Bitcoin price stabilises after crypto markets crumble

Bitcoin has experienced a rush of interest as investors look to get their hands on new cryptographic tokens released via Initial Coin Offerings ICOs. Developers are releasing hundreds of new assets called coins or tokens that might power yet-to-be developed peer-to-peer blockchain networks. These tokens can only be bought using Bitcoin or ether - the asset that powers another widely-adopted network, Ethereum.

But waves of selling are gripping newly-released tokens as speculative traders cash in on the initial run-up in price. However, IOTA was caught up in the sharp correction as investors scooped profits and the price of the token plummeted more than 40 per cent on Friday. Traders are also paying attention to the ongoing scaling debate within the community. The Bitcoin network can process about seven transactions a second, but people are trying to send many more than that. Therefore, we believe that such moves have a positive impact on the long-term outlook for crypto assets, notably for Bitcoin as the leader in the crypto world.

We discuss why investors should take the opportunity of Bitcoin's recent weakness and accumulate more exposure. In its last quarter results, Bitcoin remains its most widely traded crypto asset through the first nine months of FY But, we don't think it represents a demise of its legitimacy.

What demise and irrelevance are we talking about? We think it represents the ongoing adoption and maturity of crypto assets as a whole, as more investors jump on board. Furthermore, investors should duly note the participation of institutional trading in Coinbase. It was a huge shift from what we observed just a year ago. Therefore, it clearly represented the huge momentum shift from retail to institutional trading.

While retail volume is still significant and has often resulted in previous wild swings in Bitcoin, the ongoing adoption by institutional investors could reduce the volatility in the future. We believe that institutions and corporations that choose to adopt Bitcoin as an asset class on their balance sheets have a long-term view. We also shared in a previous article that the correlation between Bitcoin and the US equity market has gotten closer than in previous years.

While it may have weakened the near-term catalysts in Bitcoin, we believe that the long-term adoption by institutional investors is still in the early innings. Therefore, we believe that investors should capitalize on the current volatility and weakness in Bitcoin before more institutional investors and corporations join the bandwagon subsequently. Graticule Asset Management Asia also highlighted how the recent equity market volatility has slowed down the adoption by institutional investors, albeit momentarily.

Although the decision to allocate into crypto has already been made by many traditional institutions, but most have been slow to actually invest. We think institutional allocations will wait until the global equity markets, particularly growth equities, have stabilized. Bloomberg We believe that it makes sense, especially for corporations who have decided to invest in Bitcoin.

But, the current accounting rules are "not beneficial" in the way these companies need to account for their Bitcoin holdings on their balance sheets. Especially, if they have a long-term perspective not trading in and out regularly. For instance, Tesla highlighted in its FY21 K recently edited : Digital assets are considered indefinite-lived intangible assets under applicable accounting rules.

Accordingly, any decrease in their fair values below our carrying values for such assets at any time subsequent to their acquisition will require us to recognize impairment charges, whereas we may make no upward revisions for any market price increases until a sale. For any digital assets held now or in the future, these charges may negatively impact our profitability in the periods in which such impairments occur even if the overall market values of these assets increase.

Tesla's FY21 K Therefore, we can understand the trepidation by corporations who have decided to invest in Bitcoin but are concerned about how impairment charges could affect its quarterly results. It's a valid consideration. But, we are also confident that the equity market will find its upward momentum in , consistent with what Graticule Asset Management Asia indicated above.

Unless you believe that we are in a multi-year secular bear market, we are confident that the US equity market will find its footing again. Therefore, it should help placate and assure more institutional investors to allocate more Bitcoin holdings.

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But the top 10 cryptocurrencies appear to have stabilised over the weekend. Advertisement Eighty of the top cryptocurrencies suffered double-digit declines in the past week. Developers are releasing hundreds of new assets called coins or tokens that might power yet-to-be developed peer-to-peer blockchain networks.

These tokens can only be bought using Bitcoin or ether — the asset that powers another widely-adopted network, Ethereum. Advertisement But waves of selling are gripping newly-released tokens as speculative traders cash in on the initial run-up in price. However, IOTA was caught up in the sharp correction as investors scooped profits and the price of the token plummeted more than 40 per cent on Friday.

Advertisement Traders are also paying attention to the ongoing scaling debate within the community. The Bitcoin network can process about seven transactions a second, but people are trying to send many more than that. The network has a serious backlog which is only going to get worse. Developers and investors are discussing two solutions to the problem. Ethereum eth , solana sol , and cardano ada are also showing signs of stabilising after the Saturday crash. Cardano is still down by over 14 per cent compared to its value a week earlier, while ethereum and solana have dropped in price by about 4 per cent over the last 7 days.

