8.00am MORNING HEADLINES
Good morning, and welcome to our rolling coverage of all things cryptocurrency, including price, regulation, innovation and financial crime.
Bitcoin is currently priced at $6,159 after hitting a new low for 2018 on Sunday night.
Jordan Hiscott, Chief Trader at ayondo markets has warned Express.co.uk that he expects prices to continue further south over summer.
Mr Hiscott said that cryptocurrencies remain vulnerable, adding, “the ability to trade and get access to both positions and funds hugely affects the perception of the stability of crypto assets as a whole.
“This is important as not having the backing of governments, unlike fiat currencies, makes crypto vulnerable, which is evident in today’s fall in the value of Bitcoin.”
On the general sentiment for crypto, he said: “Japan’s Financial Services Agency has suspended the creation of new accounts at five of the main exchanges in the country.
“This, coupled with hacking events at some smaller scale exchanges in Europe, makes what I call the general ‘macro’ picture on cryptocurrencies negative, at least in the short term. Although today’s move to $6060 for Bitcoin is down 8% on the day, I wouldn’t be surprised to see the asset drop near $5000 by the end of the summer.”
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Updates below throughout the day….
9.00am – Bitcoin ‘not dead’ yet
Bitcoin believer Brian Kelly, founder and CEO of BKCM LLC, told CNBC yesterday that BTC is “not dead.”
He said: “This is not the funeral for bitcoin whatsoever.
“Let’s put this in perspective. Do you know where we were a year ago? $2,500.”
Mr Kelly told the Fast Money programme that although the drop is “painful,” he said it’s not unusual.
“And bear markets, we don’t know where they end,” Mr Kelly said.
“It doesn’t mean that bitcoin can’t go lower. But this is by no means the funeral for bitcoin.”
10.25am – The crypto ‘winter’
Luke Shipley, CEO of bloclchain based hiring platform, Zinc told Express.co.uk that after the staggering rise of the crypto market in December-January the market slumped to year long lows in February-May, and as things recovered there was a sense of relief for most onlookers. However he warns, “some of the older heads in the space weren’t so quick to give the all clear.
“Jeremy Gardener knew this was false recovery, stating on Twitter ‘The crypto winter never came and that’s a bad thing’.
Mr Shipley adds: “They knew that we hadn’t truly tested the bottom of the market. This may have in fact been the bottom but we need to test these levels over and over to discover the bottom.
“Hence at the new lows, these need to be tested over a length of time to get through the bottoming process.”