Strategist Who Called Massive XRP Rally Forecasts What’s Next for Fourth-Largest Crypto Asset

A closely-followed crypto strategist and trader is updating his short-term forecast for XRP.

In a new tweet, the pseudonymous analyst, known in the industry as Credible Crypto tells his 102,600 followers that XRP is not done moving higher following its ascent to a 30-day high of $0.48.

“So I suspect we get our monthly close above $0.305 which would establish that level as HTF (high timeframe) ‘floor’ so then maybe a retest/consolidation above to digest this move and then continuation.”

Earlier this month, when XRP was trading at about $0.30, Credible predicted that XRP would soar to resistance around $0.50 and consolidate before resuming its bullish rally.

“For those who still have concerns about XRP, the best time to diversify would be in the $0.45-$0.50 region. This is the most logical place to expect a rejection if you think XRP is ‘dead.’ If/when we get past this region odds [that] we go much higher increase dramatically.”

Source: Credible/Twitter

In the long-term, Credible believes that XRP is poised to print a new all-time high even amid the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple.

“I expect XRP to make a new all-time high regardless of the status of the case. Of course, a settlement would be great and probably accelerate price appreciation but I don’t think XRP will ‘wait’ for the case to be resolved. Demand remains strong outside the US in my opinion.”

The SEC alleges Ripple illegally sold XRP as an unregistered security for years and says the San Francisco-based startup paid companies to use its line of borderless payments products.

XRP caught the attention of crypto traders after igniting a strong rally that catapulted the fourth-largest crypto asset to gains of over 40% in 24 hours. At time of writing, XRP is trading at $0.40, according to CoinMarketCap.

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The post Strategist Who Called Massive XRP Rally Forecasts What’s Next for Fourth-Largest Crypto Asset appeared first on The Daily Hodl.

Hedge fund behind shorting GameStop reports 53% loss in January

A Melvin Capital client claims that the firm has "massively de-risked" its investment portfolio following the controversy involving short-selling GameStop stocks.

Melvin Capital started 2021 with $12.5 billion in assets before retail investors from Reddit caused the firm to lose billions on its GameStop short positions.

According to a Wall Street Journal report, the hedge fund has a little more than $8 billion in assets at the end of January, which includes a $2.75 billion investment from Citadel and Point72 Asset Management earlier this month. This represents a 53% loss, according to people familiar with the firm.

In the report, a client claims that Melvin has "massively de-risked" its investment portfolio following the controversy involving short selling GameStop stocks. People familiar with the hedge fund said Melvin has restructured its portfolio to improve its ability to exit securities easily. The hedge firm, as well as Citron Capital — another firm involved in the shorts — reportedly closed out their positions with GameStop last week.

Many of the major players involved in the GameStop short squeeze are facing outrage online after Robinhood — a platform with financial ties to Melvin — and other investment tools restricted trading for GameStop stock in the middle of a price surge. Retail investors seemingly being cut off from financial tools afforded to major hedge funds prompted allegations of market manipulation.

The U.S. Securities and Exchange Commission announced on Friday that it would be “closely [reviewing] actions taken by regulated entities,” purportedly in connection to the situation surrounding Citadel, Melvin, Robinhood, and potentially the retail investors from the r/WallStreetBets subreddit. In addition, Robinhood is facing two class-action lawsuits in federal courts in Illinois and New York.

The price of GameStop stock was $325 when markets closed on Friday, having risen 67% in the previous 24 hours.

Own BTC Bonds in MicroStrategy? You’re Likely Seeing Some Big Returns

Everyone who owns bonds in MicroStrategy is likely seeing their portfolios expand as of late.

MicroStrategy Is Rewarding Risk-Taking Shareholders

The company was amongst the first major institutional players to pledge support for bitcoin, the world’s leading digital currency by market cap. MicroStrategy ultimately bought more than half a billion dollars-worth of BTC between the months of August and December of last year, and this set up a long stride of additional institutional players – amongst them Square, Stone Ridge and Massachusetts Mutual to name a few – who stepped in to get their fingers on the expanding cryptocurrency.

However, where MicroStrategy really played it smart was in its maneuver to transfer debt and then use the proceeds to purchase additional units of the currency. This allowed bond holders to get in on the action, and their stashes are growing like mad at press time according to figures like portfolio manager Dave King, who presently works with the Columbia Convertible Securities Fund.

In a recent interview, King commented that bond holders are likely witnessing some solid returns even though bitcoin’s price has fallen somewhat in recent days. He comments:

This is a classic ‘heads, I win, tails we tie’ play. We win if bitcoin goes up a lot, and if bitcoin goes down and stays down, we get our money back.

In early January, the conversion price of the bitcoin-backed stock shares was around $397, though now, that price has surged to about $540 given how much the company’s fourth quarter earnings went up. As soon as the bond notes mature, they are paid out and holders can garner some healthy profits.

However, granted bitcoin stays as it is, holders simply get whatever money they put into the bonds returned to them.

King believes that the amount of money MicroStrategy has made on its bitcoin investments is anywhere between $800 million and $1.4 billion. It’s important to remember that initially, the firm purchased roughly $250 million worth of BTC in August 2020. At the time, the asset was trading for a “mere” $10,000, which was a slip down from the recent $12,000 per unit it was enjoying.

Thus, when the currency rose by more than $30,000 just a few months later, you can imagine how much profit was made on the company’s part. King estimates that MicroStrategy’s bitcoin holdings account for roughly 22 percent of its total portfolio. He states:

The founder [Michael Saylor] has become a big bull on bitcoin and invested its large cash pile in it. Even if bitcoin goes down 30 to 40 percent, the company still has enough to pay this bond off easily.

This Is Likely to Keep Going

Craig Manchuck of Osterweis Strategic Income Fund believes that bond offerings like MicroStrategy’s will become far more common in the coming months, claiming:

It’s a barometer of how speculative markets are now.

The post Own BTC Bonds in MicroStrategy? You’re Likely Seeing Some Big Returns appeared first on Live Bitcoin News.

Bitcoin Bears Erase the “Elon Musk” Candle as Sellers Take Control

  • Bitcoin has witnessed some massive selling pressure throughout the past day that has erased all the gains that came about as a result of the “Elon Musk” pump a few days ago
  • The selling pressure seen has come from a combination of spot and derivatives, with investors generally going risk-off
  • It remains unclear what the cause of this could be, but it may be a combination of technical weakness as well as turbulence within the traditional market
  • One analyst is now noting that there’s a strong possibility further downside is imminent for the entire market
  • He is pointing to the cryptocurrency’s January low as the next level he is closely watching, with a bounce here potentially allowing for massive upside

Bitcoin has seen some wild price action over the past few days. It all started with Elon Musk’s endorsement of BTC, which catalyzed a massive pump towards $40,000 that has been entirely erased over the past few days.

This “FOMO” induced pump seemed to provide exit liquidity for holders looking to get out, as it was aggressively sold into.

One trader believes that this is a sign of imminent downside, as he is now pointing to the cryptocurrency’s January low as a near-term target.

Bitcoin Plunges as Bears Erase the Entire “Elon Candle” 

Earlier this week, Elon Musk changed his Twitter bio to “#Bitcoin” and commented that the change was inevitable in hindsight.

This caused Bitcoin to soar nearly $7,000 and caused nearly half a billion in short liquidations.

However, the selling pressure at these highs was significant and caused a massive rejection that has since resulted in it erasing all of the gains that came about due to Musk’s endorsement.

BTC Could Soon target Move to January Lows

One trader believes that a move to Bitcoin’s January lows could be in the cards, especially considering the multiple rejections it has posted at a key trendline.

“Bears have a clear invalidation from here imo. Easy to flip long if wrong,” he gravely noted while pointing to the below chart.

