Yesterday’s stock market plunge was one of the largest single day losses in history resulting in the fortunes of the world’s billionaires shrinking a little. Can bitcoin be the answer to this epic wealth gap? Global stock markets were pounded on Monday with some shedding as much as 4% in a single day. While this is a relatively small percentage in comparison to crypto markets, it is a big deal for stocks. The Dow plunged a thousand points yesterday marking the third biggest daily point drop for the Dow Jones Industrial Average in its 124 year history. Investors have started to get the jitters as the Covid-19 virus spreads beyond China with countries including Italy and Iran recording spikes in infections. Billionaires Lose Billions According to reports, the ten richest people in the world lost a collective $30 billion. The world’s wealthiest person, Amazon’s Jeff Bezos, saw his net worth slide by $4.8 billion to just under $123 billion as shares of his e-commerce monopoly slumped 4%. CEO of French luxury conglomerate LVMH, Bernard Arnault, lost a similar percentage as his wealth slipped to a mere $100 billion. Billionaire Facebook boss Mark Zuckerberg also got stung as his firm’s stock slumped 4.5% yesterday which cost him $3.4 billion. Elon Musk was in greater pain as his Tesla stock crashed 7.5% costing the tech mogul $2.4 billion. The company suffered more than the rest due to its reliance on a recently opened factory in China the report added. Previously the world’s richest man, Microsoft’s Bill Gates, was hit with a $1.5 billion loss reducing his money pile to just $111 billion. Forbes has reflected the changes in wealth on its ‘real time billionaires’ page. The US president shrugged off the stock rout with claims that everything was under control with regards to the viral outbreak. The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me! — Donald J. Trump (@realDonaldTrump) February 24, 2020 Bitcoin & The Epic Wealth Gap The report highlights a growing wealth gap with those at the top getting richer even in the fact of these losses. Crypto twitter has been awash with commentary today about Warren Buffet’s recent bitcoin remarks and claims that he will never own any. On industry observer aptly pointed out; “Why do people keep asking an 89 year old value investor worth almost $100B about his views on a revolutionary new money system that will take decades to play out.” There has been too much reaction to this largely insignificant interview when the real problem is that a very small number of people control a very large percentage of the wealth. Being divisible and borderless, bitcoin can become a solution to this but it will not happen overnight. Can bitcoin solve the wealth gap problem? Add your comments below.
Bitcoin is holding on to gains today as the threat of a larger correction looms. The long term outlook is extremely bullish though, at least according to one crypto exchange executive. Kraken Director on $100k Bitcoin Kraken’s director of business development, Dan Held, sat down with Nuggets News CEO Alex Saunders to discuss global markets, why bitcoin is the hardest money, and how it fits into the macroeconomic system. Excuse the #DadJoke but this is a seriously Kraken interview! Today we welcome @danheld of @krakenfx to discuss global markets, why #Bitcoin is the hardest money, how it fits into the macro economy & why it's a game changer that can not be stopped. https://t.co/uEmF1vMewz — Alex Saunders (@AlexSaundersAU) February 25, 2020 Held got into BTC in 2012 after learning about the financial system crash in 2008. He added that it was a tiny space back then and no major players in tech wanted to get involved in crypto. He said that the scene now is so much different with many different products and institutional involvement. This could spur a ‘super cycle’ with a lot more fiat flowing in which would take bitcoin prices to $100k in no time. At the moment there is such a small amount relatively with total market cap hovering around $275 billion which is smaller than some US tech giants. Host Saunders added that the floodgates could open when there are trillions of newly printed dollars entering financial markets when there are negative interest rates. Held continued to say that when price goes up more people talk about BTC and it gets more mainstream media coverage which adds to the FOMO. On the negative side it was mentioned that there has been concern over a possible crackdown in the US from bankers and politicians that view it as a threat to their own monetary system. Hodlers have some of their net worth in bitcoin so if a government bans it they’re damaging that percentage of people that are holding it and potentially losing support when enough people do hold it. He added that one of the best moments of 2019 for him was when the Chair of the US Federal Reserve, Jerome Powell, said that bitcoin was a speculative store of value. “Bitcoin is now recognized as a valid contender for store of value by the most powerful financial institution in the world.” Held said he couldn’t be more bullish and that things haven’t yet really begun in terms of major investment and inflow. In terms of macroeconomics Held said he has waited seven years for this moment with the president of the US tweeting at the FED to print more money. He called it a race to zero with investors looking where to put their money while household debt skyrockets and savers are getting punished. It is all good gravy for bitcoin and this one industry executive is more bullish than ever. Will BTC hit $100k in the short term? Add your comments below.
Bitcoin prices have slowly inched back today but they are currently holding at support as another day’s trading gets under way. A head and shoulders pattern could be bad news for short term direction. Crypto markets have had another day of declines with total capitalization shrinking by almost 3% as $8 billion leaves the space. They are now approaching critical levels and a bigger selloff could occur if there are no moves back to resistance. Bitcoin At Support BTC has made another lower low with a plunge to $9,500 to test previous levels during yesterday’s trading. Since then the digital asset has recovered to around $9,600 but a further fall is looking likely. BTC price 1 hour chart – Tradingview.com Since the weekend taps of $10k bitcoin has retreated 4% and the next level of support lies at around $9,300. Analysts are scouring the charts for indications of larger moves and one has identified a head and shoulders pattern that could result in another big dump. This head & shoulders can quickly hit $8,300 target But I’m more interested in anticipating a busted head & shoulders here, with an $11,700 target Will be tracking this in coming days pic.twitter.com/GsC3wjIMUB — Crypto Capital Venture (@cryptorecruitr) February 25, 2020 The low $8k zone is a strong support region which is likely to hold if hit. A bullish break of the H&S could result in a higher high and a continuation of the rally that began at the beginning of the year. Further bullishness can be seen in the formation of this wedge which this analyst believes will result in more upwards momentum. “Still having a hard time not seeing how $BTC doesn’t look decently bullish here. Nice S/R flip, bullish consolidation, and a nice clean wedge forming.” Still having a hard time not seeing how $BTC doesn't look decently bullish here. Nice S/R flip, bullish consolidation, and a nice clean wedge forming. Granted it hasn't broken up yet but still looks more likely than down. pic.twitter.com/OYp2AsGebU — Income Sharks (@IncomeSharks) February 25, 2020 Not all are so bullish though and sentiment does appear to be turning bearish elsewhere, however, as the signals align on the daily time frame. “3 daily engulfing candles preventing higher highs. At the same time price returns to the 9500$ area over and over again” 3 daily engulfing candles preventing higher highs. At the same time price returns to the 9500$ area over and over again $BTC $BTCUSD #bitcoin pic.twitter.com/5NdLa8EJU3 — CryptoHamster (@CryptoHamsterIO) February 25, 2020 Providing bitcoin remains above $9k and consolidates there for a while things will remain bullish. The horizontal lines of support are strong where it currently trades. Elsewhere on Crypto Markets Altcoins are having a worse day than bitcoin so far with most of them extending losses. Ethereum has slid a couple of percent back towards $260 while Ripple’s XRP has dropped below $0.27 and continues to weaken. The two bitcoin forks, BCH and BSV, are dumping harder with 5-6% losses while Litecoin, EOS and BNB shed 3-4% on the day. As predicted yesterday, Tezos is starting to freefall with 8% dumped over the past 24 hours as XTZ retreats back towards $3. There is no green whatsoever to be seen in the top 30 altcoins at the moment. Will bitcoin dump back to $8,300 this week? Add your price predictions below.
