Analysts Flip Bullish as Binance’s Bitcoin Funding Rate Flips Negative

Bitcoin has undergone a strong drop since the highs seen yesterday. The price of the leading cryptocurrency fell from its highs of $13,850 to lows around $12,900.

This drop was seemingly a result of the drop in the U.S. stock market. The Dow Jones and the S&P 500 have dropped the largest they have in months, plunging 3% lower amid some uncertainty about fiscal stimulus and the upcoming election.

Bitcoin’s price action has scared some investors, so much so that futures markets have begun to show short positioning. This may be more bullish than bearish, though, despite how contrary that may seem.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Primed to Rally as Binance Futures Go Negative

Bitcoin’s strong drop lower has scared many investors that were previously exuberant. According to data from ByBt, which tracks crypto-asset derivatives markets, the BTC funding rate on Binance briefly breached negative territory, printing -0.013%/eight hours.

One crypto-asset analyst thinks that this negative print is a “pretty big deal.” Commenting on the matter, he shared the image seen below and said:

“Binance funding being negative is a pretty big deal. Just sayin. A bunch of plebs are gonna get their lunch money taken away soon.”

The funding rate is the recurring fee that long positions pay short positions on a regular basis to normalize the price of the future to the price of the spot market. This funding rate indicates which side of the market is more agressive; if the funding rate is positive, it suggests that there are more agressive longs than shorts, and vice-versa.

Binance’s funding rate turning negative is notable as the funding rate on the exchange is often at a neutral or positive level.

Image

Chart of BTC's funding rates across the board over the past day with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter).
Source: Bybt, a derivatives tracker.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Crucial Technical Trends Still Bullish

Analysts remain bullish, citing a number of technical analysis trends. NewsBTC’s Tony Spilotro shared this chart below earlier today.

it shows that Bitcoin is in the midst of a macro RSI breakout. As the chart shows, each time the RSI looked as it does now, the cryptocurrency surged dramatically higher.

Fourteen RSI breakouts resulted in 239% climb on average | Source: BTCUSD on TradingView.com

The cryptocurrency was rejected at $13,800 as aforementioned. However, this RSI analysis suggests that Bitcoin has room to rally in the days and weeks ahead once bulls regain some footing.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Analysts Flip Bullish as Binance's Bitcoin Funding Rate Flips Negative

Analysts Flip Bullish as Binance’s Bitcoin Funding Rate Flips Negative

Bitcoin has undergone a strong drop since the highs seen yesterday. The price of the leading cryptocurrency fell from its highs of $13,850 to lows around $12,900.

This drop was seemingly a result of the drop in the U.S. stock market. The Dow Jones and the S&P 500 have dropped the largest they have in months, plunging 3% lower amid some uncertainty about fiscal stimulus and the upcoming election.

Bitcoin’s price action has scared some investors, so much so that futures markets have begun to show short positioning. This may be more bullish than bearish, though, despite how contrary that may seem.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Primed to Rally as Binance Futures Go Negative

Bitcoin’s strong drop lower has scared many investors that were previously exuberant. According to data from ByBt, which tracks crypto-asset derivatives markets, the BTC funding rate on Binance briefly breached negative territory, printing -0.013%/eight hours.

One crypto-asset analyst thinks that this negative print is a “pretty big deal.” Commenting on the matter, he shared the image seen below and said:

“Binance funding being negative is a pretty big deal. Just sayin. A bunch of plebs are gonna get their lunch money taken away soon.”

The funding rate is the recurring fee that long positions pay short positions on a regular basis to normalize the price of the future to the price of the spot market. This funding rate indicates which side of the market is more agressive; if the funding rate is positive, it suggests that there are more agressive longs than shorts, and vice-versa.

Binance’s funding rate turning negative is notable as the funding rate on the exchange is often at a neutral or positive level.

Image

Chart of BTC's funding rates across the board over the past day with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter).
Source: Bybt, a derivatives tracker.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Crucial Technical Trends Still Bullish

Analysts remain bullish, citing a number of technical analysis trends. NewsBTC’s Tony Spilotro shared this chart below earlier today.

it shows that Bitcoin is in the midst of a macro RSI breakout. As the chart shows, each time the RSI looked as it does now, the cryptocurrency surged dramatically higher.

Fourteen RSI breakouts resulted in 239% climb on average | Source: BTCUSD on TradingView.com

The cryptocurrency was rejected at $13,800 as aforementioned. However, this RSI analysis suggests that Bitcoin has room to rally in the days and weeks ahead once bulls regain some footing.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Analysts Flip Bullish as Binance's Bitcoin Funding Rate Flips Negative

Yearn.finance (YFI) now back at price parity with Bitcoin after spiking to $44k

Shortly after Yearn.finance’s YFI coin launched in July, changing the Ethereum DeFi world forever, the pseudonymous Crypto Twitter personality “Blue Kirby” began to popularize the “1 YFI = 1 BTC” meme. The theory was that the price of one YFI would hit the price of Bitcoin, then around $11,000.

After weeks of upward price action, the cryptocurrency finally achieved this milestone, leading to celebrations on Twitter and a custom website that trounced on the graves of “Bitcoin Boomers.”

For a while, these investors were euphoric. YFI shot as higher as $44,000 by the end of August in a spectacular rally that generated wealth for the early adopters that mined the coin for basically no upfront cost.

That means that at its peak, one YFI was worth around 3.6-3.8 BTC, making it the first altcoin to have reached such a high ticket price. Of course, its market cap was far from Bitcoin’s, but this was seen as an accomplishment nonetheless.

Unfortunately for YFI holders, CryptoSlate market data now shows that one YFI now equals one BTC once again. In fact, as of now, YFI, trading at $13,000, is now worth around 0.93 BTC — a far cry from the all-time highs set a few weeks ago.

Why YFI is down so far from its all-time highs

Sam Bankman-Fried, CEO of crypto trading platform FTX and fund/market maker Alameda Research, has explained that there are three key reasons why YFI has seen such a strong correction from its $44,000 all-time high:

  • The rest of the DeFi market has undergone a strong correction, resulting in steep corrections in most players.
  • Yearn.finance had a number of “bad PR events,” including some controversy over a side project called Eminence and a series of bugs in the protocol’s core products, called vaults.
  • Yield farming yields have dropped dramatically. This hurts YFI especially because much of the token’s intrinsic value is derived from acting as a claim of a portion of the yields generated by the protocol.

It’s worth noting that a good majority of altcoins, save for some names like Litecoin and Polkadot, are strongly underperforming Bitcoin amid this surge higher. YFI, of course, fits into this pack.

Su Zhu, head of Three Arrows Capital, attributed this price trend to the rapid nature of Bitcoin’s ongoing rally, which is forcing capital and attention on BTC:

$BTC going up swiftly is not only not bullish for alts but it’s bearish reasons for this are myriad but boil down to the fact that money is a coordination game and Bitcoin is the Schelling point; this is independent of how you feel about it, community is literally irrelevant.” 

The revival of Yearn.finance

Not all hope is lost for YFI, though, analysts say.

Andrew Kang, founder of Mechanism Capital, recently noted that much is on deck for Yearn.finance in the months ahead that should boost yields, driving capital to YFI holders:

“The argument that YFI / Yearn value is dependant on crazy yields is missing the forest for the trees. Yield opportunities continue to grow Future strategies: – 10x-100x leveraged short DAI – Basis/Funding trades – UNI Farming – BAL Farming – L1/L2 Liquidity Bridging – etc.”

This is already starting to take place as Yearn.finance developers roll out new vaults such as the 3pool LP vault and the gUSD vault.

The post Yearn.finance (YFI) now back at price parity with Bitcoin after spiking to $44k appeared first on CryptoSlate.