Bitcoin

Image Courtesy of TraderSZ. Source: BTCUSD on TradingView.

Despite this sentiment, there seems to be a strong institutional bid around $30,000, as the crypto bounces just about every time this level is tapped.

As such, holding above $30,000 could provide Bitcoin with room for significantly further upside in the days and weeks ahead.

Featured image from Unsplash.
Charts from TradingView.

Top 5 cryptocurrencies to watch this week: BTC, ETH, UNI, ATOM, COMP

Bitcoin price fell back into the descending triangle but this dip may attract buyers to altcoins and DeFi tokens in the short term.

Over the past seven days, the crypto market saw an uptick in volatility as Bitcoin (BTC) and Dogecoin (DOGE) price rallied higher simply because of social media activity. In situations like these, traders who make their investment decisions based on emotions tend to incur heavy losses and this is exactly what happened last week.

Dogecoin’s (DOGE) recent pump and dump caused several new traders who bought due to FOMO to lose money within a short time and this scenario is likely to play out again as social media groups have decided that collective pumps of altcoins is a new method of investing.

A similar trend currently seems to be developing in Bitcoin (BTC), which has retraced a large portion of the up-move that was caused due to the “Elon pump” on Jan. 29. This shows that barring a few emotional buyers, most professional traders may have used the rally to lighten their long positions.

Crypto market data daily view. Source: Coin360

Stack Funds head of research Lennard Neo believes the Bitcoin miners are selling on rallies and that trend may continue as the Chinese New Year holiday approaches. Neo expects Bitcoin’s price to remain volatile in the near term.

Even as Bitcoin’s price consolidates, the decentralized finance tokens continue to surge, which suggests traders' focus has shifted to the DeFi space. Let’s analyze the charts of the top-5 cryptocurrencies that could trend in the next few days.

BTC/USD

Bitcoin’s long wick on Jan. 29 shows the bears aggressively sold the rally above the downtrend line of the descending triangle. That was followed by a Doji candlestick pattern on Jan. 30, indicating indecision among the bulls and the bears.

BTC/USDT daily chart. Source: TradingView

The failure of the bulls to push the price above the downtrend line today has attracted further selling. The bears are currently trying to sustain the price below the 20-day exponential moving average ($33,395).

If they succeed, the BTC/USD pair may drop to the 50-day simple moving average ($30,631) and then to $28,850.

A breakdown and close below $28,850 will complete the bearish descending triangle pattern that has a target objective at $15,741. However, it is unlikely to be a straight fall because the bulls will try to arrest the decline at the 50% Fibonacci retracement level at $25,897.42 and again at the 61.8% retracement at $22,106.73.

This negative view will invalidate if the price turns up from the current level or rebounds off the $28,850 support and sustains above the downtrend line. Such a move will suggest strong accumulation at lower levels, which could result in a rise to $40,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the breakout above the downtrend line met with strong selling pressure and the price quickly retracted back into the triangle.

The failure of the bulls to push the price back above the downtrend line has attracted selling and the bears have pulled the price below the 20-EMA. The bulls are currently attempting to defend the 50-SMA but if this support also cracks, the pair may start its journey towards $28,850.

This negative view will invalidate if the price rebounds off the current level and rises above the downtrend line. Such a move could push the price to $38,519.63.

ETH/USD

Ether (ETH) broke above the $1,400 resistance on three previous occasions but the bulls could not sustain the breakout, which shows profit-booking at higher levels. However, the positive thing is that the bulls have not given up much ground in the past few days. This shows the bulls are accumulating on dips.

ETH/USDT daily chart. Source: TradingView

The ETH/USD pair had formed a Doji candlestick pattern on Jan. 30, indicating uncertainty. That indecision has resolved to the downside today and the pair may now drop to the 20-day EMA ($1,253), which is likely to act as strong support.

A bounce off the support will suggest the sentiment remains bullish and traders are buying on dips. The bulls will then try to resume the uptrend. If the bulls can drive the price above the $1,400 to $1,473.096 resistance zone, the pair could rally to $1,675 and then to $2,000.

This bullish view will invalidate if the bears sink the price below the 20-day EMA and the uptrend line. In such a case, the pair may drop to the 50-day SMA ($990).

ETH/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the formation of an ascending triangle pattern, which will complete on a breakout and close above $1,440. This bullish setup has a target objective of $1,768.

However, the moving averages have flattened out and the relative strength index (RSI) is just below the midpoint, which suggests a balance between supply and demand.

If the bears sink the price below the support line of the triangle, it will invalidate the pattern. The next support on the downside is the uptrend line and then $1,050.

UNI/USD

Uniswap (UNI) is in a strong uptrend that has pushed the RSI deep into the overbought territory. While the RSI can remain overbought for an extended period, traders should be cautious as corrections from overbought levels can be swift and sharp.

UNI/USDT daily chart. Source: TradingView

The first support on the downside is the 38.2% Fibonacci retracement level at $15.3963. If the price rebounds off this level, it will suggest the bulls are aggressively buying the dips and are not waiting for a deeper correction to enter.

If the bulls can push the price above $20.5612, the UNI/USD pair could rally to $28 and then to $32. Both moving averages are rising and the RSI is above 79, indicating the bulls are in control.

However, if the correction deepens below $15.3963, the next support is at the 20-day EMA ($11.85), which is near the 61.8% Fibonacci retracement level at $12.2054. A deeper fall usually delays the start of the next leg of the uptrend.

UNI/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the pair has made a flag pattern. If the bulls can push the price above the flag, the uptrend could resume and the pair may rally to $22 and then to $25.

Another possibility is that the pair continues to correct and drop to the 20-EMA. If the price rebounds off this support, it will suggest the sentiment remains positive and the bulls are buying on minor dips.

During the current leg of the uptrend, the price has repeatedly taken support at the 20-EMA. Therefore, a break below the 20-EMA will suggest the bullish sentiment may be waning and could result in a drop to $15.3963 and then to the 50-SMA.

ATOM/USD

Cosmos (ATOM) has formed a cup and handle pattern that will complete on a breakout and close above $8.877. If the bulls can propel the price above the $10.20 resistance, the uptrend could begin.

ATOM/USDT daily chart. Source: TradingView

The first target on the upside is $11.151 and the next level to watch out for is $13.554. The rising moving averages and the RSI’s bounce from the midpoint suggest the bulls have the upper hand.

If the bears sink the price below the 20-day EMA ($7.65), the ATOM/USD pair may remain range-bound between $6.603 and $8.877 for a few more days.

The bullish assumption will be negated if the bears sink and sustain the price below the 50-day SMA ($6.4). Such a move may pull the price down to $5.50 and then to $4.50.

ATOM/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the bulls have pushed the price above the downtrend line of the descending triangle. This has invalidated the bearish setup but the bulls are struggling to thrust the price above the $8.877 resistance.

The flat moving averages and the RSI near the midpoint suggest the pair may remain range-bound between $8.877 and $6.726 for some more time. If the bulls can propel the price above $8.877, the pair could rise to $10.20, while a break below $6.726 will suggest the bears are trying to make a comeback.

COMP/USD

Compound (COMP) completed a rounding bottom pattern on Jan. 29 when it broke and closed above the $272.61 resistance. This reversal setup has a target objective of $464.60.

COMP/USDT daily chart. Source: TradingView

The upsloping moving averages and the RSI near the overbought territory suggest bulls are in command. After the breakout from a pattern, the price usually retraces and retests the breakout level, but if the trend is very strong, it only consolidates or enters a minor correction before resuming the up-move.

If the COMP/USD pair rebounds off $272.61, it will suggest the bulls have flipped the previous resistance into support. That could then act as a launchpad for the next leg of the uptrend.

This positive view will invalidate if the bears sink and sustain the price below $272.61. Such a move will indicate profit-booking at higher levels and a lack of buying on dips.