To form a bitcoin price prediction analysts generally look at previous market patterns and events. The two halvings that have already occurred may offer some indication as to what will happen after the next one, and there might not be the big pump that is expected. Weekend trading has been good for bitcoin which has touched $10k once again. The move didn’t last long however with a rapid rejection at that level and a plunge back to $9,600 before BTC finally settled just below $9,800. The chart displays another ‘Bart Simpson’ formation as bitcoin begins the week consolidating in the high $9k zone. The uptrend will not be resumed though unless there is a new higher high above $10,500 and analysts are already talking of a retrace back to $9,300 this morning. Bitcoin Halving Hopes With less than 78 days to go to the halving, the debate is raging on as to whether prices are already factored in or not. Opinion is pretty evenly divided between those that believe prices are not factored in and there will be a pump, and those that think the opposite will occur. Binance boss Changpeng Zhao appears to be leaning towards the latter group with a recent post depicting charts that show flat markets following previous halvings. “History may not predict the future, and correlation does not prove causation… Watch what happens AFTER halving. Markets are inefficient, at least, historically.” History may not predict the future, and correlation does not prove causation. Here are just 2 charts around the previous #bitcoin halving. Watch what happens AFTER halving. Markets are inefficient, at least, historically. Just data, draw your own conclusions. pic.twitter.com/AwChmAGvrK — CZ Binance (@cz_binance) February 23, 2020 Markets did indeed remain flat for several months following the first halving in 2012. Only in 2013 did they start to run with an epic gain of around 8000% from $13 to over $900. A bear market followed in 2014 then momentum started to build the following year in the lead up to the 2016 halving. Following that one there was very little activity until 2017 when momentum started building again and bitcoin surged from around $1,000 to over $20,000. 2018 was a bear market and 2019 saw slow growth which has continued into this year. If history rhymes BTC could retreat back to the $6-$8k area for the rest of 2020 before skyrocketing to a new all-time high in 2021. Based on these charts it would be fair to say that bitcoin halving events induce bullish markets the year before and the year after but not the year of the event. We could be in for a wild ride in 2021 but do not hold your breath for a massive rally for the rest of this year. Will bitcoin trade flat after the halving? Add your price predictions below
There is no doubting that Tezos has been one of the best performing crypto assets over the past year. Following a recent all-time high, one prominent analyst has predicted a big pullback for XTZ. Has Tezos Topped Out? Tezos is currently the worst performing altcoin in the crypto top twenty today. This is hardly surprising though given the epic gains of over 140% this altcoin has made so far this year. XTZ price YTD – Coinmarketcap.com According to Coinmarketcap.com XTZ has slid 7% on the day from a high of $3.55 yesterday back to $3.30 during the morning’s Asian trading session. Since its all-time high late last week the crypto asset has corrected 15% and further losses could be on the cards, at least according to one prominent analyst. Trader and chartist Josh Rager has pointed out that Tezos may have topped adding that there are not many supports on higher time frames but lower ones could offer good entry points. “The thing about price discovery is you just don’t know how far an asset can free-fall after big players take profit or if $BTC breaks down” $XTZ – Tezos The thing about price discovery is you just don't know how far an asset can free-fall after big players take profit or if $BTC breaks down There aren't many supports on higher time frames for Tezos but lower time frames you can find horizontals to show entry points pic.twitter.com/aA2O7otvnS — Josh Rager (@Josh_Rager) February 23, 2020 It Tezos were to dump hard in a market wide altcoin avalanche; there are support levels at the $2.60 level and the $2.15 level according to the chart. He added that he does not hold any XTZ but would consider entry near $2.57 and definitely at $2.17 with anything under $2 being bought up quickly. If Tezos does fall back to such levels it would indicate a correction of over 40% which is not uncommon for altcoins that have made rapid gains in a short space of time. Looking At LINK Another top performing altcoin, Chainlink, is a good example of how far they can correct following massive pumps. After its first price peak in mid-2019, LINK dumped over 60% in the three months that followed. The crypto asset has just made another ATH of $4.75 so it too is due a correction. As usual there is a lot of crypto tribalism involved with Tezos as the community has heralded it as another Ethereum killer. The bottom line is that until one emerges as the standard for the industry, they are all going to be used as vehicles for speculation. Ethereum currently holds that accolade with the largest community of developers and the most dApps, but it is still in a two year bear market, down 80% from its all-time high. Is the same fate about to happen to Tezos? Will XTZ dump back to $2? Add your thoughts and predictions below.
Weekend trading on bitcoin markets has been profitable with another sustained move higher. Early trading on Monday however tells a different story as $10k was rejected again, analysts are now eyeing another pullback. Crypto markets were lifted over the weekend with another $10 billion added to take total capitalization back to $290 billion. Over half of that was liquidated again though during early trading on Asia Monday morning dropping market cap back to the same levels it was at this time last week. Bitcoin Rejects $10k Twice From a weekend low of $9,600 BTC made solid progress to get back into five figures once again during Sunday trading. There were two taps of $10k around fifteen hours apart but both were sharply rejected indicating that resistance is strengthening at this level. BTC price 1 hour chart – Tradingview.com A few hours ago a sharp decline dropped bitcoin back to $9,600 again as the asset shed 4% in a couple of hours. The dump coincided with CME markets opening indicating that futures may have been responsible again. $BTC CME gap filled. pic.twitter.com/ovLaXYWypm — Hsaka (@HsakaTrades) February 24, 2020 According to Datamish charts over $26 million in long positions were liquidated on BitMEX. Crypto trader ‘Cantering Clark’ called the move a few hours before it initiated; “After rejection again there are 2 small bounces that fail at the equal highs within the range. After second failure buyers are toast, done stepping in at the low.” Fellow trader and analyst Josh Rager has eyed levels of support for further downsides. The bounce hit daily and weekly support and the weekly chart has yet to confirm the trend reversal. “Holding above the $9550s is a good sign on higher time frames and breaking below the $9300s will still flip bear bias,” $BTC Price dropped & bounced near the weekly/daily support around $9580 Holding above the $9550s is a good sign on higher time frames and breaking below the $9300s will still flip bear bias Lower time frames in down channel but weekly chart still not confirmed trend reversal pic.twitter.com/vCZzAajReD — Josh Rager (@Josh_Rager) February 24, 2020 Current levels must hold for the bullish momentum to continue however the more times $10k gets rejected the more likely bitcoin is to fall further. A break below $9,300 would confirm that the rally is over in the short term. Elsewhere on Crypto Markets Bitcoin dominance has dropped to 64% according to Tradingview.com so this latest dip does not appear to have affected the altcoins. Ethereum is trading just below resistance at $270 though its chart virtually mirrors the bitcoin one. Ripple’s XRP is continuing to weaken and is now back at $0.275 and there has been little movement for the rest of the top ten aside from Tezos which is falling back as traders take profits from its recent run. If the analysts are right it appears that there could be more declines all round before the rally resumes. Will bitcoin continue to fall today? Add your comments below.
Crypto platform Cardano has successfully completed a mainnet hard fork which brings the system closer to the long awaited Shelley release. The upgrade also resulted in a minor price boost for ADA. Cardano Forked to OBFT IOHK has completed an important update which is part of the journey to launching Shelley era functionality on the Cardano mainnet. The mainnet has now been switched from the original consensus protocol Ouroboros Classic to an updated version, Ouroboros BFT (OBFT) according to the announcement. UPDATE: #Cardano OBFT hard fork successfully completed! Cardano recently underwent a mainnet hard fork (=software protocol update) on 20-02-2020, during epoch 176, to pave the way for the "#Shelley" mainnet release. pic.twitter.com/Uemla5AKoG — Cardano Community (@Cardano) February 21, 2020 The announcement added that the update provides a simpler migration pathway from Ouroboros Classic to Ouroboros Praos which will power Shelley. Ouroboros is a secure proof-of-stake consensus protocol, but the original version made several compromises to decentralization. OBFT is a class of simple Byzantine fault tolerance consensus algorithms. A Byzantine fault is a condition of a distributed computer system where components may fail and there is imperfect information on whether a component has failed. A system with BFT consensus is able to continue operating even if some of the nodes fail or act maliciously. The Binance Academy goes into a deeper explanation of how it works. Users holding ADA were strongly urged to upgrade to Cardano 1.6.0 to experience no issues or interruption of service. It added that no new tokens were generated during this fork so ignore any scams that suggest otherwise. The platform’s Shelley era, which has had a number of setbacks, focuses entirely on letting the community decide on block validators through staking. Shelley will also see the introduction of a delegation and incentives scheme, a reward system to drive stake pools and community adoption. The Shelley mainnet will be powered by the Ouroboros Genesis protocol, an exact launch date still remains elusive. ADA Price Reaction Cardano is one of the few crypto assets making steady gains today. From an intraday low of $0.056 (588 satoshis), prices climbed around 5% to reach $0.059 (613 sats) a couple of hours ago. ADA has rallied with the rest of the altcoins this year making around 80% in 2020 so far though those gains could be wiped out if bitcoin corrects deeper. It has not been enough to displace Tezos for the tenth position in the crypto cap charts however as Cardano is over a billion dollars adrift in terms of market cap. The big picture shows that ADA is still deep in a bear market languishing 95% down from its all-time high two years ago. It is hoped among the community that Shelley can catalyze a major recovery. Will Cardano recover in 2020? Add your comments below.
The crypto ecosystem was rattled this week with the first two exploits of decentralized finance platforms. The world’s most popular one, MakerDAO, has gone into defensive mode as a result. Crypto FUD Surfaces Again As usual the media has run with the FUD spouting headlines of crypto hacking and DeFi fear to boost their page views. Nothing was hacked and there is no reason for fear and doubt . A wily trader simply exploited a vulnerability in the system to execute a flash loan and arbitrage attack to profit from low liquidity markets. Some industry experts have suggested that this could actually be a good thing for Ethereum as it highlights what is possible in this new founded financial landscape. The world’s largest DeFi project, MakerDAO, has now become a target itself as the community is put on high alert. MakerDAO Goes Defensive The decentralized lending platform currently dominates DeFi markets with 57.5% market share according to defipulse.com. Concern has been growing over the possibility of a bad actor controlling a large amount of the MKR token being able to manipulate the collateral of pull off a similar flash loan exploit. At the moment the big MKR crypto pots are controlled by public facing venture capital firms that have a vested interest in the success of the project, not its demise. The head of community development at MakerDAO [@richatmakerdao] has been posting updates from a recent Governance and Risk meeting involving the platform’s Governance Security Module (GSM). Today's Governance call should be lively… a lot to discuss! Join and learn about the GSM delay & Dark Fix details. https://t.co/yWifpfIgov — Maker (@MakerDAO) February 20, 2020 The GSM is a mechanism in which MKR token holders are given a chance to review any changes that will go into the system and act accordingly if those changes are deemed to be malicious. Currently the module is set at zero hours which would enable a bad actor to infiltrate the system in real time or governance to be abused if compromised. Today’s meeting will put forward a proposal to raise the GSM to a 24 hour delay giving MKR holders a full day to respond to any spurious governance results. Previous attempts to push this through failed due to insufficient knowledge and lack of awareness as highlighted on the MakerDAO Forum. The Foundation development team has also proposed a Dark Fix mechanism, which provides a way to pre-authorize a specific bug fix without exposing its bytecode on-chain. DeFi is an embryonic crypto ecosystem, barely a couple of years old, so things will break and fixes will be required as it evolves. Bitcoin maximalists rushing to condemn it is completely counterproductive to the ethos of crypto and why we’re all here in the first place. Will DeFi continue to evolve into a truly decentralized ecosystem? Add your comments below.
