Is the cryptocurrency crash almost over?
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Bitcoin has fallen again and again. Its downfall caused a real crash in cryptocurrencies. All altcoins follow the Bitcoin and some cryptocurrencies become clearly under-capitalised with respect to their project or its progress.
The year 2017 was a wonderful year for cryptocurrencies. Bitcoin went from $963 to nearly $20,000 in mid-December 2017, cryptotraders had one question in mind: how far could Bitcoin soar like that?
Morning coffee in 2017:
As soon as they woke up, cryptotraders all got into the habit of refreshing their cryptocurrency wallets. What better way to start the day than to see your crypto wallet increase by 20 to 40% overnight!
Today, waking up is more painful. Cryptotraders first look at the Bitcoin level. Then they say to themselves: "ouch... And how much did my altcoins lose?” And that's always a bad surprise.
Yearend holidays for 2017:
During the 2017 yearend holiday season, Bitcoin was still set at between $13,000 and $16,000. Enough for all cryptotraders to end the year with a smile.
It was also an opportunity to share with all those around them the magnificent upside potential of cryptocurrencies.
The big winners on cryptocurrencies:
These were the cryptotraders who felt that the Bitcoin bubble would burst at the end of December 2017. At the end of 2017 they sold all their cryptocurrencies and now enjoy their money.
The big losers on the cryptocurrencies:
These were all the cryptotraders in the entourage of a seasoned cryptotrader from 2017. These cryptotraders heard about cryptocurrencies during the Christmas holidays and then opened a crypto account in early January 2018. They are shedding endless tears today with capital losses of 50% to 80%.
All the others (who represent the vast majority):
Cryptotraders already active at the beginning of 2017 or during 2017. They were able to change a portion of their wallets back to fiat currencies towards the end of the year. Unfortunately, post correction, they repositioned 100% in cryptocurrencies during the rebounds in mid-February 2018 and mid-April 2018.
Today their cryptocurrency account has taken a severe beating. But on a sliding year the global added value is always there!
It should also be noted that these cryptotraders generally participated in ICOs (initial coin offerings) that only open for listing today. These blocked funds (pending a listing on an exchange) have not suffered the fall and this is very profitable for them.
Fall in ICO participation:
With the cryptocurrency crash, cryptotraders are no longer attracted to ICOs. Where for 1 BTC we received 100 XXX we now need 3 or 4 BTC to receive the same 100 XXX.
At the end of 2017 and the beginning of 2018, cryptotraders threw themselves into all the ICOs to multiply their investment by 5 or 10 from the first listing on an exchange. As a reminder, some ICOs (with several million dollars to raise) closed in just a few minutes.
Today (since a few weeks ago and until the next crypto boom), ICOs are no longer attractive. We can see that. Companies are no longer able to raise 100% of their funds.
Bonuses to boost ICO participation:
To determine the number of tokens that will be given for X BTC (or other altcoins), companies fix the rate 1 or 2 days before the start of the ICO. To boost participation in ICOs, companies have found an alternative: set a price well above the market price.
Example: theTHOR Token ICO
PS: Today the NEO is quoted at $30. This exchange of NEO to THOR, for the equivalent of $120 per NEO token, seems to me to have been a good deal! But we'll wait for the THOR token to be listed before deciding definitively.
The benefit of burnt tokens:
If cryptotraders no longer participate in ICOs, companies often find themselves having to burn some of the tokens put into circulation and not sold during ICO. The more tokens that are burned, the better! This enhances the token’s value!
We come back to the original question.
Basically, who knows how to value Bitcoin?
Answer: no one. Let the gurus, who dare to talk about the fundamental value of Bitcoin, get their fingers burnt! That’s why I prefer using technical analysis. At least then we have arguments! I therefore invite you to follow BITCOIN technical analyses.
Basically, what do we know?
Answer 1: Bitcoin guides the cryptocurrency market. Altcoins follow it like sheep.
Answer 2: Some altcoins are clearly undervalued as a result of the global market downturn.
Answer 3: The opening of fiat pairing, the quotation of all cryptocurrencies against a fiduciary currency, will clearly help to stop the sheep-like behaviour that altcoins have with Bitcoin.
A conclusion? I don't care if Bitcoin falls below $1,000 or if it rebounds to $20,000 or more. My inquiry is more focused on the following three questions:
1/ When will there be a "fiat pairing" which frees altcoins of King Bitcoin?
2/ Without fiat pairing, if Bitcoin relapses to $1,000, is the market still willing to capitalize the top 100 cryptocurrencies 6 times less? By that I mean: would the market agree to quote (for example) ELASTOS at $2.80, or $16 million in capitalization alone? Or another example with a new cryptocurrency, APEX at $0.01 or only $4 million in capitalization?
3/ When will cryptotraders bring each cryptocurrency closer to its correct capitalisation? With regard to the project, its progress, partners, etc.
