The Bitcoin Ship Steadies as Negative News Slows

There was some relief in the cryptocurrency markets on Tuesday, with Bitcoin managing to move back to $11,000 levels through the middle part of the day, hitting an intraday high $11,409.87 before easing back to $10,600 by the close, down just 1.94% for the day, which was better than most of the majors.

For Bitcoin investors, the take away from the week so far is the market’s resilience, with the plethora of negative chatter having pinned back any major rallies, but certainly not pulling Bitcoin back down to last week’s $9,222 low.

Bitcoin briefly touched sub-$10,000 levels on Tuesday but found strong support and that’s certainly reflective of current market sentiment that continues to ignore the scaremongering that has persisted since late last year.

Institutional money is coming in and even the world’s largest banks are making available trading platforms for institutional investors to get in on the action.

For the institutional money, the volatility will likely be the attraction and, while the institutional money is heading mostly towards Bitcoin futures markets, there is likely to be some appetite for Bitcoin and that can only be good news for the cryptomarkets.

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At the time of writing, Bitcoin is up 1.08% to $10,969.36, recovering from an intraday low $10,448.13. Having already broken through to $11,000 levels in the early part of the day, hitting an intraday high $11,120 in the last hour, sentiment towards the cryptocurrencies has improved, though it’s unlikely to be smooth sailing through the day.

Pulling back Bitcoin has been the futures market, with the Cboe’s February contract down $55 to $10,920, with influence from the futures market returning.

Elsewhere, the major cryptocurrencies have managed to recover from losses in the early part of the day, with Stellar Lumen’s XLM leading the way, rallying 10.42%. Gains elsewhere have been more modest, with Bitcoin Cash flat at $1,611.1 and Litecoin up by just 0.20% to $178.63 at the time of writing.

For the rest of the day, the markets will likely take cues from Bitcoin and, if Bitcoin manages to hold on to the positive territory through the rest of the day, then the rest of the cryptos should follow.

The reality remains that government oversight is likely to be on the horizon and taxation is likely to be introduced at an earlier juncture, but neither should have a materially dire impact on the markets and the exchanges for that matter.

Cryptocurrency exchanges are unlikely to shut up shop in response to taxation, with the billions of Dollars earned in 2017 expected to continue flowing in through the current year. Granted, it will hit the bottom line, but not to such an extent that it would be better to throw it all away.

The negative sentiment has eased for now and it’s back to the basics and that’s the positive, with Ethereum also looking to recapture $1,000 levels, currently up $1.38% to 997.57.

As always, investors will need to monitor the news feeds for any news that has yet to be considered by investors, with caution needed in event of more governments joining the negative chatter.

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