COMP/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows traders booked profits near $340 but the correction was short-lived as the price turned up from $304.84. If the bulls can now drive the price above $340, the pair may rally to $405.

On the other hand, if the price again turns down from $340, the pair may drop to the 20-EMA. If the price rebounds off this support, the bulls will again try to resume the up-move, but if the bears sink the pair below the 20-day EMA, a drop to $272.61 will be on the cards.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

India Renews Crypto-Hostility With New Proposed Ban

India Renews Crypto-Hostility With New Proposed Ban

India announced plans to pass new legislation that seeks to ban all private cryptocurrencies in India during the first parliamentary budget session of the year which resumed on 30 January 2021.

According to an official statement by the lower house of parliament, the proposed bill will feature a framework for the development of an official digital Rupee that will be issued by the Reserve Bank of India. The bill will also contain several exceptions that will allow for the promotion of blockchain technology in the country.

The central bank is reportedly exploring the need for a digital version of its fiat currency and its implementation methodology.

India’s “Unrealistic” Anti-Crypto Atmosphere

India has a long-standing hostile relationship with digital currencies like Bitcoin, despite having the fastest-growing tech hub in the world, including blockchain technology development and adoption.

The country’s RBI (central bank) first issued a ban on cryptocurrency transactions in 2018, which prohibited all banks in the country from dealing with crypto businesses. However, crypto-exchanges retaliated with a lawsuit and won two years later in March 2020.

India’s Supreme Court lifted the two-year ban on bitcoin and other cryptocurrencies after declaring it unconstitutional. The move was highly celebrated by investors, developers, and cryptocurrency users and immediately saw many investors revive their crypto businesses as well as attract multiple other new investments into the country’s booming blockchain industry.

Since the ban-lift on cryptocurrencies, the trading volume for Bitcoin and other digital currencies on local exchanges went through the roof. By December 2020, Indians were spending millions in daily crypto transactions which increased the trading volume by 500% in 10 months, according to data by CoinGecko.

India’s Crypto Community Calls for Dialogue with Regulators

The rumor about a possible new ban on cryptocurrencies was reported in early August 2020, only five months after the Indian courts lifted the ban. Indian website Money control reported on August 4 2020 that the Reserve Bank of India and two other government ministries were preparing to pass a new law to ban crypto trading.

“Once parliament resumes for the session, we are hoping to get [the law] ratified,” an official said.

The report further clarified that the ban would involve a change in legislation to avoid another turnabout from Indian courts by making it legally binding.

“It will clearly define the illegality of the trade.”

Amid the booming crypto-industry and uncertain regulatory atmosphere, the vibrant Indian Crypto Community led by Crypto exchange BuyUCoin pitched a sandbox approach in October 2020. The sandbox would let crypto platforms operate in an isolated part of the market but under regulatory supervision.

The Sandbox is also aimed at bringing crypto assets under the existing financial regulation while also allowing startups to develop in a supervised environment.

Institutional Investors Bought Bitcoin From Long-Term Holders In Late 2020: Report

The narrative that institutional investors drove BTC’s price into the stratosphere in late 2020 received another confirmation from a research paper compiled by the popular exchange OKEx. The company’s document pinpointed Paul Tudor Jones’ endorsement of bitcoin in mid-2020 as the turning point for institutional adoption.

PTJ Changed The Bitcoin Game

It was early May, the world had started to feel the adverse effects of the COVID-19 pandemic, global economies had begun contemplating their next move, while bitcoin was recovering from the mid-March slump and was preparing for the upcoming halving.

While most community members speculated if the event was already priced or not, one of the most celebrated and respected US hedge fund managers, namely Paul Tudor Jones III, issued what should have been a routine market outlook. An initiative he has done numerous times throughout his long career.

What made this one different, though, was the endorsement of bitcoin. Moreover, the hedge fund legend even admitted that he purchased BTC, or as he called it – “the faster horse” – to fight the increasing inflation prompted by the governments’ initiatives to print excessive amounts of fiat currencies in a short period.

Although his words were reported by various media outlets at the time, it turns out that they’ve impacted the BTC ecosystem significantly more than anyone could have expected. Or, at least that’s what OKEx’s 2020 report said.

By partnering with the on-chain monitoring resource Catallact, the exchange noted that the percentage of transactions worth 1,000 BTC, which OKEx classified as “falling outside the range of retail investors and traders,” exploded from 5% in June to over 45% in September.

Bitcoin Transactions Over 1,000 BTC Vs. BTC Price. Source: OKEx
Bitcoin Transactions Over 1,000 BTC Vs. BTC Price. Source: OKEx

After this peak, such on-chain transactions declined slightly until the end of the year but still remained high above 30%.

“The conclusion we may draw from this on-chain data is that institutional investors really piled into the BTC space after Paul Tudor Jones announced his entrance – and they didn’t stop as 2020 came to a close.”

HODLers Sold Bitcoins To Institutions

As BTC saw institutional money being poured in, as described above, its price reacted with massive price increases. Ultimately, the cryptocurrency broke above $20,000 for the first time and neared $30,000 by the end of last year.

OKEx examined the “age of coins transactions on the Bitcoin blockchain” from September to December and concluded that the average age surged in late October.

As such, the company believes that long-term BTC HODLers, also known as “OG whales,” realized some profits when the asset headed into uncharted territory. Interestingly, OKEx argued that such investors sold their coins to institutions:

“Because we believe institutional investors were on the bidding side of the order books, we may infer that long-term BTC holders sold into institutional purchases.”

Furthermore, the research added that BTC miners also disposed of their coins, while institutions were piling up to take advantage with sizeable purchases.

Goldman and Interactive Brokers Execs Claim Wallstreetbets Trend Could ‘Take Down the System’

The heavy hitters in traditional finance have been concerned about the recent stock market action fueled by Redditors and a colossal number of retail investors. This week a Goldman Sachs executive warned that if these short squeezes continue it could “snowball through the market.” Moreover, Interactive Brokers founder Thomas Peterffy made similar comments this week saying these types of systemic risk can “take down the entire system, theoretically.”

Wallstreetbets Trend Could ‘Snowball Through the Market’

2021 has been an interesting year so far and this week a Reddit forum called r/wallstreetbets sparked a whole new hot topic. Four days ago, news.Bitcoin.com reported on the stock market fiasco that started with short squeezing Gamestop (GME) shares. But GME shares were not the only stocks that felt the push as the wallstreetbets (WSB) trend started leaking into a number of other types of shares.

The stock market story and Wallstreetbets (WSB) trend has shaken financial markets this week and has been one of the hottest topics in the United States. If you missed out on the WSB story this week, make sure you read news.Bitcoin.com’s report on the subject here.

For instance, stocks from the Russell 3000 Index (RUA) were targeted including tickers like NOK, GOGO, AMCX, and FIZZ. The social media craze even leaked into the cryptocurrency world pushing up coins like dogecoin and XRP as well. Estimates assume that short-sellers have lost “$70.87 billion from their short positions,” according to statistics from the financial data analytics firm Ortex.

An analysis from Zerohedge discloses that Melvin Capital lost a whopping $7 billion during the month of 2021. “Melvin Capital lost 53% in January, as Gabe Plotkin (a former SAC Portfolio Manager), lost over $5.3 billion in one month,” the report noted.

The financial newsdesk has also been reporting on another WSB trend taking place during the last week as short squeezers want to squeeze the silver market. One thread on r/wallstreetbets suggested that the power of the masses could squeeze the price of silver from $25 to $1,000. Zerohedge has been reporting on trends that show Redditors and social media users have managed to invoke demand for silver.

