Financial dinosaurs cannot wrap their heads around cryptocurrencies. Not all of them, but a vast majority of them. Even though they talk down the impact and legitimacy of cryptocurrencies, the markets are still on the rise today with some coins bouncing back with double-digit gains.
The president of the World Bank Group, Jim Yong Kim, was recently heard comparing cryptocurrencies to a Ponzi scheme. This was at an event held in Washington D.C.last night. Meanwhile prices of Bitcoin, Ethereum, and even Ripple were still on the rise. This morning, Ethereum and Ripple are slightly down while Bitcoin is holding on to a 1.2% gain.
What he really said was, “I’m told the vast majority of cryptocurrencies are basically Ponzie schemes.” He also stated that we, the World Bank Group, are looking at using them. So instead of doing actual research he is simply spewing FUD that someone else poured into his ear.
This was reported a couple hours ago by Business Insider and other outlets. Still, price of Bitcoin is still up, and seems to be climbing. Bitcoin Cash is up 20% on the day. Ethereum price is gaining back the small loss and is just down 0.68%. Ripple price is still hovering around where it’s been for several days now, $0.70 to $0.80.
Perhaps the recent price dip saw a lot of weak hands fold and stronger hands are prevailing. Stronger hands are made up chiefly of die-hard HODLers who know what a market correction is and that volatility is part of life.
Another recent piece of news that popped up on the radar today was that millennials don’t like stocks and prefer cryptocurrencies like Bitcoin. That will spill over into altcoins like Ethereum and Ripple. Granted, the information comes from the New York Post, so have a big grain of salt handy when assessing that.
The NYP state that just one in three people, 18 to 39, are investing in the stock market. That’s around 33% compared to 51% for the previous generation and 48% of Boomers. They cite a Bankrate report for this data. That report was put out in July, 2016. How’s that for timely reporting?
Regardless, Bitcoin and Ethererum price seem to have stabilized after having hit three-month lows after a month of bad news and FUD. It appears that the cryptocurrency markets could be on the verge of a bull run again. Even the altcoins are doing well today. Only a few nine of the top one hundred by market capitalization showing a 5% or greater loss today.
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Ripple is simply in a holding pattern from the look of things. XRP dipped below a dollar on the first of February, something it has not done consistently since late December. Some analysts believe that it has a support level right around where it has been hovering but if Ripple dips down to the sixty cent range it could drop further.
Bitcoin support levels seem to have formed at just above the $6,000 mark and now it is had three solid days of being around $7,000 or higher even reaching past $8,500 yesterday. With the small gains it is holding on to right now Bitcoin might even close the day at that number.
Ethereum, which looked immune to the market downturn for a bit, has fallen to as low as $575 a couple days ago. However, Ethereum is also on the rise and is working on closing its third day over $750.
Clearly, what the World Bank Group and others think is less important than what those involved in the cryptocurrency markets think.