Top Analyst Explains Why Ethereum Could Outperform Bitcoin This Cycle

Ethereum has strongly underperformed Bitcoin over the past two weeks. As BTC has shot around 20% higher in the past 10 days alone, ETH has gained approximately 8%.

This trend is not isolated: almost all leading altcoins are underperforming Bitcoin. The severity of BTC’s spike to the upside has compressed gains in altcoins as all focus and capital is focused on Bitcoin.

While some think this will be a fixture of this cycle, a prominent crypto-asset analyst recently made the case for why Ethereum may outperform Bitcoin all this cycle.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

How Ethereum Could Underperform BTC This Cycle

Qiao Wang, a prominent crypto-asset analyst, recently explained why there may be some credence to the sentiment that Ethereum will outperform Bitcoin this cycle:

“The pro-BTC argument goes: it took years for institutions to finally get onboard with the “digital gold” narrative. There’s no way they’ll get comfortable with ETH in this cycle. What this argument misses is that there’s also a significant % of the population who don’t get the “digital gold” narrative, but are more comfortable with the “tech platform” narrative that ETH represents.”

He elaborated that from the standpoint of technology investors, Ethereum remains the best “index” bet in the cryptocurrency space. On the other hand, Bitcoin may be seen as a myopic bet on a digital store of value.

Wang did note, though, that he remains more bullish on Bitcoin. He is seemingly assigning a slightly higher probability to the scenario where BTC outperforms ETH this cycle than the other way around.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Don’t Fully Count Ethereum Out

While ETH has the potential to underperform BTC, that’s not to say that it will drop against the dollar. There is a lot going for Ethereum in the months and years ahead.

For one, it’s slowly become an institutional asset with institutional investors starting to dip their toes in the space.

Head of DTC Capital Spencer Noon noted earlier this year that institutions he talks to about DeFi are starting to allocate to Ethereum where they can. This comes as institutional service providers, such as Fidelity Investments, are expected to bolster their involvement in Ethereum.

Also, U.S. CFTC Chairman Heath Tarbert said he is genuinely impressed with the innovation taking place in the Ethereum ecosystem. He added that if Bitcoin could be likened to the technology of email, Ethereum is more like the Internet.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Top Analyst Explains Why Ethereum Could Outperform Bitcoin This Cycle

It’s “Thin Air” For Bitcoin If Price Crosses $14,000 on a Macro Basis

Bitcoin has undergone another massive leg higher over the past day. After bottoming at $12,800 yesterday, the cryptocurrency has surged higher towards $13,800. The coin currently trades for $13,700 as it attempts to stabilize after the daily candle close.

Analysts are getting ready for fireworks as Bitcoin nears the pivotal $14,000 resistance level. $14,000 has long been an important level for Bitcoin, marking the highs almost perfectly during 2019’s surge to the upside in the summer.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Expected to Enter “Thin Air” if Price Crosses $14,000

Bitcoin is expected to enter “thin air” if the coin can cross $14,000 on a weekly or monthly basis, analysts say. One crypto-asset analyst shared the chart below amid BTC’s latest thrust higher, noting that the cryptocurrency breaking that resistance could spark an even greater rally:

“The 2018 (start of the bear market) yearly open. This is it. This is the last “resistance”. Above this level, it’s thin air.”

The leading cryptocurrency is expected to move toward that range in the coming days as it holds the high-$13,000s.

Other analysts that have accentuated the importance of $14,000 include Raoul Pal, the CEO of Real Vision and a former head of hedge fund sales at Goldman Sachs.

Pal believes that once Bitcoin passes $14,000, the only macro resistance that it will face is at $20,000. But arguably, $14,000 is even more important than $20,000 due to the amount of volume around this level.

Image

Source: BTCUSD from TradingView.com. Chart of BTC's price action since the start of 2017 with analysis by crypto trader Byzantine General (@Byzgeneral on Twitter).
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Funding Rates Go Negative, Increasing Chances of Short Squeeze

The chances are increasing that Bitcoin spikes from here.

Crypto-asset derivatives tracking site ByBt reports that the predicted funding rates of leading Bitcoin futures markets are currently entering negative territory. The funding rate is the fee that long positions pay short positions every eight hours to keep the price of the future close to the price of the spot market.

Negative funding rates suggest that shorts are more aggressive than longs. Negative funding rates in uptrends suggests there are traders expecting prices to drop, but this can result in short squeezes if the price inches high enough to trigger a series of stop losses.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Title

Market data indicates OKEx whales are expecting Bitcoin to spike past $14k

Bitcoin is spiking higher once again as buyers continue to rush in.

According to CryptoSlate market data, the price of Bitcoin currently trades for $13,680, its highest price this year, and a price just shy of 2019’s high at $14,000.

Chart of BTC’s price action over the past two weeks. Source: BTCUSD from TradingView.com

Analysts are optimistic that Bitcoin will continue its rapid ascent in the near future due to underlying market trends that are forming. For one, a leading crypto-asset analyst noted that order books show there is little limit order resistance past $14,000.

Bitcoin could soon spike past $14,000, order book data shows

$14,000 has long been a pivotal level for Bitcoin.  In 2019, Bitcoin topped at that level almost perfectly, resulting in a rapid 20-25 percent correction in the days that followed. And in December 2017, the December chart candle and the 2017 chart candle closed at $14,000.

As a result of this precedent, analysts expect Bitcoin to have difficulty in breaching $14,000 once it reaches that price level.

But according to the pseudonymous trader “Light,” OKEx order book data shows that investors are pulling their “asks” as investors price in a rapid rally:

“OKEx futures orderbook asks being pulled/executed at market in last few days as BTC consolidates. A move above $14k in near term is increasing in probability.”

Bitcoin BTC

OKEx’s order book is seen as important by many traders as that is where many whales in Asia trade their stacks. Some analysts say that OKEx has the most important order book in the Bitcoin market, or at least only second to Bitfinex.

It is unclear how the exchange’s freezing of withdrawals is affecting the psychology of traders on the platform. Still, OKEx has asserted that all user funds are safe and will eventually be returned after a proper solution is implemented.

A notable breakout

Analysts believe that Bitcoin breaking above $14,000 will result in a strong shift in the crypto market structure.

As reported by CryptoSlate, Qiao Wang, the head of product at Messari and a noted crypto analyst, said that Bitcoin breaking $14,000 will bring a new “regime” of price action:

“Once BTC breaks $14k, we’ll likely be in a different regime in terms of volatility, momentum, retail participation, and so on. A lot of things that worked last few months may no longer work and vice versa. $20k will take this regime to a whole new level. Just a hunch. We’ll see.”

To expand on this further, market data indicates that there is little Bitcoin futures volume that has been traded above $14,000.

Bitcoin price

As a result, some have suggested the coin will enter “price discovery,” where there will be immense volatility as the market tries to correctly price Bitcoin with little historical data to trade off of.

The post Market data indicates OKEx whales are expecting Bitcoin to spike past $14k appeared first on CryptoSlate.

Bitcoin Explodes to $13,600 as Buyers Continue to Rush In

Bitcoin is once again surging higher despite fears the coin was reaching a trend peak. Two hours ago, the cryptocurrency began its latest leg higher, pushing as high as $13,650 on leading digital asset exchanges. In the past 24 hours, BTC is up 5%, having found a short-term bottom in the $12,800 range after yesterday’s stock market retracement.

Analysts are mixed about what comes next for the leading cryptocurrency.

While many are certain that Bitcoin remains in a long-term bull trend, there are signs indicating a short-term retracement is possible.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Hits $13,600 Amid Continued Surge

Bitcoin has thrust to $13,600 on an influx of buying volume. This brings the cryptocurrency to a new year-to-date high and just shy of the two-year highs at $13,950.