“In the 24 hours proceeding Friday market close, SD Bullion sold nearly 10x the number of silver ounces that we normally would sell in an entire weekend leading to Sunday market open,” the finance reporter disclosed. “In a normal market, we normally can find at least one supplier/source willing to sell some ounces over the weekend if we exceed our long position (the number of ounces we predict we will sell over the weekend).”

Additionally, polygon.com contributor Owen S. Good reported this week on how the meme-driven stock’ rally rescued AMC theaters from $600 million in debt. Meme lords and Redditors saved this business, not the U.S. federal government, not the bankers. Those groups were actively shorting AMC down the toilet. “Theater chain gets unexpected lifeline when private equity trades a corporate IOU for stock,” the author’s report explains.

Furthermore, the infamous Tyler Durden from Zerohedge wrote about an investors report published by Goldman Sachs executive David Kostin. Durden writes that the latest Goldman report warns “if the short squeeze continues, the entire market could crash.”

“The most heavily-shorted stocks have risen by 98% in the past three months, outstripping major short squeezes in 2000 and 2009,” Kostin’s study details. “This week demonstrated that unsustainable excess in one small part of the market has the potential to tip a row of dominoes and create broader turmoil,” the Goldman analyst added.

According to Durden from Zerohedge, Goldman’s Hedge Fund VIP list declined by 4% this week during the WSB fiasco. “In recent years elevated crowding, low turnover, and high concentration have been consistent patterns, boosting the risk that one fund’s unwind could snowball through the market,” Goldman’s David Kostin concluded. Durden interpreted Kostin’s final conclusion in a different way.

The author writes:

Translation: if WSB continues to push the most shorted stocks higher, the entire market could crash.

Interactive Brokers Chairman: ‘It Can Take Down the Entire System, Theoretically’

Goldman Sachs executives are not the only financial heavyweights weighing in on the stock market craziness and the possible aftermath. The founder and chairman of Interactive Brokers Group Inc., Thomas Peterffy, discussed his thoughts about the stock market madness in an interview with Marketwatch financial author Mark DeCambre.

Thomas Peterffy, founder and chairman of Interactive Brokers Group Inc.

On Thursday, DeCambre said that Peterffy explained that the short squeeze action could go on for a very long time unless it was stopped. DeCambre also wrote that Peterffy was worried about systemic risk and “the potential” for this trend “to ripple throughout the market.”

“It can take down the entire system, theoretically,” Peterffy stressed in his interview with DeCambre. “There is no reason why a short squeeze cannot go on indefinitely,” the Interactive Brokers founder detailed.

Meanwhile, a number of cryptocurrency enthusiasts have been cheering the WSB trend on as the virality of WSB vs Wall Street has encapsulated nearly all the social media conversations in the U.S. Meltem Demirors, the CSO of Coinshares, Europe’s largest digital asset manager with $3 billion in assets under management (AUM), gave her interpretation of the recent stock market events rattling the status quo.

“At its core, the events of this week are about free speech, censorship, and power. We are witnessing the fastest roll-up of power in human history,” Demirors said.

“As our lives become increasingly dependent on digital mediums,” Demirors continued. “So does the ability of powerful entities like governments and corporations to censor our right to free speech, our right to gather, our right to protest, and more. There is an unprecedented amount of power up for grabs, and what we see is a battle for control. It already played out on the political stage, and is now playing out in financial markets, financial media, Fintech platforms, and social media,” the Coinshares CSO added.

Furthermore, on January 29, the cryptocurrency trading platform Bittrex Global revealed that it was listing tokenized stocks for a number of the shares the WSB trend has been affecting. The exchange detailed that it made the decision because Bittrex wanted to “ensure retail investors have exposure to stocks they may wish to trade anytime during any day of the week.”

The crypto exchange also plans to list any other mainstream stocks that other finance trading platforms may censor in the future. The newly listed tokenized shares on Bittrex Global include Gamestop (GME), AMC Entertainment (AMC), Blackberry (BB), Nokia Corporation (NOK), and the Ishares Silver Trust (SLV). However, U.S. residents cannot participate, as Bittrex Global geo-blocks American citizens visiting the web portal.

“Bittrex is regulated in Lichtenstein and Bermuda and thus U.S. investors may be blocked from trading in these securities but other jurisdictions may be able to trade in these securities if they are interested,” the company details.

What do you think about the recent wallstreetbets (WSB) trend and Goldman and Interactive Brokers executives warning of systemic risk to the traditional finance system? Let us know what you think about this subject in the comments section below.

The Dogecoin Price Just Keeps Surging Like Mad

The price of Dogecoin spiked by more than 80 percent last Thursday following activity on Reddit in which many of the asset’s fans pooled together to discuss the newfound interest Wall Street allegedly has in the currency which initially started out as a joke.

The Price of Dogecoin Is Going Up, Up, Up

CoinMarketCap.com – which monitors and tracks many of the world’s leading digital assets – says that Dogecoin had jumped by as much as 60 percent just a few days ago, while further jumps came only hours later. In all, the trading volume for Dogecoin had also surged by roughly 1,000 percent as more crypto fans sought to get in on the action and take advantage of the recent price spikes.

At the time of writing, Dogecoin is trading for about $0.0138.

The asset has one of the most unique introductions ever. Launched in late 2013 as a fork of the cryptocurrency Litecoin, Dogecoin was developed by software engineers Billy Markus and Jackson Palmer. The asset wasn’t meant to explode the way it has. It was simply begun as a meme coin of sorts, and to this day, the portrait of the cute little Shiba Inu pup that serves as its mascot has become a welcome sight for many digital trading fans.

However, Dogecoin has since accumulated a market cap of roughly $1 billion and has even earned the attention of many of the world’s tech leaders such as South African entrepreneur Elon Musk – CEO of both Tesla and SpaceX.

Often, Musk has been cited as believing heavily in Dogecoin, going so far as to refer to it as “the best coin” at one point. In addition, Musk was widely rumored to serve as the new CEO of the asset in early 2019, though these rumors failed to amount to much. Still, Musk appears to have a soft spot for the currency, which was eventually classified as a way of tipping content creators whenever they shelled out something good.

As it stands, many traders have been active on Reddit and other forms of social media to discuss what could potentially be bringing Dogecoin to new heights. One post – which at press time, has attracted more than 170 separate comments – stated:

After seeing this whole GameStop stuff, I’m quite sure we’re aware of the power of the internet and the power in numbers. We all should rally for Doge and drive the price up.

Could This Lead to Something Bigger?

In response, one Reddit user wrote:

I missed the waves on GME and won’t make the AMC train, but I’ve got a few thousand DOGE that I want to ride to the moon!

The GameStop reference above has to do with a recent story of Wall Street betters putting stacks of cash into GameStop and similar companies as a means of pushing against hedge fund short sellers.

The post The Dogecoin Price Just Keeps Surging Like Mad appeared first on Live Bitcoin News.

ProBit Exchange Retains Its Grip on the IEO Space with Nearly USD 2 Million Raised

The text below is an advertorial article that was not written by Cryptonews.com journalists. ProBit Exchange has once established itself as the pacesetter in the IEO space following several successful IEO including a massive USD 1.5 million raise for blockchain of things project SmartKey and another USD 100,000 for decentralized vehicle marketplace Carnomaly, proving that IEO remains a staple of

ProBit Exchange Retains Its Grip on the IEO Space with Nearly USD 2 Million Raised

The text below is an advertorial article that was not written by Cryptonews.com journalists. ProBit Exchange has once established itself as the pacesetter in the IEO space following several successful IEO including a massive USD 1.5 million raise for blockchain of things project SmartKey and another USD 100,000 for decentralized vehicle marketplace Carnomaly, proving that IEO remains a staple of

‘When alt season?’ eToro may have some answers

In 2020, holding the top 100 altcoins equally was a more lucrative investment than Bitcoin up until Dec. 18, according to eToro.

