Money is pouring into crypto-currencies. Take a look at my interpretation of each of the charts below.
The above shows the total market capitalisation of crypto currencies. As you can see, the rush into digital assets started towards the end of 2017, and is now accelerating.
Let's home in on the last month in the chart below:
As can be seen in the chart above, the total market cap has gone from $400 billion to $800 billion in just one month. The rush to get into digital assets has just started. Some $400 billion poured into digital assets in just 30 days. At this pace the market will exceed $1 trillion before the end of this January.
Let's now strip-out bitcoin and see how the alt-coins are doing. Look carefully at the chart below.
Excluding bitcoin, the market cap has gone from $150 billion to $550 billion. That means that virtually all of the $400 billion pouring into the digital asset space last month found its way into alt coins.
What's going on?
Here is the flow of funds:
We have two things happening here. New investors are pouring money into bitcoin ($400 billion in the last month). Secondly, old bitcoin investors are diversifying into alternative currencies.
This is a perfectly normal phenomenon. Old bitcoin investors typically have have bitcoins worth more than ten times what they paid. Having so much in one asset isn't sensible, so they are diversifying into other digital assets, rather than going back to fiat.
So who is selling the bitcoins?
The only way into the alt-coin market is through bitcoins. The large bitcoin holders are diversifying into alt-coins by selling bitcoins. Those bitcoins are thus flowing into the hands of those who previously owned alt-coins. Typically this means the founders of the various companies behind the various alt-coins, as well as those who participated in ICOs.
I hate to say it, but many of these people closely connected to ICOs were opportunists. They aren't interested in the crypto market except as an opportunity to tap the clamouring public for their money in exchange for tokens which in many cases have no use at all.
Many of these people - and the companies themselves need the cash. The pumped up market has given them an opportunity to swap their alt-coins for bitcoin and then to sell the bitcoin for cash to those who are newly entering the digital assets space.
Why is this about to drive the bitcoin price up?
I'll get to that shortly. First lets look at the chart for the last 7 days for the whole cypto market as below.
In the time it took me to write this article alone, the market cap increased from $805 billion to $830 billion. In 7 days $250 billion has flowed into digital assets. The flow in is accelerating.
Bitcoin's next leg up.
The only way into the crypto-space is through bitcoin. Fiat can only bitcoin. Bitcoin can buy every digital asset. Bitcoin is the gateway to digital assets.
The flow into bitcoin is massive, but in recent weeks has been matched by the flow out of bitcoin into alt-coins. alt-coins have massively out-performed bitcoin in the last weeks. Before that, bitcoin was the clear winner. The pendulum will swing back again as it always has. When that happens, money will be flowing into bitcoin from new first-time, but also the holders of alt-coins will be converting back to bitcoin too. That will squeeze bitcoin's price much higher.
Look at the chart below. It shows bitcoin's market cap compared to others.
See how bitcoin's dominance rises and falls? Right now it is low. As soon as the tide turns - any day now - I think, you'll have money squeezing into bitcoin from both ends - new investors and alt-coin investors panicking as their prices fall.
Remember, if you are an alt-coin investor and you want out, you can't sell for cash. There's only one way to go. It's to swap your alt-coins for bitcoin.
Bitcoin is thus going to be squeezed much higher any day now.
Bitcoin price now
As I write this, one bitcoin is worth $16'320, and one finney (1 ten-thousandth of a bitcoin), is worth $1.63. Do you think a finney could get to $2 sometime next week? Seems easy? How about $10? Plenty of alt coins have made 10X moves in less then 3 months.
If you own alt-coins, you may want to think about getting back into bitcoins before the crowd does.
If you are thinking of making your first bitcoin purchase, you may need to move fast.
Conclusion.
$250 billion a week is moving into digital assets. This week the beneficiary is alt-coins. As soon as Alt-coin pendulum swings back to to bitcoin, buyers of bitcoin will be coming from all directions.
Risk Disclaimer
All of the above is a personal opinion and should not be taken investment advice. It is for fun only. If you buy a digital asset like bitcoin, you are buying a series of digits in the ether which may prove to be worthless. Daily prices changes of 10%, 20% 30% are possible. Even 50% daily losses have often been seen in the past.
