Staying updated on the ever-changing cryptocurrency market doesn’t have to be as tough as keeping up with the Kardashians. I’ve rounded up the latest set of news to help y’all stay in the loop.
Here’s a snapshot of how bitcoin and its buddies have fared in the past seven days as of August 17, 3:00 am GMT. Still a sea of red!
ICOs cashing out
Ethereum was one of the biggest losers for the week, and the losses are being pinned on initial cash offerings being cashed out. ETH has crashed below the $300 mark earlier in the week and hit a low of $258.94.
You see, Ethereum is the most popular platform on which these ICOs are built to raise funds for blockchain-based companies. In particular, majority of these ICOs were made as ERC-20 tokens, which then required investors to use Ether coins to buy in.
Many say that, apart from lower mining fees and faster transaction times compared to bitcoin, the rapid rise in ICOs for the first half 2017 was the main catalyst for its sharp surge in value. And as its recent price action shows, the higher you climb, the harder you fall.
In turn, the massive dumping of ICOs these days is also being blamed on the ongoing slide in cryptocurrency prices and on investors starting to see past the smoke and mirrors on a number of these ill-constructed tokens.
Turkey’s troubles lift bitcoin
During the earlier part of the week, newswires buzzed about how the Turkish lira’s collapse boosted BTC/TRY to its seven-month highs. After all, citizens were likely looking for a more reliable store of value than their rapidly depreciating currency.
This was also reminiscent of the aftermath of the Greek debt crisis as the prospect of capital controls spurred locals to find better mediums of exchange or investment vehicles.
However, bitcoin’s gains against the lira were limited as authorities promised measures to stem the currency’s decline. Apart from that, Turkey’s official stance is that the cryptocurrency is not compatible with Islam, leaving trading activity limited to local exchanges.
Still, this economic and political situation is something to keep tabs on, as the rising likelihood of a full-blown crisis and contagion could once again prop bitcoin up as an alternative safe-haven.