Summary:
- The most famous cryptocurrency witnesses its largest loss in terms of capitalization in history
- Bitcoin (BITCOIN on xStation5) may be heading lower taking into account a technical analysis
- Kodak postpones KodakCoin ICO citing the ’blurred future’, shares tumble
The first month of 2018 already came to an end so it seems to be proper time to make some summary for the whole cryptocurrency block. First and foremost, one needs to be cognizant that all digital currencies made the outstanding finish of the past year with Bitcoin topping $19,000. Since then, hype related to this topic has cooled off to some extent, hence the Bitcoin price has been moving in a downtrend for some time. It resulted in a substantial decline in Bitcoin capitalization which shrank by $44 billion in January, the highest 1-month slump ever.
Bitcoin market capitalization evaporated in January at the break-neck pace. Source: Bloomberg
On top of that, it’s worth mentioning that the whole virtual currency block capitalization tumbled from $614 billion to $512 billion during the first month of the year (notice that Bitcoin accounted for the lion’s share). It underlines how volatile digital currencies could be and shows that the future moves are heavily dependent just on interest (if interest broadens, the amount of people wanting to buy coins picks up as well).
After a breakout from a triangle pattern the price continues heading lower. The base scenario still assumes subsequent falls and a possible test of the closest support at $9125. Once this level is broken, it could pave the way for a crucial support line located at $5500. Source: xStation5
Kodak backs off from KodakCoin ICO as the future has become more ’blurry’
The much-hyped and worth $20 million KodakCoin ICO, which initially had been scheduled to take place on 31 January, was ultimately held off. In the official statement the company wrote that it needs at least several more weeks to get to know their customers better. Consequently, the stock plunged 19% further erasing its amazing surge made a few weeks earlier. Notice that a gargantuan rally seen at the chart below began as the company announced the idea of KodakCoin ICO. Let us also recall that the Kodak’s ICO is targeting accredited investors across the US, Canada and the UK.
Kodak’s shares plunged yesterday as the firm postponed its KodakCoin ICO. Source: Bloomberg