Crypto markets have remained steady over the past day or so and there have been no further losses. Bitcoin has inched slowly higher indicating that the rally could resume. Total crypto market capitalization has made it back to $280 billion as $5 billion has flowed back in over the past few hours. The trend for the week is still down but the pullback appears to be slowing. Bitcoin Bulls Back? BTC dipped to an intraday low of $9,400 during late trading yesterday but it has since ground slowly higher topping out at over $9,700 during the morning’s Asian trading session. BTC price 1 hour chart – Tradingview.com Bitcoin is now at its highest level since the big dump mid-week and there is renewed hope that the rally is about to resume with a push to resistance at $9,800 and then back into five figure territory. The technical indicators have been tested with precision as one analyst points out. So far, it is exactly, what happened – both the price and RSI resistances have been tested with a scary precision and rejected. Let's see, if bulls could stop it… $BTC $BTCUSD #bitcoin https://t.co/cp9yfTalwB pic.twitter.com/R7aHgBgtRK — CryptoHamster (@CryptoHamsterIO) February 21, 2020 The $9,800 level needs to be broken before an confidence will return in the short term. Analyst Josh Rager concurred; “Break and hold $9800 on high time frames and I’ll turn short term bullish. Until then, whales are just playing with your emotions,” Fellow analyst ‘CryptoHamster’ has identified an inverted head and shoulders pattern which, if it plays out, could see the a dump back to the $8k range on the right shoulder. 10500$ resistance got rejected again.It looks like a potential () IH&S formation. the right shoulder could find support around 50 weeks SMA.According to Thomas Bulkowski, the IH&S target is ~74% of the pattern hight. In this case, it is around 13200$.$BTC $BTCUSD #bitcoin pic.twitter.com/uuqe3Dlqs0 — CryptoHamster (@CryptoHamsterIO) February 21, 2020 According to the referenced Thomas Bulkowski, a leading expert on chart patterns, ‘Descending broadening wedges are mid list performers, found most often with upward breakouts in a bull market. Downward breakouts are rare.’ Providing the lows are defended and the daily close is above current levels of $9,700 the bullish momentum should resume once again. Elsewhere on Crypto Markets The altcoins are a mixed bag at the moment split down the middle with red and green though gains and losses are marginal for most of them. Ethereum, XRP, Bitcoin Cash and Litecoin have not moved since this time yesterday and their prices are flat. BSV is still dumping and is now below $290 while EOS has clawed back a little from its epic dump yesterday. Binance Coin has added a couple of percent on the day while Tezos is cooling off after its surge this week. Just outside the top ten Cardano, Stellar and Ethereum classic are adding a couple of percent today as altcoin markets simmer in anticipation of the next move by big brother. Will bitcoin get back to $10k over the weekend? Add your price predictions below.
Crypto markets have corrected today but stock markets continue to surge despite mounting warnings of economic despair ahead. When the bubble bursts will investors turn to digital assets as a safe haven? Stocks Up Amid Virus Fears, Crypto Dumps The current scenario on Wall Street is deceptively bullish in a country where red lights are flashing all over the economic board. Add to that the escalating fears over the Covid-19 (Coronavirus) outbreak and the slowing down of Asian economies, and it is a recipe for danger ahead. According to reports, Goldman Sachs sounded the alarm to clients this week about a possible correction in the stock markets. Strategist Peter Oppenheimer wrote; “We believe the greater risk is that the impact of the coronavirus on earnings may well be underestimated in current stock prices, suggesting that the risks of a correction are high,” Major US stock indexes have taken the influenza outbreak news in their stride and on Wednesday the S&P 500 and Nasdaq Composite jumped to record highs. Speculative stocks like electric-vehicle maker Tesla, and space tourism firm Virgin Galactic Holdings, also surged. So far this month Virgin stock is up 118% this month while Tesla has gained over 41% in February alone. Oppenheimer added that a sustained bear market does not look likely but a near-term correction is looking much more probable. Gold prices are also hitting seven year highs and bitcoin is up 34% this year despite its thousand dollar dump yesterday. Crypto industry insider Ran NeuNer also exercised caution adding that there are a number of factors that could burst the bubble in addition to the Covid-19 outbreak. Just keep telling yourself it’s going to be ok & markets will keep going up,don’t worry about;-Corona Virus-China printing crazy amounts of money to support markets.-USA printing unprecedented amounts of money-a possibility that Bernie is next -0% interest worldwide — Ran NeuNer (@cryptomanran) February 20, 2020 Central banks of the world’s two largest economies have both been injecting liquidity into their failing banking systems by printing more money. The US Federal Reserve has doled out tens of billions to calm the short-term lending markets after they went haywire in September. According to Bloomberg the Treasury has initiatives to ensure it always has enough cash to pay its bills as the deficit soars to a trillion dollars and this could make things difficult for the central bank. China is having its own problems with cities housing up to 50 million people under lockdown and citizens being shunned across the world as fears of a pandemic intensify. Asian economies are feeling the pinch also and those heavily dependent on tourism such as Thailand are getting battered. The crypto and bitcoin safe haven narrative has never been stronger than in 2020 and when the stock bubble finally bursts those dollars could flood into crypto markets. Will crypto markets continue to climb this year? Add your thoughts below.
Altcoins have had a good year so far with solid gains for the majority of them. They could all go up in smoke though if bitcoin fails to hold key support levels during this correction. The $20 billion crypto market dump has been the largest one day loss so far this year. Things could get out of control fast in the world of altcoins if their big brother fails to hold key support levels. Bitcoin Levels to Hold Bitcoin fell to support at $9,300 a few hours ago in a thousand dollar slide but has since recovered to $9,600 at the time of writing. The lower level provides strong support but a break below that would be very bad for the rest of the market. Analyst Josh Rager has eyed key support and resistance levels to hold and noted the lower highs and lower lows starting to print in this downward channel. $BTC If price breaks and closes $9300, will likely make its way to $8600-$8700 If price can make its way back above $9800 will be a good start for continuation to the upside Lower lows and lower highs starting to print in this downward channel Take it level by level pic.twitter.com/ibT6OqOyj4 — Josh Rager (@Josh_Rager) February 20, 2020 The correction was expected after such a long period of sustained gains but in order for it not to turn into a complete trend reversal BTC must hold above certain levels of support. Another Altcoin Avalanche? Former financial consultant turned crypto analyst ‘AMD Trades’ stated that a fall below $8k would crush most of the altcoins, eroding all gains since the beginning of the year. “btc going to $7800 would crush most of these alts temporary bullish set ups. I initially have it finding support around $8800-$9000, but a break below $8800 would kill most continuation set ups including eth” $btc going to $7800 would crush most of these alts temporary bullish set ups. I initially have it finding support around $8800-$9000, but a break below $8800 would kill most continuation set ups including $eth — AMD Trades (@Amdtrades) February 20, 2020 The sad truth is that most of the altcoins are still hopelessly tied to the movements of their big brother so when BTC blips they all flap. Ethereum has made solid progress this year and is still double the price it was at the beginning of January but a bitcoin breakdown will spell pain for ETH too. Strengthening fundamentals, ETH 2.0 hopium and a growing DeFi market have still not been enough to decouple Ethereum from bitcoin. Aside from a few low cap coins down the end of the table, EOS is hurting the most today with a dump of 13% to drop below $4. Those bucking the trend include the ever resilient Tezos which has actually made 7% tapping a new all-time high just below $4 and Kyber Network surging over 20% as it gets launched on Coinbase Pro. There could be a lot more suffering ahead for altcoins which are all eyeing their leader for its next move. Will altcoins dump this month? Add your comments and predictions below.
