cryptocurrency market

After unprecedented growth, which began in the first days of December, the market of cryptocurrency has undergone a deep correction. In just a day, Bitcoin rate fell by more than 20%. Analysts predict an even more serious drop — to $ 10,000. At the same time over the past couple of weeks, the price of the “clone” Bitcoin has significantly increased. This “clone” is Bitcoin Cash.

Let’s collect all the forecasts of analysts for 2018

On December 5, payment service BitPay announced the expansion of the list of supported crypto-currencies. Among which in the first place was Bitcoin Cash. BitPay is a company that provides its cryptocurrency storage software. Also, it issues special debit cards for Bitcoin. And it represents an exchange for users who do not want to bother with entering and withdrawing fiat money through crypto-exchange exchanges. Since the announcement of the service to support Bitcoin Cash, the exchange rate has risen to $ 3,000. The next push was the message of the exchanges Coinbase and GDAX about the immediate start of Bitcoin Cash trading. The course, which was raised for several days, immediately reacted to this message and overcame the $ 4000 mark. Just a couple of minutes after the start of trading on the exchanges, the pair BCH / USD showed “significant volatility”. It led to an immediate stoppage of trades. The exchange rate of Bitcoin Cash for Coinbase and GDAX was about $ 9500 for about an hour.

This could happen because of insider trading. Exchange employees a few weeks before Bitcoin Cash was added to the listing knew about this event. So they could easily buy currency on other exchanges to earn a jump at the time of the addition. At the same time, Coinbase wrote in its blog that its employees “were forbidden to trade Bitcoin Cash a few weeks before the official announcement”. Therefore, violation of this prohibition would lead to criminal liability. Coinbase CEO Brian Armstrong said: “If we find evidence that one of the employees is violating our requirements – directly and indirectly – I immediately fire this employee and take appropriate legal measures.”

Reasons for Bitcoin fall

CEO and the ardent defender of Bitcoin Cash, Roger Ver also tried to protect the US stock exchange from “unreasonable charges”. In an interview with CNBC, he said that the practice of insider trading “is not a crime and does not require the intervention of regulators, even if the fact of using internal information for own enrichment is confirmed.”

“I think insider trading is not a crime. In the end, buyers should be aware of what kind of service they have chosen, whether it is a stock exchange or an ordinary coffee shop. Do not think that the government will protect you from everything in the world, “Ver noted.

Against the background of these events, the bitcoin rate began to fall. As of December 22, the weighted average rate is $ 13,600, according to CoinMarketCap. At the same time, the capitalization of the cryptocurrency fell to $ 228 billion. Moreover, the total capitalization of the market fell by more than $ 100 billion in just one day. There are several reasons for this correction. One of them is the statement of the founder and co-founder of Emil Oldenburg wrote that he sold all his Bitcoins. In a conversation with the journalist of the Swedish site Breakit, Oldenburg stressed that he considers Bitcoin unsuitable for active cryptography. Therefore, he sold all the coins, and bought Bitcoin Cash for the proceeds.

“Bitcoin has become the riskiest investment now. This is an extremely high risk. So I recently sold all my bitcoins and switched to Bitcoin Cash”, Oldenburg said.

The role of Roger Ver

It is interesting in this situation that the immediate head of Oldenburg is Roger Ver. He is the owner of and one of the largest capitals in the Bitcoin Cash network. In October of this year, Ver stated that he considered Bitcoin Cash to be a “true” Bitcoin. It happened after reflecting the legacy of Satoshi Nakamoto, and recently noted that investors should prepare themselves for the depreciation of Bitcoin. They should invest their money in Bitcoin Cash.

Correction in the market also accompanies the news background. A few days ago there were reports that the issuer of tokenized dollars Tether was subjected to a hacker attack, as a result of which the attackers could take about $ 31 million in USDT. But despite the fact that Bitcoin and most coins have seriously fallen in price, traders call this the “Christmas sale” and are optimistic.

LedgerX and its activities

On the American exchange LedgerX, an unknown trader placed an order worth $ 990,000 for the right to buy up to 275 BTC at the end of 2018. The rate was made using a contract. It allows you to purchase an asset at a certain price up to a given date, regardless of the current price. The buyer gave $ 3,600 for 1 BTC to fix the price of $ 50,000 until December 28, 2018. Before this date he/she wants to cover the entire volume of the transaction. However, now she/he will have to pay another $ 13,750,000. Moreover, the total amount of investments will be about $ 15 million. CEO LedgerX Paul Chow said that “an unknown buyer” could be an investment fund that until recently did not have the opportunity to work with Bitcoin on regulated sites.

“I do not doubt that there are entire structures that are interested in such transactions and are already participating in them. This is not a private investor, let’s say so, “Chow said.

Mike Novogratz, CEO of Global Investment Partners, in an interview with Bloomberg, confirmed past statements that “Bitcoin is a bubble. In one day this bubble will burst, but that will not prevent investors from earning on the cryptocurrency.”

“I do not see any signs that could say that the speculative bubble is ready to burst. Before this, at least institutional investors and pension funds should enter the market. Bubbles do not burst, while there are buyers until there is a load, but it still does not. I think that’s what we’re waiting for”, says Novogratz.