Crypto News Roundup for August 24, 2018:Bear Market Ending Soon?
Crypto News Roundup for August 24, 2018: Don’t Expect The Bear Market To End Soon
It’s been a busy week for the crypto community. Here is what’s making headlines on August 24, 2018.
Bitcoin Analyst Revises Price Prediction, Claims We’ll Hit $50,000 In 4 Years
Pomp at Off The Chain initially made a bold prediction for 2018. Pomp predicted that bitcoin would be worth $50,000 by the end of 2018. Pomp is now revising that prediction due to recent market movements.
“In January 2018, I predicted that Bitcoin could reach $50,000 by the end of this year — I was wrong. As I’ve looked at more data, it is apparent that I was correct to predict a Bitcoin price of $50,000. Unfortunately, my timeline may have been off by as much as 52 months (4 years and 4 months).”
Some of the reasons for the more bearish short-term outlook include:
Parabolic Increases in Price Are Taking Longer than Expected
Each parabolic run is measured from the last all-time high to the new all-time high. The first rapid price appreciation between 2010 and 2011 took 300 days, and the second took over 900 days from 2011 to 2013.
The most recent parabolic price increase peaked at $20,000 (2013 to 2017) and took almost 1500 days to complete. If this trend continues, then we’ll have to wait until July or August 2023 for the next all-time high, which would be 2,000 days from the last all time high in December 2017.
Bear Markets Are Lasting Longer
At the same time, bear markets are lasting longer than expected. The first bitcoin bear market lasted 160 days in 2011, while the second lasted 400 days between 2013 and 2014. The current bear market, according to Off The Chain’s research
“is likely to continue for over 650 days,” which indicates crypto markets won’t recover until Q3 2019. Off The Chain also believes more pain is upcoming: “This is a much longer market cycle than most people are currently expecting, which leads me to believe that people will experience a level of pain and discomfort that we haven’t seen in quite awhile.”
Each Bitcoin Halving Has Led to a Bull Market
Bitcoin is scheduled to halve its block reward in May or June 2020. After each previous halving, bitcoin has entered a bull market. It’s like if inflation got cut in half overnight.
Off The Chain also believes that we’re more likely to see bitcoin near $3,000 before we see bitcoin at $10,000 again. That means bitcoin still has more than 50% of its value to lose.
Ultimately, Off The Chain’s Pomp is officially revising the price prediction. Instead of predicting a $50,000 BTC by the end of 2019, Pomp believes bitcoin will be worth $50,000 by January 2023.
Aspen Hotel Sells Real Estate On The Blockchain
One of Aspen’s ritziest hotels is selling real estate on the blockchain with the help of Indiegogo. The owners of the St. Regis Aspen Resort in Colorado have begun selling real estate security tokens on the blockchain through crowdfunding website Indiegogo.
This is one of the first major real estate companies in the United States to experiment with tokenization.
Sarah Tavel Leads Chainalysis’s $16 Million Series A Round
Benchmark partner Sarah Tavel led Chainalaysis’s $16 million Series A round. The company works with law enforcement agencies on digital currency crimes. As the name suggests, the startup analyzes blockchains to determine patterns and detect criminal activity. Tavel claims the crypto world “is largely unregulated” and sees potential in Chainalysis because it’s “a tool to bridge those two parties so that the regulated world can participate in the crypto ecosystem.”
The SEC Will Review Its Decision to Deny 9 Bitcoin ETFs
It’s been a roller coaster ride for bitcoin ETFs this week. On Wednesday, the SEC announced that is was denying the applications of nine bitcoin ETFs, stating that the markets were too prone to manipulation to support ETFs. Then, on Thursday, the SEC issued a surprise stay on those decisions.
The SEC is temporarily staying its decision to deny those nine bitcoin ETFs as the commission’s executive members continue to debate on whether or not to approve the world’s first bitcoin ETF.
Bitcoin’s Price Defends Key Support Line
The ETF rejections throughout the week had a surprisingly limited effect on bitcoin markets. Unlike with previous bitcoin ETF rejections, markets didn’t plummet on the news. Instead, bitcoin has remained relatively steady throughout the week at a price of around $6,400. Bitcoin has tested key support levels at $6,230 despite a string of bad news.
Crypto Startups Are Destroying Millions of Coins
As reported by CoinDesk, a growing number of blockchain startups are burning their tokens. Startups are destroying parts of their own money supply – often millions of tokens – in order to generate greater value for investors.
Switzerland-based Eidoo, for example, just announced plans to burn 1% of the total supply of its EDO tokens, which were created last November during the Eidoo ICO. Startups “burn” tokens by destroying the cryptographic keys. This is a double-edged sword. Companies like Eidoo are sacrificing short-term revenue in order to build long-term value. Investors clearly agree, as the price of EDO surged 40% after the token burning announcement.
Electronics Giant LG Plans to Release Blockchain Technology
Finally, South Korean electronics giant LG appears to be preparing to step into blockchain in a major way. LG CNS, a subsidiary of LG, just announced plans to strengthen its enterprise offerings in seven new areas. Blockchain is one of those areas. LG CNS plans to release new “strategic” brands for each of the seven areas.
That could mean LG is developing its own blockchain platform. Other areas LG is planning to explore include artificial intelligence, the internet of things, smart cities, smart factories, robot service, and smart energy. Collectively, LG feels these technologies will be part of the “fourth industrial revolution”.