Crypto markets have just hemorrhaged $20 billion in their largest selloff of 2020. Bitcoin plunged almost a thousand dollars in a couple of hours but what has caused it? Just when crypto markets started to look bullish again with total capitalization approaching $300 billion a huge selloff occurred in a matter of hours. Around $20 billion exited the space in the year’s largest single day dump dropping total cap back below $280 billion. Bitcoin Dumps 10% From an intraday high of $10,300, bitcoin dumped to a low of $9,300 shedding a thousand dollars in a couple of hours. Since then prices have moved up marginally to settle around the $9,600 level but further losses look likely. BTC price 1 hour chart – Tradingview.com Analysts warned yesterday that unless BTC makes a new higher high above the 2020 top of $10,500, the correction is likely to resume. That scenario played out in late trading on Wednesday when one huge red hourly candle smashed prices down almost $900. From here the asset is likely to return to the $9,300 level where there is support. Analysts and traders are noting the swing failure pattern and the long wick below the previous lows indicating that there could be liquidity in this area. This is my thinking. I shared the SFP on the 17th, the wick below the previous swing low. We now have 2 more 4 hour candles with wicks below that line. That indicates there's liquidity in that area. It could be fully tapped now, hence the lower orders in case. $BTC pic.twitter.com/uMhFbrq5Fs — The Wolf Of All Streets (@scottmelker) February 20, 2020 Speaking of liquidity, Datamish charts are reporting that over $150 million in longs were liquidated on BitMEX which caused the cascade of sell orders to be executed. BitMEX long liquidations – Datamish.com Failure to hold the $9,300 zone will see the asset fall into the high $8k area where there is further support. If this also fails to hold then BTC could be back at $8,200 pretty quickly which would result in a 20% correction. CNBC Counter Trader? CNBC’s ‘Fast Show’ has recently called bitcoin ‘red hot’ stating that it continues to climb higher which has historically been a counter trade indicator. Bitcoin up more than 30% this year and Morgan Creek Capital's @MarkYusko says this is why the red hot rally is just getting started $BTC pic.twitter.com/L6a9nrEWt7 — CNBC's Fast Money (@CNBCFastMoney) February 19, 2020 When asked why it was down at the moment Morgan Creek Capital’s Mark Yusko said it didn’t really matter because it has been in similar situations before. His advice has always been ‘buy it and stack sats’ and that still applies today despite the plunge. Markets always correct after any sustained period of upward momentum so this is nothing to be concerned about. Even a move back to $8k would be normal for the asset but any lower may start ringing alarm bells. With stronger network fundamentals, weakening global economies, and an approaching halving, it will not be long before bitcoin is marching back upwards again. Where will the bitcoin correction stop? Add your price predictions below.
Crypto market sentiment has been overwhelmingly bullish so far this year. A number of events have strengthened the store of value narrative but, according to a poll, that could change quickly if the US clamps down on the industry. Fear The Treasury Secretary A recent crypto poll held by industry analyst ‘PlanB’ has posed the question ‘what concerns you most?’ regarding the short term future of the crypto scene. At the time of writing over 6,000 people had responded with over 50% of them expressing concern over a draconian clampdown by US Treasury Secretary Steve Mnuchin. What concerns you most? — PlanB (@100trillionUSD) February 18, 2020 Craig Wright’s constant claims are growing tiresome but futures manipulation appears to be an issue for around 30% of respondents. In recent weeks Mnuchin has commented on bitcoin and its brethren and none of it has been in a positive light. Mainstream media outlets such as Forbes have used this as a tool to disseminate more FUD and clickbait, but that is to be expected. There is no denying that politicians and bankers fear bitcoin, even more so when their own economy is going down the pan. The FED is still injecting liquidity into a failing banking system which devalues the currency, and household debt has skyrocketed to record highs. It is clear that there is growing concern that bitcoin and crypto currencies could undermine the greenback, however the central bank appears to be doing a good job of that on its own. According to reports last week, Mnuchin referenced crypto currencies at a Senate Finance Committee stating; “We’re about to roll out some significant new requirements at FinCEN. We want to make sure that technology moves forward, but on the other hand we want to make sure that cryptocurrencies aren’t used for the equivalent of old Swiss secret number bank accounts.” He added that the new regulations will be very clear on greater transparency so that law enforcement can see where the money is going and that it isn’t used for money laundering. Stacking Sats Regulations and crypto clarity is long overdue in the US which lags behind the rest of the world for such. The wider concern is that they will use money laundering as a tool to clamp down on decentralized digital assets. Others remained optimistic adding that “the more they fear bitcoin the more valuable it is and the more you need it,” and “It is a buy signal. Push against the grain, stack faster than them, because they will be buying.” The only way governments can really control bitcoin is by buying up huge amounts of it, which of course will do wonders for demand and prices, and for those that have already been stacking sats. Will the US crackdown on crypto? Add your thoughts below.
The crypto industry has been wrapped up in the first two major exploits of decentralized finance this week. The decriers are having a field day but the outcome may actually be bullish for Ethereum. Ethereum Shrugs Off DeFi Exploits ETH prices have bounced back following the two DeFi exploits this week. From a Monday low of $245 prices have surged 15% to top out above $280 during early trading in Asia today. Market may resume their wider correction but in the short term Ethereum has remained bullish. The Block CEO Mike Dudas acknowledged the move: $ETH completely shrugging off the weekend's @bzxHQ exploits… pic.twitter.com/vIWfS8IjXk — Mike Dudas (@mdudas) February 18, 2020 The comment drew reaction from respected economist Alex Krüger who added that there was nothing the shrug off as the exploits were bullish for ETH. When questioned on this remark Krüger stated that it was the ultimate use case, elaborating; “Flash loans provide access to instantaneous liquidity sans collateral, and work on top of deterministic transactions that fully eliminate risk for both borrower and lender. This is extremely valuable, and the very best expression of programmable money.” He continued to state that it should generate interest in Ethereum from the finance industry and thus increase demand for ETH. But many DeFi platforms could die in the near term because of this. What The Flash? In order to understand why this is bullish for ETH we need to delve deeper into flash loans. It should be noted here that nothing was hacked, just a canny trader using arbitrage to exploit weak links in a system. A flash loan is effectively when someone exploits a smart contract to borrow crypto funds with no collateral, and then pay them back in the same transaction. Between borrowing and repaying the attacker can exploit other DeFi protocols, lending platforms, DEXes and smart contracts to take advantage of low liquidity markets to net a tidy profit. Nevermind the FUD There will always be detractors to new technology and systems, and those that focus on its weaknesses as opposed to working on making it stronger and more resilient to such exploits. What recent events do not mean is that the entire industry is flawed or centralized as recently suggested by Litecoin’s Charlie Lee. It does bring up the oracle problem again though in which a third party or ‘oracle’ may be needed to ensure trust in a decentralized system which in effect takes away its decentralized properties. The latest update from bZx is that the platform is still being ‘battle tested’ but that is of little comfort to those that have inaccessible funds there. We have pushed a change using our administrator key to remove the timelock on the contracts. We will be reinstalling it once we feel the platform is more battle tested. This will also help us unpause the system as soon as the oracle code has finished being audited. — bZx (@bzxHQ) February 19, 2020 Investing in any new technology has its inherent associated risks, and using DeFi in this instance has been no different. As DeFi evolves these teething problems will be ironed out and new ‘smarter’ platforms will evolve. As we have seen so far this year, the demand for Ethereum is already increasing along with its price and decentralized finance is one of its drivers. Is DeFi bullish for Ethereum despite recent exploits? Add your thoughts below.
Ethereum has been leading crypto markets in recent weeks and its return to bullish territory yesterday has reversed any pullback momentum. These three reasons are why ETH is performing well. Total crypto market capitalization has jumped by around $15 billion over the past 24 hours as it barrels towards $300 billion once again. Bitcoin is back in five figure territory but it has been Ethereum in the driving seat. Since its dip earlier this week ETH prices have regained 16% to top out at $285 according to Tradingview.com. The asset has made 120% so far this year which triples the gains of its big brother. As observed by industry analysts, ETH trading volume has skyrocketed over the past week. The average $ETH trading volume during the past week has been 4 times larger than the average volume for the second half of 2019. Somebody has been buying a lot of $ETH. pic.twitter.com/haWJ4JO6W0 — Alex Krüger (@krugermacro) February 18, 2020 So what is driving all the ETH bullishness? Low Price From ATH Ethereum is still at a very low level from its all-time high and can really be considered as still in a bear market until it breaks $400. At today’s prices ETH is still 80% down from its peak whereas bitcoin is less than 50% down. Even after its recent rally, Ethereum prices are still viewed as a good buy with a lot of potential to go higher. ETH 2.0 Hopium During late 2019 Ethereum was under fire from all angles for delays in pushing Serenity out and the Muir Glacier fork which extended the difficulty bomb. Developers were frustrated and investors annoyed as prices slumped as low as $120. 2020 has brought renewed optimism for the network with promises that at least the first stage of ETH 2.0 will be launched this year heralding in a new era of staking opportunities on Ethereum. Other PoS tokens such as Tezos have done extremely well recently as exchanges have offered staking rewards, making it easier for the layman to get involved and earn from crypto. Ethereum Use Cases Ethereum is no longer just the fuel for ICO war chests, it has advanced since 2017 and has so many more use cases today. A burgeoning DeFi market has reinforced the notion that ETH is the money of the internet as if becomes the foundation for this new financial landscape. There have been a few hiccups with DeFi this week but all new technology goes through teething pains so this is perfectly normal despite what the bitcoin maxis say. ETH is also being increasingly used in the crypto gaming industry and is the standard platform for non-fungible tokens. Notwithstanding the claims of rival platforms such as Tron and EOS, Ethereum is still the industry standard for smart contracts and decentralized applications. After a two year bear market, 2020 will be the year Ethereum recovers and shines again. Will ETH prices reach $400 this year? Add your predictions below. Image from Shutterstock
Bitcoin has broken back above five figures again as the short lived correction appears to have abated. Analysts have weighed in on the next move for BTC, which way will it go? Crypto markets in general have pumped over the past 24 hours adding $15 billion from intraday lows to top out at $295 billion during early trading in Asia. The next few hours will be crucial in determining whether the rally is real or the correction will resume. Bitcoin Back Over $10k BTC surged from $9,600 to top out just over $10,250 a few hours ago according to Tradingview.com. The move has added almost 7% on the day and has largely dispelled all correction fears. BTC price 1 hour chart – Tradingview.com Since then bitcoin has ranged between $10,200 and $10,100 and it has to hold this level to prevent another return south. Analysts that are leaning bullish are eyeing the $10,800 and above area as the next resistance level. $BTC Daily Chart update. So far, so good on the symmetry move. If this plays out, 10800-11000 is next area to watch.#BTC #bitcoin https://t.co/TOgVbQ95BR pic.twitter.com/3S0ognFXIC — CryptoFibonacci (@CryptoFib) February 19, 2020 A golden cross has also been talked about recently which is also a major bullish indicator for longer term trend reversal. Bitcoin has been in an uptrend for seven weeks now so that momentum could continue, especially as the halving approaches. Analyst ‘Crypto Rand’ acknowledged the fabled technical signal adding; “The last time it played out for Bitcoin, it resulted on a 213% price rise. Now it’s happening again. The target would be $28,000.” Not All Bullish On the bearish side is analyst ‘Crypto Jack’ who predicted the move to $10,200 but added that failure to post another higher high will result in a dump back to $8,500 as the correction accelerates. Reached the level overnight If my assumptions are correct, this push falls short of the recent high and 8.5K is next pic.twitter.com/u2qhci8Xj3 — //Bitcoin 𝕵ack (@BTC_JackSparrow) February 19, 2020 Trading levels today will be crucial in determining the next short term direction for BTC, and a move above $10,500 is all it needs to push higher. Elsewhere on Crypto Markets Altcoin gains have been mixed today but Ethereum has once again been ahead. The world’s second largest crypto asset has added almost 10% in a move from $260 to $285, at the time of writing ETH had corrected slightly to $280. Litecoin has made a marginal move of over 4% as it chases down $80 again while Tezos keeps cranking higher adding another 6% on the day as it hovers around its all-time high at $3.45. The rest of them are in the green but moves have been marginal as all eyes are on big brother. Other altcoins making reasonable gains over the past 24 hours include Chainlink, Huobi Token, OKB, and ICON. Will bitcoin carry on correcting or surge even higher? Add your predictions below.
