Conor was the winning trader this week down only 2%. The loss was occurred after being stopped out of a position in Bitcoin after holding cash for the majority of the week. Chaster and Eric were tied for 2nd with both trader posting a loss of 7.76%. John ended the week down 15% after holding through the selling pressure on Christmas Eve and Christmas. The MVIS top-100 index was down 12% overall, making it another week where Fifth Khagan outperformed the market.
Chaster was the winner of last week’s price prediction after calling $3800 #Bitcoin on Christmas day. John remained confident that #Bitcoin has seen the bottom at $3200 with the market rebounding from incoming money for 2019. Conor suggested that an inverted head and shoulders reversal pattern is in play and could be the start of a short-term rally if bulls can keep buy pressure up.
Lightning network was the topic of discussion for a good portion of the call. Kristof from Satoshi’s Dream remains skeptical of the lightning Networks ability to scale transactions citing the lack of both Bitcoin and nodes on the network. Conor is taking the middle of the road and believes it is too early to tell whether or not 2nd layer solutions like #LightningNetwork will solve the scaling problem without creating another form of banking via “hubs”. This topic remains highly controversial and only time will tell how Bitcoin will scale in the future.
Two congressman have introduced a bill that would exempt digital assets from being classified as securities. The “Token Taxonomy Act” would remove the authority from the #SEC to label ICOs as securities and would lead to the introduction a new framework for cryptocurrencies likely by another agency such as the CFTC. If the bill passes, it would certainly be seen as another step forward for a market that is still in its infancy.
While many have left the #cryptocurrency market this year as prices waned, the ecosystem continues to grow and improve. New legislation from the US and foreign governments could be the next step in bringing public interest back to digital assets. It seems the perfect storm is brewing as the bear market establishes a bottom price and creates a new foundation for the digital asset class to grow. Technological advances in blockchain scaling, along with institutional interest certainly paints a bright future for #Bitcoin.