Bitcoin and other cryptocurrencies have seen some volatility once again this past week. Bitcoin has been fighting to maintain trade over the 10k level, although thus far the rally is looking somewhat weak. Despite the ups and downs seen in these markets over the last several months, 2018 could potentially be a big year for cryptocurrencies.
A recent article from cnbc.com alludes to the fact that more coins could be introduced in 2018. Speaking of Ethereum specifically, the article stated:
“Like last year, initial coin offerings (ICOs) will impact the ethereum network because ICOs usually require plenty of ether. That will buttress the demand for the platform’s digital coin. More legitimate ICOs will lead to greater interest in ether as we are already seeing with the billion-dollar ICO of messaging app provider Telegram and that of Kodak.
That means we could see a rise in the market cap of ethereum to $200 billion by the end of the year from less than $90 billion on Wednesday. The cryptocurrency’s price could possibly double to $2,000.”
A recent article from coindesk.com eludes to the possibility of Bitcoin being accepted for tax payments by the State of Georgia. The state is considering legislation that is similar to legislation being considered in Arizona. The article stated:
“Two state senators in Georgia have proposed a bill that would allow citizens to pay their tax obligations in bitcoin, marking the second such legislative effort of its kind to emerge this year.
Public records show that the measure submitted on Feb. 21 by senators Michael Williams and Joshua McKoon would tweak the rules governing the state’s Department of Revenue, letting it accept both bitcoin and other as-yet-to-be-defined cryptocurrencies.
“The commissioner shall accept as valid payment for taxes and license fees any cryptocurrency, including but not limited to bitcoin, that uses an electronic peer-to-peer system,” the bill states.
The proposed law largely tracks with one that is currently moving through the Arizona legislature. That measure, filed in January, has thus far attracted support by lawmakers in the state, setting up the possibility that Arizona could become the first U.S. state to accept bitcoin for tax payments.
Like Arizona’s bill, the one submitted in Georgia also mandates that tax officials convert those payments into U.S. dollars within a day of receiving them.”
Bitcoin: Bitcoin reached a high of nearly 12k this week, before plummeting back down to less than 10k. Although the rally from recent lows was encouraging for investors, the inability to hold some of the gains could be indicative of some underlying weakness remaining.
Bitcoin Cash: This crypto was steady for much of the week around the $1560 level, before taking a dive down to less than $1200. The market is currently trying to rebound, and is about $100 of the weekly lows.
Ethereum: This crypto was steady around $950 for part of the week before selling in the space fueled a sell-off down to around $800. The market seems to be holding the recent lows, however, and could be gearing up for a more significant rally.
Ethereum Classic: This crypto saw significant volatility this week. Prices began the week around $33 before rallying up to almost $44. The rally proved unconvincing, however, as prices then came right back down to less than $32. The currency is up almost 10% in early action Friday as buyers appear to be stepping in.
Litecoin: This crypto has received a lot of coverage this week, as expectations of a hard fork last weekend drove prices higher. The market has maintained a range from about $185 to $250. It is up nearly 5.5% on Friday and maintaining trade over the $200 level.
Ripple: This crypto has also seen some selling this week, declining from about $1.20 to less than $.92. The market did try to stage a rally late in the week, and us up about 5% on Friday. Like other cryptos, however, the rally thus far does not look overly convincing and the currency may need to see higher prices before gaining additional upside momentum.
The crypto markets remain vulnerable to headline risk, but also carry significant upside potential based on those headlines. Investors seem to be coming to terms with the idea of further regulation, and any further headway on more widespread acceptance could send cryptos sharply higher from current levels.