As it turns out, February 6th was indeed a very important day for Cryptocurrencies!
As was posted by myself, and others, February 6th turned out to be an important date for cryptocurrencies.
Not just for calling a bottom in prices, but because we finally got past a date that provided some major uncertainty.
I first mentioned it here:
Basically, it turned out to be a day of not so much what did happen, but instead, what didn't happen.
The Senate Committee Hearing on banking and cryptocurrencies turned out to not provide the fireworks that some were fearing, at least to the downside.
Instead, they basically acknowledged that bitcoin and cryptocurrencies are a legitimate asset class that is likely here to stay.
Phew.
Crisis averted?
Some were fearful that the SEC and/or the CFTC might offer some heavy handed remarks that would further push prices down at a time when they were already sitting at 2 month lows.
More bad news when prices are already down 65% isn't a very welcome thought for most people.
However, as it turned out, sometimes what you don't say is more important than what you do say.
Overall, nothing earth shattering, ground breaking, or even outright positive was said.
However, once that uncertainty and fear of the unknown was removed, prices were allowed to rebound, and rebound quite significantly!
After hitting a low around $5,900 yesterday morning, bitcoin prices are currently trading around $8,400.
A bounce of $2,500, or about 48%!
More good news on the horizon?
Now only are we finally past February 6th, but we are also inching closer and closer to the Chinese Lunar New Year, which is February 16th.
More about that can be read here:
https://steemit.com/cryptocurrency/@jrcornel/february-16th-is-a-very-important-date-for-the-cryptocurrency-markets
Yes, China is doing their best to keep their people from purchasing cryptocurrencies, however, that likely won't stop every one.
Once we get past that holiday there is likely to be a lot of fiat money from that entire region looking to get back into cryptocurrencies.
It won't happen exactly on that day, but as you are seeing currently, much of the selling from that area has likely finally dried up.
What that means going forward?
That is impossible to predict in terms of bitcoin's price or steem's price or any other cryptocurrency.
But, given the current market environment and where we are going seasonally, I would not be surprised to see things turn decidedly more bullish for bitcoin and the entire space over the coming weeks/months.
Not only that, but you can even see a change in the headlines today vs. the last few weeks.
There are quite a bit of positive headlines out there today whereas it was nothing but negative headlines before.
Heck, even this one calling for bitcoin $50k by the end of the year came out this morning.
https://www.cnbc.com/2018/02/07/bitcoin-price-could-hit-50000-this-year-experts-say.html
I'm not sure bitcoin gets that high, but I also didn't think it would hit $20k last year and there are certainly a lot of days left this year, so you never know.
If bitcoin were to hit $50k this year, I can't imagine where steem might trade to with all the positive developments coming over the next few months.
Here's to hoping!
Stay informed my friends.
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Tethergate is still a dark cloud hanging over the market, unfortunately. I don't think we're out of the woods just yet. If Tether publishes some kind of audit or clears up the uncertainty in some way, markets will rally like a bat out of hell!
UpBit came out yesterday and said that all their customers will get equivalent USD if Tether collapses, which was a little weird: https://twitter.com/CryptoOfKorea/status/961087459093307393
I think a lot of exchanges might end up doing that, considering the amount of profits they have been taking in over the past year. Given than, I think the tether situation is massively overblown to be honest.
Agreed on overblown. What is Tether worth? $2 Billion in a market that is $400 Billion.
Would be like Barnes and Noble declaring bankruptcy, while Amazon was growing.
Barely a ripple on the water.
"Tethergate is still a dark cloud hanging over the market" agree it seems very very dodgy,
HODL and hope for the best!
I really hope you are right about the bottom being in (I think you are). In addition to new Chinese money, we have all the new users added over the past 6 months by the exchanges. They have also beefed up staff so new sign ups should get accounts quicker. Added to all the new apps such as Robin Hood etc which are adding crypto support and you have a mass of new ebterabts able to buy in when the price starts to move! That has to be positive for prices!!
My thoughts exactly. Sprinkle in some large tax returns coming in the next few months for US citizens and we have the recipe for a very good spring for cryptocurrencies. :)
We will look back at this time of 2018 , at the end of 2018 and think why were we even worried lol... just hold.
I think you could be right. Got the past few years, btc has dropped at the start of the year, only to go on and do well for the rest of the year. I’m not worried and won’t be selling yet!
The market is starting to stabilize. More profits to gain again for the next months
Feeling very relaxed now after learning about this encouraging news....
This is just the beginning for cryptocurrencies or crypto assets ad the government calls it. We hope for greener views.
My problem atm is whether i should BTC or STEEM or FUN, or another coin, i really don't know... you should make a list about the coins that you think have the greatest potential...
I like steem, btc, ether, eos, xrp, and neo... In that order ;)
I hodl some of altcoins
Wow Great post! You were dead on! Great work! I agree, we already hit rock bottom!
People call it scam when they lose and call it an opportunity when they gain. Humans are such funny creatures aren't we?
thanks for the information @jrcornel and i choose mu @jrcornel
I really liked of Senator Mark’s speak and of the two members of committee.
Gives hope about how seriously cryptocurrencies is in world.
Come on!!