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Bitcoin [BTC] creates new record; continues downward spiral for the sixth consecutive month

Namrata Shukla

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Bitcoin [BTC] creates new record; continues downward spiral for the sixth consecutive month
Source: Pixabay

The cryptocurrency market has taken crypto users for a ride in terms of the performance of the world’s biggest cryptocurrency, Bitcoin [BTC]. Once, the top token, Bitcoin has noticed a steep fall for the sixth month in a row. This is the longest recorded fall of the coin ever since its inception in 2010.

As per the data collated by Bloomberg, the coin was down 9% in January, dropping from $3,750 to $3,410 and has plunged 83% from its high of $19,511 in December 2017. On December 2017, the coin registered a market cap of $325 billion which has currently come down to $60.8 billion, at the time of press. The fall of the coin is costing other coins like Ethereum and XRP also to fall, as per the publication.

Source: Trading view

Source: Trading view

It has become difficult for the mainstream financial institutions to come out in support of Bitcoin, as the stigma of the token being used for illegitimate purposes is hard to shake. Recently, the terrorist organization Hamas requested support to donate in Bitcoin and the Austrian Financial Market Authority noted that investment fraud involving cryptocurrencies now sums up the bulk of reports to its whistleblower website, reported Bloomberg.



As per NewsBTC, the lack of sophisticated infrastructure is an important reason due to which Bitcoin’s penetration into the mainstream market is prevented. According to P.A.ID [Payments, Authentication, Identity and the Security and Connectivity of people, devices, objects and transations], 68% of Bitcoin exchanges across the US and Europe are not compliant with KYC. Most of these exchanges are unable to process larger transactions due to liquidity issues. John Devlin, chief analyst at P.A.ID said to the publication:

“Cryptocurrency wallets and exchanges want to enjoy the same trust as the wider traditional financial services, but for this to happen they need to rise above the sometimes-dubious reputation of cryptocurrencies’ past and be seen as ‘model citizens’ of the economy.”

At the time of press, Bitcoin [BTC] was valued at $3,474.64 with a market cap of $60.8 billion. The coin reported a 24-hour trade volume of $5 billion while registering a fall of 4.13%, over the past seven days. The coin saw a rise of 0.95% over the past day and is still registering a minimal growth of 0.01% over the past hour. The coin has been highly traded on BitMEX, with a volume of $830 million with BTC/USD pair.





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Namrata is a full-time journalist and is interested in covering everything under the sun, with a special focus on the crypto market.

Bitcoin

Bitcoin [BTC]: Morgan Creek CEO compares BTC returns to endowment returns

Akash Anand

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Bitcoin [BTC] returns compared to endowment returns by Morgan Creek CEO
Source: Pixabay

Bitcoin [BTC] and the rest of the cryptocurrency market has seen something of an upgrade, compared to its situation in 2018 when the bear market resulted prices falling from their peak. Many supporters of the world’s largest cryptocurrency have repeatedly claimed that the return on investments on Bitcoin has always been greater than that of traditional financial markets.

In a recent tweet, Mark Yusko, CEO and Chief Investment Officer of Morgan Creek Digital Capital, pointed out some value points of adding Bitcoin to an investor’s portfolio. Yusko tweeted,

“Some numbers to ponder when thinking about value of adding #Bitcoin to your portfolio
Endowments have $613B in Assets. Average return over past 5 yrs was mediocre 7.2%
Had they allocated 1% to $BTC return would’ve been 9.2%
Had #Bitcoin gone to zero, return would’ve been 7%.”

The Morgan Creek official made this statement on the back of Bitcoin’s stellar performance over the past couple of weeks. Ever since the world’s largest cryptocurrency fell from its $6000 hold back in November 2018 to settle below $4000, it found it difficult to break that threshold. The point, considered by many experts in the field as being close to Bitcoin’s bottom, continued to pull the cryptocurrency into a bearish vortex. Since April 1, Bitcoin’s price has spiked, in stark contrast to the strong sideways movement that it held since November.



Looking at the numbers, Yusko’s statements about BTC yields can be verified because investors holding the cryptocurrency at the $4170 mark on March 31 saw their portfolio spike by a whopping 100 percent on May 16, when the price touched $8280.

Mark Yusko was also in the news recently when he stated that Bitcoin was a great diversifying asset. He backed this up by comparing the digital asset’s performance with that of the S&P market. He said,

“Morgan Creek had launched the cryptocurrency challenge back in December and there were not many takers. In a way that was good because BTC is up by more than 100 percent right now, which is a much better hit rate than that of the S&P market. We will see that in the next 10 years, Bitcoin will outstrip even its current performance and maybe even more.”

 





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