Crypto exchange giant Binance is rapidly turning into the Google of the digital asset world. Its latest venture will even compete with the search giant, along with Amazon and Microsoft as it eyes the cloud. Crypto Giant Into The Clouds Binance has eaten away at its competitors over the past year securing itself over 50% of the crypto exchange market. This has had the effect of battering the market share of Bittrex, Poloniex, Bitfinex and most of its rivals. A recent Bloomberg report suggests that the company now wants to take on the tech giants as well. The report added that the Malta based firm has made its first foray into business services by lending its technology and liquidity to clients wanting to start their own exchanges. Binance announced its cloud operation to help business clients and partners set up crypto exchanges using its own technology infrastructure. This follows in the footsteps of consumer based tech monopolies such as Amazon and Google which have become some of the world’s biggest cloud service providers. CEO Changpeng Zhao has lofty ambitions for Binance Cloud to overtake the firm’s main exchange to become its biggest source of revenue in five years. He told Bloomberg; “Theoretically speaking, we can let anyone in the world create their own exchanges, and the demand is huge. Even during the crypto winter of 2018 and 2019, hundreds of new exchanges popped up every day.” Tweeting today, CZ added that the article was focused on revenue and numbers. Bloomberg is focused on revenue and numbers, which are hard to predict, but you could look at AWS and Azure… And if you ever wished to run a crypto exchange like @Binance, then…https://t.co/FEVM9h2MqU — CZ Binance (@cz_binance) February 18, 2020 Profit is clearly the end game here as a shift into enterprise-oriented businesses could help the startup unlock a more steady revenue stream. At the moment Binance makes the bulk of its billions on trading transaction fees. This has grown as the company has expanded into a number of different countries across the world offering regulated fiat on-ramps where previously there were few options. World domination is the ambition here as CZ added that Binance would favor fiat exchanges as its cloud clients. The company would target regions or communities where it has yet to build a strong foothold. The report added that Binance will announce the first fiat exchange powered by its cloud service in the coming weeks and confirmed that there were four other clients in the pipeline. CZ acknowledged the liquidity problem smaller exchanges have and added that clients would be able access the order books of all the existing trading pairs on the primary exchange. Involvement of the firm’s own BNB token was not mentioned though it was trading almost 4% higher on the day at $23.65 at the time of writing. Will Binance take over the crypto world as Google has done with the internet? Thoughts below Image from Shutterstock
Prominent crypto personality and Litecoin founder Charlie Lee recently railed on DeFi after a vulnerability was exploited on one protocol over the weekend. Here’s why he is wrong, and DeFi is here to stay. DeFi Protocol Exploited Unfortunately for decentralized finance platform bZx, their Fulcrum exchange was temporarily exploited while the team was due to present at the weekend’s ETHDenver conference. At the time of writing bZx was still have issues with flash loans and they are getting worse. We have hit the pause button on the protocol again in light of suspicious transactions using flash loans and trading on Synthetix. — bZx (@bzxHQ) February 18, 2020 Another #flashloan trade. Profit 2378 ETH = $640,000 at current prices. Quasi-instantaneous risk-free profit. https://t.co/Tj9HQ7xLsP — Alex Krüger (@krugermacro) February 18, 2020 It all began over the weekend when a trader managed to exploit a low liquidity Uniswap market in order to make one single transaction to net a profit of around $350,000. Crypto industry insider Ryan Sean Adams has delved into how this was achieved in his latest blog. In short, the DeFi pirate borrowed $2.7 million of ETH for 15 seconds from DyDx and shorted wBTC using a 5x margin on Fulcrum. wBTC, or wrapped bitcoin, is a low liquidity ERC-20 token which is backed by BTC. This enabled him to manipulate the market price on Uniswap, a decentralized on-chain protocol, to profit from the flash loan. RSA looked at the positives from this adding that ‘DeFi is leveling up’ just by the premise that such a transaction was even achievable. He added that attacks are easy on low liquidity assets such as like wBTC so having high economic bandwidth assets, such as Ethereum, is vital to reduce risk. DeFi is an embryonic environment and any new technology is going to have teething pains such as these, attacking them is completely counterproductive. Charlie Lee on The Attack The events were enough to draw the seldom seen Charlie Lee out to brand the entire industry as “the worst of both worlds”. This is why I don't believe in DeFi. It's the worst of both worlds. Most DeFi can be shut down by a centralized party, so it's just decentralization theatre. And yet no one can undo a hack or exploit unless we add more centralization. So how is this better than what we have now? https://t.co/F1HMSeqb6q — Charlie Lee [LTC] (@SatoshiLite) February 16, 2020 His concerns are over centralization, but this is a little rich from someone who sold his own stash of a crypto project he was supposed to be nurturing at its price peak, consequently eroding pretty much all confidence in it ever since. Attacking an entire ecosystem because of one exploit in one minor protocol is also a little presumptuous as one respondent pointed out. “Dismissing all of DeFi because of this is like dismissing the internet because of email spam,” Crypto Tribalism Again The rest of the thread spiraled into the crypto cesspit of toxic tribalism we’ve come to expect from highly controversial comments. The bitcoin maximalists sided with Lee while the Ethereum evangelists defended DeFi. The bottom line is that DeFi is an entire financial ecosystem made up of numerous dApps, DEXes, protocols, and crypto assets. Naturally there will be vulnerabilities in some of them as the industry is barely two years old, and programmers are thin on the ground. Crypto researcher Larry Cermak concurred. It’s DeFi exploitation season. The first exploit showed a lot of people that something like that is even possible. Now it’s go time — Larry Cermak (@lawmaster) February 18, 2020 It has a long way to go yet and is currently at a stage that the internet was when only 100,000 people had access to it. Back then nothing worked flawlessly either. Is DeFi a centralized crypto circus? Add your comments (without too much fighting) below! Image from Shutterstock
Signs during trading in today’s Asian session indicate that the correction could be over already. Ethereum is leading the charge once again, can it reach $300 this time around? Crypto markets appear to be recovering today though bitcoin has hardly moved on the day, remaining at around $9,800. Total crypto market capitalization has moved however, to the tune of $14 billion signaling another altcoin resurgence. Ethereum On The Charge According to the Tradingview.com charts, Ethereum hit a low of just below $245 yesterday which was down around 15% from its 2020 peak. Today, prices are back in bullish territory with a return to resistance at $270 over the past few hours trading. This equates to a solid 10% gain over the past 24 hours. ETH prices 1 hour chart – Tradingview.com The pullback was not enough to reach the 50 day moving average indicating that the uptrend is still very strong. ETH is currently at the support/resistance level it hit four times between May and July 2019 and $300 is the next target above here. A break to the low side would see the world’s second most popular digital asset fall back to support around the $240 area. ETH Fundamentals The conclusion of the ETHDenver event has been bullish for the asset with plenty of developments on the dApp and protocol side. Additionally co-founder Vitalik Buterin remained confident that the initial phases of Serenity will see the light sometime this year. Every week brings innovative client optimizations, larger testnets, and an ever growing community of informed stakers all eager for Beacon Chain to get underway. There has been a fair bit of DeFi FUD recently, most of which has come from Charlie Lee and bitcoin maxis. This can be seen as a testament to how rapidly the ecosystem has grown since a year ago nobody really paid much attention to it. Following recent smart contract suspensions on bZx to prevent the exploitation of flash loans, the total level locked in USD in DeFi is back up again. It is currently at $1.15 billion according to defipulse.com. Ethereum based blockchain games are also growing in popularity with one recently selling over $200,000 worth of virtual land. The Sandbox (TSB) has just announced that the second presale worth 800 ETH sold out in four hours. This highlights the demand for Ethereum for non-fungible tokens is also growing. Overall Ethereum is up over 100% since the beginning of the year and it still has a very long way to go. Will ETH prices hit $300 this week? Add your comments and predictions below. Image from Shutterstock
