Bitcoin’s Price Drops to $4,300 as Analyst Claims We're Approaching a Buy Zone

Bitcoin’s price has been dropping in the last few weeks, so much so that it fell below the $5,000 mark for the first time since October of 2017, and that miners are currently struggling to remain profitable.

Just as some believed a relief rally was in, bitcoin’s price started falling once again, and is currently down by about 3.7% in the last 24-hour period. One bitcoin is currently going for about $4,300, and the cryptocurrency’s market cap is now down to $75 billion.

Bitcoin's price performance in the last 2 weeks

The cryptocurrency’s sell-off has had various effects on its ecosystem. A recent report has revealed the value of bitcoin payments plummeted about 80% this year, although data on these is patchy as some trades with other currencies are often included. Nevertheless, the “Holiday 2018” consumer report revealed teenagers would rather receive cryptocurrency, or Fortnite “V-Bucks” over cash or gift cards.

According to MarketWatch demand for cryptocurrencies may not be down at all, as Jani Ziedins of CrackedMarket revealed a short-term bottom may be close. He was quoted as saying:

Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work.

Ziedins noted that making a profit off of the short-term bounce is “not for the faint of heart,” although he believes there will be “nice rewards for those willing to jump aboard the inevitable bounce.”

Other analysts have suggested that bitcoin may find support at the $3,500 and $3,000 levels.  eToro senior analyst Mati Greenspan tweeted out that he expects the cryptocurrency to indeed find support at these levels, although a bounce before reaching them could be a “very bullish sign.”

Altcoin Sell-Off Continues

The crypto market’s decline didn’t just impact BTC. According to available data most cryptocurrencies are currently down, with Ethereum Classic (ETC), Bitcoin Cash, and Dash dropping the most, as they’re down 8.8%, 7.1%, and 9.1% respectively.

Ethereum’s ether and XRP are both down, by 6.7% and 6.1% respectively. The cryptocurrencies that have been able to, to a certain extent, resist the sell-off are EOS, NEO, LTC, and BTC. These are down by between 3% and 4%.

The decline has notably also failed to affect the number of transactions being processed by blockchain-based cryptocurrencies. As CryptoGlobe reported, the total value transferred by cryptocurrencies is comparable to that of MasterCard, as BTC transactions average $8 billion a day, while MasterCard’s network processes roughly $11 billion a day.

Crypto Market-Maker Altonomy Receives $7 Million in Funding from Polychain Capital

Altonomy, a New York-based cryptoasset trading, advisory, and asset management company, has completed a $7 million fundraising round from Polychain Capital, a leading hedge fund and venture capital firm.

Co-founded by Ricky Li, a former Manager of Research and Product at the CME Group, Altonomy has also received funding from 7 Blocks.

Additional Capital Will Allow Altonomy to Have More Inventory

Commenting on how the additional capital could help Altonomy’s business operations, Li said: 

As a liquidity provider for altcoins, more funding will allow us to have more inventory, taking larger exposure and managing risk more effectively.

Li added that the extra funding would allow Altonomy’s trading desk to provide better services - as the platform would not need to “put constraints” on customers at settlement.

Funds May Be Used to “Source Liquidity for Customers”

Olaf Carlson-Wee, the Founder and CEO at Polychain Capital, remarked:

As a long-time user of Altonomy’s trading services, it was an easy decision for us to invest in their business when the opportunity became available.

Carlson-Wee, a former Product Manager and Head of Risk at Coinbase, also mentioned that the additional funding would help “source liquidity for customers, regardless of token type, order size, market cap, or whether the asset trades on centralized or decentralized exchanges.”

According to Coindesk, Li had suggested to investors in January 2019 that they “liquidate enough ETH so they would have at least two years of runway.” However, Li is now anticipating that cryptocurrency prices may continue to recover - after enduring a long bear market that lasted throughout 2018.

Altonomy Introduces Cloud Service for Crypto Mining

In addition to providing crypto trading and asset management services, Altonomy introduced a new product last year, called the AltMiner. According to Li, AltMiner’s cloud service allows Altonomy’s bigger investors to mine various cryptocurrencies.

Altonomy’s management claims that the AltMiner has a “superior return profile” with the “newest generation of miners, low electricity costs and a secure hosting site.”

During an interview with CryptoGlobe in May 2019, Lee explained how Altonomy’s crypto trading services were developed and their potential benefits.

One of Altonomy’s main services, called electronic execution, allows mining firms, investment companies and crypto exchanges to “enter and exit positions as an outsourced execution desk.”

As a high-frequency market-maker, Altonomy also provides liquidity for various tokens to several crypto spot and derivatives trading platforms.