New Bitcoin Outlook, Plus New Potential Prospects
Bitcoin (BTC) Outlook
Bitcoin has been falling in value since the introduction of the BTC futures contract on the Chicago Mercantile Exchange on December 17, 2017. The futures traded up intraday to touch the $20,000 level and then started a decline that has rolled along consistently ever since, and is now battling for support at the $10,000 level.
While we have seen some correlation with the broader cryptocurrency space during this period, many altcoins have fared extremely well, particularly if there is a good fundamental story attached.
What combines these ideas is the introduction of a rush of hedge funds into the cryptocurrency space, pulled in by the prospect of shorting the BTC futures contract as a hedge against the potential for the Bitcoin bubble to burst. Having that hedge in place creates a low-risk underpinning for these very same hedge funds to push huge money into promising altcoins on the long side.
Given this institutional hedge pressure as a backdrop, we have also seen Bitcoin deal with a number of escalating attacks from sovereigns including India, South Korea, and China. That has added additional weight to the action in recent weeks.
At this point, we have seen roughly a 50% decline in Bitcoin since its highs. That is often a strong Fibonacci level in an emotional and volatile market, so one might begin to expect some bounce potential at this point in Bitcoin. That said, we are more interested in the altcoins, and we want to take a brief look at several here today.
Filecoin (FIL) is a utility coin that kicked off its market existence as the biggest ICO ever in September of last year. The idea is ingenious: the blockchain is an organization of participating spare capacity filing space on hard drives anywhere on earth.
You can sell your unused storage space on your computer at home to earn Filecoins, or use Filecoins to purchase access to store encrypted files on someone else’s hard drive.
The dev team is top-tier and the chart looks like a potential breakout in the making on a move above the $25-30 area.
Genesis Vision (GVT)
Genesis Vision (GVT) is the internal token of the Genesis Vision platform, which is a platform built for the private trust management market.
The platform is built on blockchain technology and smart contracts, uniting exchanges, brokers, traders, and investors into a decentralized, open and fair network that allows successful traders to rapidly scale their trading strategies by attracting investments from around the world.
We have seen GVT pull back sharply in the last couple weeks after hitting a high around $40. However, it remains in a broader bullish pattern and could be a gift at current prices around $19.
With the rampant speculative success of Binance (BNB), we thought it was a good idea to see if there was anything else out there that seemed like a junior play on the same set of themes.
BIX has a similar token game theory, with a discount on trading fees if you own the coin. Scarcity is maintained through a repurchase program fueled by 20% of quarterly profits.
This is a recent ICO that trades at a $137 million market cap – compared to a market cap of $1.35 billion for Binance (BNB). Bibox has staked out a claim to Chinese and U.S. markets, but has also followed in Binance’s footsteps in terms of opening offices in Crypto-friendly regions like Japan and the EU.