This week on Planet Bitcoin - 31 July 2015

Friday 31 July 2015

Weekly market report and news from Dynacoins, first community-supervised mutual bitcoin fund.

It has been a tantalising week. Three times since the beginning of this year the market has spiked above $300 but been unable to sustain those prices – sometimes dropping as low as $220 afterwards.

This week, prices recovered after the drop to the high $270s last weekend, once again rising close to $300 but failing to move past what has become an increasingly important psychological barrier. Since the beginning of the week the market has pushed higher, mainly trading in a band between $285 and $295. More recently, it has dropped again to the low $280s: the lowest point of the week but still, on a wider timeframe, significantly up over the last two months.

Chart

Volumes are not particularly significant, so these latest movements are not a clear indication of the long-term trend. Traders are unconvinced that the market has at last turned around, which a strong push past $300 might suggest; however, they are also unconvinced that the sell-off will resume. As has been the case for the last six months, there is no obvious direction to the market. Every time the mood turns hopeful, optimism just as quickly evaporates. Still, this is the longest the market has spent around these prices all year.

Around the Bitworld

Ethereum, one of the largest projects in the crypto space and the third largest crowd-funded project ever, announced that it would launch around 30 July. Trading on exchanges would be delayed for several days to allow a ‘smooth emergence’ of the network.

Ethereum raised over 30,000 BTC during its ICO phase, though the fall in the price of bitcoin since then means that the dollar equivalent – around $18 million – could not all be released for development. Speculation has been rife about what will happen next; either there will be a spike in demand as the available supply hits exchanges and newcomers try to get in on the act, or everyone who wants Ether has already bought at ICO and therefore there will be an oversupply, leading to a crash. Or, as likely, both will occur, as happens with so many altcoin launches. One way or another, a large number of Ether are likely to change hands in the coming week.

Another presidential candidate has lent tacit approval to bitcoin by accepting it for his campaign funding. Back in April, Libertarian Republican candidate Rand Paul included bitcoin as a donation option on his campaign website. Now, Texan Republican Rick Perry has done the same, also suggesting to regulators that they might like to allow the virtual currency industry a little more ‘breathing room’.

Finally, former heavyweight champion Mike Tyson has ostensibly lent his name and brand to bitcoin ATMs to be installed in two locations in Las Vegas. Tyson, whilst not being the most obvious personality to be associated with bitcoin, packs considerable marketing punch, not least through his 5 million Twitter followers. (The site, MikeTysonBitcoin.com, states that ‘Mike Tyson’s fastest knock out in the ring was 30 seconds. The Mike Tyson Bitcoin ATM can turn your cash into bitcoin in under 20 seconds.’) Almost immediately, though, rumours circulated that his business partner, Peter Klamka, was a scammer. Klamka’s company, Bitcoin Brands Inc, is listed as an OTC stock but was found to have a market cap of just $6,780, raising questions about its legitimacy, the services it provides, and why Tyson was prepared to team up with them.


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