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Noteworthy remarks from CEO of a leading cryptocurrency exchange

Summary:

  • Bitcoin (BITCOIN on xStation5) seems to be getting back to losses as it failed to stay within an ascending channel
  • Jesse Powell, CEO of Kraken cryptocurrency exchange, expresses several noteworthy remarks as for investing in digital coins
  • Bitcoin could plunge even to $900 according to Bloomberg commodity strategist
  • Iceland’s crypto mining companies are expected to exceed households in terms of energy consumption

Bitcoin price action has been quite calm of late but it seems that the price has already surrendered its gains. Do notice that the most famous virtual currency is trading below a lower boundary of an ascending channel which could suggest some fatigue of Bitcoin bulls. From a technical standpoint one may assume that the price could be heading lower toward $7600 if it breaks out of the channel durably. On the other hand, the major obstacle for buyers placed at $9350 remains intact and it needs to be smashed if they would want to prop up the price. Before they take a stab at doing so, the base scenario seems to be a downtrend resumption.

link do file download linkBitcoin is already trading below a lower limit of the channel, hence the base scenario assumes a deeper pullback toward $7600 once a breakout is not false. Source: xStation5

Should Bitcoin buyers look after themselves?

"I think ultimately consumers need to look out for themselves, look into the fundamentals of any coin and not rely on any particular exchange to protect them from market volatility" - these are words of Jesse Powell, CEO of the leading cryptocurrency exchange Kraken, expressed at the World Government Summit in Dubai. On the face of it, it looks quite weirdly as that kind of remarks could daunt investors, on the other hand though Powell stresses that his exchange is truly conducting thorough evaluation process to ensure every digital currency available on the San Francisco-based exchange is "almost certainly not a scam".

Despite a healthy decrease in Bitcoin it could be still heading lower

From its peaks made in December Bitcoin already slashed more than a half of gains and it could not be the end. According to Bloomberg Intelligence commodity strategist Mike McGlone a further 90% loss could be on the cards in an environment of unsustainably growing supply. He used the incredible Amazon’s increase and compared it to Bitcoin as he thinks that the cryptocurrency is very similar to Internet companies we saw in the late nineties. McGlone underlined that subsequent forks mean that as much as 50 million outstanding coins based on the original blockchain have been already mined vastly outpacing the intended 21 million coins supply.

link do file download linkBitcoin could not be already out of the woods when compared to the Amazon’s performance. Source: Bloomberg

Mining companies in Iceland are forecast to overtake households in energy use

Everybody being immersed in cryptocurrencies knows that north-based countries are the best places for mining firms as it trims cost of hardware cooling. Iceland is among them and it appears that it’s constantly increasing its share in global crypto mining. According to a spokesman for Icelandic energy firm HS Orka Bitcoin mining centres are likely to exceed all households in terms of electricity consumption this year. It can be staggering but one cannot forget that Icelandic population is quite small, around 340k people.

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