Mike mcara blog _ ethereum price analysis, possible top in bitcoin _ talkmarkets what’s bitcoin

Ethereum and bitcoin

Bitcoin is firmly in correction mode, so the attention of mainstream media shifts to other cryptocurrencies which might not be done going up for the moment. In an article on yahoo finance, we read:

(…) bitcoin is actually on the lower end, as far as cryptocurrency volatility goes. Ethereum has increased more than 100-fold over the past year, while ripple has more than doubled within the past week alone.

Here are the key takeaways. First, it’s important to realize that some of these performance figures are simply not sustainable. For example, if ethereum were to rise another 10,767% over the next year, the digital currency would have a $8.9 trillion market cap. In other words, don’t buy any digital currencies and expect the same performance going forward.

Most importantly, any asset that can double, triple, or more in such short periods of time is a speculative asset, not an investment.What’s bitcoin put another way, if it can double in a week, it could also get cut in half in a week just as easily. Given cryptocurrencies’ current volatility, they are far closer to lottery tickets than to stocks and bonds on the risk spectrum.

It might well be the case that bitcoin is the most popular digital currency by market cap and focuses the attention of speculators quicker than other digital currencies. We’re seeing bitcoin correct now but ether continues to rise (at the moment of writing these words). This would support such a conjecture. Also, historically, periods of strong appreciation in cryptocurrencies tend to coincide. This might also mean that if bitcoin is up for a correction, then ether and other digital assets are facing a similar move in the near future. Ultimately, the very recent appreciation in cryptocurrencies has been nothing short of spectacular and this might be an indication that any serious correction might be actually quite severe.What’s bitcoin

Bitcoin charts

(click on image to enlarge)

On bitstamp, we see a correction in bitcoin which brought the currency below the level of the previous local top at $17,428. This might seem like an important move in the market. Is it? Recall our previous alert:

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