A little known metric called energy value has been used to predict bitcoin prices over the next five years and the results are impressive. A tenfold rise from current price levels could be on the cards for BTC. Bitcoin continued to correct over the weekend dropping to an intraday low of $9,650 during Sunday trading. The move has taken BTC down by 8% from its 2020 high which came late last week. Prices had currently recovered to $9,800 but further losses are expected as the pullback continues. Bitcoin Energy Value Prediction The longer term outlook appears extremely bright, especially if predictions based on this relatively unknown metric are considered. The oscillator takes into account the bitcoin price as a percentage of its energy value, working on the premise that raw Joules alone can be used to estimate a fair value for BTC. Digital asset manager Charles Edwards has been delving deeper into this metric, observing some major similarities with previous bitcoin market patterns. “Based on a conservative estimate of Bitcoin’s Energy Value, it is likely that $BTC will 10X within the next 5 years.” My #Bitcoin Forecast Bitcoin $100K within 5 years Based on a conservative estimate of Bitcoin’s Energy Value, it is likely that $BTC will 𝟭𝟬𝗫 within the next 5 years. A thread forecasting Bitcoin’s long-term price using Energy Value. 1/n pic.twitter.com/oNJfLDoOaq — Charles Edwards (@caprioleio) February 16, 2020 The indicator has closely tracked bitcoin prices over the past decade using two varying inputs to calculate energy value: hash rate and mining hardware efficiency. Bitcoin’s hash rate has grown exponentially over the past five years and assuming the relationship holds Edwards suggests that the growth rate will drop from around 135% per annum today to roughly 20% in 2025. He added that energy efficiency has also improved exponentially, but the annual rate of improvement has fallen from over 400% in 2015 to 50% last year. This trend is also likely to continue declining he said concluding; “Combining these estimates for HR and Efficiency, Bitcoin’s Energy Value should reach $100k by 2025.” BTC Fair Value This prediction is based upon what the model considers as ‘fair value’ but markets always fluctuate around this. So far BTC prices have been as much as 70% lower and 600% higher than its energy value so a whopping $600k could not be out of the question. He added that 6 times fair value would be excessive but two times is far more reasonable which would put BTC prices at around $200k within the next five years. A hold wave pattern shows where the money will come from as a $200k BTC would give it a market cap of roughly $3.8 trillion, assuming there are 19 million in circulation. This sounds a lot but it is only the same as the top four US tech giants combined or less than half of gold’s current market cap. Supply is dwindling with 40% of BTC locked in wallets for over two years and inflation halving in May and again in four years. It is all bullish for bitcoin regardless of short term corrections. Will BTC hit $200k in five years’ time? Add your thoughts below. Image from Shutterstock
The annual Ethereum hackathon in Denver, Colorado was concluded yesterday with a number of significant project developments and renewed optimism for the ETH 2.0 launch. DeFi Dominated Ethereum Hackathon The annual ETHDenver event came to a close last night with a series of celebrations for the winners of programming contests and renewed hopium for the next iteration of the world’s most popular smart contract and decentralized application platform. The conference, previously termed a hackathon, attracts big sponsors and developers from across the globe that compete in building projects on the Ethereum network. Leading up to the weekend event was ‘BUIDL week’ hosting workshops and tech demos and panels for the growing blockchain community. Among the usual categories for gaming dApps, IoT, smart contracts, scaling, and add-ons for popular platforms such as MetaMask, there was a large focus on DeFi this year. Decentralized finance has been the fastest growing thing in crypto last year and that momentum has continued into 2020 with a recent record high of $1.2 billion total value lockup hit over the weekend. One unfortunate outcome for one company in attendance was the exploitation of DeFi lending protocol bZx which took down its Fulcrum trading platform following a 10,000 ETH ‘flash loan’ being taken out by the attacker. Staked CEO Tim Ogilvie who works closely with bZx said; “There are big risks. It’s a new category, it’s moving fast and that means some things are going to break,” Speaking on Saturday, Vitalik Buterin also shared his views on the DeFi markets and where things are heading; “I think the DeFi applications that see the most use are the simplest ones…stablecoins, synthetic assets, decentralized exchanges,” Most wanted more clarification on the long awaited migration to ETH 2.0 and the Ethereum co-founder had a few things to say on that as well. .@VitalikButerin and @jeffjohnroberts discussing ETH 2.0 and beyond! #ETHDenver #imapegabufficorn pic.twitter.com/kec5scdXUR — ETHDenver (@EthereumDenver) February 16, 2020 Vitalik on ETH 2.0 Buterin expressed his optimism for the Serenity launch date, stating that he definitely thinks ETH 2.0 has been proceeding quite quickly and regularly in the last few months. Acknowledging that scaling solutions were long overdue he added that new options such as rollups are being implemented to facilitate growth on the network before the new blockchain can go live. “I hope that ETH2 gets released quickly…but even if it takes five years, rollups will give us some leeway until sharding goes live,” Buterin was then asked about his role and whether the project could survive without him. Due to the influx of new researchers contributing to Ethereum he was confident that it could definitely survive without his input and has been largely ‘hands-off’ for many community debates. Ethereum prices have continued to correct falling below $245 during Monday morning trading in Asia. Will ETH 2.0 see the light in 2020? Add your thoughts below.
The crypto correction that began over the weekend has accelerated into Monday morning as bitcoin slides back towards support. Altcoins, which have rallied hard recently, are in deeper pain with several dumping double digits today. Total crypto market capitalization has dumped a further $15 billion over the past 24 hours or so. The slide has taken total cap back to $280 billion, which is still 47% higher than it was at the beginning of the year. Bitcoin has failed to break $10k again and further losses are expected but how low will it fall this time? Bitcoin Slides Further Lower highs are being made on the bitcoin chart which means that the short term downtrend is accelerating. It failed to break resistance at $10k a few hours ago and has since slumped back towards $9,700 where there is support. BTC price 1 hour chart – Tradingview.com If this level does not hold BTC is expected to fall back to the $9,350 region where there is further support. If this crucial zone is broken then things could get ugly fast with a potential dump back into the low $8k region. Analysts and traders remain optimistic however with some pointing out that the correction is not even 10% yet from a climb of 46% so far this year. $BTC has risen 60+% since the first of the year and everybody is now scared of a 10% drop? Really?#BTC #bitcoin — CryptoFibonacci (@CryptoFib) February 17, 2020 Corrections are a natural part of market cycles since price does not move in a straight line. A ten percent decline from recent highs would put prices at around $9,450 and this appears to be the next place BTC is heading. Last week, US Treasury secretary Steven Mnuchin warned that ‘significant’ new bitcoin and cryptocurrency regulations are on their way, which some mainstream media outlets have converted into pure FUD. Crypto regulations would be welcome in the US which has largely procrastinated over anything to do with the industry over the past couple of years. Altcoin Avalanche Bitcoin maximalist ‘Jimmy Song’ added that he would welcome a 10-20% correction providing altcoins dumped 70% which is hardly a constructive attitude. I wouldn't mind a 10-20% dip here if it means alts crash by 70%+. The malinvestments from the last bubble don't feel finished 2+ years later. — Jimmy Song (송재준) (@jimmysong) February 17, 2020 He’s getting his wish as altseason hopes are dwindling and most are in pain today with a number of them dumping double digits. Ethereum, which has surged over twice the amount bitcoin has this year, has lost 8% on the day in a slide back to $250. Ripple’s XRP is in even more pain with an 11% dump back below $0.30 again while Bitcoin Cash has been smashed 14% sending it below $400. BSV and EOS are in similar pain shedding 13% dropping to $270 and $4.20 respectively. Others losing doubles at the moment include Cardano, Stellar, Tron, Ethereum Classic, and Dash. When bitcoin dips, altcoins dump, but we have seen it all before time and time again. How far will crypto markets fall? Add your predictions below.