Chart of BTC's price action over the past 16 hours. Source: BTCUSD from TradingView.com
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

ByBt, a derivatives tracker, reports that the futures market is hesitant to long this move.

The funding rates of leading Bitcoin perpetual markets are currently in the neutral to slightly positive range. The funding rate is the fee that long positions pay short positions three times a day to ensure that the price of the future stays close to the price of the spot asset/index.

This neutral funding indicates that neither long nor shorts are overleveraged. This could be bullish for Bitcoin as it indicates this rally may have some sense of sustainability behind it.

Technicals indicate that a retracement or at least a consolidation is possible, though. An analyst shared the chart below recently, noting that Bitcoin’s two-day Tom Demark Sequential is currently on a “sell 9” candle. This suggests that the cryptocurrency is likely to top out in the near term.

Image

Chart of BTC's price action since the start of 2019 with an analysis of the stochastic RSI and the Tom Demark Sequential from crypto trader CryptoISO. 
Source: BTCUSD from TradingView.com
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Photo by Lisha Riabinina on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Explodes to $13,600 as Buyers Continue to Rush In

Newfangled Ethereum DeFi coin surges 600% in 24 hours after listing

Despite the stagnation in the altcoin market, evidenced by Bitcoin outperforming Ethereum in its latest leg higher, investors are still throwing millions at new investments.

This much was made clear when BarnBridge’s native token BOND launched. The coin proceeded to rally exponentially despite only a small float of the coin being released due to vesting schedules.

BarnBridge is a new DeFi protocol focused on securitizing the space to entice more institutional players by reducing risks, or at least by allowing investors to hedge certain risks that weren’t possible to hedge for previously.

The startup closed a $1 million seed round in September and now counts Fourth Revolution Capital, ParaFi, Synthetix founder Kain Warwick, and Aave founder Stani Kulechov as investors.

BarnBridge’s BOND token surges 600% in wake of listing

One of the most-hyped DeFi projects of the past week has been BarnBridge. As CryptoSlate previously reported, investors put in $175 million worth of USD Coin, DAI, and sUSD into the BarnBridge pool to farm BOND. Now, there is over $300 million in that one pool, potentially making this the biggest Ethereum DeFi yield farming pool (a single pool, not a protocol) ever.

At long last, BarnBridge’s native token BOND finally launched on Sunday due to the protocol’s unique distribution mechanism.

Trading began around $30-40, which meant that the seed round investors were already up 3,000 percent to 4,000 percent on their investment if they sold. Despite this, BOND kept on shooting higher.

From its starting price of around $30, the coin shot to all-time highs of $180 under 24 hours after it launched.

At $180, the fully diluted market capitalization of BOND was close to $2 billion, meaning that investors were seemingly pricing in high long-term expectations for the Ethereum-based coin and project.

This price may be a temporary illusion, though. Bobby Ong — co-founder of CoinGecko, a crypto data and venture firm — noted that the way the tokenomics work is leading to temporarily inflated prices:

“Only allowing farmers to harvest their proceeds at the end of each week (Monday, 8am GMT+8) has created very low circulation in the market during this first week and no efficient price discovery resulting in very low sell pressure causing price to move upwards.

In my opinion, supply in the market could have been smoothed out if the team had allowed for per block harvesting after Week 1 instead of allowing only harvesting at the end of each week.”

As Ong explains well, BarnBridge is a unique yield farm in that it releases coins on a weekly basis as opposed to a per-block basis.

This creates a natural step-like trend in the price action that may result in temporary price floors and ceilings.

Underlying DeFi fundamentals strong

Even if BOND does not catch your fancy, the amount of capital that is entering this new market indicates that the fundamentals of the DeFi space remain strong. Or, at the very least, this shows that investors see a positive long-term future for this crypto market segment.

As Spencer Noon, head of DTC Capital, recently observed:

The post Newfangled Ethereum DeFi coin surges 600% in 24 hours after listing appeared first on CryptoSlate.

Bitcoin Forms Sell Signal That Was Seen Near 2019 Highs of $14,000

Bitcoin has surged massively higher over the past 10 days since bottoming on the OKEx news. The price of the leading cryptocurrency currently is $13,050, far above the lows of $11,200 that were triggered on the OKEx news.

Despite the coin holding $13,000, analysts fear that a strong retracement is in the works. A number of analysts have noted that a number of indicators suggest BTC is overbought on a near term time frame.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Forms Pivotal Sell Signal

Bitcoin is forming a pivotal sell signal that has marked the highs of BTC rallies on multiple occasions.

One crypto-asset analyst shared the chart below, noting that the two-day Tom Demark Sequential has printed a “sell 9” candle. Such candles were seen in the summer, once before the July consolidation, in February, on the days of the highs in 2019. This, coupled with the Stochastic RSI reaching an overbought region, suggests a correction is imminent.

Image

Chart of BTC's price action since the start of 2019 with an analysis of the stochastic RSI and the Tom Demark Sequential from crypto trader CryptoISO. 
Source: BTCUSD from TradingView.com

The expectations of a correction have been echoed by analyst Cole Garner. His custom indicator shows that the cryptocurrency is also likely overbought in the near term, and thus will face a short-term correction in the days ahead.

Image

Chart of BTC's price action over the past few months with an analysis of a custom indicator and its effect on price action. Chart from Cole Garner. 
Source: BTCUSD from TradingView.com
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

JPMorgan Also Bearish in the Near Term

JPMorgan analysts are also bearish on Bitcoin in the near term.

The Wall Street giant recently released a three-page report on the crypto market in its regular global macro strategy research note.

The analysts at the firm noted that Bitcoin is currently overbought as per the CME futures positioning indicator, which tracks the derivatives market to see the positioning of traders. The indicator is purportedly at a new year-to-date high, suggesting that Bitcoin will undergo a retracement in the days and weeks ahead.

JPMorgan analysts noted that the last time the indicator was remotely this high was in the summer, prior to the ~25% drop that took the coin to $9,800 from $12,500.

The firm also noted last week that BTC may be intrinsically overvalued. They argued that Bitcoin’s intrinsic valuation may be derived from the mining cost of production.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Forms Sell Signal Last Seen Near 2019 Highs of $14,000

Analyst says retail investors entering Bitcoin market will push prices to $20k

Analysts have argued that much of Bitcoin’s recent upward price action is a byproduct of institutional players entering the fray. Open interest in the CME’s Bitcoin futures market, along with on-chain trends, suggests that a number of large players are the ones accumulating the coins, driving prices higher.

An analyst says that once retail investors begin to enter the crypto market en-masse, BTC will likely pass $20,000, triggering price discovery.

Who’s causing Bitcoin’s price to spike higher?

“Light,” a pseudonymous crypto trader celebrated by investors like Three Arrows Capital’s Su Zhu, says that from his analysis, the buying pressure that has influenced the Bitcoin price over recent weeks has clearly been from “institutionals”:

“A lot of the buy pressure that is competing for tightening BTC sell-side liquidity these last weeks is coming from institutionals. They are buying from people who are in the disbelief stage.”

Multiple news events indicate this is the case.

In August and September, business services company MicroStrategy purchased $425 million worth of BTC for long-term holding, citing the cryptocurrency’s ability to hedge macroeconomic risks. This was followed by news that Square, the $80 billion fintech giant, had acquired $50 million worth of Bitcoin for a similar purpose to MicroStrategy.

On top of all that, a $10 billion asset manager announced that it had purchased 10,000 Bitcoin while Grayscale Investments, Digital Currency Group‘s digital asset manager arm, revealed it absorbed $1 billion worth of cryptocurrency over quarter three.

