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'Altcoin Hype Has Largely Died Off' – Kraken CEO 101
Source: iStock/Lorado

Jesse Powell, CEO of major U.S. cryptocurrency exchange Kraken, believes that the hype surrounding altcoins in the Cryptoverse is at its dying breath.

“Altcoin hype has largely died off,” said Powell in a recent interview with Ivan on Tech, a popular YouTuber. He explained his view by saying that a vast majority of the altcoins, “probably 99%” of them, are down by some 95% of their value from their all-time highs. Instead, people have refocused on the top few high-potential, high-quality projects, he says.

“I think that people have kind of realized that most of these altcoins are really seed-stage startups and, you know, most startups fail,” Powell says. As for the issues that people get burned by, or reasons that will lead to this failure of the majority of projects, the CEO mentions “tons of terrible stocks in the public stock markets,” and says that “a lot of the incentives are screwed up” with ICOs (initial coin offerings), where “founders got paid millions of dollars before they even delivered a working product and, you know, maybe now they’re not really incentivized to continue building.”

Kraken now offers 30 digital assets to its clients.

Top 10 markets on Kraken

'Altcoin Hype Has Largely Died Off' – Kraken CEO 102
Source: coinpaprika.com, 12:23 PM UTC

In regards to Bitcoin (BTC), he says he never recommends shorting BTC. He added that Kraken has “way more demand to go long Bitcoin, but we’ve only got so many dollars in the system. The margin pool for borrowing dollars to buy Bitcoin is constantly being exhausted, which I think is good. People are bullish.”

Powell also said that a lot of people coming into crypto, do so through video games – especially young people nowadays, who don’t even have a bank account, are familiar with digital / virtual value and currency.

Meanwhile, popular crypto researcher and analyst Willy Woo took to Twitter to post about the top 50 coins by trading volume. ”Below the top 40 doesn’t even register i.e. 4938 coins are illiquid,” says the analyst. He added that “very few coins” have credible liquidity to make good investments, and what investors want is exactly liquidity “at entry [and] on exit.” This is the chart Woo provided to back up his claims.

Top coins by trading volume

'Altcoin Hype Has Largely Died Off' – Kraken CEO 103
Source: Twitter, @woonomic

Some, however, believe that these projects are still too young. Erik Voorhees, founder and CEO of the crypto exchange ShapeShift, replied to Woo, saying: “Put Bitcoin from 2012 in there. Most of these projects are only 1-3 years old.”

Learn more: This is Why Dogecoin is Better than ‘Altcoins-Degenerators’

Brad Garlinghouse, CEO of Ripple, also said recently that “there are too many” crypto assets and “99% of crypto probably goes to zero.”

Meanwhile, in September, Kraken admitted it was cutting 57 jobs. Powell allegedly said at the time that the job cuts were a cost-saving measure that will have no impact on the quality of Kraken’s service. Later that month, Dan Held, Director of Business Development of the company, told Cryptonews.com that the exchange is planning a “major change” soon, as improving user experience is one of the main focus areas in the company this year.

Sead Fadilpašić , 2019-11-13 12:33:04 ,

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While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock


Nick Chong , 2019-11-10 12:00:38

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