Now that Bitcoin futures are trading on both the CBOE and the CME, Bitcoin has become available to traditional investors with deep pockets, which also include short sellers.
Even though the futures products have been thinly traded, markets rallied to take the entire cryptocurrency market cap to an all-time high of $616 billion — passing e-commerce behemoth Amazon.
Interestingly, today’s ascent hasn’t just come from Bitcoin, it’s mainly because of the altcoins. In fact, Bitcoin’s dominance has come down to 51% from 57% in just 7 days. At the time of writing, every top 100 altcoin has increased in value. There are now 28 cryptocurrencies with individual market caps exceeding $1 billion. On January 1, 2017, there was only one.
Altcoins like Ethereum, Bitcoin Cash, Litecoin, and Qtum gained 12%, 19%, 14% and 112% respectively. As of now the altcoin market cap is $301 billion.
Yesterday, Bitcoin faced resistance at $20,000 after reaching an all-time high of $19,531. While cryptocurrencies still represent a very small percentage of the global money supply, its economic status is rapidly swelling. The cryptocurrency is currently the world’s 14th most-valuable liquid currency.
If this bullish momentum continues, the entire cryptocurrency market cap could reach $1 trillion in the first quarter of 2018. That being said, charts have been heading north for quite some time without any major correction. If the bears take over bulls, we could see a correction like never before — markets could crash as much as 40%.
This would make the wave of new investors (that we saw get on board Bitcoin train recently) begin panic selling. Even institutional investors don’t have to appetite to digest 40% market crash. They may also get on the selling spree. We have seen Bitcoin crash 40% before, it’s not something that can’t happen again.
Here’s some great ‘old man’ advice for the newly Bitcoin/crypto rich: https://twitter.com/alistairmilne/status/942824774509760512
Top Stories from the Crypto World
1. Bill Miller’s invests half of his MVP 1 fund in Bitcoin
Bill Miller, the chairman and chief investment officer at Miller Valued Partners, recently disclosed about his Bitcoin investments while speaking to WealthTrack podcast with Consuelo Mack.
“It’s just about 50 percent right now,” he said. Miller also added that the fund holds Bitcoin Cash as well but not any other cryptocurrency. His involvement in Bitcoin dates back several years when he bought stakes in 2013 and 2014 (at a claimed average cost of $350 apiece).
2. “Need to see how we can regulate Bitcoin,” says French Finance Minister
French Finance Minister Bruno Le Maire has said, “I am going to propose to the next G20 president, Argentina, that at the G20 summit in April we have a discussion altogether on the question of Bitcoin.”
The G20 includes central bankers and leaders from 19 countries and the European Union; Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, and the United States.
“There is evidently a risk of speculation. We need to consider and examine this and see how…with all the other G20 members we can regulate bitcoin.” Maire added.
3. South Africa wants to track and tax Bitcoin
Bitcoin use in South Africa is growing at a rapid pace. It has become so popular that people can even pay their driving tickets with the cryptocurrency. This has prompted the South African Revenue Service (Sars) to explore ways to ensure it gets its cut from all the action.
The agency is reportedly in talks with leading international technology companies to find an efficient method to track cryptocurrency trading in the country for tax proposes.
Dr Randall Carolissen, Sars group executive for research, said, “At the moment, we are treating cryptocurrency in the same way as capital realization – so in other words, it is like a Krugerrand. If you buy it at a particular point and you then sell it, you will be faced with a capital appreciation and then we will treat it as Capital Gains Tax.”