The chart is still all red with little signs of recovery to pre-crash levels. Friday 3 December , Vishwam Sankaran The Independent is hosting a free expert panel on cryptocurrencies With the global crypto market in a state of constant flux, The Independent is hosting an expert panel to dissect the ins and outs of digital money.

The virtual event is free to attend and will cover topics such as how cryptocurrency works, how to invest, and what the future looks like for the top tokens like Bitcoin, Ethereum and Litecoin. The panel discussion will be held on 15 December at 6. Ethereum has also dropped in value by over 2. The price of Solana sol remains nearly unchanged in the last 24 hours, while during this period cardano ada has surged by about 7 per cent.

After its discovery in Africa, cases have since cropped up in Europe and now the US. It has already had an impact on traditional markets, due to the fears surrounding new lockdowns and other economy-stifling measures. That said, the price has since rebounded as sophisticated investors purchased the dip. Bitcoin is down only 1 per cent, and Ethereum is up by 6 per cent over the past seven days. Solana has made the highest gains in the last day among the leading cryptocurrencies, growing by over 7.

Both dogecoin and its spinoff cryptocurrency shiba inu have dropped significantly in value over the last 24 hours with the latter nosediving by about 10 per cent during this period. Facebook ends cryptocurrency ad ban Wednesday 1 December , Anthony Cuthbertson Meta formerly called Facebook has finally brought an end to its long-standing ban on cryptocurrency ads. With the end of the year just 31 days away, analysts have been speculating that the cryptocurrency could repeat the price feats it saw in previous years, when it achieved record-breaking bull runs before the New Year chimed in.

Nikita Rudenia, co-founder Invest CoinMarketCap offers insight into state of crypto industry with quarterly report Tuesday 30 November , Anthony Cuthbertson CoinMarketCap has become the go-to price index for cryptocurrency followers, offering the most comprehensive list of altcoins 15, and counting and historical data. The Binance-owned market tracker has recently begun releasing quarterly reports that offer insights into its users, and therefore the industry more generally.

The latest edition reveals that the vast majority of its users are male 74 per cent , while the age bracket is by far the biggest. CoinMarketCap Breaking down visitors by country also gives an indication of how popular bitcoin and other cryptocurrencies are in different regions, with the US, Europe and Southeast Asia accounting for the majority of visitors. The overall crypto market has largely stabilised after a tumultuous few days, shifting by less than half a per cent since this time yesterday.

While most leading cryptocurrencies have reflected this moment of calm, meme coins dogecoin Shiba Inu have both shot up in value. Dogecoin rose 6 per cent over the last 24 hours, while Shiba Inu saw gains of nearly 30 per cent. There seems no one better to share this message than dogecoin co-founder Billy Markus, who has lived through all the ups and downs of his crypto creation.

Metaverse Property made the purchase using , of the MANA cryptocurrency, which is a rapidly rising Ethereum-based token used within the Decentraland metaverse environment. You can read the full story here: As bitcoin price rebounds, who bought the dip? Monday 29 November , Anthony Cuthbertson With bitcoin returning to the price it was before the sudden collapse at the end of last week , several high-profile figures have now revealed that they made the most of the flash crash by taking the opportunity to bolster their holdings.

El Salvador just bought the dip. You can read the full story here: Monday 29 November , Vishwam Sankaran Cryptocurrency mining in Kazakhstan causing abrupt power shortages A surge in electricity demand in Kazakhstan due to a recent increase in crypto mining activity is causing power shortages across the country, Financial Times reported.

Experts say this could be due to crypto miners illegally generating currency from their homes or factories. They say the exodus of crypto miners to Kazakhstan from mainland China due to the crackdown on digital currencies there, could also be playing a major part in the electricity demand surge. The overall crypto market has grown by nearly 7 per cent in the last day. Other cryptocurrencies including cardano ada , solana sol and XRP have risen by over 6 per cent in the last 24 hours, but are still down compared to their values a week earlier.

Meme coins dogecoin and its spinoff shiba inu are also showing signs of recovery from the Friday crash. Friday 26 November , Vishwam Sankaran Crypto market crash amid fears of new covid variant affecting traditional markets The prices of several cryptocurrencies, including bitcoin and ethereum have plunged by more than 7 per cent in the last few hours amid fears over the new coronavirus variant shaking traditional markets.

Bitcoin is down by about 7. Within a span of four to five hours, ethereum, solana, cardano, and dogecoin have all nosedived rapidly, plunging in value by about 10 per cent compared to their prices a day earlier. The chart is all red with no signs of recovery yet.

Solana and cardano, however, have dropped in value by about 1. Meme coins dogecoin and its spinoff shiba inu have also dropped in value between 1 to 5 per cent in the last 24 hours.