This week on Planet Bitcoin - 1 April 2016

Thursday 31 March 2016

TL;DR holding steady for now.

Bitcoin has had another fairly uneventful week. The last month or so has seen the market establish a level around $415, and that’s where we stayed for most of the week as well as a large proportion of the preceding fortnight. It’s fair to say that bitcoin has consolidated there, since plenty of coins have changed hands at those prices and neither buyers nor sellers have had much appetite to accept higher or lower levels.

 Chart

That looked like changing a couple of days back, with a sudden spike up into the high $420s. However, this was shortly followed by a crunch back down to $415 and lower, before traders picked up coins from the over-sold market and brought it back to the established level. Once a consolidation has convincingly occurred, significant movements are likely, since everyone who has bought and sold at the consolidation level will be out of the picture for a while. Thus the market’s recent jitter could be considered a signal that something is about to happen, one way or another.

Ethereum appears to be consolidating, too. After its stellar rise and wild swings in the early part of the year, it has settled into a pattern around 0.027 BTC - still volatile, still subject to change at a moment’s notice, but certainly calmer than previously. Once again, it’s a sign of the market taking a breather and traders are figuring out what a fair price is. Volumes are down to around a third of their height, currently about 20,000 BTC per day on Poloniex - which is still an order of magnitude greater than anything else.

Back in Bitcoinland, there’s no sign that Classic is going to achieve the adoption it needs to activate the fork and become the bitcoin protocol. That means we are de facto waiting for the SegWit softfork promised by core for April, followed by an update for larger blocks later in the year.

Elsewhere, altcoin exchange BTER has come under fire again after irregularities during a coin ICO. Critics accuse them of theft after the exchange invested a large amount of customers’ Crypti in the recent LISK offering, without their consent. BTER maintain that it was the best they could do under the circumstances, since users were desperately trying to withdraw Crypti for the LISK ICO but were unable to do so due to wallet issues. Having taken legal advice, the LISK team is refunding the Crypti and discounting it from their ICO.

Lastly, debt-ridden Argentina has adopted Dogecoin as its national currency, one of the conditions imposed by the Senate in the deal agreed with creditors in New York on Thursday to end the 15-year crisis after the country defaulted on a $100 billion loan in 2001.


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