There are also on-chain trends such as miners’ reserve balances and miners’ coins sent to exchanges decreasing in tandem that suggest there are forces accumulating Bitcoin over the counter.

The retail influence to send BTC past $20,000

Light believes that once retail investors begin investing in Bitcoin, the cryptocurrency will be “in price discovery over $20,000”:

“The retail segment is not overheated whatsoever currently. It will be soon though… Price is leading public interest. This is a telltale sign of smart money entering while retail has their heads buried in the sand. Once the latter catches up to the former, we’ll be in price discovery over $20,000.”

Image
Chart from Light. Source: BTCUSD from TradingView.com

That raises the question of what will trigger the retail buying demand that he is expecting.

According to JPMorgan, which released a crypto market report last Friday, the news that PayPal is supporting Bitcoin, Ethereum, and other digital assets is a good place to start.

The firm’s analysts wrote that this support by PayPal may entice more millennials to invest in the cryptocurrency, arguing that it acts as a better hedge against currency devaluation than gold for millennial investors.

The post Analyst says retail investors entering Bitcoin market will push prices to $20k appeared first on CryptoSlate.

Top Yearn.finance Farmer Sends $1.4m Worth of YFI to Binance

Yearn.finance (YFI) has been one of the hardest-hit crypto-assets over the past few weeks and months. From its all-time high of $44,000, the coin has declined to $14,000 as of this article’s writing. The coin remains one of the leading DeFi assets, touting a market capitalization of just under $500 million.

Some fear the asset could decline even further after an early adopter of the protocol sent a large sum of YFI to exchanges. It is unclear what this individual will do with these funds, though some assume they will be sold for stablecoins or another cryptocurrency like Ethereum or Bitcoin.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Yearn.finance Farmer Sends Large Sum to Exchanges

As noted by crypto analyst “Hsaka,” a pseudonymous individual that farmed the most YFI just sent 100 coins, worth around $1,400,000, from their wallets to Binance.

Some think this unnamed individual may proceed to dump YFI on the market, causing the asset to slide further than it already has.

Of note, this isn’t the first time this individual has done so: another address connected to the main address systematically collected, then sent hundreds of YFI over the past two to three months to Binance.

Coins can also be sent to exchanges for other purposes, though. For one, if contracted by an exchange, a user with a large sum of a single coin can make a market, enabling users of the exchange to trade in and out of the asset with minimal slippage.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Technicals Getting Back on Track

Despite the potential for a YFI drop as a result of the 100 coin sell-off, the altcoin’s technicals are getting back on track.  One crypto-asset analyst shared the chart below, showing that the native Yearn.finance coin is expected to shoot dozens of percent higher if it manages to breach a notable resistance:

“Break through the top of this immediate resistance and we could easily see it stretch it’s wings again.”

Yearn.finance YFI

Image Courtesy of Cold Blooded Shiller. Source: YFIUSD on TradingView.

There are other trends indicating that the coin is expected to move higher as technical and fundamentals align.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Top Yearn.finance (YFI) Farmer Sends $1,400,000 Worth of the Coin to Binance

3 critical points from JP Morgan’s bullish Bitcoin report

On Friday, Wall Street bank JPMorgan released a report covering the latest trends in Bitcoin and cryptocurrency extensively.

The report shocked much of Crypto Twitter as years prior, the firm’s chief executive seemed to have a distaste for cryptocurrencies. This has changed as Bitcoin and similar technologies have proven their legitimacy, with firms like Fidelity Investments and PayPal and investors such as Paul Tudor Jones and Raoul Pal entering the mix.

Here are three key takeaways from the report from JPMorgan.

#1: Bitcoin overbought in the near term

The first takeaway is that the JPMorgan analysts, who work as a part of the Global Markets Strategy desk, believe BTC may be overbought on a near term basis. They cited their futures indicator, which tracks open interest in the CME‘s BTC market to determine potential market trends:

“To infer positioning in bitcoin futures, we use our open interest position proxy methodology, where we look at the cumulative weekly absolute changes in the open interest multiplied by the sign of the futures price change every week.”

That indicator just hit a “new high for the year as the bitcoin price breached $13,000,” suggesting that the coin is overbought. The last time the indicator was near these highs was in the summer, shortly before the market cooled off with a 20 percent drop to $9,800.

#2: PayPal’s support of cryptocurrency is a “big step” forward

JPMorgan analysts see the news of PayPal supporting the purchases and sales of cryptocurrency, along with digital asset payments, as a crucial step forward in the corporate adoption narrative. That’s to say, other corporations, whether that is banks or technology companies, may feel enticed to invest in Bitcoin from here.

Michael Novogratz, CEO of Galaxy Digital and a former Goldman Sachs partner, touched on this narrative in a recent interview with CNBC.

Novogratz specifically highlighted how Bitcoin, Ethereum, and fintech companies like PayPal and Square have surged massively on the year. All the while banks and other “traditional” institutions have slipped.

This divergence will force the underperformers to look at the outperformers, like tech and crypto, and ask how they can get involved.

JPMorgan specifically highlights the millennial user base that PayPal touts. It is argued that millennials are more likely to adopt digital assets because they grew up using digital assets, whether that was items in a video game or PayPal itself.

#3: Bitcoin has the potential to begin to encroach on gold in the long run

Finally, the analysts think that Bitcoin could begin to “crowd out” gold over time, driving prices dramatically higher.

Again, they specifically pointed to the rising millennial graphic, noting that they will likely prefer Bitcoin as an alternative currency over gold.

JPMorgan thinks that this shift in demographics may allow BTC to begin to “crowd out” gold, driving the price multiples higher than it is now.

The post 3 critical points from JP Morgan’s bullish Bitcoin report appeared first on CryptoSlate.

The anatomy of a $25m DeFi hack on Ethereum

The decentralized finance (DeFi) space has once again come under the spotlight after another hack or exploit took place. This time, approximately $25 million worth of Ethereum-based stablecoins were stolen.

While this is not the largest hack in crypto history, this has already been branded as notable as the project that was exploited was Harvest Finance. The yield-earning platform had garnered much attention over recent weeks after a number of notable DeFi investors began to mention and use the platform. Some branded it a “Yearn.finance” competitor, comparing the two platforms to some extent.

How $25m worth of Ethereum-based stablecoins were stolen from Harvest

Late on the evening of Oct. 25, Ethereum users began to notice large transactions taking place on-chain that involved a number of crucial DeFi applications: Uniswap, Curve, and Harvest Finance.

With the sheer number of these transactions taking place, it became clear that something was amok.

Analysts quickly highlighted that the attacker was likely completing some sort of arbitrage attack, where they utilized flash loans to systematically drain funds from Harvest due to inefficiencies between protocols.

A flash loan is a DeFi-native concept where a user can borrow a massive amount of capital (often stablecoins) in a single transaction without putting up collateral, then ensure they return the funds (plus an additional fee) at the end of that transaction.

One suspicious transaction is highlighted in the image below:

In all, $25 million worth of stablecoins were stolen from the Harvest Finance pools through multiple of these transactions. The stablecoins have since been converted to RenBTC, which in turn were redeemed for BTC. The attacker’s Bitcoin wallet has yet to be identified.

$2.5 million was returned to the Harvest Finance admin for an unknown reason. The latter sum will be returned to users on a pro-rata basis.

There is some fallout in the DeFi space online. There were some rooting for Harvest because they were the first fully anonymous DeFi team to have built a DeFi application at that scale. There are some that are bashing the concepts of anonymous teams, though, arguing it is likely that this was an inside job.

There are also some unexpected winners from this.

Analysts shared information online indicating that because this hack involved Curve and Uniswap, those that were providing liquidity to the pools profited handsomely from the exploit, even if they didn’t endorse what was going on.