You could invest today, and look like a fool tomorrow . you might lose all your money, or have it stolen. Don't mess with money you can't afford to lose. Ask yourself - would my spouse divorce me, would my kids hate me?
For those who have seen the accuracy of my previous comments, I would say this. Nobody is right all the time. It's impossible. So don't rely on me. I have bet on a few fat greyhounds and three-legged donkeys in my time.
I don't think this is fat greyhound, but you can't know until after the race has been won.
Wow... a lot of information. All the Bitcoin owner must read it. So, first of all I resteemed this post.
If we change our point of view, starting from finney to arrive to Bitcoin, it's easy to think that we will see finney at $10 and then bitcoin exactly at $100,000
For a number of reasons (you have listed too in this post), Bitcoin enjoys a dominant position supporting growth. I agree with you, this is the right moment to buy.
A “finney” is one ten-thousandth of a bitcoin. So if bitcoin is priced at $13’000 then a finney is worth $1.30. A finney could quickly and easily rise to $10, which would correspond to a bitcoin price of $100k.
Of couse bitcoin will take a hit each time a country bans it, but as happened with China, it will come back.
Right now, Bitcoin was banned in this countries (or from central bank of this countries):
NIGERIA
COLOMBIA
TAIWAN
ECUADOR
BANGLADESH
KYRGYZSTAN
BOLIVIA
VIETNAM
RUSSIA
CHINA
THAILAND
source
Some of them pulled back their decision. But i don't see problems for Bitcoin which still grows.
That’s a very good list of the repressive countries where I don’t want to live. While I’m at it, I’ll cross them off my list of holiday destinations. I might have trouble converting bitcoin to pay for their five star hotels which are no doubt owned by the corrupt politicians who banned bitcoin in the first place.
Exactly my friend. All the listed countries there are dictatorships masquerading as democracies.
"As can be seen in the chart above, the total market cap has gone from $400 billion to $800 billion in just one month. The rush to get into digital assets has just started. Some $400 billion poured into digital assets in just 30 days. At this pace the market will exceed $1 trillion before the end of this January." Talking the bitcoin appreciation, you are absolutely right. The bitcoin is still going to hit another record February because it not only the new investor that are buying bitcoin alone, the old investors are still buying more and more in high quantity because bitcoin is the main market for digital currencies and the determinant factors to other digital currencies to in terms of appreciation or crash in the market. I actually agree with your analysis. Bitcoin alone took over 55% of the digital currency.
@tyrex Upvoted $32 for your very intelligent comment. True - it is soon the point when bitcoin will be squeezed higher to both sides.
You're absolutely right about this, and to me all this is some politics controlled by a few, pumping the system creating a panic, we would observe and see where things lead.
As for your question "Do you think a finney could get to $2 sometime next week? Seems easy? How about $10"
I think going with term finney it will rise more than $2 by this time next week, let's say $5 but won't get to $10
Upvoted as you were the first person to use the word “finney”. Yup, I think there is a good chance a finney will be more thn $2 next week.
Whoa! Thanks, very much appreciated.
When i see professionals talking crypto, i just bow my head in humility,
i hope to learn alot from you guys @swissclive and @admiralsp, seeing your conversations makes me feel like I'm far behind 💗
There is no better way to say it, so the market works like this. It oscillates from the alts to the bitcoin. You can get $ 2 from finney, but it will take some time, what would be better for the bitcoin is to consolidate the prices and gradually reach $ 2 finney, but everything is possible.
With respect to the $ 10 of Finney, we will certainly see that price in 2018. Bitcoin won almost 20x in a single year.
https://coinmarketcap.com/historical/20170108/
Upvoted for discussing “finney”
Using the term finney simplifies things. Saying that it reaches $ 100,000 is a little difficult for the price, but talking about $ 10 Finney is more accessible and more real, as you said in your previous publication. amounts of cryptocurrencies make a 10X or 20X in a matter of days, why not see these movements in Bitcoin, without looking at how expensive it is?
Very well analyzed @swissclive and as per my Technical Analysis the next leg is up as well and here is my chart why I am saying the road is all set for 25000 usd from here.
