After spending four days above $4,000, Bitcoin has finally given way. And it has been quite a drop, with the currency losing $250 in the space of thirty minutes. The drop sees it trading at $3816 at press time, having dropped from $4,016. Bitcoin had witnessed yet another 30-minute rally on January 6, gaining over $200 in just thirty minutes to hit $4,080. It was the first time Bitcoin had hit the $4,000 level since Christmas and many viewed it as the first step in a possible 2019 rally.

Meanwhile, Russia intends to buy bitcoins to the tune of billions of dollars to mitigate the effects of U.S sanction in February. This is according to a report by Australian crypto site Micky.com which claimed to have had an exclusive interview with a lecturer at a leading Russian economics institution. This could trigger a massive bull run, with the Russian Central Bank sitting on over $450 billion in reserves.

A Flash Crash

The unpredictable nature of the crypto market became evident once again after a flash crash hit the market earlier today. This crash was quite unexpected, given most cryptos have been having a good run since the year turned. The crash spared no one, with stablecoins being the only cryptos in the top 50 that have not experienced a dip.

Bitcoin Cash was the worst hit, with the currency losing 15 percent in the past 24 hours. BCH lost $35 in a few hours, dropping from $161 to $135. At press time, the currency was trading at $140. BCH consequently lost $500 million, putting it within $70 million of fifth-placed EOS. EOS lost 9 percent and the race for the fourth spot might end up being decided by which currency can bounce back the fastest.

Despite Bitcoin’s price dip, technical gauges indicate an impending price rally. In the past few days, the upper and lower bands of the GTI Vera Bands Indicator have narrowed progressively. This indicates that Bitcoin could be on the verge of a breakout. The indicator also shows that Bitcoin is on its longest buying streak since mid-September, a further indication of a possible bull run.

However, as exciting as this may sound, it’s best to remain cautions according to Travis Kling. Kling is the founder of Ikigai, a crypto hedge fund, having served as a portfolio manager for billionaire Steve Cohen’s Point72 hedge fund.

He told Bloomberg:

It’s unlikely that the bottom is in for Bitcoin. I am certainly willing to change my mind, but the preponderance of evidence leads us to believe that we’ll see more lows before we head higher.

Could Russia Trigger The Next Bull Run?

China, Japan, South Korea and the U.S. These are the nations that have had huge impacts on Bitcoin’s price movement in the past. However, it looks like the next bull run could be triggered by an unlikely entrant: Russia.

The U.S and Russia have rarely seen eye to eye, and sanctions have been a natural result. This time, it might be a little different according to Vladislav Ginko. Ginko is a lecturer at the Russian Presidential Academy of National Economy and Public Administration. As reported by Micky.com, Ginko believes that Russia will turn to Bitcoin.

He stated:

US sanctions may be mitigated only through Bitcoin use. Because of US sanctions, Russia’s elite is forced to dump US assets and US dollars and invest hugely into Bitcoins. Central bank of Russia sits on $466 billion of reserves and has to diversify in case there is limited opportunities to do it (in the future)


3 COMMENTS

  1. I’m an elderly gentleman, closing in on 60 years of age. My son introduced me to Crypto in late 2012. After doing a lot of research in Btc I felt strongly that It has a lot of growth and potential ahead of it. So my son and I built my 1st rig and I started mining in January 2013, pulled $5,000 from my IRA and bought Btc at $13.44 and have never looked back since. The sweetest sound that I’ve ever heard was the clink of my 1st mined Bitcoin way back then. That was as satisfying a note as there ever was on any musical scale. Nothing but happy days ahead since. Don’t get me wrong, there have been bumps in this Crypto highway, the demise of the Silk Road, Mt Gox, DAO hack to name a few but as a HOLDer (holding on for the long duration) not a HODLer (hanging on for dear life) and not day trading, has rewarded me with quite a decent profit. It just takes a lot of patience (Sisu) and doing your research with due diligence. I have since invested in Ethereum (Dec 2015), Monero (Jan 2016) and lately Omisego (July 2017) all purchased from some of my profits from Btc to go along with my newly acquired free Bch and recently free Omg. I’m currently operating 3 rigs equipped with 6 gpus each. 2 mining Eth and 1 Monero for now, all of which will be re-evaluated after Metropolis kicks in to see which direction I go from here. So I ‘m back to doing more research in order to help with my next moves but I’ll always be a strong believer in Ethereum which is where I’ve made my money so far. HOLDing on to the rest for now. Btc $5,000-10,000, Eth $2,500- 5,000, Monero $200-400, Omg $100-1,000 no one ever really knows but MY research says yes and so far MY research has not proven me wrong. Bought Btc at $13.44, Eth at .80, Monero at .48, Omg at .43 Bch for free. No where to go but up for me. Just biding my time. It’s taken me over 4 and a half years to get here but I’ve made over $2,000,000 so far with just my original investment plus the cost of my rigs and I’m still sitting on a lot more. Taking a position and HOLDing is where the real profit is and it isn’t going to happen overnight. So if you want aggravation and ulcers go ahead and day trade, try and beat the Market I wish you luck but the real money comes with Research, HOLDing and Patience. I will stop here so I don’t bore you guys, but it is sure worth your time. in case you are interested in venturing into investing in Crypto and Digital Currencies, or perhaps you are trading them but you don’t understand what you are doing, Hope this advice helps because in the long run what it all comes down to, its just Eths, You and Me hopefully making the right decisions, feel free to get in touch with me, I will be sure to guide and assist you with any information you may need to invest in these new and unpopular crypto and digital currencies that are making waves at the moment (fred.richmond21ATgmailDOTcom…

LEAVE A REPLY

Please enter your comment!
Please enter your name here