Uniswap liquidity providers made around $6,000,000 while Curve liquidity providers made $1,000,000, it has been estimated.

Far from the first flash loan attack

This is far from the first flash loan-based attack on a DeFi application.

As many may remember, Yearn.finance founder Andre Cronje released test contracts for an on-chain gaming experience called Eminence Finance. While the contracts were clearly an experiment, users piled in $15 million worth of DAI.

The funds were stolen from the contract by someone who used a flash loan to drain the funds from the pool due to an exploit in how the contracts’ coins were distributed.

Other DeFi attacks have also leveraged flash loans to rapidly arbitrage out inefficiencies between DeFi protocols, enabling funds to be stolen or at least transferred from those without knowledge of the arbitrage to those with knowledge of it.

It could be argued that these are not “exploits” per se but just natural inefficiencies in the DeFi market.

The post The anatomy of a $25m DeFi hack on Ethereum appeared first on CryptoSlate.

Ethereum hit a $46b valuation with 1 value accrual mechanism. Wait until there are three

Ethereum is by far the largest cryptocurrency behind Bitcoin. The asset has a market capitalization of $46 billion, which makes it around the size of a medium-cap company in the S&P 500.

Although impressive, analysts say that Ethereum could rally exponentially higher, likely towards its previous all-time highs, once it gains two more value accrual mechanisms.

The first value accrual mechanism, which is ETH acting as a store of value, is arguably already in place as millions of coins have been locked as collateral in DeFi contracts.

The two other value accrual mechanisms, Ethereum Improvement Proposal 1559 (EIP-1559) and ETH 2.0 staking, have yet to arrive.

The importance of EIP-1559

The first value accrual pillar on the chopping block is EIP-1559.

EIP-1559 is a technical improvement that suggests that the current transaction model of the blockchain is currently “inefficient and needlessly costly to users.”

To solve the inefficiencies caused by this system, the authors of EIP-1559 propose a flat rate for all Ethereum transactions:

“The purpose of EIP 1559, according to Eric Conner, is to provide wallets and users a much needed improvement to the user-experience of gas management. The way that EIP 1559 solves the gas-management problem also improves Ethereum’s monetary management system.”

EIP-1559 also has the crucial ability to burn a small amount of ETH after every transaction is sent. That’s to say, the more transactions are sent, the more ETH is destroyed forever.

Estimates suggest that if the upgrade as implemented over the past year, nearly one million Ethereum, valued at over $400 million, would have burned.

This upgrade has the potential to make Ethereum deflationary, whereas the number of ETH burnt each year will actually outpace the number of coins mined or produced, resulting in a deflationary asset. Assuming demand stays consistent, prices should start to surge higher as the amount of Ethereum in the market, the supply, has trouble meeting demand.

Ethereum 2.0 to play a longer-term role

The second value accrual pillar in the works is the Ethereum 2.0 (a.k.a. ETH2 or Serenity) upgrade.

Along with improving the Ethereum user experience, ETH2 will also activate what is known as Proof of Stake. Staking, where users put up ETH as collateral to process transactions, will replace mining.

Estimates suggest that stakers will be able to earn around 5-12 percent a year on deposits of ETH.

Analysts believe that the ability to earn yield natively on Ethereum within the protocol will drive prices higher as ETH gains a staking premium.

Adam Cochran, a professor of information science at Conestoga College and a member of the DuckDuckGo team, has suggested that the introduction of Ethereum staking will create the “biggest economic shift” the crypto industry has ever seen. He believes that the introduction of safe yields to Ethereum will drive prices dramatically higher as both retail investors and “whales” look to participate:

“This is one of the most effective components of ETH’s new layout, as whales will pour new money into the market to continue to round-up their stakable amounts of ETH.”

This has been echoed by Delphi Digital, a leading research firm in the digital asset space:

“Tying things together, EIP 1559 and staking [create a] symbiotic relationship where not only does increase usage drive value but the introduction of cash flows to a wider group of participants for securing the network creates a more effective long term value proposition [for ETH].”

The post Ethereum hit a $46b valuation with 1 value accrual mechanism. Wait until there are three appeared first on CryptoSlate.

Survey: Many Investors Expect Bitcoin to Be Seriously Higher in One Month

Bitcoin has undergone a strong rally since the lows seen just two weeks ago. The leading cryptocurrency currently trades for $13,050, far above the aforementioned lows and above the medium-term lows set during the September correction at $9,800.

Some have argued that the cryptocurrency is severely overbought. As reported by NewsBTC previously, one trader recently noted that the cryptocurrency’s one-day Fisher Transform indicator is currently at highs not seen since August, May, and February of this past year. As can be seen in the chart, each of the named periods marked medium-term highs in the price of Bitcoin.

Image

Chart of BTC's price action over the past year with analysis by crypto trader Moe (@Moe_momentum_ on Twitter). 
Source: BTCUSD from TradingView.com
Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Could Be Seriously Higher in a Month

Despite this precedent, analysts think that BItcoin will be seriously higher in a month from now.

Real Vision, a leading financial media outlet followed by fund managers and retail investors across the globe, recently released its latest Real Vision Exchange Survey report. Members of the website are polled by Real Exchange to show how bullish or bearish the average user is on certain assets.

As can be seen, most investors are extremely bullish on Bitcoin and are expecting the asset to rally more than 5% in the month ahead:

“Most participants saw equities as well as the currencies (USD, EUR, AUD) heading slightly lower. US and EM equities were a little bit better off than their European counterparts (at least fort the 1m horizon). Bond yields are expected to head lower as well. The view on Bitcoin is still very positive despite or maybe because of the recent rally. While Gold is also expected to increase, upside potential is expected to be lower (short term) compared to Bitcoin.”

Frequency of participants responses for the 1 month horizon

Another poll indicated that 80% of all Real Vision users are long on Bitcoin at the moment. The platform has been covering the cryptocurrency for multiple years, prior to it showing up on the radar of many in the mainstream.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Fundamentals Suggest This To Be The Case

Fundamentals indicate that the cryptocurrency has room to move higher in the month ahead.

Bill Barhydt, CEO of Abra, recently commented that he is increasing his exposure to Bitcoin as he sees the investment case for this asset continuing to grow:

“A few weeks ago, I increased my ownership of #Bitcoin significantly and it’s now 50% of my investment portfolio. Why? I believe #Bitcoin is the best investment opportunity in the world right now. There are three reasons I believe this to be true today…. Fundamentals, Technicals, and Sentiment.”

Many think that the next fiscal stimulus bill has the potential to drive BTC even higher as the market embraces a narrative of the U.S. dollar devaluing.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Survey: Many Investors Expect Bitcoin to Be Seriously Higher in One Month

Filecoin (FIL) Surges 30% Amid Massive Short Squeeze

Filecoin has surged seriously higher over the past few days even while Bitcoin has stalled in the $13,000 range.

The price of the leading altcoin recently passed above $35, the highs of the past five days. In the past 24 hours alone, FIL has gained 32.2% against the U.S. dollar per data from CoinGecko.

Analysts attribute this rapid Filecoin price action to a “short squeeze,” whereas short positions holders were forced to close their positions in tandem, resulting in a spike in buying volume. Short squeezes often take place when the funding rate of a futures market is extremely negative, forcing investors out of their positions.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Filecoin Surges More Than 50% From Its Lows

From the lows of $21 earlier this week, Filecoin has surged more than 50%. The coin peaked just shy of $36 earlier today, marking a strong reversal from the aforementioned lows seen just 48 hours ago.

As aforementioned, many analysts think that this price action is a byproduct of a “short squeeze.”

The funding rates of leading FIL futures markets were dramatically in the negative prior to the move. That means that shorts had a lot of incentive to close their positions, thus driving the price higher as the shorts are covered.

