Summary:
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Brad Garlinghouse makes interesting remarks on Bitcoin
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Litecoin (LITECOIN on xStation5) bounces off the $90 handle
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Coinbase opens a crypto index fund for the US investors
The cryptocurrency sphere still tries to lick its wounds after the latest sell-off. The capitalization of the whole market sits subtly below $280 billion at press time. The Bitcoin (BITCOIN) price tries to crawl back above the $6500 while Litecoin (LITECOIN) bounces off the $90 handle. We have been offered another harsh remark on Bitcoin from the Ripple CEO recently.
Earlier this month we wrote about Steve Wozniak, one of the Apple co-founders, who said that in his opinion there is no way Bitcoin will become global currency. Recently Brad Garlinghouse, CEO of Ripple, also expressed that he does not believe that it will happen while provide some interesting arguments why. During 2018 Stifel Cross Sector Insight Conference he said that the most famous cryptocurrency is being controlled by China. He support his statement by saying that more than 50% of Bitcoins are possessed by 4 Chinese miners. Having that in mind he continued that the world will not use Bitcoin as global currency as there is a significant threat of Chinese intervention. Moreover, he ridiculed the idea that there will be any country willing to drop its own currency and use the Chinese-controlled one instead.
The latest sell-off brought LITECOIN to the lowest levels since December 2017. The coin found support at $90 handle where some price action was spotted in the run up to the ATH around $370. In case the bullish momentum prevails investor should stay cautious once the price approaches the round levels as LITECOIN seems to respect them quite well. Source: xStation5
In March Canadian mass-media company Thomson Reuters began offering sentiment data for Bitcoin. The data came from scanning hundreds of news websites related to the digital assets. It looks like launching of a such service was a success as now the company is said to begin providing sentiment data for 100 most popular cryptocurrencies. It is worth to note that Thomson Reuters will offer not only present sentiment data but also from the past as it is said to possess historical data dating back to 2009. Thanks to this investors will be able to study past correlations between price and sentiment and try to use this knowledge to the present situation. The sentiment analysis may be used by investors to try to determine pivotal points on the market.
BITCOIN plummeted towards $6100 handle to recoup some losses afterwards. The coin manage to climb back above the descending trendline and is now trading a notch below the resistance level at $6500. The market reaction on this level may be crucial for the future price movements. Source: xStation5
At the end let’s mention a relatively new investment vehicle on the cryptocurrency market that soon probably will be something totally normal. We are speaking here about cryptocurrency index funds. Coinbase opened one such fund for some of the US investors. The fund will provide investors with exposure on all coins listed on Coinbase exchange GDAX. The index is a market capitalization weighted one and now comprises of 4 cryptocurrencies (Bitcoin, Ethereum, Bitcoin Cash and Litecoin). However, it is greatly biased by the Bitcoin price fluctuations as the share of Bitcoin in it exceeds 60%. The minimum investment in the fund is $250,000 while the maximum is $20 million. The fund will charge standard 2% annual management fee.