypto-users-data-exchanges/
Articles From Crush Crypto
Analysis of Devery ICO: https://crushcrypto.com/analysis-of-devery/
Crush Crypto Core November 2017 Report: https://crushcrypto.com/ccc-november-2017/
Analysis of GIFTO ICO: https://crushcrypto.com/analysis-of-gifto/
* The information contained in this article is for education purpose only and not financial advice. Do your own research before making any investment decisions.