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Coinbase, valued at $8 billion, hits its lowest: Bitcoin [BTC] responsible?

Anoushka Shrestha

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Coinbase, valued at $8 billion, hits its lowest: Bitcoin responsible?
Source: Unsplash

Coinbase, an online trading platform for the digital currency, is being greatly affected by the bear market for Bitcoin and other tokens. Over the past few days, the plunge in prices has caused the download ranking for Coinbase to fall extremely low. It has fallen to its lowest among U.S. finance apps since April last year.

December of 2017 saw Coinbase hit the top spot for free apps in the U.S. App Store. At the time, Bitcoin, with a price jump of over 20 percent within just 24 hours, was at a record of $19,000. Since then, Bitcoin has lost more than two-thirds of its value. Following this, Coinbase’s app fell to number 40 on the download rankings in June.

Coinbase generates revenue by charging transaction fees to users, and last year, it stood at $1 billion. Risen from its valuation of $1.6 billion in 2017, Coinbase reportedly has a valuation of about $8 billion.

Coinbase aims to create an open financial system wherein it stands as the top brand recognized for helping people convert digital currency into their local currency. 



Brian Armstrong, co-founder and CEO of Coinbase, however, seems optimistic in his views despite the staggering situation. He took to Twitter to express that these short-term prices and negative headlines are not worrisome for the company. He said that downturn, in fact, helps in the process of clearing out people who may be in the market for the wrong reasons.

Bitcoin has hit as low as $7000 this year, is what is being called the “Crypto Winter.” Like Armstrong, however, people are hopeful that the market will see recover soon and the crypto world will surpass this cold winter.





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Anoushka is a full-time journalist at AMBCrypto, passionate about writing with a degree in B.A. Combined Humanities. She holds no value in cryptocurrencies currently.

Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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