- Bitcoin (BTCUSD on xStation5) could have already surpassed its true value as much as three times, El-Erian says
- Overall coins’ performance looks benign, Dash (DHSUSD) storms higher
- Chinese Bitcoin exchange executives banned from leaving the country
The FED’s decision rattled the financial markets across the board as the US dollar got a boost, the US Treasuries along with gold prices lost their appeal and the stock markets across the pond were barely changed. On the flip side, there has been no a noteworthy move across the cryptocurrency space so far except Dash (DSHUSD). However, before we move on to a technical analysis, let’s whip through the most interesting stories related to the industry.
According to Mohamed El-Erian, Allianz economic advisor, the Bitcoin price has far surpassed the cryptocurrency’s true value. He adds that the Bitcoin investors have priced in events that will never materialize. Former CEO of PIMCO thinks investors are far too optimistic about their long-term prospects. He concludes that a fair Bitcoin price would be one-half or one-third of its present mark, which works out to about $1300 to $2000.
The Dash price could be already poised to move higher as buyers have been able to storm through $350. Source: xStation5
Looking at the technical analysis one could notice that the Dash seems to position itself as the best performer among the most important virtual currencies. The price has already broken through a resistance placed at $350 and it’s a possibility to get a further leg higher. Another target for bulls might be found in the vicinity of $390.
Besides, there was another notable story coming from China which is related to the clampdown on the cryptocurrency industry. According to the local newspapers, Chinese Bitcoin exchange executives must stay in China during the government’s crackdown and “clean-up” of the nation’s cryptocurrency industries. The same travel ban has also been announced by the Australian authorities. It’s worth also mentioning that an increased regulatory presence within China’s cryptocurrency industry has significantly reduced China’s position of dominance within the Bitcoin markets since last year.
Other news worth looking at:
- PBoC researcher says that China should issue state-backed digital currency as soon as possible
- WSJ’s article says Bitcoin is “probably worth zero”