Recent reports indicate that the level of household debt in the US has reached a record high of over $14 trillion. Dollar devaluation and a flawed banking system has been the catalyst but can bitcoin be the solution? Deepening Debt Crisis According to the Federal Reserve’s Quarterly Report on Household Debt and Credit, total US household debt reached a record $14.15 trillion at the end of the year. This follows an increase of $193 billion, or 1.4%, in the fourth quarter of 2019. The report noted that total household debt is now nominally $1.5 trillion higher than the pre-recession peak of $12.68 trillion in the third quarter of 2008. It has been the 22nd consecutive quarterly increase in household debt which has been led by mortgage balances. Housing balances rose $120 billion over the quarter while non-housing balances soared $79 billion in the fourth quarter to hit a record $4.2 trillion. Student loans, auto loans and credit card balances make up the bulk of this frightening statistic. Senior vice president at the New York Fed, Wilbert Van Der Klaauw, noted that the data showed that “transitions into delinquency among credit card borrowers have steadily risen since 2016, notably among younger borrowers.” Goldbug and bitcoin detractor Peter Schiff blamed a weakening economy for the increase which is contrary to what the president has been claiming about the financial state of things in the country. “If the economy really was strong households would have the added incomes to pay down their debts. Instead a weak economy has forced more families to go even deeper into debt to survive.” Banks are yet again at the center of the crisis as interest rates plunge into negative territory and the central bank continues to bail them out with its ongoing repurchase agreements. This hasn’t stopped the president Trump granting them huge tax breaks enriching the billionaire bankers at the top while the average US household is plunged deeper into debt. Bitcoin a Saviour A devaluation of the dollar, results in weaker purchasing power and a propensity to borrow more money. Plunging interest rates also discourage people from holding any savings. This happens in a society where consumerism rules and citizens are encouraged to over spend in order to keep the economy afloat and further enrich those at the top of it. It all points to one thing and that is safe haven assets such as bitcoin and gold, both of which have been rallying strongly this year as economic clouds darken. Ethereum can now also be considered a store of value as it cements its position as the foundation of an embryonic decentralized finance ecosystem. Will bitcoin and Ethereum be the answer to rising debts. Add your comments below.
Market corrections are healthy and necessary after a long period of gains. Bitcoin remains above $10k this morning but pullback potential is growing as the altcoins start to see red. Crypto markets hit a peak total capitalization of $308 billion yesterday before one swift dump resulted in an $18 billion outflow. A very slight recovery to $295 billion has followed in early Asian trading but a larger correction is now looking likely. Bitcoin Back Below $10k Bitcoin prices fell sharply in late trading on Saturday plunging to support at $9,800 according to Tradingview.com. Since then BTC has returned to five figures but only just, further losses are expected as the asset cools from several weeks of upward momentum. BTC prices 1 hour chart – Tradingview.com Trader and analyst Josh Rager has noted that there is nothing wrong with a couple of weeks of downward price action which is healthy for markets. “Many were looking for the opportunity to buy and this could present ample opportunities,” Stay encouraged with any pullbacks After multiple weeks of green, a couple weeks of downward price action would be fine Many were looking for the opportunity to buy and this could present ample opportunities — Josh Rager (@Josh_Rager) February 15, 2020 Since its 2020 peak late last week bitcoin has lost around 4.5% to current levels. The two support zones below it are at $9,750 and around $9,300 which is where it will probably head first. Buyers may not start loading up again until BTC drops into the $8k range. Others remain bullish stating that this was barely a blip and markets are still very strong. “All signs of how strong this market is and how strong $BTC & ALTS are. Anyone who says they see weakness is just seeing a mirage in their head.” ALTS barely flinched during the $BTC dump. In fact, it was barely a dump and there was barely a dip to buy. All signs of how strong this market is and how strong $BTC & ALTS are. Anyone who says they see weakness is just seeing a mirage in their head. — Satoshi Flipper (@SatoshiFlipper) February 15, 2020 As reported yesterday by Bitcoinist BTC dominance has declined to an 8 month low which means things have been very good for altcoins this year. Altcoins Correcting The altcoins are starting to accelerate losses today however, with double digit reds for a few of them. Ethereum, which has surged 120% this year is due a correction as it falls back to support at $270. Losses are relatively minor at the moment with only 3% dropped so it has not been much of a dip for ETH yet. Ripple’s XRP has shed 6% overnight while Bitcoin Cash has dumped 7% back to $450. BSV is over 10% down on the day but it is still one of the year’s top performing altcoins. Other crypto assets correcting heavily at the moment include EOS with a 9% slide, Stellar dropping 6% and Ethereum Classic retreating by 12% over the past 24 hours. The two exchange tokens HT and OKB are bucking the trend again and posting gains at the moment. A crypto market pullback is healthy as price does not move in a straight line. The test now will be how quickly can the bulls regain their composure. How far will bitcoin fall? Add your price predictions below.
Ethereum browser wallet Metamask has surpassed one million users of its Google Chrome extension. The milestone comes as ETH prices hit a seven month high. Ethereum Network Fundamentals Improving The million user milestone has come along with a spike in Ethereum transactions which have doubled from 400k to 800k in less than a month according to Trustnodes. The report added that Gas usage had also surged to their highest levels since September while transaction fees have remained low. Network fundamentals are improving elsewhere with hash rate climbing again to a two month high of 175 TH/s. The surge in network activity has been catalyzed by major momentum on markets as ETH prices pump towards $300. Since last weekend, the world’s second-largest crypto asset by market cap has made 28%. That market cap is now back over $30 billion and bitcoin dominance is falling as a result. All of this increases the usage of browser-based blockchain tools such as Metamask which essentially allows users to run Ethereum dApps right in the web browser without running a full Ethereum node. The growth of DeFi markets is also a bullish sign for Ethereum as it has become the standard monetary unit in this nascent financial landscape. Metamask can be used to tap into DeFi platforms such as Oasis or Compound to seamlessly transfer assets and set up smart contracts for earning bank-busting interest rates in a matter of minutes. The ethos is to simplify the usage of Ethereum and bring it to the masses by integrating the blockchain into the browser. In addition to Chrome there are extensions for Firefox, Opera and Brave browsers. Metamask Evolving The team behind Metamask is currently showcasing a new development called Snaps at the ETHDenver hackathon this weekend. Snaps allow developers to build plugins that can extend the functionality for Metamask. Hey @EthereumDenver! Hacking a Snap this weekend? If you let us know what you’re building, we can try to make sure that necessary plugin APIs are available.Find us on the Snap socials: https://t.co/A4yDPFbsOh We will also be at the @Consensys help desk Tomorrow from 12-1:30PM pic.twitter.com/PcnGILTXhR — MetaMask (@metamask_io) February 14, 2020 The annual event, which is running from February 14 to 16, attracts hundreds of Ethereum developers in addition to blockchain and fintech firms and the biggest names in the industry. Vitalik Buterin, ConsenSys founder Joseph Lubin, Shapeshift founder Eric Voorhees, and Ethereum Foundation researcher Vlad Zamfir will be among the speakers this weekend. It was also recently reported by Bitcoinist that energy giant BP would be adding its name to the list of sponsors for the event which could signal a growing interest in the Ethereum ecosystem. News that JPMorgan will be partnering with ConsenSys is also very bullish for ETH. How strong will the Ethereum network grow in 2020? Add your comments below. Images via Shutterstock, Twitter: @metamask_io
Bitcoin has started to consolidate just above the $10k mark but altcoins are still climbing which has pushed BTC dominance to an eight-month low. Has the alt season finally arrived? Bitcoin Dominance Down 11% Since the beginning of this year, the BTC market share has declined by almost 11%. By the end of last year it had topped 70% but today it has dropped to 62.5% according to Tradingview.com. This is the lowest it has been since early July 2019. BTC Dominance 1 year – Tradingview.com Bitcoin itself has made around 44% this year in a climb from just under $7,200 to top out at $10,500 a couple of days ago. These gains are impressive when compared to any other asset such as gold which has only managed just over 4% in the same period. However, in the world of cryptocurrencies, these gains have been eclipsed by some of the altcoins, several of which have surged by three figures since the beginning of the year. Total market capitalization itself is up over 60% since New Year’s Day as the rest of the cryptocurrencies out-perform their big brother. Total crypto market cap topped $300 billion this week which is the highest it has been since early August last year. The move has not gone unnoticed by crypto traders who are now turning bullish on altcoins as the hopium of an alt season slowly returns. #Bitcoin Dominance 3D TF- This is ageing very well. With XRP/BTC & ETH/BTC pairs both looking incredibly bullish, can see BTC DOM only continuing to fall from here, my scenario might just play out. ALTS ARE BACK BABY. pic.twitter.com/HQ5t3oWGph — ESCO₿AR (@TraderEscobar) February 15, 2020 Top Performing Altcoins Ethereum is one of the year’s top-performing crypto assets with a surge of almost 120% since January first when it was priced at a lowly $130. ETH market cap has now topped $30 billion which has clearly eaten into bitcoin’s market share. As a percentage though it is only 16% of the BTC cap so Ethereum has a long way to go yet. Ripple’s XRP token has also been trading well lately and has gained 72% since the beginning of the year, also beating bitcoin to the delight of company CEO Brad Garlinghouse. Bitcoin Cash has done even better with a surge of 136% in 2020 which is triple the gains its big brother has enjoyed. BTC’s other fork, BSV, has also been on fire with a whopping 260% pump from under $100 to current levels. Even Litecoin has almost doubled in price this year from $40 to $80 and EOS has made a similar gain of around 100%. One of the year’s, and 2019’s, top-performing crypto assets has been Tezos which has solidified its top ten positions with a surge of 160% this year to a new ATH, and 680% since the beginning of 2019. With all this in mind and the fall in bitcoin dominance, it could finally be the beginning of alt season again. Will bitcoin market share continue to fall this year? Add your comments below. Images via Shutterstock, Bitcoin Dominance chart by TradingView, Twitter: @TraderEscobar
Bitcoin has found another temporary consolidation zone in the low $10k region but Ethereum is still marching higher. One analyst has turned very bullish on ETH and can see it outperforming the bitcoin chart. Ethereum Taps Another High ETH prices have touched another new seven month high of just under $290 according to Tradingview.com. There has been no pullback yet for the world’s second most popular crypto asset as it continues to march higher. ETH prices 1 hour chart – Tradingview.com $300 is definitely on the cards now as predicted by Bitcoinist a couple of days ago. The recent move above resistance has resulted in a gain of 120% so far this year for Ethereum. It has already outperformed its big brother which has made around 45% over the same period. There is further resistance at $320 then nothing stopping it revisiting last year’s high of $360. Beyond that $400 will be the next target as this area served as strong support and resistance during the 2017 rally. Trader and popular analyst Josh Rager has been eyeing the BTC/ETH chart noting that prices have revisited an accumulation zone similar to one back in 2016. “Don’t underestimate ETH, it can run against and out-perform the Bitcoin chart” $ETH/ $BTC This chart is a beauty Accumulation zone that began back in 2016, imagine seeing the price go back down in this range and not buying or swing trading Don't underestimate ETH, it can run against and out-perform the Bitcoin chart One can use ETH to stack sats pic.twitter.com/b1BRXLXfB6 — Josh Rager (@Josh_Rager) February 14, 2020 These are BTC prices for ETH, not USD which is why the potential is much greater. Ethereum has been in the depths of its first major bear market which has lasted over two years. Once it finally breaks out of this there will be huge gains against both fiat and bitcoin. Even with the latest momentum, Ethereum is still 80% off its previous all-time high whereas BTC is less than 50% down. Ethereum therefore has a lot further to run in the short term while bitcoin may not get the momentum until the year after the halving as it has done previously. The analyst added that he would wait for a retrace before buying in and is very bullish on ETH this year which has a lot in the pipeline. Additionally, it is usually the high cap crypto assets that recover first if this is to be the beginning of an altseason. Rager mentioned that ETH can be used to stack sats but its likely use will be for collateral in DeFi markets. The amount of ETH locked up in DeFi has surged over 80% in the past seven months and this trend is set to continue which is all bullish for demand and prices. How high will Ethereum prices go in 2020? Add your predictions below.
