FxPro: Bitcoin clings for $3,900. Does Bitmain believe the worst is over?
March 08, 2019 @ 15:18 UTC
By the end of the week, Bitcoin managed to gain a foothold at around $3,900 after the last round of growth. In addition, for the first time in the last 8 months, BTC closed the month with growth. This gives market participants cautious hope, but the bears will hardly just give up, entering the game at every significant price spike.
Along with Bitcoin, the positive also extends to Litecoin, which became the fourth largest coin by market capitalization, according to CoinMarketCap. Litecoin rising by 67% over the month due to the developers’ plans to speed up the network and introduce new functions. It is worth noting that technical updates in recent times are often the growth drivers of coins.
One of the most notable coins by price fluctuations recently became ABBC Coin. For a month, cryptocurrency increased by 1160%, reminding crypto market participants the “hype times”. At first, such explosive growth was associated with “pumps and dumps”, however another one driver of the growth was due to the use of face recognition technology in payments.
Given the generally positive background on the cryptocurrency market, the news that Bitmain is going to launch 100,000 new ASIC miners in the Chinese province suggests that they are preparing for a new phase of the price dynamics. However, this may just be a news hook related to the IPO. Through such events, the company attracts attention, demonstrating an impressive scale of activity, which is always positively evaluated by investors. Another reason cannot be ruled out: the company may consider the current moment successful for investments because Bitcoin has fallen heavily and spent quite a long time on its lows.
Alexander Kuptsikevich, the FxPro analyst