Fundamentally also it has been stronger and stronger and just imagine the adoption to blockchain and cryptocurrencies is still in an early stage and when it will get mass adoption then any value below 100k usd is consider as undervalued for bitcoin, of course that will happen in long term but one day certainly happen.
Will be more precious than human in the future
falls over laughing hahah
You have an excellent steem name which goes well with your skill in analysis of the crypto world. I am waiting for the time when I can look back and say to my children “I was in there at a fraction of the price”. $100k would be less performance than in 2017, so it’s emminently achievable in 2018.
Very true @swissclive and we all are lucky to get into crypto world in its beta stage. Thank you for reciprocating so sweetly :)
This is neither a greyhound nor a donkey, it is the unstoppable bull you published, I'm still betting on this bull with very sharp horns that will take whatever is in its way. although at this moment it is at 14000 $
will rise and will pass the $ 20000 in the first quarter of this year.
I am pretty sure you are right. Digital assets have arrived in 2018. This is the beginning. It’s email in 1993. It’s Amazon in 1998. It’s Broadband in 2003. It’s iPod in 2005. It’s Wifi in 2008. It’s iPhone in 2009. It’s Youtube in 2011. It’s Bitcoin in 2017. Digital assets in 2018. Everything Decentralised in 2019.
I admit that you have an excellent memory. You missed mentioning the Nintendo in 1985. We can list a large list of things that have marked our lives over 3 decades. but without a doubt that the blockchain takes the lead.
Wonderful article on bitcoins and cryptocurrency by you @swissclive.
Here is my take on this article :-
(1) Cryptomarket is surely going 1 trillion USD in market capital in January itself.
(2) You can ask any exchange these days..be it bittrex, poloniex or any other major exchange, the number of newcomers has gone up significantly. The server had to be upgraded by bittrex in recent time to accommodate the volume, such is the craze for crypto trading for newcomers.
(3) Those who took bitcoin early of 2017 are really lucky and they have already become rich and again through trading altcoins, they are making their fortunes.
(4) Just like USD in world is considered as safe haven currency, similarly BTC is considered as safe haven in crypto market and the irony is that if one enters into the crypto world then bitcoin is the gateway to this crypto world, so one has to buy BTC first before trading altcoins, this is the dynamics which is making bitcoin powerful day by day.
(5) Even if you look at the long term, then also at some point of time people will take profit from altocin and that would squeeze the BTC price further and not to forget that the supply coins of BTC is limited which will further add to surge of BTC price.
Very nice article @swissclive and all those points mentioned by you are worth reading. Thank you and Have a great day.
Thanks @shivohum2015 for your excellent comment! $1 trillion is still possible in January, even though CoinMarketCap decided to remove the Korean exchanges.
The most important point is that people have no idea what they own when they have alt-coins. When the FUD increases, they will rush back to the safe haven of bitcoin
Yes very correct mam...BTC is the safe haven in crypto segment. Thank you again.
What's best about bitcoin is that it was one of the first in the game. There are many coins which are simply forks of bitcoin. All you have to do is claim them with your private address. If you kept your money in an exchange then...but then it's a really nice way to get free money by just buying something haha. Bitcoin is surely on the rise now. Even in India people have started to become more aware as to what is happening with cryptocurrency and the blockchain tech. The government won't be able to do much. I'm HODLing! Thank you for your anal-ysis.
Not only is bitcoin the first, it is also the king-daddy. It's the safest bet of crypto - provided you accept alot of shorter term volatility
The main problem with bitcoin right now is the transaction fee and the time taken for one transaction. People are simply hopping onto new currencies just because they are faster but then don't realise that Bitcoin is the most used pair in exchanges. Bitcoin is here to stay for quite sometime I think. But the downfall is near.
very well defined the way in which Bitcoin comes into the hands of altcoin holders through Bitcoin holders and iam pretty sure that btc price going to surge very soon in the first quarter of 2018 because the news of south Korea banned Bitcoin is also one of the big reasons of the current downfall in btc and altcoin market fall,but as we know that this market is going to recover very soon because it always recovered itself when new big investors got btc at the price they desired to buy then we are going to see a very big spike it btc prices and i also like your point about the "Bitcoin is the only way to the altcoins" and by this way the demand of btc is not going to stop in future and the more and more people buy btc and the more and mire it's supply get less,we are going to see a Bitcoin price above our imagination.
