Cryptocurrencies saw some deep losses last week as the price of BTC dropped to a low of $7,600 three days ago. Most of the cryptoconomy has had a strong correlation with BTC’s price movements and the majority of coins followed BTC’s downward path. In the last 48 hours, however, crypto bulls have been chugging along, attempting to bring prices higher again. On October 1, the price of BTC is meandering between $8,300-8,400, and at $8,367 per coin, BTC is up 1.6%. Still, for the last seven days, BTC is down 11.3% and bulls have some more resistance ahead of them.
In the last 48 hours, digital currency markets have rebounded after some bearish price dips last week. After losing $35 billion in a short period of time, most crypto markets have been gradually healing and the overall market valuation of the cryptoconomy has clawed back at least 50-60% of the losses.
Crypto Markets Struggle But See Slight Gains
The second largest market rival is ethereum (ETH) which has gained 0.75% today. One ETH is trading for $178 at press time, but markets are still down 5.8% for the week. Ripple (XRP) is currently trading for $0.25 per coin and has seen only a small amount of movement in the last few days. Tether (USDT) commands the fourth largest market cap and the stablecoin has held this position all week long. USDT is still the most traded cryptocurrency, capturing $19.5 billion in volume on October 1.
Bitcoin Cash (BCH) Market Action
Bitcoin cash (BCH) has held the fifth largest market cap ever since USDT bumped the coin down a spot. At press time, BCH is swapping for $223 per coin and is still down 2.2% today and negative 18% for the week. As we mentioned in our last market outlook, BCH took a beating and saw some of last week’s biggest losses. BCH is the sixth most traded digital asset on Tuesday above XRP and below EOS. Bitcoin cash has roughly a $4 billion dollar market cap, which is half a billion higher than LTC. Right now there’s been about $1.7 billion BCH traded in the last 24 hours. USDT represents 60% of all BCH trades on Monday followed by BCH/USD capturing 16%. Behind the U.S. dollar, the top trading pairs with BCH are BTC (13%), ETH (5.5%), KRW (2.7%), and JPY (0.70%).
BCH markets have held above the sub-$200 range but there is heavy resistance within $250-260. If BCH bulls can muster enough strength to damage that price region then a greater recovery could be on the cards. At press time, order books indicate northbound prices above the $270 zone show smoother seas. Cryptocurrency price analyst Pedro Febrero believes a period of consolidation may take hold of BCH markets.
“Last week, I mentioned there could be a chance for more upwards movement following the bounce at $200. However, at the time of writing, that now seems highly unlikely until we have worked through a period of consolidation around the new low”, Febrero wrote on October 1. “Currently, Bitcoin Cash is trading well below all its EMAs. Looking at the volume profile, we can clearly see BCH has strong support below $200 and almost no resistance until the $270-$280 level.”
Despite the Recent Price Lows, Experts Believe Record Highs Still Incoming for BTC
Despite the recent lows, BTC and other digital assets are on course to start seeing higher prices again according to a few experts. Daniele Mensi, CEO of digital exchange group Nexthash, told the press that the “volatility of cryptocurrencies is what makes them excellent conduits of growth for traders, investors and growing businesses.” “What is important to remember is that bitcoin is still up around 115 percent this year, so its short term peaks and troughs are necessary to facilitate longer-term growth across the currency”, Mensi added. Commodity trader Peter Brandt explained that BTC prices could still drop to the $5,500 range, but after that the bull market will initiate and Brandt estimates BTC will touch $50K in the long term. John McAfee continues to double down on his bet and he’s still “firm” on his $1 million dollars per BTC prediction by the end of 2020.
German Bank Predicts BTC Will Touch $90K After the Halving
A German financial institution based in Munich recently reported on BTC’s price and upcoming 2020 reward halving. In the spring of 2020, depending on hashrate speeds, BTC’s block reward will cut in half and people believe the price will rise due to this milestone. Germany’s BayernLB bank called BTC a “unique monetary asset” in its recent report and predicts the value of BTC will touch $90,000 per coin after the halving. The German bank called the digital asset “hard money” and used the coin’s stock-to-flow ratio as an example of “hardness.”
“It becomes clear that Bitcoin is designed as an ultra-hard type of money”, says BayernLB’s published report called Megatrend Digitalisation. “Next year, it will already exhibit a similarly high degree of hardness as gold. In 2024 (when halving is set to take place again), Bitcoin’s degree of hardness will again increase massively.”
Politicians and Bankers Still Forecast a Sluggish Global Economy
Meanwhile, outside the crypto world, the global economy is shaking due to politicians and bankers spreading fears of a massive recession. The New York Times reported on October 1 that “global trade is deteriorating fast, sapping the world’s economy.” Central banks have global economists scared as there’s been a massive shift toward monetary easing tactics and even discussions concerning helicopter money.
Despite the macroeconomic storms, just like cryptocurrencies, traditional safe haven assets saw losses last week. The price per ounce of fine gold is down on October 1 and trading at $1,483 per ounce at press time. No one knows what will happen with markets like precious metals and cryptocurrencies during a great recession, but the way central bankers are acting we may see these assets tested. For now, cryptocurrencies are seeing slight gains but there have been no sure signals that a bullish comeback is imminent.
Disclaimer: Price articles and market updates are intended for informational purposes only and should not to be considered as trading advice.