Cryptocurrencies in 2018
In 2017, key cryptocurrencies, including Bitcoin, Ethereum, Ripple, and Litecoin, showed a strong bullish movement. However, 2018 doesn’t seem to have begun on a positive note for these currencies. As of January 17, 2018, at 3:00 PM EST, Bitcoin was trading at $10,460, a loss of ~31% so far in 2018. Litecoin has fallen 30% YTD (year-to-date). In contrast, Etherium has risen 23% YTD.
In comparison, the S&P 500 Index (SPY) (SPX-INDEX) has risen 5% YTD.
Warren Buffett’s comments
Among the major cryptocurrencies, Ripple has fallen the most, or 48%, in the last week. It’s followed by Bitcoin Cash and Ethereum, which have fallen 44% and 32%, respectively. Bitcoin, the largest cryptocurrency by market capitalization, has fallen 29% in the same period.
Last week, well-known value investor and Berkshire Hathaway’s (BRK.A) CEO (chief executive officer) Warren Buffett expressed his pessimistic views on the future of cryptocurrencies during an interview with CNBC. He said, “I can say with almost certainty that they will come to a bad ending.”
While Buffett is one of the most followed investors in the world, his comments on cryptocurrencies may not be solely to blame for the recent massive sell-off in cryptocurrencies.
Other negative factors
According to a Reuters report, the South Korean government last week revealed its plans to ban cryptocurrency trading in the country. This week, Bloomberg reported that the Chinese government is planning to target “online platforms and mobile apps that offer exchange-like services.” China’s move could block online access to cryptocurrency trading platforms in the country.
These two news stories drove negative sentiments among traders globally since South Korea and China are both among the key markets (QQQ) (COMP-INDEX) for cryptocurrencies.
In the next part, we’ll take a look at some key technical indicators for Bitcoin.