@thecryptotrader . I really like you comment. Yes, I agree that there will be a spike in bitcoin when the pendulum swings back from alt-coins. The reality is that people know what they get with bitcoin. With alt-coins, they are mostly buying blind. So when fear sets in, they will return to bitcoin.
Since this is a site for bloggers, and writers, I hope you won't mind some friendly advice on your commenting. It will get your comments read by more people.
I recommend that you proof-read what you write. It comes across as too hasty. There were no full stops, natural breaks or paragraphs.
In future try to write short sentences, and break different topics into individual paragraphs. Take care about the capitalisations too.
You also didn't use capital letters at the start of the sentence or for the word "I". Failing to correctly capitalise when required comes across as lazy.
Upvoted as this was an excellent comment.
Ohk, Thanks For Your Valuable Advice Dear :)
The above was rightfully said, imagine a coin been promised to be 2x the initial value when it finally enters the market, that will surely catch the attention of anybody willing to make quick money but most time, the reverse is the case as the said coin hold no future and ending up with lot of buyers loosing just after the ICO sale.
Personally, all other coin require bitcoin as a medium of exchange thus boosting the value of btc further up, barely a month after sinking to $12+, its already up to $16+ and am sure before the end of this week been Sunday it will move pass the $16 cap and a new threshold will be set.
Alts will surely move up as well and I see this as a best time for those hoping to get involve in the crypto world to look for a coin that's promising listed on most exchangers with still a low price buy and hodl pending the end of this year. Reason for this was a chart I saw online some days back clearly detailing the price of coin as at Jan 2017 and Dec 2017 the increase was just unreal.
With the above am sure this year, we are sure to have a more profitable increase as compared to other years with chart you earlier pulled showing the increase of investors coming into the crypto-world.
Very well explained. I liked.
Upvoted and Resteemed
Bitcoin is not the only way to buy alts. You can use ETH pairs also. Congestion in Bitcoin makes new inverstors choose ETH as a gateway to cryptocurrency!
Accepted you can also use ETH. So let’s say I have fiat, how would my route to alts be faster?
I don't know how it works in your counry, in my you can buy ETH with fiat without verification at an echcange office like bitcantor (they allow instatnt bank trasfer which takes minutes to send) and then send ETH to Poloniex (verification takes minutes there)The whole procces takes you about 30 minutes. If you use bitcoin, you can get stuck in a que for days, waiting it gets to an exchange where alts are traded.
Not to mention that's its bucket loads cheaper to do it all through ETH
This is very true. Unfortunately ETH is having congestion issues too. Dash is slowly and steadily spreading. They are hell bent on proper scaling and they have tons of extra features and their monthly budget is closing in on 10 million USD.
Thanks @swissclive for this eyes opening information. I am glad to follow you. The future is bright. Thanks for the disclaimer.
Wow... You bless me each time you write. So much informations and I'm just loving your blog the more. Thanks for this informative posts always. You are just amazing..
whooo! 1 trillion at the end of this month.. @swissclive is it your estimation or you have made calculations on it .. As in 2017 market value have gone from $400 b to $800 b so I am sure people will grow crazy to invest in it. I have search some of Ripple crypto currency and you won't believe it that since start of 2017 , Ripple has increased 8000% times. SO yeah #hope for the digital currency because I am really in the favor of it.. #stay blessed buddy and thanks for the statistical data.. :)
awesome ! Yeah I am also following Ripple for months and this is gonna hit the market in a while.. #best of luck and invest in it @sohailahmad2525
You are right man! Every one has eye on Ripple now after Monero .