Investors who knew when to swap Bitcoin (BTC) and altcoins could have boosted their gains significantly in 2020, according to new research from eToro, the popular social trading platform. The challenge, of course, is pinpointing when the coveted alt season begins. 

In its latest quarterly report, eToro breaks down various cryptocurrency investment themes related to the 2020 bull market. It also devotes an entire section to alt season – the part of the cryptocurrency market cycle where altcoins rally against the dollar and, possibly, outperform Bitcoin.

The research found that the top 100 altcoins, when held equally, were “a more lucrative investment” than BTC for most of 2020 – until Dec. 18, to be precise. However, investors who knew when to cycle from BTC to altcoins and vice versa could have nearly doubled their gains for the year.

As eToro explains:

“If you started with bitcoin, with only two swaps the entire year – bitcoin to altcoin in May, and back into bitcoin in September – the 3x or 4x gains seen by either investment grows to over 7x.”

Although eToro admits that predicting alt season and BTC season is notoriously difficult, the research looks at various metrics that may help investors pin-point market cycles.

Relative trade volume, social media activity, new coin listings and the number of news articles published from crypto projects appear to have an impact on whether altcoins are about to have their time in the sun.

Of course, trade volumes present a classic chicken or egg situation, as it's not always clear whether trading activity is increasing organically or simply because the price is rising.

On the topic of social media activity, eToro uses data from The TIE, a crypto analytics company, to compare altcoin tweet volume versus Bitcoin.

The data suggests that “alt season may be defined by the relative number of tweets about altcoins,” the report says.

It continues:

“This metric seems to not only capture the May and October swaps, but also potentially the short alt season in late February.”

Dogecoin (DOGE), the meme-based cryptocurrency, has hogged the social media spotlight of late. Last week, DOGE became the first altcoin to surpass Bitcoin in terms of daily trade volume, according to The TIE. 

Regarding exchange listings, eToro used The TIE’s data to show there was a “clear increase in the number of listings in late summer” 2020, which was during the same period that altcoins outperformed BTC the most significantly.\

Spikes in news stories published directly by cryptocurrency companies also appears to be correlated with alt season. "This makes intuitive sense," eToro says, as these articles usually pertain to project updates and other big announcements. 

DEX tokens soar as trust in centralized exchanges is eroding

While the past week has been somewhat tumultuous, to put it mildly, for both crypto and stock markets, it looks like digital tokens related to decentralized exchanges (DEXs) are actually having a great time.

The sector is in the green across the board as most DEX tokens are up anywhere between 1.3% and 317% over the last seven days, according to CryptoSlate’s data.

DEXs are crypto trading platforms that enable direct peer-to-peer transactions between traders. This means that all trades are executed based on their hardcoded algorithms without any intermediaries. This also means that DEXs can’t restrict trading whenever they feel inclined to do so—unlike some of their centralized counterparts (CEXs) that are owned and operated by certain entities.

While the DEX token sector’s dominance index remains relatively low at 1.35% by its market capitalization, many DEX-related assets saw steady growth over the past week. For example, UNI, the native governance token of widely popular decentralized finance (DeFi) platform Uniswap, is currently trading at around $18.83, up 20.3% on the day and 79.7% over the last seven days.

It is followed by Synthetix Network Token (SNX), SushiSwap (SUSHI), and Loopring (LRC), which saw their prices increase by 16.22%, 38.15%, and 24.15% over the week, respectively.

The top 10 DEX tokens
The top 10 DEX tokens. Image: CryptoSlate

Overall, only four out of the 30 DEX tokens tracked by CryptoSlateKyber Network (KNC), Hegic (HEGIC), Polkastarter (POLS), and MCDEX (MBC)ended up in the red over the 7-day period.

CEXs left in the dust

This growth is especially apparent in comparison to the centralized exchanges’ metrics. Over the last week, not that many CEX tokens have shown notable results, although there were some exceptions such as Catex Token (CATT, +1,122%), Tidex Token (TDX, +246%), and Voyager Token (VGX, +225%).

In terms of the overall sector change in seven days, DEXs lead with +43.88% while CEXs average price increase was limited to +7.56%.

Perhaps the general public’s attention has begun to turn towards decentralized trading platforms after witnessing the events that unfolded last week. When Reddit group WallStreetBets arguably scored a big win against Wall Street sharks—and on their own field—Robinhood has restricted the trading of GameStop’s stock (GME).

Notably, the exchange has only turned off retail traders’ ability to buy GME, impeding the stock’s price growth—at least on Robinhood’s platform. At the time, many users and experts argued that Robinhood’s decision could’ve easily been interpreted as an attempt to create a safety net for hedge funds’ short positions on GameStop—and put “the little guy” at a disadvantage.

As CryptoSlate reported recently, Robinhood’s actions could also have helped DeFi and cryptocurrencies to get more recognition.

Or could this be yet another echo of the “Elon Musk effect” in action? After all, Tesla CEO did hit that “Like” button on a tweet about a decentralized analogue of Robinhood. Is there anything he can’t pump?

The post DEX tokens soar as trust in centralized exchanges is eroding appeared first on CryptoSlate.

Binance Unveils Global Report on Crypto Investors’ Motivations, Behaviors, and Preferences

Binance is giving an inside look into the motivations, behaviors, and preferences of crypto investors around the world.

The global crypto exchange recently published its 2021 Global Crypto User Index report which examines data from over 61,000 crypto users across 178 different countries and regions and explores the respondent’s demographics, attitude, financial involvement, adoption, and ideology.

Binance’s study reveals that 55% of the users polled buy crypto assets for long term investments. Meanwhile, 38% own cryptocurrencies because they distrust the current financial system and 31% participate in the crypto markets for short-term trading opportunities.

52% of users surveyed consider their crypto investments a source of income. 15% cite investing or trading crypto as their primary source of income.

The report also discovers that 97% of users have confidence in cryptocurrencies and Bitcoin (BTC) remains the most popular crypto asset owned by 65% of customers surveyed.

As for the top uses of crypto assets, 39% assert that they just hold their coins while 22% use their tokens for staking and lending and 11% for payments.

In addition, the report reveals that 63% of users rely on their disposable income to buy crypto and 60% store their tokens on crypto exchanges.

Binance’s report also unveils the growing acceptance of services in the nascent decentralized finance (DeFi) space. 66% of all users claim that they use DeFi applications.

When it comes to the issue of freedom of money, the report says that “lower institutional trust correlates with higher confidence in crypto.” According to the study, 17 out of 20 markets have less than 50% trust in local institutions.

You can read the full report here.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

The post Binance Unveils Global Report on Crypto Investors’ Motivations, Behaviors, and Preferences appeared first on The Daily Hodl.

LINK Price Analysis: Chainlink Expects Huge Move Upon Breaking Symmetrical Triangle

LINK/USD: Short Term Symmetrical Triangle

Key Support Levels: $22.4, $22, $20.77.

Key Resistance Levels: $24, $24.70, $25.65.

LINK started the past week following a strong bullish momentum as it surged to a new ATH price of $25.65 on Monday. However, it failed to close a daily candle above resistance at $24.85 and started to head lower from there.

By Wednesday, LINK had dropped into the support at $20.77, the previous ATH Price. It rebounded from there and spiked back above $26 but could not close a daily candle above $23.70 as of yesterday. It had since dropped slightly towards $22, where it trades as of writing these lines.

Looking at the 4-hour chart, LINK is trapped within a short term symmetrical triangle pattern. The next direction is likely to take place upon breakout. In case of a bullish breakout, the first target is likely to be the current ATH.

linkusd-daily-jan31-new
LINK/USD Daily Chart. Source: TradingView
linkusd-4hr-jan31-new
LINK/USD 4-Hour Chart. Source: TradingView

LINK-USD Short Term Price Prediction

Looking ahead, the first level of resistance lies at the upper boundary of the short term symmetrical triangle, at around $24. This is followed by $24.70 (1.272 Fib Extension), $25.65 (ATH), $26, $26.67 (1.414 Fib Extension).

