Bitcoin Cash jumps to $830 as BTC takes a nosedive

Bitcoin Cash jumps to $830 as BTC takes a nosedive

After a relatively positive Tuesday when most cryptocurrencies posted strong gains, SegWit-Coin BTC (also referred to as Bitcoin legacy or Core) took a considerable tumble in the late evening with the price dropping from around $8,100 to $7,850 in a matter of minutes.

The price drop was caused by reports that the New York Attorney General has been gearing up to investigate cryptocurrency exchange business. At press time, SegWit-Coin BTC had recovered slightly and was trading at around $8,100. Strangely, however, it was only SegWit-Coin BTC that took a big tumble—other cryptocurrencies holding onto the gains made during the day with relative ease.

‘Forget BTC’

Bitcoin Cash was amongst those currencies which posted strong gains during the day and in fact, it was trading at around $780 before the news struck, only to jump to $830 level at press time—a positive movement overall.

Incidentally, investor Brian Kelly went on CNBC’s Fast Money on Tuesday, where he declared that now was the time to buy Bitcoin Cash, adding that with the filing deadline for tax purposes in the United States now past, there could be a huge interest in cryptocurrencies yet again.

Kelly pointed out that Bitcoin Cash has seen “increased volatility” as well as “increased volume” in the past month—a clear indication of the cryptocurrency’s potential for growth.

“Those are the first things traders look at, that I look at, to say, something might be changing here,” Kelly said, according to CNBC. “If we get that breakout, you’re looking at higher moves.”

Meanwhile, Litecoin also posted the strongest gains on Tuesday, when it rose to almost $140 during intraday trading although it fell back slightly to the $137 mark at press time. News that the coin founded by Charlie Lee was to be listed on a new exchange undoubtedly added considerable buzz to the toke explaining the price rise. However, the currency is still a very long way from its all-time high of $350 registered in December.

Stellar Lumens was another currency that shot upwards over the past 24 hours breaching the $0.31 level and looking ripe for further gains over the next few days. In fact, Stellar is the currency which has recovered best from the March crash and is now only a few points away from its February levels. As a way of contrast, Ethereum is performing rather sluggishly of late since it is playing around the $500 mark with very small movements either way and no sign of real upward momentum as yet. Ethereum Classic is also seemingly stuck at the $16 level with not much movement either way, and it will have to be a significant push for the currency to breach the $20 level.

Other cryptocurrencies with smaller market caps such as Neo and Dash saw smaller increases overall but were still generally up by around 3-5%, with NEO approaching the psychologically significant $70 level where it could then be positioned for a good breakout.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Brian Kelly: Bitcoin perception is like the Internet in the 80s

Brian Kelly: Bitcoin perception is like the Internet in the 80s, not 90s

Brace for volatility: tomorrow is tax day for the US and cryptocurrencies are given no exemption.

In CNBC’s Fast Money, Brian Kelly, founder and CEO of BKCM LLC, said that the perceptions and conditions blockchain technology is currently in is comparable to the Internet back in the 80s—not the 90s.

“This is like the Internet in the 1980s. I used to think the Internet in the 95, but after the last couple of months talking to folks, I think we’re more like the 1980s. So, you know, I think this technology’s going to work, it’s going to be game-changing, but it’s very early days so we can have this massive volatility,” he said.

Kelly also tackled an impending volatility due to tax liabilities. Earlier this month, Fundstrat Global Advisors head of research Thomas Lee—who was also the former chief equity strategist at JP Morgan Chase, said that the looming tax filing deadline in the US tomorrow (April 17) could cause a massive selloff of cryptocurrencies, adding that the estimate amount owed by US cryptocurrency holders in taxes for their crypto gains is over $25 billion.

“This is a massive outflow from crypto to USD and historical estimates are each $1 of USD outflow is $20-$25 impact on crypto market value,” Lee said.

“Additionally, we believe there is selling pressure by crypto exchanges who are subject to income tax in U.S. jurisdictions,” Lee said. “Many exchanges have net income in 2017 [of more than] $1 billion and keep working capital in [bitcoin]/[ethereum], not USD — hence, to meet these tax liabilities, are selling BTC/ETH.”

Kelly says that the tax deadline could cause a huge drop in cryptocurrency values, but that people have to see how things go after the deadline.

“Presumably after April 17th (deadline for tax liabilities in the US is April 15), if we can hold these gains, we’ll know that tax selling impacted—if you used Tom Lee’s work, we probably had about 500 to 600 billion dollars come off the market for tax purposes,” Kelly said.

He added that the problem with the way people view Bitcoin trading values is that they look at it as if it were a stock when in fact it isn’t.

“This is an open-source software, so you can’t think of it as a company, right? And I think that’s where people make a mistake—they quote market cap and say all that. This is not a stock, it’s not a company. It’s open-source software.”

Talking about negative news and price drops, Kelly says his favourite time to buy any asset is when bad news is dragging its price down. “That’s when I wanna buy any asset—whether it’s Bitcoin or not,” Kelly said.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.