Bitcoin and its peers started the week on the back foot but made quite the comeback to kick off a fresh month. Here’s a quick roundup of updates in the crypto arena.
First up, check out this snapshot of how bitcoin and its buddies have fared in the past seven days as of November 1, 11:25 pm GMT.
Futures settlement & MapleChange
End-of-the-month declines seem to have become a regular occurrence for bitcoin as profit-taking and futures settlement come in play. However, analysts are also quick to point out that losses were limited this time, likely due to lower volatility in bitcoin over the past month.
Another factor that may have driven bitcoin to test support zones earlier in the week was news of a hack in Canada’s MapleChange cryptocurrency exchange. Apart from reviving fears of security issues in the industry, what made the situation more dubious was that the firm took down its social media accounts and put its website offline soon after.
It didn’t take long for investors to recall the dark days of Mt. Gox and to speculate that the hacking incident might force regulators to up their oversight game. As a result, many were spooked to take their cryptocurrencies off exchanges, spurring huge market dips then.
MapleChange reportedly reinstated its Twitter account later on and assured that a thorough investigation is underway, but folks who have been maplechanged aren’t buying it.
Bitcoin haters gonna hate
What’s a trading week without any shade from cryptocurrency naysayers? The latest set might be particularly notable as it comes from former Fed head Janet Yellen and JPMorgan CEO Jamie Dimon. Not the best way to celebrate bitcoin’s 10-year anniversary, huh?
Now Dimon isn’t really known for being a fan of bitcoin, so his negative remarks weren’t all that surprising. During the Axios conference in LA, he declared:
“I never changed what I said, I just regret having said it. I didn’t want to be the spokesman against Bitcoin. I don’t really give a sh*t, that’s the point. Blockchain is real, it’s technology, but Bitcoin is not the same as a fiat currency.”
Meanwhile, Yellen stated that bitcoin is “anything but” a useful store of value, explaining:
“It’s not used for a lot of transactions, it’s not a stable source of value, and it’s not an efficient means of processing payments. It’s very slow in handling payments. It has difficulty because of its very decentralized nature.”
Some think that maybe Yellen might warm up to it if she gives it a try, so they gave her $20 worth of bitcoin as a gift.
On a more cheery note, Morgan Stanley’s latest report highlighted how the bitcoin ecosystem continues to evolve into a “new institutional investment class” and that the stablecoin trend is gaining traction.
Just be warned, there is a considerable amount of risk in trading cryptocurrencies due to their inherent volatility and sensitivity to headlines. Be careful out there!