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 priced at $6,649 this morning after another turbulent night sent prices back down, wiping away the gains from yesterday’s steady recovery.
Yesterday, Bill Baruch, President of Blue Line Futures, told CNBC bitcoin’s “bottoming process can begin” following signs that volatility is “depressed” and that “selling has become exhausted”.
Luis Carranza, founder of London Fintech Week has responded by telling Express.co.uk that crypto has come a long way in 2018 and there are plenty of reasons to be “optimistic”.
He said: “Crypto is unpredictable. There are massive spikes and drops. $4500 could be the bottom, but there is nothing preventing $2500 from being the bottom. Likewise, as crypto becomes more mainstream the price tends to rise. Even if the price drops to $1000 there’s nothing preventing another surge to $14,000.”
However the fintech expert says that one reason for optimism is the amount being raised by crypto-financing, having seen exponential growth so far in 2018 alone.
He added: “The challenges for 2018 all involve regulation and the market maturing; with larger sums, crypto is becoming a grown-up game.”
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Updates below throughout the day….
Bitcoin price LIVE: BTC falls overnight
Crypto is unpredictable. There are massive spikes and drops. $4500 could be the bottom, but there is nothing preventing $2500 from being the bottom.
8.51 – ‘Bitcoin’s bad year is about to get worse’ – Bloomberg
Boffins at Bloomberg suggest that with no end in sight to the selling trend in bitcoin, the digital currency could test its 2018 low.
Janine Wolf writes: “According to the Directional Movement Index, bitcoin is on its strongest negative trend since the sell-off earlier this year. The index’s ADX line is currently at 39.3. Anything above 25 is considered a strong trend.
“Meanwhile, the index’s DVAN trend line, a divergence analysis that measures buying or selling pressure, is also giving off ominous signals.”
10.25am – Bitcoin ANALYSIS
Gavin Pannu, MSTA, Market Analyst and Trading Mentor at London Academy of Trading (LAT) says that regulation is key as Central Bankers begin to change their tune.
He said: “Central Bankers have been quiet during the cryptocurrency bull-run, and have been doing their due diligence with research and white papers carried out by regulators and experts in the field and the market is anticipating an optimistic view from Central Banks.
“Regulating cryptocurrency would ease investors’ concerns. But Mark Carney, Governor of Bank of England, has recently claimed Bitcoin has been failing and is not being integrated as previously expected.”
On the lack volatility, he questions the theory that BTC is heading for a new “bottom”.
He said: “Bitcoin volatility is now at its lowest level from a year ago, but a comparison of a bubble-like asset, which had a significant rise compared to the aftermath of a large correction, does not necessarily mean this is the bottom.
“Cryptocurrencies are still an emerging asset class which requires important steps to be taken for it to become mainstream, and begin the next move higher.
“This has become a concern for investors with the price of Bitcoin over a one month period losing 19.88 percent in value. It is important to consider investing with good risk management and, as they say, not to bet your house on this investment.”
Bitcoin price live: BTC is falling
12.06pm – BTC losses continue
Bitcoin’s losses now sit at $355 on the day so far.
12.12.pm – Suits in the room – BIG money coming to crypto, says Etoro
Matthew Newton from eToro has told the crypto community that “Institutional money is coming to crypto.”
He said: “At the start of last month in New York, the blockchain conference Consensus was buzzing with excitement. This year, among the usual crowd of developers and industry regulars, there was one noticeable addition – suits.
“This is an important development. Institutional money is coming to the crypto world.
‘We’ve seen a number of big names already dip their toes in the water, whether it’s Goldman Sachs or JP Morgan, and we believe that other traditional financial institutions may be getting involved via proxies, often by partnering with fintechs.
‘For institutions to fully commit, they’ll need more structured products and some sort of regulatory oversight. Reputational risk is a big issue for them, as is overcoming the media scepticism. Once an appropriate regulatory framework is in place, big ticket money is likely to swiftly follow suit.”
14.47pm – Bitcoin posts big losses
BTC has now shed a massive $580 on the day so far.