The head of ICBF analysis and research group Pavel SHCHIPANOV analyses the latest news.
Is the cryptocurrency market growing yet?
When assessing the state of the cryptocurrency market, the persistence of a high uncertainty level with regard to future trends should be noted. For instance, Bitcoin (BTC) to Tether (USDT) rate on the Binance exchange seems to pay no mind to the sellers’ expectations of reaching the lower levels. Trading activity for the largest cryptocurrency in terms of capitalization is between the support level at $ 8,800 and resistance levels at $ 9,600 and $ 9,800 from the third decade of April. Going beyond these limits will become the basis for purchase before targets of $ 10,000 and $ 11,000 should the trading fall into the first scenario or for further correction to $7,800 should the rate fall below $8,800.
The longer-term forecast for May-June remains unchanged: the onset of a new growth phase in the cryptocurrency market. The main question is: will it begin now or will bitcoin rate face correction first?
Blockchain technology brings together the global car manufacturers
Our recent review of blockchain technology in the automotive sector has acquired continuation. The largest conglomerate in the industry MOBI (Mobility Open Blockchain Initiative) has been reported to extend its membership to include 30 acting members. It now includes the leading global car manufacturers BMW, Renault, Ford, and General Motors, as well as Bosch, IBM, ZF and a number of other car-parts manufacturers and IT-companies. The consortium will also witness participation from blockchain industry groups, such as Consensys and Hyperledger, which will develop a new ecosystem in cooperation with the above-mentioned companies.
This will lead to connecting the vehicles from different manufacturers within a single network for car status monitoring (e.g., in order to immediately report the breakdown or the need to order spare parts), coordination between them and their identification allowing to speed up all types of operations, from car-sharing to the use of self-driving vehicles.
Will fiat money recede into the background in South Korea?
Such statements are often made by crypto-enthusiasts, such as John McAfee, or by other futurists discussing the step-by-step replacement of paper money with electronic and crypto-currencies. And yet, South Korean Minister of Finance Kim Yong-jin has recently commented on these opportunities. The high-ranking official has stated that the cryptocurrency market is growing exponentially, gaining stability, and thus can dethrone the traditional fiat money as a number one means of payment in the country. Seen as a “bubble” by the South Korean financial authorities at the beginning of this year, Bitcoin and Ethereum are now met with a completely different response.
Also, it is worth recalling that the mainstream media outlets of the country have recently speculated regarding the government’s plan to lift this ICO ban, specifically, after country’s largest investors and exchanges, including Kakao and Bithumb, have threatened to leave the country and relocate to Switzerland and other countries, which could result in losses of billions dollars.
The amount of money raised from ICO projects has dropped to a minimum from September 2017
The amount of money raised within ICOs (Initial Coin Offerings) has dropped in April 2018 to the lowest value for the last 8 months. Based on the results of the second month of spring, the amounts raised have slumped by 44% as compared to March. At the same time, the ICO`s attracting the most attention in the crypto community and collecting tens and hundreds of millions of dollars show a steady decline since December 2017. During that month, an absolute monthly record has been established at $1.66 billion, whereas in April of this year only $532 million has been collected. For comparison, it should be noted that over the first third of 2018, 674 ICOs have been conducted, which is only 22.6% less than the total for the year 2017.
At the same time, the dynamics of gains from the coin offering very clearly resemble that of bitcoin when comparing their month-by-month plots. Given the expected cost recovery by the end of this year, an increase in the number of ICOs for new projects will also be a likely scenario.