Thanks for this great article but it is a pain to make Bitcoin transactions. Its transaction fees are so high for commoners like me. Its impossible for me to invest in alt coins so I depend on Steemit to grow my money :)
Thanks for the update @swissclive I am glad to follow you. And hope i won't regret this.. The future is bright
wall so i was research on btc on steemit and i have got this post and i totally agree with you on ths i mean bitcoin will jump up because i have some really good reason for that most of the people in Asia and in other countires still dont even know about the crypto curriens they think its scam .. and sunce they are knwoing about btc .. it will jump up as being a Asian i know that it will go up i love your article and please keep research love this thanks fo the article and i am expecting some more good content from you ... you have got a follower
Very informative, didnt know you are into cryptocurrency. Its a real eye opener for me. And you are very good at it too, keep it up dear.
I think because there is only a limited supply and it is not one countries currency, but across the entire world so it will continue to up. The use will catch up to the price. This is a unique asset.
I like your prediction and the way you think. In your words there is logic and they are worth it to listen to. Everyone has the right to do as he pleases, but one thing is certain ... the growing capitalization of bitcoin and many alcoins is associated with growing popularity. But imagine that many more people do not even know about this possibility and the fact that there are crypto-currencies. And when all these people will see the potential, just as we see it, the growth will be enchanting.
Although what we see every day confirms my words. Faith of people - moves the price up.
This is a good time, and we are witnessing change.
Thank you, I liked it
I'm holding on far too long. I've also been observing the market, and I think there is sufficient basis for us to believe that it's going up once again!
I'm ready! We all are.
Bitcoin breaks stereotypes and breaks the wall of people's doubts - creating a solid foundation that we call capitalization. Unambiguously, the cost of $ 20,000 is not a border and in this year it is quite possible to overcome this "mental" frontier and put new records of value.
The first "mental" wall was at $ 10,000 and remember how quickly the price continued its growth. Skeptics will always and everywhere - this is the norm.
Thank you, I liked your vision of the situation and I support it.
I liked this very important post and should pay attention to this content
@womby (43) In another comment on another blog you wrote "The best person: He doesn't comment unless he likes the post and a constructive comment is really useful" . It's a shame your comment on this blog didn't follow your own words of wisdom.
This is a great analysis we see at all levels. I do not believe that all currencies are falling, I want to find a favorite that will jump from 10 to 100 times compared to Bitcoin this year.
I totally agree. For the last week I sold almost all my altcoyins and now I expect the cue ball to grow.
hello @swissclive
You made a good call. Everyone has the right to do as he pleases, but one thing is certain ... the growing capitalization of bitcoin and many alcoins is associated with growing popularity. ..in 2017 market value have gone from $400 b to $800 b so I am sure people will grow crazy to invest in it.
Thank you, I liked your vision of the situation and I support it...you are on point...STEEM ON
#cheers
@vickyrich a true @euronation member
Bitcoin needs a digital currency Now many people are talking about bugs online now with bitcoin, currently Bitcoin is a big way of online trading, I also use bitcoin now than 1btc more than 16000 dollar
To me bitcoin is like investing in old luxury car, it doesn't do anything but it makes you look good and people say it's worth a lot.
From a practical standpoint bitcoin is slow and very expensive to transact, it should be the exact opposite.
For now you may be right and another bitcoin rush is going to happen. But with fiat/crypto pairing bitcoin will have to improve fast if it wants to remain relevant.
This is the best analysis of the current state of the Crypto-currency market, which I once met. So it is clear about crypto-currencies I have not read. Despite the fact that I just did Resteem, I again do resteem. After all, if I do not share such useful information, my friends will not understand this. Thank you, and Merry Christmas to you!!!
subbed! good article, called it exactly. im an "old" bitcoiner and have diversified into alts 70(btc)-30. cheers!
Thanks for sharing
Your analysis makes PERFECT sense! Yes, I see what you are predicting clearly. Thank you for this insight. I'll be investing and holding MORE bitcoin immediately.
"I have bet on a few fat greyhounds and three-legged donkeys in my time."
HAHAHA too funny!
Good post on btc
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Great report on btc price , you define step by step why btc price is rising and also like your these lines -
If you own alt-coins, you may want to think about getting back into bitcoins before the crowd does.
If you are thinking of making your first bitcoin purchase, you may need to move fast.