A look back at cryptocurrency increases in 2017
The year 2017 was a wonderful year for cryptocurrencies. Bitcoin went from $963 to nearly $20,000 in mid-December 2017, cryptotraders had one question in mind: how far could Bitcoin soar like that?
Morning coffee in 2017:
As soon as they woke up, cryptotraders all got into the habit of refreshing their cryptocurrency wallets. What better way to start the day than to see your crypto wallet increase by 20 to 40% overnight!
Today, waking up is more painful. Cryptotraders first look at the Bitcoin level. Then they say to themselves: "ouch... And how much did my altcoins lose?” And that's always a bad surprise.
Yearend holidays for 2017:
During the 2017 yearend holiday season, Bitcoin was still set at between $13,000 and $16,000. Enough for all cryptotraders to end the year with a smile.
It was also an opportunity to share with all those around them the magnificent upside potential of cryptocurrencies.
Winners / losers on cryptocurrencies
The big winners on cryptocurrencies:
These were the cryptotraders who felt that the Bitcoin bubble would burst at the end of December 2017. At the end of 2017 they sold all their cryptocurrencies and now enjoy their money.
The big losers on the cryptocurrencies:
These were all the cryptotraders in the entourage of a seasoned cryptotrader from 2017. These cryptotraders heard about cryptocurrencies during the Christmas holidays and then opened a crypto account in early January 2018. They are shedding endless tears today with capital losses of 50% to 80%.
All the others (who represent the vast majority):
Cryptotraders already active at the beginning of 2017 or during 2017. They were able to change a portion of their wallets back to fiat currencies towards the end of the year. Unfortunately, post correction, they repositioned 100% in cryptocurrencies during the rebounds in mid-February 2018 and mid-April 2018.
Today their cryptocurrency account has taken a severe beating. But on a sliding year the global added value is always there!
It should also be noted that these cryptotraders generally participated in ICOs (initial coin offerings) that only open for listing today. These blocked funds (pending a listing on an exchange) have not suffered the fall and this is very profitable for them.
The cryptocurrency crash also affects ICOs
Fall in ICO participation:
With the cryptocurrency crash, cryptotraders are no longer attracted to ICOs. Where for 1 BTC we received 100 XXX we now need 3 or 4 BTC to receive the same 100 XXX.
At the end of 2017 and the beginning of 2018, cryptotraders threw themselves into all the ICOs to multiply their investment by 5 or 10 from the first listing on an exchange. As a reminder, some ICOs (with several million dollars to raise) closed in just a few minutes.
Today (since a few weeks ago and until the next crypto boom), ICOs are no longer attractive. We can see that. Companies are no longer able to raise 100% of their funds.
Bonuses to boost ICO participation:
To determine the number of tokens that will be given for X BTC (or other altcoins), companies fix the rate 1 or 2 days before the start of the ICO. To boost participation in ICOs, companies have found an alternative: set a price well above the market price.
Example: theTHOR Token ICO
THOR had a large effect on the recent fall of the cryptocurrencies! They offered an exchange rate of 1 NEO for 120 THOR, the equivalent of the NEO being $120 whereas it is currently quoted at only $90. And that's without counting the 25% pre-sale bonus! ;)
PS: Today the NEO is quoted at $30. This exchange of NEO to THOR, for the equivalent of $120 per NEO token, seems to me to have been a good deal! But we'll wait for the THOR token to be listed before deciding definitively.
The benefit of burnt tokens:
If cryptotraders no longer participate in ICOs, companies often find themselves having to burn some of the tokens put into circulation and not sold during ICO. The more tokens that are burned, the better! This enhances the token’s value!
Is the cryptocurrency crash almost over?
We come back to the original question.
Basically, who knows how to value Bitcoin?
Answer: no one. Let the gurus, who dare to talk about the fundamental value of Bitcoin, get their fingers burnt! That’s why I prefer using technical analysis. At least then we have arguments! I therefore invite you to follow BITCOIN technical analyses.
Basically, what do we know?
Answer 1: Bitcoin guides the cryptocurrency market. Altcoins follow it like sheep.
Answer 2: Some altcoins are clearly undervalued as a result of the global market downturn.
Answer 3: The opening of fiat pairing, the quotation of all cryptocurrencies against a fiduciary currency, will clearly help to stop the sheep-like behaviour that altcoins have with Bitcoin.
A conclusion? I don't care if Bitcoin falls below $1,000 or if it rebounds to $20,000 or more. My inquiry is more focused on the following three questions:
1/ When will there be a "fiat pairing" which frees altcoins of King Bitcoin?
2/ Without fiat pairing, if Bitcoin relapses to $1,000, is the market still willing to capitalize the top 100 cryptocurrencies 6 times less? By that I mean: would the market agree to quote (for example) ELASTOS at $2.80, or $16 million in capitalization alone? Or another example with a new cryptocurrency, APEX at $0.01 or only $4 million in capitalization?
3/ When will cryptotraders bring each cryptocurrency closer to its correct capitalisation? With regard to the project, its progress, partners, etc.
