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The cryptocurrency market begins to reverse and prepares for growth, report SFOX

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The team of the Californian cryptostartap SFOX concluded that if in January of this year the market was dominated by “moderately bearish” sentiments, in February they changed to “moderately bullish”.

Below is the SFOX multifactor index, the values of which depend on such variables as volatility, prevailing sentiment in the market, and also indicators of industry development.

Associated with the blockchain , cryptocurrency and ICO HYIP a few minutes. The media has become less loud headlines about events in the industry. But among institutional investors, there is a steady interest in the field of digital assets .

Projects continue to work on various user cases using the blockchain. In addition, the technology is used more widely than before. Analysts are confident that the transition to the “active development stage” is one of the reasons for the gradual decrease in market volatility.

Volatility and Correlation

The range of price fluctuations of leading cryptoactive assets, such as BTC, ETH, BCH and LTC, declined in January (compared with the average figures for 2018).

The correlation between Bitcoin (BTC) , Ethereum , Bitcoin Cash and Litecoin is very close:

Bitcoin correlates more closely with ether than with “digital silver”. At the same time, there is an inverse interdependence of cryptocurrency prices with the S & P 500 index and gold.

What to expect from the market in February 2019?

Volatility in the market will increase as you approach the expiration dates of futures. On February 13, contracts are executed on Cboe, and on February 22 – on the larger exchange CME.

Also, the amplitude of price fluctuations should increase with the approach of February 27 – the dates of the hard forks of Constantinople in the Ethereum network .

According to a number of indicators, Bitcoin is fundamentally undervalued, steady growth will begin around the last quarter of this year.

Publication date 10.02.2019
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How do transactions occur in the Bitcoin network? The whole cycle from start to finish

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Bitcoin (BTC) and its complexity have become a concept that many cryptocurrency users have been trying to understand since its inception. In his latest video, the famous Bitcoin enthusiast Andreas Antonopoulos and the author of the book “Mastering Bitcoin,” spoke about the life cycle of a Bitcoin transaction with a wallet from start to finish.

Antonopoulos said that since the transaction was sent from the wallet for confirmation to the Bitcoin network , the wallet creates a transaction, accumulating BTC in the user's wallet and assigning addresses. Then the user's wallet transfers the transaction information to one of the many nodes to which it is connected, from where it can be sent to “1, 2 or even 8 other nodes”.

“Then the transaction is transferred to other nodes, which can be mining nodes, e-commerce payment gateways and other options. Each of these nodes will receive a transaction from yours, and each will verify each transaction. When nodes receive transactions, they do not know whether it was created by you or was redirected, and therefore each of these transactions must be checked individually. ”

Then Antonopoulos said that if all the nodes are checked, i.e. if the payment details are correct and it is confirmed that there were no double costs in the blockchain, then the transaction information will be sent to every other node.

“As soon as a transaction reaches the mining pool , it enters the pool of unconfirmed transactions, for example, a basket in which all unconfirmed data is stored. In another way it is called mempul. The information in individual memoplahs may coincide by 99%, but there will never be complete similarity. ”

According to the expert, the memory also serves to submit the transaction to the BTC miner to add a new block, after which the race is turned on for the next block. As a rule, miners have to build a block, and then solve it with the help of Proof-of-Work , making it ultimately confirmed.

Once the unit is ready, the information will be sent mayningovomu equipment to solve the problem in this particular block, and probably after the "billion hashes" miners will block.

“As soon as PoW is resolved, the mining node will return the node back in the same way as it received. The nodes check the block on the way back, and as soon as all the nodes confirm its validity, the user's wallet will know about the confirmation of the transaction. This is the full life cycle of a transaction. ”

Publication date 04/22/2019
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At the upcoming bull rally, Bitcoin (BTC) capitalization will exceed $ 1 trillion

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Chris Berniske, who previously led cryptocurrency investments in ARK Invest and is now a partner in Placeholder, a $ 150 million asset management venture fund, said that Bitcoin's market capitalization will exceed $ 1 trillion. in the next bull market:

“Estimates of the top 10 cryptoactive assets at the end of each year give me the idea that only Bitcoin will reach $ 1 trillion. in the next bull market. ”

Recall that during the cryptocurrency boom at the end of 2017, when the price of Bitcoin reached $ 20,000, the market capitalization of the entire crypto market reached a maximum of $ 813 billion. If the capitalization of only one Bitcoin exceeds $ 1 trillion, it will trade at a rate above $ 40,000.