Upvote u niceee
Thank you for this detailed information. But i still have a question because im completely new to crypto curency . whats the differet between sbd,bitcoin and alt coin. Thanks in anticipation for your response.
This is very true, this will probably end up happening, but I think I'll leave my money in the Altcoins, I'm doing hold during this year, and I think other cryptocurrencies have more opportunity to provide better profits.
Another issue, is that in my country is already negotiating for example 3 or 4 cryptocurrencies directly with fiat, and there are more and more similar alternatives, so in the future, I think we can change many more cryptocurrencies directly with fiat without mediating with the BTC .
I am really angry about that fortune seekers ICO's, that why I only invest in ICO's after I read the story behind them and try to understand if it is feasible and whether it's going to contribute the world in some way.
thanks for that analysis :) it looks like the market is at a little depression right now but I saw many people claim it has to do with CoinMarketCap removing Korean exchanges from their price and cap calculation so it's artificial and it's actually an opportunity to buy cheaply! after that phase is over I guess your sound advice will be relevant again :)
thanks swissclive!
I am not about to pretend I know all about bitcoin and crytocurrencies. All of these are new to me. But slowly, I am getting the picture. I especially liked what you said, to quote:
"Don't mess with money you can't afford to lose."
I thought it was a very witty one and practical. Thanks to articles like yours @swissclive I am able to understand the this and that of digital currencies.
BTC right now is actually on the down move and this might be a very long correction. We might not see a huge explosion anytime soon. Price might go down as low as $11,000 according to some regular analysts here on steemit. Thought I should put the warning out here for everyone not to panic, because it eventually will go up, as it does after every correction. Except this correction is just gonna take quite a bit longer than the usual ones. So patience!!
Great paper bro!!
I think that BTC an ETH will cross themselves in value and in market capitalisation.. In other words, as BTC seems to decline ETHEREUM looks to be the next "thing"...
Will they cross themselves about 6.5/7.5K$ ( historical support ) or about 3K$, i still don't know...
I'll add that the market is to down strongly because of any future regulation or because of a loss of confidence in the market after future ponziscoin failure....
But i still don't know if the BTC/ETH CROSS will be after or before next market crash!
So as the BTC value as a "refuge coin" is limited (as for gold!) i don't believe in a 100K BTC !!
l really like your analysis, it helps me to understand better the Crypto-currency market.
After your useful information I began to watch every day how bitcoin's dominance rises and falls.
I resteem your post for my followers to help them to understand better the crypto world.
Thank you @swissclive very much for sharing this information!
Upvoted $32 for the resteem. Thanks very much.
Edit: Actually, on checking it seems you forgot to resteem. Don't worry, it must be just an oversight. - Removed my upvote.
Oh, sorry, I was sure that I had clicked Resteem!
I click Resteem now, because your post will be such useful for me and my 459 followers!
I like your analysis very much.
Greetings friend, now the btc has already declined, it can be said that the big investors have sold or exchanged for in alternative currencies. I think it's a good time for the new ones to acquire btc and for their capital to increase in the short term, in my case I'm stuck with a few changes and in view of the crash that the btc had not been able to recover, I have seen it as a small long-term investment, thanks to your previous recommendations I am not risking a large sum of money otherwise I would lose my marriage and my family hahaha, Greetings friend you always with very good calculations and evaluations on this great asset (BTC)
Yeah I got one thing that if you invest today will lose tomorrow Because it's a turn of BTC to go down. I think for next 4 months we don't need to buy BTC :)
Sorry @swissclive, I repeat the answer to your reply to my comment to make sure you would be able to see it.
I was sure that I had clicked Resteem 4 days ago!
I did it! I did it 3 days ago, because your post would be such useful for me and my followers!
And my followers have been learning your information since that day!
I like your analysis very much because it has helped me to understand better the crypto world.
After your analysis I watch every day how bitcoin's dominance rises and falls.
Will you forgive me for my inattention and return your upvote?
After your reply I have become much more attentive!
hit 50k
People will continue to hold diversified portfolios of all kinds of assets. My nearer term target for crypto would be 1%. Hard to say where the price would be as adding $100of new money can increase the markrt cap be $1000.