On the other side, the first support lies at the lower boundary of the triangle, around $22.40. This is followed by $22, $20.77 (previous ATH), $20, and $19.05 (.5 Fib).

The daily RSI revealed some signs of bearish divergence, which might be playing out right now. This would result in the breakout of the triangle toward the downside if true.

LINK/BTC: Bearish Momentum

Key Support Levels: 0.000664 BTC, 0.000633 BtC, 0.0006 BTC.

Key Resistance Levels: 0.0007 BTC, 0.000769 BTC, 0.000791 BTC.

Against Bitcoin, LINK had surged higher last week to reach the resistance at 0.000791 BTC (1.414 Fib Extension) last Saturday. It could not overcome this resistance after making another attempt on Monday and started to head lower throughout the past week.

Initially, LINK found support at 0.000695 BTC (.236 Fib) but dropped beneath this level on Friday, reaching as low as 0.0006 BTC. It has since rebounded from this support and is trading at 0.0007 BTC as of now.

linkbtc-jan31-new
LINK/BTC Daily Chart. Source: TradingView

LINK-BTC Short Term Price Prediction

The first level of resistance lies at 0.0007 BTC. This is followed by 0.000769 BTC (bearish .618 Fib), 0.000791 BTC (1.414 Fib Extension), and 0.0008 BTC.

On the other side, the first support lies at 0.000664 BTC (yesterday’s closing price). This is followed by 0.000633 BTC (.382 Fib), 0.0006 BTC, and 0.000583 BTC (.5 Fib).

The RSI had also provided a bearish divergence signal at the start of the week, which resulted in LINK rolling over. The RSI is now at the midline, indicating indecision within the market.

Cardano price prediction: ADA falls below $0.3500, what’s next?

TL;DR Breakdown

  • Cardano price to observe sideways movement at the current level.
  • The closest support level lies at $0.3400
  • ADA faces resistance in climbing above the $0.3750 mark

Cardano price has been trading inside a narrow range for the past few days as the price action fails to make a breakout in either direction. The trade volume has dwindled in recent days as both the buying and selling pressure decreases.

Cryptocurrency price and market capitalization • Coin360 • 18:41 UTC Jan, 31

The broader cryptocurrency market observes a bearish change across the last 24-hours as most major cryptocurrencies record losses across the period. These include Bitcoin and Ethereum that record a 4.67 and a 4.50 percent decline across the last 24 hours. However, some altcoins like Ripple’s XRP record significant bullish movement.

Technical indicators

Cardano price prediction: ADA falls below $0.3500, what's next? 1

Across the technical indicators, the MACD has exhibited a bearish reversal with the histograms turning red. Similarly, the two EMAs have converged but now show sharp divergence as they move in opposite directions. However, if the price continues holding above the $0.3400 mark, the indicator will suggest another reversal back to the bullish side.

The RSI has remained neutral since January 17 as Cardano price observes oscillatory motion around the $0.3500 mark. Currently, the indicator was hanging low and going further down before the price action found support at $0.3400. Since then, the indicator’s slope has reduced significantly, suggesting bullish pressure at the current price level.

The Bollinger bands are currently narrow and show further convergence as the price continues to trade near the indicator’s mean line. This suggests low volatility, and while the inclined bottom line is a bullish sign, the upper limit remains horizontal, suggesting strong resistance. The indicator suggests further consolidation at the current level before a breakout.

Overall, the four-hour technical analysis issues a sell signal of reasonable strength as ten of the 26 major technical indicators support a negative price action. On the other hand, only six indicators issue buy signals suggesting an upwards movement—the remaining ten indicators are neutral, suggesting no support towards either side.

The 24-hour technical analysis contradicts this sentiment as the analysis shows 12 indicators favor a positive price action compared to five suggesting a bearish pullback. Similar to the 4-hour analysis, a large percentage of indicators show a neutral sentiment suggesting an indecisive outlook.

What to expect from Cardano price?

Cardano price prediction: ADA falls below $0.3500, what's next? 2

Traders should expect Cardano price to continue consolidating around the $0.3500 level. The strong resistance level does not allow ADA to climb above the $0.3750 mark while the buyers continue defending the $0.3000 support level. Along with the mixed technical analyses and the relatively low trade volume, ADA can be expected to continue trading within the margins.

Conversely, if Cardano price fails to hold above the $0.300 level, ADA may revisit the $0.2500 support level. In that case, ADA can be expected to initiate a bull rally breaking above the $0.37500 to the $0.4000 mark.

As most altcoins shadow Bitcoin’s movements, it is unlikely for them to observe a major breakout unless Bitcoin leaves the $30,000 level.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

The Bitcoin bull run checklist for 2021

Apart from the on-chain factors that drive Bitcoin’s bull run, a few external indicators that precede every bull run have made the headlines yet again such as a bill on a probable cryptocurrency ban in India, the Chinese new year FUD, exchange outages like Coinbase and Binance, and altcoin price rallies, etc. Once the sell-off […]

Bitcoin Price Analysis: BTC Fails To Break and Loses $2000 Immediately

The Bitcoin whipsaw continues as it failed to break the marked bearish triangle’s upper angle and immediately dropped by $2000 to hit the $32,500 support, provided by a .382 Fibonacci Retracement level.

The outlook for Bitcoin looked promising on Friday following the tweet by Elon Musk. BTC price managed to break out to the bullish side of the descending triangle pattern. However, this breakout was short-lived and turned into a fake-out as the coin failed to close a 4-hour candle above $37,200. This sent Bitcoin crashing back into the triangle yesterday.

Today, the momentum hadn’t changed, as Bitcoin started the day by attempting to break the triangle’s upper angle, at around $34,200, but could not sustain. As a result, Bitcoin went on to drop beneath the $33,000 level and continued as low as $32,190, as of writing these lines.

BTC Price Support and Resistance Levels to Watch

Key Support Levels: $32,500, $32,000, $31,200, $30,760, $30,322.

Key Resistance Levels: $33,110, $34,000, $34,450, $35,000, $35,790.

Moving forward, if the selling continues beneath $32,500, the first support lies at $32,000. This is followed by $31,200, $30,760 (short term .786 Fib and the 50-day moving average line), $30,322, and $30,000 (the base of the triangle).

On the other side, the first resistance now lies at $33,110 (bearish .382 Fib). This is followed by $34,000 (upper angle of the triangle, where Bitcoin failed to break today along with 4-hour’s MA-200), $34,450 (bearish .5 Fib), and $35,000.

Targets above $35,000 lie at $35,790 (bearish .618 Fib), $36,000, and $37,1000.

The daily RSI has continued beneath the midline, indicating that the bearish momentum is starting to gain momentum. If it continues lower, Bitcoin can easily find itself retesting the triangle’s lower angle at around $30K.

Bitstamp BTC/USD Daily Chart

btcusd-jan31daily
BTC/USD Daily Chart. Source: TradingView.

Bitstamp BTC/USD 4-Hour Chart

btcusd-jan31-4hr
BTC/USD 4-Hour Chart. Source: TradingView

Ethereum Price Analysis: 31 January

Disclaimer: The findings of the following analysis are the sole opinions of the writer and should not be taken as investment advice The second-largest cryptocurrency, Ethereum [ETH] has remained unimpacted by Bitcoin’s volatility over the past couple of days. The value of the digital asset has managed to stay above the $1,322 support and was currently […]

The future of crypto trading will be omni-chain

The only way for DeFi to realize its potential is through an omni-chain approach, enabling assets of any kind to flow freely through all platforms.