Even now, hours after the squeeze, the funding rates are still well into the negative. On FTX, those that are shorting FIL are charging -0.2526% every hour, making it expensive to keep those positions open.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Fud Dispelled

This rally comes after the “FUD’ was dispelled over a purported “miner strike” in the Filecoin ecosystem. It was reported extensively online that some Filecoin miners, which maintain the network, were turning off their machines due to an interesting incentive structure.

This has since been dispelled by members of the FIL community. They suggest that miners remain profitable and are proving that they can store users’ file just fine.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Title

Critical Technical Signal Suggests Bitcoin Price Will Likely Reverse

Bitcoin has undergone an extreme rally over the past two weeks. The coin has surged from $11,200 to $13,000 as of this article’s writing, with the rally topping on Saturday evening at $13,350.

While BTC is heading into the weekly close around $13,000, which is a pivotal win for bulls, analysts are wary of a drop from here. There are some signs indicating that the cryptocurrency may be overbought in the near term, having rallied over $1,500 in around a week’s time.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Likely to Soon Top: Analysis

Bitcoin may be nearing a medium-term high, analysts fear as some indicators suggest the coin is overbought. One analyst shared the chart on October 25th, noting that the cryptocurrency is currently rubbing up against notable resistance from 2019.

Furthermore, the Fisher Transform, a trend indicator, is currently at highs not seen since August, May, and February of this past year. Each of these periods marked short-term highs in the price of Bitcoin.

Image

Chart of BTC's price action over the past year with analysis by crypto trader Moe (@Moe_momentum_ on Twitter). 
Source: BTCUSD from TradingView.com
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing

JP Morgan Indicates BTC Could See Short-Term Drop

JP Morgan analysts are also fearing a retracement.

The firm recently released a report about Bitcoin’s short-term and long-term outlook to its institutional clients. According to copies of the report shared through Twitter, JP Morgan analysts currently believe that the crypto-asset is overvalued per futures data.

The firm cited its market positioning indicator, derived from the trends in the Bitcoin futures market on the CME:

“To infer positioning in bitcoin futures, we use our open interest position proxy methodology, where we look at the cumulative weekly absolute changes in the open interest multiplied by the sign of the futures price change every week.”

According to their analysis, the positioning indicator is currently reaching new year-to-date highs. This suggests that Bitcoin looks “rather overbought and vulnerable to profit-taking.”

Importantly, crypto-native derivatives platforms are not yet showing this vulnerability. With funding rates of leading BTC perpetual futures markets still in the neutral to even negative territory, there may be no incentive for long position holders to close out early.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Photo by Henry Dick on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Critical Technical Signal Suggests Bitcoin Price Will Likely Reverse

Bitcoin breaking $14,000 will bring a new “regime” of market dynamics

Bitcoin’s breakout this past week has captured the attention of those within this industry and those outside of it. CNBC and Bloomberg covered these moves to the upside extensively, and JP Morgan amongst other Wall Street investment firms and analysts weighed in on the rally.

Analysts say that it isn’t time to be entirely excited just yet. Many commentators say that Bitcoin breaking $14,000 will be important as that level has been one of macro importance for the past three years.

Will all hell break loose when Bitcoin hits $14,000?

Prominent crypto-asset analyst Qiao Wang thinks that once Bitcoin breaks $14,000, the market will enter a “different regime in terms of volatility, momentum, retail participation, and so on”:

“Once BTC breaks $14k, we’ll likely be in a different regime in terms of volatility, momentum, retail participation, and so on. A lot of things that worked last few months may no longer work and vice versa. $20k will take this regime to a whole new level. Just a hunch. We’ll see.”

The reason why such emphasis is placed on $14,000 is that this was the point at which Bitcoin’s December 2017 candle closed, and it’s also where the trend almost perfectly topped during 2019’s boom. The multiple macro interactions BTC had at $14,000 suggests it decisively breaking and holding above this level would mark a shift in the market structure.

While Qiao Wang did not elaborate on what type of trends will change within the crypto market, it’s worth noting that there is little futures volume that has been traded above $14,000.

Analyst “CL” shared the chart below amid Bitcoin’s surge this past week, noting that “Almost no one in the current derivatives market ever traded meaningfully above [the] current level.”

Image

This was because prior to 2018 or late 2018, BitMEX and other perpetual swap platforms did not have that much interest, as there was enough leverage as is longing Bitcoin or altcoins through spot markets.

With derivatives believed to be driving a bulk of the crypto market’s price action, the introduction of a whole new price range to derivatives traders could result in volatile price action.

Expect all-time highs?

Some argue that once Bitcoin breaks $14,000, all-time highs should be expected shortly after that.

Kyle Davies, a co-founder of prominent crypto-asset fund Three Arrows Capital, recently commented on Twitter:

“To be clear, when we break $12k clean on a spot-led move with no leverage, who in the lord’s name will sell at $15k. And given that no one sells at $15k, who in the lord’s name would sell at $20k.”

The post Bitcoin breaking $14,000 will bring a new “regime” of market dynamics appeared first on CryptoSlate.

Bitcoin Shoots Up to New Year-to-Date High After $13k Daily Close

Bitcoin has once again rallied over the past day, bringing it to new year-to-date highs at $13,350 as of this article’s writing. The latest move higher just took place, bringing the leading cryptocurrency from $13,150 to the aforementioned highs.

Chart of BTC's price action over the past two days. Source: BTCUSD from TradingView.com

This comes after Bitcoin saw a notable daily candle close of $13,000. This daily candle close was the highest of its kind since January 2018. Many see this as notable as $13,000 has long been an important level for Bitcoin to hold, as evidenced by the highs of 2019 and some price action in 2018.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Surges to New Year-to-Date High

Bitcoin just surged to a new weekly and year-to-date high at $13,350. The cryptocurrency is up 2.5% in the past 24 hours, outperforming Ethereum, XRP, Bitcoin Cash, and a swath of other digital assets. The only assets in the top 20 that are outperforming BTC are Chainlink (LINK), Litecoin (LTC), and Monero (XMR).

The futures market interestingly does not seem to be embracing this move. ByBt, a crypto derivatives tracker, reports that most Bitcoin perpetual futures markets currently have neutral funding rates at 0.01% per eight hours. The funding rate is the fee that long positions pay short positions to ensure that the price of a future is around the same price as the spot market. High funding rates often indicate that derivatives trackers are pushing the price of a coin higher.

ByBt reports that the funding rates of the Bitcoin perpetual futures on Binance, BitMEX, Huobi, and ByBit are all at 0.01%. This is the neutral rate. On OKEx, the rate is negative, at -0.0077%.

Some see this as a sign that the price of Bitcoin will continue its ascent in the days ahead as the asset has room to sustainably rally.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

$14,000 Is Next?

Some analysts think that Bitcoin will visit $14,000 next. The trader who predicted the decline in September down to a 2% accuracy shared the chart below, indicating that BTC may soon pop even higher.

Image

Chart of BTC's price action over the past few weeks with anaylsis by crypto trader Coiner-Yadox (@yodaskk on Twitter). Source: BTCUSD from TradingView.com
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Bitcoin Shoots Up to New Year-to-Date High After $13k Daily Close

Kevin Hart Jokes Bitcoin and Ethereum Are “Voodoo Money”

Prominent comedian and actor Kevin Hart just discussed Bitcoin, Ethereum, and other crypto assets during a livestream for MDA USA. MDA is an organization that aims to help those affected by muscular dystrophy, ALS, and other diseases related to neuronuscular mehavior. Hart is honored to host this event:

“To have the opportunity to revive it, change it and still, of course, fulfill the cause at hand as well as bring some awareness to other things that are going on, I just felt it was a great moment,” he said to CNN on the matter.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Kevin Hart Talks Bitcoin

As first noted by the crypto charity/non-profit organization The Giving Block, comedian Kevin Hart just briefly mentioned Bitcoin in the MDA Kids Telethon.

