Cryptocurrency fever continues to gain steam, as more companies are jumping on the bandwagon or expressing interest in getting involved with the technology.
This past week, Kodak announced it would introduce its own cryptocurrency, called KodakCoin. According to Businessinsider.com, the announcement was behind an explosion in the stock price, fueling gains on the day of over 70%. The new digital currency from Kodak is intended to assist photographers with image rights management, and shows yet another way in which cryptocurrencies may prove useful to all areas of modern industry. Other arenas, including cannabis, poker and even iced tea have also made moves to get involved in blockchain technology. This has caused some significant spikes in the share prices of related companies.
In other major headlines this week, South Korea is reportedly considering a ban on cryptocurrency trading. Such discussions have been met with a fierce backlash from market participants and investors. Clearly the government is concerned about the notion of cryptos becoming market bubbles, and the potential repercussions that could be seen by such market behavior. Whether or not markets like Bitcoin have in fact reached bubble status is highly debatable, but even if prices do cool off it seems that such technologies are here to stay. In addition, given the substantial and rising popularity of cryptocurrencies, it seems that it would be very difficult, if not impossible, for governments to eliminate all trading in these products.
Bitcoin: Bitcoin had another interesting week. This crypto has been in a short-term downtrend, and prices have been consolidating between $13000 and $14000 throughout the week. The larger time frames tell a bit of a different story, however, as recent selling may prove to be nothing more than a decent pullback within a long-term uptrend. Buyers have shown up to stop the selling thus far, but it may become increasingly important in the coming sessions to see further upside.
Bitcoin Cash: Bitcoin cash saw a sharp drop from near the $3000 level, as the news out of South Korea weighed heavily on many cryptos. The market has once again apparently found price support and willing buyers in the $2400-$2600 range, and is currently near the upper end of that support band.
Ethereum: Ethereum has maintained a fairly tight trading range from just under $1200 to almost $1400. This crypto did not take a significant hit on the South Korea news like some other cryptos, which could potentially be construed as a sign of underlying strength. The longer it moves sideways, the more significant a price breakout could be in either direction.
Ethereum Classic: This currency also saw some selling pressure this week, but has been met with willing buyers in the $32 area. Despite some recent downside, the uptrend in this crypto looks good and intact, and higher prices could potentially be seen in the near future.
Litecoin: Litecoin had a very lackluster week, moving sideways most of the week around the $250 level. The market did take another dip lower later in the week, however, and is poised to finish the week on a weak note. As of this post, the currency is down over 3% on the day.
Ripple: After breaking out to over $3.00, Ripple has seen some significant selling, taking prices as low as the $1.60s. This market was also hit hard by the potential ban in South Korea, and perhaps also saw a little too much upside too fast to be sustainable. Prices have been rebounding, however, and the currency is firmly back above the $2.00 level early Friday.
The next few weeks could be very exciting for the cryptocurrency markets, as more companies and prominent investors could look to get involved. Despite any market volatility and the potential for regulation, these forms of money appear to be gaining in popularity and are becoming more widely accepted. Any additional derivatives products designed to track these currencies could fuel further speculation and investor interest. Not only that, but there is the possibility that other financial products designed to track the cryptocurrrency markets, such as ETFs, could be explored.
With more companies looking to get involved with the technology, its acceptance is likely to grow substantially. All of these developments could potentially fuel higher prices in the months and years ahead.