The reason your favorite Altcoin is struggling in 2 simple charts
Altcoins have taken a beating over the past several months.
Just about every altcoin has taken it on the chin lately, and it's really not that complicated as to why.
It really all boils down to 2 simple charts...
The first one:
(Source: https://cryptotreat.com/tethers-market-cap-surpasses-4-billion/)
This is a chart of Tether.
It has increased by over $2 billion since the bottom (in bitcoin) this past April.
Some of that has been new money coming into crypto, but a lot of that has been money coming out of altcoins and sitting in tether.
The biggest drag...
The second culprit is likely the largest drag on altcoin prices.
Check out the chart:
(Source: https://coinmarketcap.com/currencies/bitcoin/
I am sure you all recognize this chart as it's a chart of bitcoin.
It has increased from a market cap around $72 billion in April to $194 billion currently.
That is an increase of $122 billion (+ $2 billion more if you count tether), while the altcoin market as only increased a couple billion during that same time period.
Basically, we are seeing all the new money, and some of the old, going into trading bitcoin and tether right now.
At some point I would expect that money to flow out of bitcoin and tether back into altcoins, but for the time being, this is why altcoins are suffering.
Historically, it has been bitcoin first, then the altcoins.
Stay informed my friends.
-Doc
I dont think alt coins will begin to rally until bitcoin breaks 20k. Thats when things should start to get wild again. Once one Altcoin does something surprising everything will re evaluate accordingly. I thought alts had bottomed last week but maybe i was wrong. I don't see Bitcoin breaking 20k until sometime next year. I think we will be around 13 or 14k by Christmas and grinding sideways for a while. At that point everybody knows 20k is imminent, you will be able to feel it in the atmosphere by the end of the year.
I actually don't think we will see major altcoin rallies until late in the btc cycle, which would be end of 2020 or so... and probably a lot higher prices than $20k :).
Though I think altcoins will bottom long before that and have a few small rallies along the way.
This is a worrisome time for many of the alts as the US (and other countries) begin hammering down with their regulations. I know I was a Binance guy, and have no idea if they will even trade in the two alts I hold come September when they ban the US from their main trading platform. Guessing with the speculation some are hedging their bets in the hopes Binance will make an announcement soon on which alts will be traded there so they don't get stuck if they plummet.
The way daddy gubmint is indicating, we aren't far off from them telling us what we can own and how we can move it and how much moving our property will cost us.
I didn't take it as them (Binance) saying which coins they were going to trade, they just kicked US based users out. Though, from what I read, you will still be able to transfer them out after that date, just can't buy or sell em any longer.
Now, if you are talking about the US compliant exchange they are building, and which coins it will hold, you may be correct in that some of those coins are no longer available.
I can't see why steem would face any of those issues (not being listed), unless there is a lack of volume perhaps? The fact that steem didn't do an ICO is a big plus in its favor with how regulars will look at it.
Yes, I was referring to their US compliant exchange. I'm not so sure what role the ICO part will play. I have read that Coinbase supports EOS which definitely was an ICO. So much uncertainty in all this.
I really don't know what to make of Steem. At times it feels like those who created it don't care if it goes anywhere due to the way they have left it stagnating. I'm hopeful that the renewed commitment from them is real and not just some last attempt at milking what they can for more Bitcoin/fiat before a collapse. If they really don't care, what a shame. From my limited understanding of crypto they have really been letting a unique approach wither. It was unique enough to pull in ignorant skeptics like myself in, then let most like myself leave.
I wonder if there is a way to find out what the US volume for Steem is on Binance for the US. I read a month ago that their total volume from the US was about 15% of the velocity.
Interesting stats. I actually thought it might be even higher than that 15%. I read something recently that said the US accounted for roughly 50% of all bitcoin/crypto trading currently... though I can't remember where exactly I read that.
Regarding steem... I think they are genuinely trying to turn things around now. The unfortunate thing is they are trying to do with no money and a skeleton crew. Which is unfortunate considering this was a billion dollar project at one point. Why they didn't do anything for 2 years or so here is beyond me... I think that is the billion dollar question.
And yes, Coinbase used to be very particular about coins that did an ICO, though that seems to have gone out the window a bit with EOS. Though, remember that not all ICOs are the same. EOS was very careful to make sure theirs was compliant with the jurisdictions they were in, whereas many others were not.
In my eyes, steem should be a no-brainer to get on Coinbase, especially with the Coinbase Earn program. For whatever reason, steem just can't get on there...
I am hopeful that steem is trying to turn things around now. Though with a shoestring budget and skeleton crew, it is harder now than ever before.
this.
Also one of the main reasons that doesn't help, is U.S. Binance users cant trade and U.S. are the biggest exchange users for them.... Seeing that Binance is the #1 exchange, one day it will get better....
Posted using Partiko Android
Yes, that is a contributing factor for sure. There are numerous factors that are helping push money into bitcoin and tether, these charts are simply the result of many causes. :)
Yup yup, one day it'll get better....
Posted using Partiko Android
That is the hope!
I just sold all my LTC and get BTC instead. Pre halving rally of LTC was not existing and there is still risk of up to 70% correction after. I hope that BTC is safer for now.
I actually did the same as well. I thought we'd get a little more out of ltc pre halving...
Two awesome charts to follow moving forward, thx.
Posted using Partiko iOS
You got it!
Once the demand remains elevated, there will be a point in time where investor looks for cheaper alternatives to dedicate less capital but participate in quality asset within the class.
Yep there is that as well...
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STOPTo support your work, I also upvoted your post!
Thanks.
If you have a coinbase account you can earn 50$ answering easy questions!
It's about EOS though (I'm allegic) I just did it for the money.
https://coinbase.com/earn/eos/invite/3w9cfs5x
If you don't have an account, here is the link to sign up (10$ extra): https://www.coinbase.com/join/bousal_b
I think I saw this somewhere... :)
https://steemit.com/crypto/@jrcornel/want-to-earn-some-free-eos-while-also-helping-me-out
:) hahah my man. Didn't see your post before.
No worries. I got all the referrals I could already, good luck to you!