Bitcoin and Ethereum started the past two sessions on a positive note and were seen trading with bullish moves. It seems like both top cryptocurrencies are forming a short-term base and are preparing for an upside move.
There was a lot of negativity formed during the past few sessions, but traders seem to be in a bullish mood today. Speaking of bearishness, UBS Group AG Chairman, Axel Weber, stated recently that bitcoin may drop sharply due to all the ongoing regulation drama.
He was present at the World Economic Forum in Davos, and stated in an interview with Bloomberg TV that “We fear that in the future if these investments implode and the market corrects, then investors will be looking at ‘who sold us this?”. This certainly caught the market attention, but it failed to push prices down.
Moreover, Stripe, a popular firm is all set to drop Bitcoin as a payment solution. The main reasons provided by the firm were transaction fees and transaction time. Commenting on the same, Stripe's product manager, Tom Karlo, stated in the company's blog:
“Bitcoin becoming less useful for payments, however. Transaction confirmation times have risen substantially; this, in turn, has led to an increase in the failure rate of transactions denominated in fiat currencies.”
On the other hand, Bespoke Investment Group's analyst, Dan Ciotoli stated to CNBC about his positive outlook. He thinks that bitcoin price may perhaps triple by the end of 2018. He also believes that January’s correction and dive in cryptocurrencies such as bitcoin, ether, ripple and litecoin is likely over.
He added saying “The technology is here to stay, and I think it'll be interesting to see how things play out over the next year”.
The overall market sentiment turned green today as BTC/USD traded up by more than 7.5% to USD 11,250 and ETH/USD gained by more than 8.5% to USD 1,040. Almost all cryptocurrencies traded higher this morning and the current price action is bullish in nature.
In an unusual event, there was a scam case raised in India. A popular company Reliance is supposed to launch their own cryptocurrency Jio Coin. Today, a bunch of hackers took advantage and created a fake website for the stated cryptocurrency registration. A Reliance Jio Coin scam alert was issued and users were warned not to open accounts or share details with the fake website.
However, the market was not affected by today’s events and bitcoin price is likely to continue moving higher towards the USD 11,800 resistance level where buyers could be tested.