It’s now virtually unarguable that decentralized finance is blockchain’s “killer use case.” Total value locked in DeFi grew by over 3,000% over the year leading up to January 2021. On the DApp Radar rankings, eight of the top 10 DApps on Ethereum are DeFi. Uniswap sees more users than any other application and is set to average $1 billion per day in trading volume for January.

Given the challenges we see with centralized exchanges, the push toward DeFi is hardly surprising. Centralized platforms offer limited lending and staking opportunities, and those that do exist depend on users putting their trust in the exchange. They’re also subject to region blocking and trade censorship, suffer from fragmented liquidity due to a disparity in product offerings, and have a limited range of instruments.

By comparison, DeFi users now have access to a range of on-chain lending and staking options. DeFi is also censorship-resistant, with composable apps that many have dubbed “money Lego” and to have almost limitless possibilities for different types of financial vehicles.

However, DeFi’s biggest Achilles heel is Ethereum. The more apps that pile onto the platform, the more Ethereum starts to show its wear as a dated technology in dire need of upgrades. Ethereum 2.0 shows some promise, but the timeline is distant, with scalability only expected in 2022 or later.

Related: DeFi users shouldn’t wait idly for Eth2 to hit its stride

In the meantime, users are left to put up with slow confirmation times and, more importantly, exorbitant fees that limit DeFi participation to big spenders and whales. In January, the average transaction fee was up to over $10. When DeFi transactions rely on more complex smart contract interactions or users engaging in multi-protocol trades, these costs can become prohibitive for many people.

Interest in multi-chain DeFi is growing

Partly driven by Ethereum’s problems, interoperability and second-layer platforms became a significant focus area for many platform developers in 2020, which has recently started to bear fruit with several notable examples.

For instance, Aave’s venture into nonfungible tokens, Aavegotchi, recently decided to migrate to Matic Network from Ethereum, citing high transaction fees as the driver. Late last year, Sam Bankman-Fried, founder of centralized exchange FTX, opted to build his DeFi project, Serum, on the Solana blockchain, following the platform’s launch of an interoperability bridge with the Ethereum blockchain. Elsewhere, Ethereum-based 1inch announced it was expanding to the Near blockchain, which also operates its own bridge connected to Ethereum.

The rationale is clear. DeFi projects want to retain the ability to interoperate with Ethereum, and those platforms that bridge into the Ethereum ecosystem offer that opportunity. But this approach still comes with some critical limitations. Ultimately, it promotes a scenario where multiple blockchains are bridged to Ethereum but not to one another. It’s not a genuinely interoperable blockchain ecosystem.

Furthermore, it will always inherently lack composability because the bridge model depends on two separate platforms running their own blockchain. There still needs to be a bridge transaction in between any two token transactions on either side.

Omni-chain is the only sustainable future of DeFi

Currently, there are only two contenders with a live mainnet — Cosmos and Polkadot. Polkadot shows significant promise and is attracting substantial development from the DeFi community. Projects such as Acala, Equilibrium and Akropolis have ambitious goals to create multifunctional DeFi platforms based on Polkadot.

However, the Polkadot approach to interoperability between the parachains connected to its central Relay Chain involves a technically complex technology called inter-chain messaging among parachains. While this offers great potential for a wide variety of transaction types, the more simple yet elegant inter blockchain communication protocol used by Cosmos focuses on asset transfers between chains. It allows any Cosmos SDK chain to connect to any other.

For this reason, Cosmos lends itself as the ideal platform for DeFi developers. Cosmos SDK chains are 100x more efficient than Ethereum in terms of TPS and block space. Furthermore, the Cosmos Network is reaching an inflection point for its growth, with several notable apps now operational.

These applications include successful DeFi components such as Thorchain’s cross-chain DEX, Kava’s CDP, e-money’s token fiat currency platform, or Terra’s $100 million-plus stablecoin. They each use their own blockchain with their own unique tokenomics model that supports a token with $10M–$100M in market cap.

The Cosmos Network also supports non-DeFi projects with their own token models, such as Althea’s mesh network of internet routers or Persistence’s enterprise blockchain product.

From development to adoption to liquidity

As transactions increase among Cosmos Network tokens, demand for liquidity will rise. The Cosmos Network can support an exponentially larger volume of economic activity than Ethereum while attracting a wider customer base with lower transaction fees. This makes it an optimal basis for processing a massive chunk of on-chain, cross-chain commerce.

Cosmos can support DEXs for swapping assets, but it can also support derivatives like shorts, futures, leverage, perpetual swaps, tokenized interest, liquidity pools, identity management, automated market making and other core aspects of a highly sophisticated centralized market.

Finally, banks and other financial institutions are already showing signs of readiness for blockchain adoption, but they almost certainly won’t use Ethereum. More likely is that they’ll adopt customized solutions. An omni-chain platform that can interact with a wide variety of enterprise networks is, therefore, a must-have in preparing for the point when there’s a demand for trading traditional financial instruments with decentralized digital assets.

2020 was the year that DeFi cemented its place as blockchain’s killer use case, but 2021 will be the year that interoperability starts to become the norm, rather than the exception.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Luke Kim, originally from Tokyo and Seoul, is a co-founder of Berkeley Blockchain Xcelerator, a co-inventor of two blockchain-based public finance models in partnership with a U.S mayor’s office, and is now creating the future of trading with Sifchain.finance.

2020 Established Bitcoin And Ethereum As Institutional Assets, Says Coinbase

The largest US-based crypto exchange Coinbase has classified bitcoin and several altcoins as institutional assets following the developments in 2020. In its yearly report, the company has confirmed the growing institutional interest, the maturing market, and, somewhat surprisingly, the expanding appetite from corporations towards ETH.

2020 Established Bitcoin As An Institutional Asset

The challenging last year saw the emergence of Bitcoin as an asset fit to serve the needs of institutional investors, reads Coinbase’s 2020 report. The popular exchange noted that larger investors, including corporations, view BTC as a “non-sovereign, digital commodity that is about scarcity, driven by growing demand and a predictable, inelastic supply.”

That last quality is what garnered their attention the most, explained the report. The worldwide initiatives by global superpowers, including the US, to commence into “aggressive” monetary policies, fiscal stimulus, and low interest rates have highlighted the total supply of 21 million bitcoins ever to exist.

“Specifically, many saw it as an increasingly attractive long-term store of value, treasury reserve asset, and inflation hedge. They looked to the largest crypto asset to protect their wealth in the “new normal.”

Some of the most prominent names that publicly admitted purchasing BTC include MicroStrategy, Square, One Asset River Management, Ruffer Investment, MassMutual, and more.

The paper breached BTC’s realized capitalization as a metric that helps determine “investors’ growing faith in Bitcoin’s status as a store of value.” It values “each unit of Bitcoin at the price it most recently moved on-chain, while also accounting for permanently lost Bitcoin.”

Bitcoin Realized Capitalization. Source: Coinbase
Bitcoin Realized Capitalization. Source: Coinbase

Despite the growing narrative of BTC serving as a store of value for some of these giants, Coinbase asserted that it’s still very early in the adoption cycle. BTC’s market cap as of the end of 2020 represented 20% of private-sector gold investments, 3% of the M2 money stock, and less than 1% of global institutional-grade real estate.

Ethereum’s (Un)Surprising Role

Although the paper admitted that most institutional clients had used Coinbase to allocate funds in BTC, a “growing number” also took large positions in the second-largest digital asset. As such, it helped the asset price to appreciate by nearly 500% in 2020 and become one of the best performers in and outside the crypto industry.

ETH Vs BTC Vs Stocks 2020 Performance. Source: Coinbase
ETH Vs BTC Vs Stocks 2020 Performance. Source: Coinbase

Coinbase clients view Ethereum as a “decentralized computing network that shares Bitcoin’s properties of trustless store and transmission of value, along with more flexible programmability via smart contracts.”

