A Market Resurgence of the Bibox Token (BIX) is Hinged Upon These 3 Factors

In summary:

  • Bibox Token (BIX) is the native token for the Bibox exchange ecosystem. 
  • BIX has also been affected by the current market turmoil.
  • However, its rise back to prominence is based on an entire crypto market recovery, continual token burn and Bibox expanding its reach globally. 

Exchange tokens are one category of digital assets that excite investors due to the open fact that they are utility tokens in their respective exchanges. We have seen Binance Coin (BNB) wow us in the markets due to the constant developments by the team at the exchange. Bibox Token (BIX) has the potential to have similar price movements and interest from investors based on the similarities in utility with BNB. However, its resurgence in the crypto markets is hinged upon these 3 factors.

A Bitcoin (BTC) Recovery

Firstly, as with all exchange tokens, the Bitcoin (BTC) trading volume is directly proportional to their utility. When BTC is on a bull-run, everyone is happy longing the (Bit)corn. However, not too many traders like to dwell with the red candle-sticks associated with a bear market. Therefore, the success of BIX is tied at the hip with that of Bitcoin.

A recent analysis by the team at Santiment speculates that a Bitcoin recovery due to the economic effects of the Coronavirus, will be faster than that of the traditional markets. In the report, they explain that the correlation of the Crypto market with the traditional stock markets will soon come to an end. They state:

Crypto is a new type of economy, one that facilitates the production of digital value designed to be distributed in a pure, peer-to-peer way. These and correlated factors have contributed to swift recovery of the crypto market in the past, and will no doubt do the same again.

Finding a True Bottom or Reversing from the Macro-Falling Wedge

Secondly, and checking the BIX/USD chart on a macro level, we find that the token is in a massive falling wedge. The price of BIX is also below the 50 (white) weekly moving average indicating that it might get worse for the token before it gets better. But, a falling usually results in an aggressive bounce. Only time will tell if this will be the case for BIX.

BIX Weekly falling wedge - A Market Resurgence of the Bibox Token (BIX) is Hinged Upon These 3 Factors

A Continuous Token Burn and the BIX Repurchase Plan

Thirdly, the BIX team has continually burnt BIX tokens every quarter of the year in line with the exchange’s whitepaper. Recently, the exchange started repurchasing the token to take more BIX out of circulation. In a recent blog post, the exchange announced that it had burnt approximately 16.84 Million BIX. The current circulating amount is 114.679 Million BIX. A reduction of supply and a constant demand for the token will surely assist the token to gain value with time.

In summary, BIX is a token worth analyzing for any swing or position trader. It has investment potential due to its utility. However, a resurgence of BIX in the markets is hinged on a Bitcoin recovery, a resolution of the falling wedge on the weekly BIX/USD chart and the quarterly token burn/repurchase plan by the exchange.

(Feature image courtesy of Sam Mgrdichian on Unsplash.)

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Crypto Gazette or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.


Coins Mentioned

BTC

Bitcoin

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John P. Njui Author

Crypto Enthusiast. Terrible dancer. Former DJ. Amateur Marathoner. Electrical Engineer. Kool kat.

84 Articles

Top Exchanges
Icon
CEX.IO

3

Website

Icon
Coinbase

2

Website

Icon
Binance

1

Website

Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

4.93

Website

Icon
FortuneJack

4.55

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Trending news