The market has entered the correction phase again. There is no need to talk about the return to growth but investors are using the opportunity to regroup their cryptoassets «on the bottom» in the hope of long-term investment.
As it was expected, the market moved toward a small corrective growth after a protracted drawdown. The market has added about $7 billion per day and reached $281 billion that is not large on a general scale but provides some room for maneuver.
Bitcoin (BTC) has suffered a drawdown to $6 285 forcing the experts to break out in panic about the imminent fall to new depths. The founder of Onchain Capital and the TV presenter of Cryptotrader on CNBC Africa Ran Neu Ner told CCN that the price of the first cryptocurrency would likely continue falling to $5 900 because the demand for digital gold is currently insufficient. According to him, the breakdown of the $5 000 mark can inflict the significant harm on the bitcoin infrastructure and negatively affect the long-term prospects because the mining companies will reorient to more profitable altcoins. But the long-term investors should not care about all this fuss.
«If Bitcoin’s value goes to 20, 40, or 80 thousand US dollars over a matter of years, then no one will care if they bought in at 6 000 dollars or 6 500 dollars. Only day traders working on scales of less than a year should be worried about the current dips in market value», − Neu Ner said.
Now the prospect of the maximum fall has been moved a little. Bitcoin has increased trading volumes after testing the local minimum and falling below $ 6 300 and the investors who are ready to take risks and enter the market «at the bottom» have come up.
Now the price of the coin is fluctuating in a narrow corridor $6 480-$6 550.
The director of Investment of CryptoLife Mansur Huseynov described the situation for RIA Novosti:
«The decline continues, bitcoin tested the lows at $6 300 but the trading volume has grown significantly and it may indicate the soonest reaching of the local bottom. In addition, the RSI index is at the minimum for six months and this fact indicates that the market is oversold. In this regard the growth of bitcoin up to $7 000 is possible but after it the downward movement will likely continue».
The researchers from the University of Texas at Austin are confident that the price of bitcoin during the recession was kept by the dollar-backed Tether (USDT) token. Moreover, the growth of bitcoin throughout the whole of 2017 was largely facilitated by the purchase of the currency for USDT.
Now the three largest rating agencies − Standard & Poor's, Moody's and Fitch note the increasing impact of the bitcoin futures trading on the bank’s ratings. The trading volumes on the bitcoin futures market are constantly increasing and banks, according to the agencies, take unreasonable credit risks referring to cryptoassets. In the future the entry of financial institutions into the market of cryptocurrency futures may negatively affect their evaluation by agencies. Now digital assets are available on a limited number of exchanges including the platforms of American exchange groups CME and CBOE.
Ethereum (ETH) can’t overcome the recently passed height of $500. As you can see on the chart, the attempts of it were made but the coin does not have enough trading volume and after some growth ETH went down again.
After falling from $0.67 to $0.53 Ripple (XRP) is making cautious attempts to the growth. Now XRP is trying to stabilize at the level of $0.55 that can become a new level of the support on the way up.
Cardano (ADA) shows a good dynamics today. The growth occurred in the context of of the announcement of its addition, as well as Status Network Token (SNT), to the largest South Korean Bithumb cryptoexchange. In honor of the addition of the new assets the exchange was launched the action: the users who deposit and conduct trading in the newly added assets between the opening (14:00 on time UTC + 9) and noon on Saturday June 16 will be returned 1% of their value. The period of the action for trading operations will continue until Wednesday June 20 and the funds accumulated such way the users will receive on July 6. The news caused a jump in the ADA rate from $0.155 to $0.176. Then the price corrected a little and the average daily growth was 4.4%. The similar dynamics is observed in SNT that experienced the growth from $0.073 to $0.083 and then adjusted to $0.076.
The ICON (ICX) token has shown today a moderate growth. For the morning session it has risen from $1.99 to $2.20 so the increase was almost 10%. The afternoon correction slightly cooled the rate so that the average daily growth was slightly less than 5%. Nevertheless, it is a good dynamic for altcoin that lost about 20% of its value over the past week due to a general decline of the market. The reason for the growth was the addition of the support of ICX/USDT trades to the Binance cryptoexchange along with Siacoin (SC) that has shown much more activity adding about 14% overnight.
The leader of the growth unexpectedly (or quite expectedly, given the opening of the football world championship in Moscow) has become a little-known token All Sports (SOC). The project’s website says that SOC is «a decentralized, globalized, infiltrated into sports industry chain, shared by both parties and value co-created» that has added about 18% per day. The growth occurred after the announcement that the soccer star Sergio Aguero joined the SOC community. Given that football players are now focused on special attention the excitement is not surprising.
The CoinMarketCap service that is our regular supplier of up-to-date information about cryptomarket has added several updates. The search for mobile devices is updated, the «night mode» is added and the «watch list» function is improved (its limit increased to 250 tokens). Now the service is in the top 300 most visited websites in the world.
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