Despite several challenges and risks, including scaling friction and high transaction costs, the paper highlighted Ethereum’s “incredible potential” and upcoming ETH 2.0 upgrade as the key aspects of attracting fresh investors.

Why Do Millennials Choose Bitcoin?

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For the first time in many years, the modern world is faced with a new epidemic that truly frightened society and forced most people to close their homes. The loss of jobs, the closure of factories and the shutdown of entire areas of business have left their mark on the economy.

From winter to early summer 2020, countries’ GDPs and major economic indices declined. Bitcoin was not lucky either. But the main surprise was that BTC showed a correlation from the main quotes and turned up very quickly. Bitcoin’s growth rate has overtaken even NASDAQ, which includes many IT giants – the only industry that grew even during the Covid-19 crisis.

Of course, comparing the cryptocurrency market with the stock market, it would be fair to remember the colossal difference in volumes. Thus, crypto growth requires hundreds of times less investment than it does to make the same impact on traditional markets. However, this was a clear signal that during the crisis, Bitcoin is becoming especially attractive for hedging risks. Earlier this role was played by gold, but this year Bitcoin has significantly overtaken it in terms of capital growth. Why did it happen? Let’s figure it out.

An analytical report by the California brokerage company Charles Schwab Corporation showed that the Grayscale Bitcoin Trust (GBTC) share in the investment portfolios of young people aged 25-39 exceeds Netflix. If we analyze the investment portfolios of the older generation of investors, the GBTC share there will not even enter the top 10. The first digital generation, called millennials (25-39 years old), make up a quarter of the world’s population. In 10 years, they will occupy over 60% of all jobs in the US labor market. Most of these people are closely related to digital technologies and they are most loyal to cryptocurrencies.

JPMorgan says half of American millennials use PayPal and Venmo. And this is also understood by the management of payment systems. After all, a few years ago PayPal was one of the main critics of cryptocurrencies and already in 2020, they announced support for cryptocurrency transactions. By the way, many analysts agree that this announcement has become one of the main drivers of cryptocurrency growth and has brought even more institutional investors to the market.

In the aftermath of several big crises in recent decades, millennials are very distrustful of the traditional banking system, which failed to save their parents’ funds in the late 1990s (the dot-com bubble) and 2007-2008. Companies that understand that the capital of the conservative generation will soon be in the hands of millennials are not standing still and adapting to changing realities. PayPal has already taken this path, and it is highly likely that other payment giants will follow this example. The percentage of millennials among stockholders continues to skyrocket, while the percentage of Gen Bs is declining. And if conservative investors preferred gold as the main savings asset, then millennials choose Bitcoin. Of course, over time more mature market representatives will partially transfer their capital into “digital gold.” At the moment, the capitalization of Bitcoin is only 3% of the total value of gold. And for the Bitcoin market to double, it is enough to transfer only 3% of the “gold investments” of the baby boomer generation to BTC.

In fact, there is much more in common between Bitcoin and gold than many people think. Both assets have limited issuance, both assets become more difficult to mine over time and the price of both assets is regulated only by demand. These factors are attracting more and more attention to the first cryptocurrency. And especially emission and regular halvings, which reduce the reward for each new block. A number of the largest companies have joined Bitcoin investors this year. The list of institutional investors who have invested heavily in BTC include names such as Square, Grayscale and MicroStrategy. The latter, by the way, invested over $1.1 billion in Bitcoin, making the cryptocurrency its main reserve asset.

It was institutional investors who became the main driving force behind the Bitcoin rally in 2020. Don’t forget the DeFi market, which has expanded dozens of times this year. Some projects in the world of decentralized finance allow tokenizing Bitcoin, for which it must be blocked on the account. To date, there are already more than 175K such frozen BTC. And the growth in their number for the year was 12,000%. If the trend continues, this may soon become an additional reason for the deficit and as a consequence, the rise in the price of Bitcoin. It is worth considering the growth in cryptocurrency capitalization in 2020, the growth in the number of active addresses by 76% and the average transaction size, which grew by 134%. 2020 was likely the last year that one Bitcoin could be bought for less than $9,999.

Although the general trend towards the transfer of capital to digital does not guarantee Bitcoin a cloudless future, it proves its potential and strong position in the global financial space. Cryptocurrency proponents still have many challenges to tackle, from regulatory and legal status issues in the world’s leading countries to technical limitations and bugs. However, the attitude towards it among representatives of a whole generation, which within 30 years will inherit the entire world fortune, makes BTC an obligatory asset in the portfolio of every investor.


Bohdan Prylepa

Bohdan Prylepa, CTO and co-founder of Prof-it Blockchain, which develops blockchain solutions and high-load platforms. Today, the company is developing a new-generation fork (“Bitcoin Ultimatum“) that will combine the best solutions on the market.

 
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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The post Why Do Millennials Choose Bitcoin? appeared first on The Daily Hodl.

Binance Research Suggests Most Traders Are Still Trusting of Exchanges

Binance Research has unveiled a new survey suggesting that many of the world’s top crypto owners still prefer the storage methods of digital exchanges.

Binance Research: Most People Are Still Using Exchanges to Store Crypto

Binance Research is a division of the world’s largest and most popular digital currency trading platform. According to the recent survey, as many as 60 percent of the world’s digital currency traders and buyers store their assets in exchanges. The survey is being called the “2021 Global Crypto User Index,” and examines the activities of approximately 61,000 cryptocurrency traders in nearly 180 separate countries.

In addition to the above findings, Binance Research also discovered that roughly 52 percent of the world’s population – a little more than half – view cryptocurrency as a source of income, meaning that they likely earn payments in digital assets. Also, most traders across the globe are in it for the long-term, as approximately 55 percent of those surveyed said they were into “hodling,” which is the practice of keeping one’s digital assets for an extended period so they can spike and boost one’s portfolio.

A spokesman of the company explained:

We are seeing accelerated adoption of cryptocurrencies as more major players show support and provide additional channels for people to invest. It’s increasingly important for us to understand crypto users as well as their corresponding attitudes and behaviors. The aim of our 2021 Global Crypto User Index is to understand the commonalities and differences between retail crypto users across the different profile types, as well as across different countries and markets.

Other segments of the survey suggest that nearly 40 percent of those analyzed are primarily investing in cryptocurrencies because they’re seeking to take advantage of potential price spikes. Furthermore, a little more than 20 percent are utilizing digital currencies for the purpose of staking and lending. As it stands, bitcoin is still the world’s most popular form of cryptocurrency, as roughly 65 percent of those surveyed held it in their stashes.

Lastly, just under 40 percent of the people taking part in the survey said that they do not trust standard banks or the global financial system as it is today, which is what prompted them to seek new territory in the cryptocurrency arena.

The Size of the Survey Audience

The document thoroughly mentions:

The total sample size was 61,073 adults across 178 countries and regions. The survey was made available in eight different languages. Fieldwork was undertaken between 15 September and 25 October 2020. The survey was carried out online. The figures have been weighted and are representative of active cryptocurrency users in the respective markets.

Some final bits of the survey say that approximately 66 percent of the people out there using decentralized applications (dapps) are engaged in decentralized finance (Defi) and that Southeast Asia was the primary spot for Defi activity.

The post Binance Research Suggests Most Traders Are Still Trusting of Exchanges appeared first on Live Bitcoin News.

Is Ethereum gearing up for another pump?

Ethereum is trading at the $1300 level and the price is up nearly 5.7% in the past week. After hitting $1426 on Jan 29, 2021, the price dropped without hitting $1500, which is to a certain extent comparable to what happened to Bitcoin. Though Ethereum’s chart shows volatility at the current price level, it has […]