The economic fallout from the Coronavirus is starting to be felt across the world. China’s economy has been the hardest hit but contrary to wider market movements, bitcoin mining stock is rising. Bitcoin Mining Stock Surges According to a report from local media outlet 8BTC bitcoin mining hardware giant Canaan has seen its stock prices rally in recent weeks. CAN stock rallied over 80% yesterday topping $8 according to NASDAQ as over 11 million shares traded hands. The Chinese bitcoin mining firm went public in November becoming the first of the ‘big three’ Chinese bitcoin miner makers to float on US markets. Since then performance had faltered with a plunge of over 50% since the IPO dropping prices to an all-time low of $4.31. Analysts believe that the recent resurgence has coincided with bitcoin prices topping $10,000. Miners have been scaling operations by purchasing newer hardware, possibly in anticipation of greater competition following the halving in less than three months. The report added that many miners have been phasing out their old hardware which generates higher demand for machines that deliver better hash rates and energy efficiency. Blockchain and crypto related stocks on markets in the US, Hong Kong and Mainland China, have all been performing well recently as digital asset markets continue to strengthen. According to Canaan sales director, Chen Feng, hardware prices have been rising due to increase demand due to delayed shipments. A bitcoin hash rate surge has also been expected as the outbreak comes under control, some manufacturing industries may work overtime to make up for the two week production break. Rallies in stock prices for bitcoin related companies are also expected as the halving nears and market momentum continues. Economic Slowdown The Coronavirus outbreak has disrupted Chinese economic output and Alibaba Group’s CEO Daniel Zhang has warned of a possible ‘black swan’ event that could impact the global economy. According to reports demand for goods and services have declined, and the delay of the workforce getting back to work could further hinder economic growth. The Washington Post added that the ‘financial hangover’ from the outbreak could last for months even after the virus is finally neutralized. According to Capital Economics in London the epidemic’s after effects will probably cause the global economy to shrink this quarter for the first time since the depths of the 2009 financial crisis. This is all coming at a time when central banks are scrambling to bolster their economies by flooding financial markets with newly minted money. Will bitcoin prices benefit from a global economic slowdown? Add your comments below.
Another day and another yearly high has been hit by bitcoin on its march back upwards. Analysts are eyeing the next resistance levels and it seems that BTC has a bit further to go yet. Bitcoin At Six Month High BTC has tapped a new 2020 high of just shy of $10,500 during today’s Asian trading session. Since its jump back above five figures a couple of days ago the king of crypto has continued to march slowly higher reaching prices not seen since early September last year. BTC price 1 hour chart – Tradingview.com It appears to be forming a rising wedge on the hourly chart which could signal a short term reversal. Longer term patterns are bullish however as the uptrend strengthens. So far this year bitcoin has made an impressive 45% which was enough to garner the attention of the pundits on CNBC’s ‘Fast Money’ yesterday. Analysts have been eyeing next levels of resistance and Josh Rager has found a level of around $10,750 on the monthly chart. “And $BTC could get as high as $11,400 to $11,550 before topping out IMO” $BTC $10,761 remains the resistance on the monthly chart But if we zoom in inside the monthly, we'll see horizontal resistance at $11k And $BTC could get as high as $11,400 to $11,550 before topping out IMO (VAH/VP) I'll stay in spot positions until then & likely hedge short pic.twitter.com/LjRnO01KwD — Josh Rager (@Josh_Rager) February 13, 2020 He added that horizontal clusters can be seen clearer on the daily chart which shows resistance at a similar level. $12k is also a target if BTC can break through initial resistance levels first, from there on there is very little preventing it returning to last year’s high of $13,800. Other analysts are beginning to advise caution as the number of higher candles on the daily time frame reaches critical levels. “Considering the preceded rise and the absence of decent corrections, it is wise to be cautious with long positions, IMO.” It is far from this daily candle close, but if it remains green, it would be a TD Sequential "9" – a rare thing on a daily time frame.Considering the preceded rise and the absence of decent corrections, it is wise to be cautious with long positions, IMO.$BTC $BTCUSD #bitcoin pic.twitter.com/eVPoQeP2xJ — CryptoHamster (@CryptoHamsterIO) February 13, 2020 Elsewhere on Crypto Markets Bitcoin is making slow and steady progress when compared to some of its crypto brethren. Total market capitalization has topped the $300 billion barrier and an additional $8 billion has been added over the past 24 hours or so. Ethereum is on fire with a massive 12% surge to reach resistance at $270 while Ripple’s XRP token is enjoying its best run since May last year with a pump of 16% to top out at $0.33. Litecoin has added 5% or so to top out just under $85 while Cardano has cranked 10% as ADA chases down that top ten position. Stellar is having a similar run while Tron has added 7% on the day. HBAR is the day’s top performer with an epic 50% surge in prices. The altcoin resurgence has had the effect of dumping bitcoin dominance to its lowest level since the beginning of July last year. According to Tradingview.com it is currently at just over 63%, the majority of which has been consumed by Ethereum. Will bitcoin top $11k this week? Add your price predictions below.
Ethereum has over doubled in price since the beginning of this year and yet again it is dominating crypto markets today. A new seven month high has been hit as ETH closes on $300 but what is driving it? Ethereum Price Doubles in 2020 In a move mirroring the rally of May 2019, Ethereum charts have gone vertical again. According to Tradingview.com ETH prices tapped a new seven month high of $275 during a solid Asian trading session on crypto markets. The 12% gain on the day has eclipsed any moves made by bitcoin which is still slowly grinding higher. Ethereum is now at resistance and a breakthrough is looking likely. This will take prices up to $300 pretty quickly as there is little resistance on this path. ETH prices 3 months – Tradingview.com The last time ETH moved so fast was in May last year when prices surged from $150 to $260 in a week or so. This month alone has seen prices surge over 50% and the asset has more than doubled since the beginning of the year. Yesterday’s news that JPMorgan will be partnering with Ethereum blockchain company ConsenSys has clearly been bullish for the asset as it outperforms the rest of the markets by a big margin. Crypto analyst ‘dave the wave’ has been looking at retracement levels for a possible buy in area before another sustained move higher. He has also noted the possibility that ETH could hit last year’s high of around $350 before it pulls back. Freebie from my alts page [fee based]. Possible outlook on ETH… Look to buy the retracement to the mean/ cyclical curve. pic.twitter.com/DT6xgYKXjK — dave the wave (@davthewave) February 12, 2020 ETH Fundamentals Aside from the JPM announcement yesterday, DeFi markets could be driving Ethereum momentum. Banks are in dire straits and interest rates are turning negative which is forcing tech savvy investors to look elsewhere. Dai Savings Rates and other DeFi options can offer rates hundreds of times better than banks with relatively little risk involved. Following a two year bear market Ethereum prices had reached a critically oversold level, wallowing below what they were in mid-2017. Weak hands have been shaken out and ICO war chests liquidated making ETH a very good buy at these prices. Consequently a rally initiates and prices begin to surge, first breaking the $200 psychological barrier and then looking towards $300. The next big barrier for ETH prices is $400 as this level has served as strong support/resistance during previous market cycles. Proof of Stake is still a long way off for the platform but that too will drive prices even higher as it enables more ways to make money from this new decentralized financial ecosystem. Will Ethereum prices hit $400 this year? Add your predictions below.