Bitcoin, ETH, XRP, LTC, And XLM RallyIs It For Real? – Forbes

INDIA - 2019/10/23: In this photo illustration a popular decentralised digital currency Bitcoin logo ... [+] displayed on a smartphone. (Photo Illustration by Avishek Das/SOPA Images/LightRocket via Getty Images)

A rally in major cryptocurrencies that began at the end of the previous week continued last week, spreading to smaller cryptocurrencies.

As of Saturday evening, Bitcoin had gained 1.7 % over the previous seven days, ETH 2.66%, XRP 1.91%, LTC 4.91%, and XLM 12.71%, with 78 out of the top 100 cryptocurrencies advancing and 22 declining.

A strong advanced-decline ratio indicates that the rally is for real, fueled by new money flowing into the cryptocurrency markets, rather than rotating from one cryptocurrency to another.

Then theres the news that China is ready to embrace blockchain technology, and develop its own digital currency.

Thats something markets expected to hear, as Facebooks Libra has been falling apart.

Nicholas Pelecanos, Advisor toNEM Ventures, thinks that BTC has the potential to break out, as trades near the top of its range.The tremendous 40% rally we witnessed at the end of last week certainly shows the market participants are still bullish, he says.

But he thinks that Chinas renewed interest in blockchain favors protocols like Ethereum and NEM rather than Bitcoin. Personally, I believe the news that China will embrace blockchain is not as bullish for Bitcoin as the rally may have hinted to; I dont believe giving Chinese citizens sovereignty of wealth is high on the current regimes agenda, he says. The news is however bullish for protocols like Ethereum and NEM that can support the applications the Chinese government may be looking to embrace.

Ryan Uhr, CEO and co-founder of Coinplug Inc., thinks that China will always keep a firm control of cryptocurrencies that allow citizens to hide assets. Cryptocurrencies that are developed and managed independently of the Chinese government provide the means for citizens to hide assets, he says. This means that the government will most likely keep cryptocurrencies, including Bitcoin and Libra, under tight control in the domestic market.

Simply put, Bitcoin and other major cryptocurrencies wont see any meaningful impact from Chinas cryptocurrency embrace. And that will eventually deflate the hype behind the recent rally, and the return to the old sideway pattern.

But that may not be a bad thing. A sideways BTC doesnt mean opportunities will cease to present themselves, says Nicholas Pelecanos.

One area where he sees such opportunities is short LTCUSD, as its hash rate has been falling. I dont see LTC making any meaningful pull back until the hash rate begins to climb again, he says.

Meanwhile, Pelecanosis concerned about the volatility in BTCs hash rate. Speaking of hash rate, while everyone was distracted by the China embracing blockchain news, the Bitcoin hash rate slid over 30% from its high, he says. The hash rate has since rallied around 10% but further destabilization to the hash rate could cause BTC to head back down to the bottom of its range."

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Bitcoin, ETH, XRP, LTC, And XLM RallyIs It For Real? - Forbes