Bitcoin Struggles to Move Past $4k, $20 Billion Wiped From Market Cap

Colin Muller

Cryptoassets have faced another round of punishment across the board, as roughly $20 billion worth of market capitalization fled the crypto markets during the course of Sunday, November 25, before the market regained some ground in the early hours of November 26 (UTC). Overall market capitalization now sits at about $128 billion, down from $138 billion two days ago.

Bitcoin led the rout, failing to maintain stability in the low $4,000 price range, breaking hard in yet another capitulation at about 22:00 UTC, November 24. The benighted cryptocurrency’s price fell as much as sixteen percent at the worst point, before recovering into a new market structure between $3,500 and $4,100. At time of writing, BTC trades at about $3,850 according to cryptocompare.com, and is struggling to trade above $4,000.

hour_CryptoCompare_Index_BTC_USD_337_11543222384991.png(source: cryptocompare.com)

Ethereum/USD followed, with the preeminent altcoin briefly falling from $120 to below the key $100 mark on some exchanges (a $98.20 low was logged on Coinbase), before clawing back most of the losses in early hours of Nov 26 (UTC). At time of writing, ETH trades at about $114 according to cryptocompare.com.

hour_CryptoCompare_Index_ETH_USD_337_11543222407128.png(source: cryptocompare.com)

Bitcoin’s dominance is continuing to inflate amid the week of bloody capitulation, sitting now at 54% flat according to coinmarketcap.com, up from about 52% a week ago. Rising bitcoin dominance signals decreased desire for risk-taking in the cryptoasset industry, as investors and traders flee to the backbone of the industry, if staying in the market at all.

Not a hedge?

Some in the mainstream financial press have taken bitcoin’s thrashing as an opportunity to again refute erstwhile speculations that the cryptocurrency could act as a hedge or shelter to downward movements in more traditional stocks and assets; but with those markets likewise plummeting last week, it would seem that so far bitcoin is correlated to traditional markets.

Indeed, things are looking rather grim not only for bitcoin and cryptoassets. According to Business Insider, Morgan Stanley has suggested that traders “sell any rallies” against the broad correction of what were recently all time highs in traditional markets. The reasons for this correction, which some are speculating could turn into something more, include an end to the low interest rates of the post-recession era, and the US-China trade war - a war which has also threatened the mining sector of the crypto industry.

More Publicity for Bitcoin: Jack Dorsey’s Square Is Now a NASCAR Sponsor

Siamak Masnavi

On Wednesday (July 14), Jack Dorsey, the CEO of micro blogging platform Twitter and payment service provider Square, revealed that Square is now sponsoring NASCAR driver Darrell "Bubba" Wallace Jr (aka "Bubba Wallace").

Square was founded in February 2009, i.e. it is 11 years old, just like Bitcoin (BTC). The three co-founders are Jack Dorsey (who is also the company's Chairman and CEO), Jim McKelvey, and Tristan O’Tierney.

Four years after the launch of Venmo, PayPal's peer-to-peer (P2P) mobile payment solution, Square (whose founder and CEO is Jack Dorsey) launched a competitor called "Square Cash", a beautiful, simple, and fun-to-use app, which got renamed to "Cash App" later.

Cash App, which is one of Square's most popular products, allow a user to request money from and to transfer money to another user. Users can withdraw the money via a debit Visa card called "Cash Card" or by transferring it to a bank account.

Cash App started supporting buying and selling of Bitcoin (BTC) in mid November 2017 in a very limited rollout; the feature was officially launched in late January 2018.

Here is a tweet from Dorsey (who is a huge believer in Bitcoin) announcing the news on 31 January 2018:

According to Bloomberg, on 16 May 2018, Dorsey, who is also the CEO of Twitter, shared his belief in Bitcoin with a crowd of crypto enthusiasts at the Consensus 2018 conference in New York:

The internet deserves a native currency; it will have a native currency. I don’t know if it’ll be Bitcoin or no, but hope it will be.

It is worth noting that Square also has a crypto-focused division known "Square Crypto"—launched in March 2019—that operates separately from the rest of the company and its purpose is to support the development of Bitcoin and its ecosystem, as Square Crypto Product Manager Steve Lee explained on Twitter in July 2019:

The NASCAR Cup Series is the top racing series of the National Association for Stock Car Auto Racing (NASCAR). Wallace, who happens to be the only Black driver in NASCAR and became famous recently due to the "noose" controversy, currently drives car No. 43 Chevrolet Camaro ZL1 1LE for Richard Petty Motorsports.

Well, yesterday, Bitcoin fan Dorsey, sent out the following tweets to show that Square's Cash App is now sponsoring Wallace:

Featured Image by "skeeze" via Pixabay.com