The Bitcoin crash halted and reversed and now is feverishly running higher. But it came at a cost. All of the cryptofags who were savvy and keen to swap over to Bitcoin Cash are being eliminated from the game of play. A see-saw event is underway, with BTC higher by 11% and BCH plunging by more than 20%. This is a well deserved wallop and we hope to see many more of these in the coming days and weeks to come. Nevertheless, due to the large capped nature of BTC, the overall crypto space is now worth more than $200 billion for the first time ever — clocking in at $202b.
Dow futures couldn’t care less — down 50.
Europe is trading decidedly lower, with the Dax -0.5%
Here is some notable news, pre-market open.
GE SLASHES DIVVY BY 50%
Rio Tinto downgraded to Neutral from Overweight at JP Morgan
NVIDIA upgraded to Market Perform from Underperform at BMO Capital Markets
TD Ameritrade upgraded to Buy from Hold at Deutsche Bank
JD.com beats by CNY0.80, reports revs in-line; guides Q4 revs in-line
Also, with BREXIT talk in the air, the pound is lower by 0.8% v the dollar and the US yield curve is widening a bit at 71.7bps.
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Cryptospace gambling space is worth $200B only on paper. The valuation is in fake money. Nobody considers crypto tokes as a safe have for their savings. The exits will be very small when the selling back into FED tickets starts. Spooky.
A parabolic chart pattern means everyone who has sold has been on the winning side. Every dollar made will have to be matched by a dollar lost. The longer it continues the more the room fills with future losers. I suspect the chances of being a loser are quite higher than meets the eye. And the mining makes the house more likely to win yet, as those coins have a zero cost base in the market.
While I agree that most people buying now will likely lose money, it’s not true to say that “Every dollar made will have to be matched by a dollar lost.” This is not a zero-sum game. It is statistically possible that Bitcoin is at a low and may never drop below it’s current value. It’s also possible that is fairly valued at the current price.
Also, the coins do NOT have a zero-cost basis, or I would be mining them myself. There is a fixed cost in computer processing hardware as well as a cost in electricity, and both are higher than you think. It is several thousand per coin.
Cryptos are here to stay in one form or another. It will be a rocky road but they are headed higher. The market cap steadily goes up weather you want it to or not.