- Ripple, the third largest digital currency in terms of capitalization, jumped following traders’ talks concerning joining Coinbase but sank afterwards
- The likelihood of Bitcoin declining to $100 is greater than seeing it surging to $100k
- Tuesday could be a crucial day for Bitcoin taking account of the current technical landscape
Taking a closer look at the cryptocurrency block one may notice that Ripple, the third largest digital currency in terms of capitalization, has been the most volatile recently but even so volatility has remained contained taking into account digital currency standards. The prime reason for a Ripple’s whipsaw were talks or actually rumours about possible adding the virtual currency to Coinbase, one of the largest digital currency exchanges in the world localized in San Francisco.
Thanks to those chatters the Ripple price skyrocketed but fun did not last too long as the price plunged a while ago when Coinbase tweeted that "no decision has been made yet". According to Alex Sunnarborg, founding partner at cryptofund Tetras Capital, larger buys in advance of expected news in these markets are then compounded by retail investors buying out of FOMO (fear of missing out) and trying to chase gains.
What is the likelihood to see Bitcoin soaring to a $100k mark?
Bitcoin is trading slightly above $11,200 at the time of writing so the price has a long way off from both $100 and $100,000 but the question is which one seems to have larger probability to emerge going forward? According to Kenneth Rogoff, Harvard University professor and economist, the likelihood of bitcoin prices falling to $100 is greater than that of the digital currency trading at $100,000 a decade from now.
He sees Bitcoin being worth just a fraction of the current price in the future. In an interview with CNBC he told that "if you take away the possibility of money laundering and tax evasion, its (Bitcoin) actual uses as a transaction vehicle are very small". Finally, the former chief economist of the IMF claimed that the final nail to the Bitcoin’s coffin will be governments’ regulations, however, it needs to be global regulation and therefore steps already taken by the US, China or Japan are insufficient to clamp down on money laundering once and for all, he concluded.
Bitcoin has just ran into an obstacle (once again) and a daily close seems to be a crucial hint in determining the future moves. If a bearish engulfing pattern occurs, it could lead to an extended pullback toward $10,500 but possibly as low as $9,350 - this is the place where Bitcoin went after a possible ominous candlestick had emerged approximately two weeks ago. Source: xStation5
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