The crypto market continues to be in the red for yet another consecutive day.
Over the past 24 hours, the price of bitcoin briefly dipped to $7900, but has since pushed back to sit at $8100, similar to yesterday’s recorded average. The move perhaps indicates that bitcoin is not yet ready to go below the $7700 support level it established during the March 18 dip. If a drop below that does happen, however, it is very likely that bitcoin will nosedive to the low $6000s before picking up momentum once again.
Ethereum continues to lose steam without showing much recovery at all. Its price briefly reached a new low for 2018 at $455, a level only previously seen before December 2017’s bull run. Since yesterday, the currency has declined approximately 5% with no clear bottom in sight. It has, however, clawed its way back to $470.
Litecoin has not held up well either, demonstrating a sharp decline below its usual downtrend line at $140. Other cryptocurrencies showed marginal drops in their respective valuations, most of which were sub-1%.
Of all major digital currencies, only EOS and TRON have managed to stay in the green, both making up for losses over the weekend.
Even though several faces in the technology industry, including recently, the CEO of Twitter and Square, believe in the long term potential of cryptocurrencies, the truth remains that the market is currently in a downward spiral. Equity markets also did poorly last week, with the S&P 500 closing its worst week in 2 years.
Nevertheless, a small pullback by the cryptocurrency market is long overdue now and almost expected by many investors. Whether investor interest and buying pressure can actually push prices up permanently remains to be seen in the coming days.
Top stories from the crypto world
1. Upcoming Litecoin payment processor shuts down before even launching
LitePay, a company that promised to provide Litecoin wallets and a USD-to-Litecoin service has abruptly closed its doors, according to a post by the Litecoin Foundation.
First announced in December 2017, the company promised to bring Litecoin-enabled transactions to the masses with its payment processing infrastructure and an upcoming “Litecoin Debit Card”. Only a few months later though, it seems as if LitePay was little more than a pipe dream.
The Litecoin Foundation commented, “We are greatly disheartened that this saga has ended in this way and we apologize for not doing enough due diligence that could have uncovered some of these issues earlier. We are currently working hard to tighten our due diligence practices and ensure that this does not happen again.”
2. Australia requests public opinion on the future of cryptocurrency taxation
In an attempt to revise laws regarding income taxes levied on cryptocurrency trading, Australia has asked the public for its input on tax obligations. the Australian tax office is clearly trying to move towards legislation that removes compliance overhead for most taxpayers.
Essentially, the official announcement states, “In particular, we are interested in any practical issues that may impact on taxpayers’ abilities to calculate and substantial any capital gains and losses for capital gains tax (CGT) purposes.”
Recognizing the average cryptocurrency trader’s tendency to make small trades, an anonymous user publicly commented, “The accounting practicalities are nightmarish. Also, a lot of traders make micro trades, where the difference is less than $1.00 per trade.m [sic] Please take all factors into account with crypto trading. It is nothing like trading shares. or anything else.”
3. Bitcoin adoption in Venezuela on a steep rise
Venezuela, a country that actually recently unveiled its own digital currency named the Petro, has recently seen a monumental rise in bitcoin transactions nationwide. According to data from LocalBitcoins, every week has seen the volume rise without any end in sight. Essentially, over 1 trillion Bolivares worth of BTC was transferred on the platform within the past week alone.
With countries plagued by the problem of massive hyperinflation, it is likely cryptocurrencies that will save the day for many of them. Venezuelan President, Nicolas Maduro, even openly stated that the country was open to all forms of bitcoin mining operations in the future and as such, is currently one of the cheapest countries in the world to host such a business.