When he was asked by one of his celebity friends, Jay Ellis, if MDA accepts “Bitcoin, Ethereum, or any of those cryptocurrencies,”  Hart responded with confusion. He joked these cryptocurrencies are “voodoo money”:

“We don’t take the voodoo. So if you’re out here trying to give us the voodoo money, we don’t, what? We do take the voodoo. Oh wait, this is actually take cryptocurrencies — I’m told it’s a legit investment worth almost $250 billion. Okay yeah, we do take it. Ok, we take it.”

This comes shortly after Kanye West, the world-famous artist and designer, discussed Bitcoin with Joe Rorgan. He said yesterday in a recent episode of the podcast:

“A lot of the tech guys can use these new highways, these new information highways, to create the next frontier of humanity.”

West has talked about Bitcoin in the past.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Kevin Hart Jokes Bitcoin and Ethereum Are "Voodoo Money"

Kevin Hart Jokes Bitcoin and Ethereum Are “Voodoo Money”

Prominent comedian and actor Kevin Hart just discussed Bitcoin, Ethereum, and other crypto assets during a livestream for MDA USA. MDA is an organization that aims to help those affected by muscular dystrophy, ALS, and other diseases related to neuronuscular mehavior. Hart is honored to host this event:

“To have the opportunity to revive it, change it and still, of course, fulfill the cause at hand as well as bring some awareness to other things that are going on, I just felt it was a great moment,” he said to CNN on the matter.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Kevin Hart Talks Bitcoin

As first noted by the crypto charity/non-profit organization The Giving Block, comedian Kevin Hart just briefly mentioned Bitcoin in the MDA Kids Telethon.

When he was asked by one of his celebity friends, Jay Ellis, if MDA accepts “Bitcoin, Ethereum, or any of those cryptocurrencies,”  Hart responded with confusion. He joked these cryptocurrencies are “voodoo money”:

“We don’t take the voodoo. So if you’re out here trying to give us the voodoo money, we don’t, what? We do take the voodoo. Oh wait, this is actually take cryptocurrencies — I’m told it’s a legit investment worth almost $250 billion. Okay yeah, we do take it. Ok, we take it.”

This comes shortly after Kanye West, the world-famous artist and designer, discussed Bitcoin with Joe Rorgan. He said yesterday in a recent episode of the podcast:

“A lot of the tech guys can use these new highways, these new information highways, to create the next frontier of humanity.”

West has talked about Bitcoin in the past.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Kevin Hart Jokes Bitcoin and Ethereum Are "Voodoo Money"

“Holy Cow”: Industry Reacts to Bullish Bitcoin Analysis by JP Morgan

Bitcoin has seen a strong uptick in institutional adoption over recent weeks and months amid the worst economic trends in many decades. Wall Street analysts think that the asset may act as a hedge against the U.S. dollar dropping and other geopolitical and macro trends.

JP Morgan made this much clear when the firm released a commentary on this nascent market. The prominent Wall Street firm commented that Bitcoin could rally multiples higher if it manages to crowd out gold to some extent.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Bitcoin Commentary By JP Morgan Makes Rounds

On Friday and Saturday, a report from JP Morgan made the rounds online. The firm had covered Bitcoin in an extensive research report that highlighted the opportunities in this market.

Dan Tapiero, a co-founder of Gold Bullion International, shared part of the report to his Twitter.

The report says that Bitcoin could “compete more intensively” with gold as an alternative currency in the future given the rise of millennials. The report added that “even a modest crowding out of gold as an ‘alternative’ currency […] would imply doubling or tripling of the bitcoin price from here.”

The report also mentioned that the introduction of CME futures and PayPal supporting crypto-assets will allow other firms to enter this nascent space.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Institutional Adoption to Drive BTC 

Analysts say that institutional adoption will drive Bitcoin dramatically higher than it is now. Raoul Pal, CEO of Real Vision, recently commented on the matter:

“Just from what I know from all of the institutions, all of the people I speak to, there is an enormous wall of money coming into this. It’s an enormous wall of money — just the pipes aren’t there to allow people to do it yet, and that’s coming. But it’s on everybody’s radar, and there’s a lot of smart people working on it.”

The former head of Goldman Sachs’ hedge fund sales division elaborated that Bitcoin could hit $1,000,000 in this market cycle thanks to institutional adoption. He has also looked to macro trends, such as the introduction of record level fiscal and monetary stimulus, along with the rise of digital currencies enabled by the government.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Photo by Mathieu Olivares on Unsplash
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
"Holy Cow": Industry Reacts to Bullish Bitcoin Analysis by JP Morgan

Top DeFi coins Yearn.finance (YFI) and AAVE rip 10% higher as Bitcoin holds $13k

The past seven days have actually been quite mediocre for top coins in the decentralized finance (DeFi) space.

Compared to Bitcoin and Ethereum, which both have gained around 15 percent in the past seven days, many DeFi coins have oscillated around a zero percent weekly performance. That’s to say, some DeFi coins are flat over the past seven days, even as BTC has set new year-to-date highs.

But two coins are starting to break higher after a mediocre week, boosted by investments by multiple venture capital investors in the space. The two coins are AAVE and Yearn.finance’s YFI, both of which have gained 10 percent in the past 24 hours as Bitcoin holds the $13,000 region.

Chart of AAVE’s price action over the past four days. Source: AAVEUSD from TradingView.com

CryptoSlate market data indicates that these two coins are some of the best performers in the top 50 coins over the past 24 hours.

YFI and AAVE bump higher

A reason why YFI and AAVE are outperforming many of their DeFi peers may come down to venture capital investment in these coins.

As reported by CryptoSlate previously, Polychain Capital, a large crypto fund headed by Coinbase‘s first employee, was reported to have received 329 YFI, valued at around $4,600,000, from Binance.

This was reported by Alex Svanevik, CEO of Nansen, a data firm that uses proprietary methods and heuristics to figure out funds, firms, and investors and how they interact with different ERC-20 tokens.

In terms of AAVE, Arthur Cheong, founder of DeFIance Capital, deployed some capital into AAVE this past week right at the bottom at $32.

Kelvin Koh, a partner at The Spartan Group and a former partner at Goldman Sachs, also announced that he was accumulating the leading Ethereum-based coin.

DeFi stronger than ever

Underscoring the rallies in the prices of YFI and AAVE, DeFi is fundamentally stronger than ever.

Head of DTC Capital Spencer Noon noted that while most top coins have dropped from their highs, the “most important indicators” for the health of this space continue to push all-time highs. Namely, the total value locked in DeFi contracts is now at $12.4 billion while the number of ERC-20 stablecoins has breached $14 billion. He explained:

“Despite a month that saw most tokens fall 50% or more, #DeFi is *still* at ATHs with its most important indicators… Don’t listen to the degens who burned out. Phase 2 of this #DeFi bull market will make this summer look like nothing.”

The post Top DeFi coins Yearn.finance (YFI) and AAVE rip 10% higher as Bitcoin holds $13k appeared first on CryptoSlate.

Filecoin (FIL) Shoots 25% Higher as Buyers Step Back In

Filecoin has undergone a strong drop since its all-time highs above $100 set on its launch date earlier this month. The coin currently trades for $25, 75% below those highs.