How can bitcoin reach a market capitalization of $ 1 trillion?

Like gold and other commodities, Bitcoin must become a recognized store of value with a developed infrastructure in order to cope with a huge influx of capital. In the near future, the development of this infrastructure may take several years.

In a Fortune interview last year for the New York Stock Exchange, Jeff Sprecher said that buying Bitcoin today is quite problematic for institutional investors.

“Bitcoin does not have a good market structure. Even for Bitcoin, different markets publish a lot of different prices. And you can pay up to 6% of the spread to exchange dollars for bitcoins, which means that bitcoin must grow by as much as 6% so that you can break even. ”

Many investors, including billionaire Mike Novograz, believe that those that lead Bitcoin to a trillion-dollar market capitalization are likely to be institutional investors. In an interview with Bloomberg, Novograz said:

“Maybe one of the fearless pension funds, one of the market leaders, will say:“ you know what? We have custodial services, Goldman Sachs participates, Bloomberg has an index by which I can track results. ” And they will buy. Following them, others will also start shopping. There will be a similar FOMO, which we have already seen among retail investors, only at the institutional level. ”

The imminent arrival of institutional investors to the cryptocurrency market was mentioned as early as 2017. According to a survey conducted by TRADE Crypto in partnership with BitGo, 94% of the 150 surveyed endowments in the US have already invested in the cryptocurrency market.

Morgan Creek Digital, the first US pension fund that invested in cryptocurrency, said that 66% of investments in cryystocurrency products of Grayscale come from institutional investors .

Publication date 04/22/2019
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Bitcoin transaction fees (BTC) increased by more than 2 times.

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What does the increase in commissions in the Bitcoin (BTC) network mean, is it a precursor of market growth or a weak digital currency?

In April, the average commissions for conducting transactions in the Bitcoin network rose again – and this is after they have stayed at a level slightly above $ 0.5 over the past six full months. Currently, according to Bitcoincharts, they average from 1 to 2 dollars, that is, at least doubled.

Why do commissions grow?

Analysts recall that a significant increase in this indicator, up to $ 50, happened in December 2017, amid a growing market. Now the market is not growing as it was then, but Bitcoin could regularly turn out to be above the level of 5.2 thousand dollars. In the cryptocurrency sphere, optimism prevails in general.

In addition to the fact that Bitcoin sets records on the number of transactions in the network, the growth of average commissions means that an increasing number of users prefer to pay more in order to receive confirmation of the transaction quickly.

However, bitcoin is not in a market vacuum. As the supporters of the fork of the Bitcoin Bitcoin Cash network pay attention, “the commission for transactions on Bitcoin is almost 1.2 thousand times higher than on the Bitcoin cache”, which is confirmed by the latest data.

Meanwhile, in both cases, if we compare it with bank card commissions, transactions with cryptocurrencies are more attractive. So, as Joel Shacleton, vice president of Canadian Gold Investment Management, said: “Once at the Johannesburg airport, I needed US dollars, and I had a card on which Canadian dollars lay. As a result, in total, I paid commissions in the amount of $ 57 and still faced a spread at exchange rates of 3.5%. ”

Thus, even if the competition in cryptocurrency is high, in general they prove to be more effective than the classical instruments of financial transactions.

Publication date 21.04.2019
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Name Price24H (%)
Bitcoin (BTC)
$5,305.00
1.08%
Ethereum (ETH)
$171.27
2.02%
XRP (XRP)
$0.326198
2.08%
Bitcoin Cash (BCH)
$293.31
2.96%
EOS (EOS)
$5.21
1.34%
Stellar (XLM)
$0.113714
0.54%
Litecoin (LTC)
$77.20
2.82%
Cardano (ADA)
$0.075572
4.26%
Tether (USDT)
$1.00
-0.07%
Monero (XMR)
$69.84
3.17%
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