Bitcoin rallying, but it seems to be at the expense of everyone else
Bitcoin has been rallying pretty strongly over the last several days on positive developments in the space.
In fact, Bitcoin is inching back up near $4650 as I type.
That would put its all time highs of roughly $5,000 back in sight.
However, this rally seems to be at the expense of just about everyone else.
What do I mean by that?
Take a look at the altcoin space to get an idea...
Yesterday the altcoin space was seeing red while Bitcoin was rallying significantly.
Today looks like more of the same with only 2 of the top 30 coins on Polo seeing green.
What is going on?
There is potentially another fork coming for Bitcoin, possibly two actually.
This is exactly what was stated by myself and many others with the "success" of the Bitcoincash fork. New money was basically printed out of thin air and gifted to all Bitcoin holders.
The allure of that happening again is much too strong for anyone to pass up.
So, while they may state that the forks are related to the technology and the underlying issues Bitcoin currently has, at the end of the day it most likely is all about the free money.
Or should I say, the potential for free money.
So, because of this, altcoins sell off. Steem feeling plenty of the pain:
Why is this impacting the altcoin markets?
Money is leaving just about all other coins and finding its way into Bitcoin.
This is happening because the more Bitcoin that each person owns, the more Bitcoingold they will be "gifted" when the fork goes through.
There is no guarantee that there will enough backing to support Bitcoingold, but the fact that roughly $7 Billion was created out of thin air with Bitcoincash gives people a strong incentive to hold as much Bitcoin as they possibly can when the fork happens.
For that reason, the play currently is to sell all other coins and load up on Bitcoin.
Today is day 2 of the wave of selling.
We will see how long it lasts...
Stay informed my friends.
Image Sources:
https://www.coinbase.com/dashboard
https://poloniex.com/exchange#btc_steem
Follow me: @jrcornel
So when exactly is the fork? End of October? Thanks for the info.
The fork is supposed to be October 25th
The fork is October 25th and reflected on exchanges Nov. 1st.
Thanks a lot for all this info, I keep following these news and am not surprised to see this effect occurring. Good presentation again, thank you!
Namaste :)
I completely agree with the Author. A bit of technical analysis for everyone. Momentum indicators MACD and RSI are high. RSI(Relative Strength Indicator) is reaching overbought territory. Price is riding the Keltner Channel pretty high as well. Anyone looking to add to positions should wait for a pullback even if it is only 1-2 hundred. No sense in over paying. My guess is resistance at $5,000 again but nothing like the pullback we had before on China news. Happy Trading.
I agree about the resistance at $5K. No China FUD this time but it seems like it will come from somewhere. Just a feeling.
@eric-boucher I also think this was a great post. I believe this is happening because people are selling altcoins to get more bitcoin to get money from air during the hard fork, correct? Just upvoted your comment. @gold84
I get the feeling that the BCH success was a one-off event, and any other forks trying to replicate the "money out of thin air" thingy are going to fail spectacularly.
BCH had backing by the biggest exchanges right off the bat due to the large players involved. Who is going to support this Bitcoin Gold scheme?
The upside for the clever investor here is that many solid alts are dirt cheap now, and once the forking BS is off the table, the atlcoin market will make a comeback like you've never seen before!!
You heard it here first.
ETC , Lisk?
Greed will push ppl to support, ppl care more about the money than the tech
It is ironic. But I think a major correction on these BTC fork will ensues when the dust will settle. People are thinking that they can gain 15-20% on the BTC stash, if large number of people are thinking, it becomes too obvious, trade advantages go away. We can have 3 BTC forks, 1 ETH fork, numerous other HF coins of top coins, since nobody fears a fork. These all can lead to hard correction of BTC and its forks. Already BCH is feeling the heat at $300, it may go down to $100s, lets see!
And once Bitcoin gold starts trading it will be a huge selloff, and free money (no qoutation sign) will flow into different alt coins. I am buying Steem right now. On sale!
I just picked up some as well. I am glad you noticed the quotation marks ;)
The 'free money' isn't free as its at the expense of something else. The Bitcoin Gold fork isn't the one to watch as there is little hype, but the Segwit 2x fork could split the community.
That could cause the BTC to drop towards $2,000. The Bitcoin Gold is nothing...Segwit2x is the worry.
Agreed. Very real risk of splitting the community. Not good for btc.
BTC Gold isn't going to make a huge difference for small fish like us. jump on those cheap alts before the fork to get those good prices before everybody else jumps back in.
I am with you @scandinavianlife.
Like you, I just bought some more Steem....might as well power up when the stuff is on sale.
The Bitcoin gold hard fork is what is most interesting to me since it can be mined using the Equihash algo making it accessible to those that do not have Bitcoin asic miners. It might be something ETH miners can switch over to when ETH moves to proof of stake.
For me Bitcoin Gold interesting too. He will have more opportunity for a retake. Ordinary users will take control over the new fork of bitcoin.
Total market capitalization (Bitcoin + Alts) continues on a steady up trend. This is a temporary situation due to the upcoming hard-fork but overall the entire market keeps growing which is good news for all coins.
I agree with you @cryptoeagle.
The coin market is going to explode here very soon.
I foresee a $1.5T marketcap in coming years which is a ten-fold increase. The blockchain technology is just too valuable. I was reading about a proposal to a camping company using SMT's to alter the interaction with their customers. This is game changing. Once companies start to adopt this, the practical side of tokens will come into play. Right now they are speculation with the real world uses still being developed.
Steem is a good example of a blockchain that is being used with a lot of transactions going through it.
Ive been screaming that this was going to happen for a long time. Everybody laughed at me and called me a joke. Ive been saying for weeks, that the altcoin market will not experience any sustained growth until after the fork is over.
Bitcoin Gold will be less of a "success" than Bitcoin Cash in my opinion.
Using this pullback to add to some other positions. I hope the AltCoin collapse continues a while longer.
I would love to see Steem for $.80 or under.
Thanks for posting.
Everyone would love that, except a few whales maybe
New high coming soon, time to long bitcoin X100 !