Despite this drop, buyers seem to be stepping back in. The coin is up 25% in the past 24 hours, making it the best-performing digital asset in the top 100 by a long shot. For context, Bitcoin is only up by 1.5% in the past 24 hours while Ethereum has gained closer to 3%.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Filecoin Surges 25%

FIL has gained 25% in the past 24 hours alone, pushing $26 after falling towards $20 and under that pivotal level just a day or two ago. The coin has strongly outperformed many altcoins over the past day after falling 75% in the span of a week.

Analysts are not clear what to do with the asset in the near term.

A leading trader on Binance thinks that FIL will eventually be a “very profitable” short but is unclear what to do in the near term as the asset may have room to run in the near term:

“It’s going to be a very profitable short. But I’m not opening a position now. Why? The market is bullish and altcoins may have a run soon. And also I’d rather wait for the hype to die. I got my eyes on you $FIL.”

The overall market seems to still think Filecoin is overvalued. The Binance futures funding rate for FIL is currently at its minimum, 0.75% per every eight hours, and even lower on other platforms. This suggests that the market thinks the coin remains overvalued. The coin may thus continue to bleed lower if no bullish price action comes in, but a rally could result in a short squeeze that drags prices higher. That may be what we are seeing transpire right now.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Following Bitcoin

FIL may gain further strength if Bitcoin continues its ascent higher. Thus far, FIL has crashed in the face of the leading cryptocurrency rally, but that has been because this rally has been BTC centric.

Strength in altcoins, which may be triggered by an uptrend in Bitcoin, could support growth in the price of Filecoin.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: filusd, filbtc
Charts from TradingView.com
Filecoin (FIL) Shoots 25% Higher as Buyers Step Back In

Kanye West Just Dropped the Bitcoin Bomb on Joe Rogan’s Podcast

Kanye West took some time to discuss Bitcoin and cryptocurrencies once again. This time, he did so on the Joe Rogan Experience, which released an episode with the world-famous artist and designer on October 24th.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Kanye West Talks Bitcoin

In the three hours Kayne West was on Joe Rogan’s world-famous podcast, a number of subjects were discussed. Interestingly, Bitcoin and crypto assets also entered the mix.

West has discussed Bitcoin in the past. In 2018, he said in an interview with Charlamagne that he sees the asset as a place where one could put their money. He named the cryptocurrency alongside credit cards and cash.

In this recent interview with Rogan, the artist and presidential candidate said that he’s recently been talking with his friends about Bitcoin and crypto. He said he did so in preparation for the Rogan interview. For context, Joe Rogan has long been somewhat of a supporter of cryptocurrencies, hosting Bitcoin evangelist Andreas Antonopoulos multiple times and prompting guests like Jack Dorsey on the subject.

West elaborated that he finds it so interesting that Bitcoin proponents have an idea about the “true liberation of America and humanity.”

“A lot of the tech guys can use these new highways, these new information highways, to create the next frontier of humanity.”

West’s friend Elon Musk, CEO of Tesla and SpaceX, is also interested in Bitcoin. He once called the structure of the cryptocurrency “brilliant,” before elaborating in later comments that the coin may have value today due to the inflation of the U.S. dollar and other fiat monies.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
Kanye West Just Dropped the Bitcoin Bomb on Joe Rogan's Podcast

Two Strong Ethereum On-Chain Trends Suggest the Trend Is Bullish

Ethereum has undergone a strong rally over the past few days amid a Bitcoin push higher. In the past seven days, ETH has gained around 10%, pushing from the $370 region to $410 as of this article’s writing. ETH is expected to push higher as there are fundamental and on-chain trends that favor bull trends.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Key Ethereum On-Chain Trends Bullish

Ethereum is expected to move higher in the days and weeks ahead as on-chain trends remain bullish. Santiment, a blockchain analytics firm, recently shared the chart seen below, showing that the number of active ETH addresses has increased while miners aren’t selling:

“There is good news and bad news for #Ethereum’s quest to again surpass the $420 price barrier. The good news is that miners aren’t selling, and there is a big increase in new $ETH addresses being created, and pre-existing addresses have shown an increase in activity. The bad news is that social sentiment is bordering on euphoric territory, and daily active deposits have jumped in a big way.”

Ethereum

Chart of ETH's price action over the past few months with an overlay of miner balances. Chart from Santiment
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

ETH Technicals Also In Positive State

The technicals for the leading cryptocurrency are also in a positive state. One crypto-asset swing and day trader recently shared that with the push above $395, a move towards $490 is becoming increasingly likely:

“Nice break above the $395 flat top on $ETH. ETH doesn’t always give throwbacks, so a $395 throwback is certainly possible before higher, but I wouldn’t be on it. Otherwise, this looks good for a run back near the $490 highs.”

Others echoed this sentiment.

Ethereum crossing above the pivotal resistance levels in the $390-400 range is pivotal for the bull case. ETH holding above that region should result in further gains in the weeks ahead.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: ethusd, ethbtc, ethusdt
Charts from TradingView.com
Two Strong Ethereum On-Chain Trends Suggest the Trend Is Bullish

3 Crucial Reasons Why Bitcoin Shot $1,500 Higher This Past Week

Bitcoin has shot around $1,500 higher over the past week, reaching a weekly high of $13,200. The price of the leading cryptocurrency has dropped slightly to $12,900 as of this article’s writing, just shy of the highs and the pivotal $13,000 resistance level.

This recent move higher caught many traders off guard. During one day this week, over $300 million worth of Bitcoin short positions were liquidated, along with some long positions amid some volatility.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

Three Reasons Why Bitcoin Is Moving Higher

Crypto-asset lender Nexo released a report this week postulating as to why Bitcoin moved seriously higher this past week. In the past seven days, the leading cryptocurrency has shot $1,500 higher.

Nexo gave three reasons why the cryptocurrency has done so:

  • Firstly, analysts say that the global markets are pricing in a democratic win for the Presidential Election of 2020. Analysts say that this will ensure that there is more fiscal stimulus coming, which will result in the devaluation of the U.S. dollar and a relative rally in the price of Bitcoin. The firm wrote on the matter: “First, the ‘Blue Wave’ narrative of a Democrat sweep in US elections has many of us thinking that a lot more fiscal stimulus and money printing are coming, boding well for currency hedges.”
  • Secondly, more institutional capital continued to flood into Bitcoin and this market this past week. U.K. fintech company Mode revealed it would deploy some of its cash into BTC. Also, Grayscale Investments shared it has seen massive institutional investment after already reporting a record quarter of over $1 billion in investment.
  • Lastly, PayPal confirmed its support of cryptocurrencies this week with an intent to support the purchase and sale of top coins like Bitcoin, along with digital asset payments. There are also rumors that the company is looking to acquire crypto firms, namely BitGo.
Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Technical Trends Also Bullish

The technical trends are also bullish.

One crypto-asset analyst that predicted BTC would see a V-shaped reversal amid the brutal March crash shared a chart showing that Bitcoin formed its highest daily candle close since January 2018. 

Image

Chart of BTC's price action since the middle of 2017 with analysis by crypto trader Bitcoin Jack (@Btc_JackSparrow on Twitter). Source BTCUSD from TradingView.com
Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from TradingView.com
3 Crucial Reasons Why Bitcoin Shot $1,500 Higher This Past Week

Why an analyst thinks Thorchain (RUNE) will benefit from a PayPal BitGo acquisition

The biggest crypto news event of the last day is the report from Bloomberg that PayPal is looking into acquiring BitGo, one of the industry’s leading digital asset custodians.

The news first broke in China, then eventually spread to the Western world through Bloomberg. The outlet reported that “people familiar with the matter” indicate that PayPal is looking to acquire a “number of” crypto firms, namely BitGo. No details were disclosed about the discussions or the exact price BitGo is looking for.

While no details were confirmed and PayPal did not comment on the story, many have begun to speculate what such an acquisition would mean for the industry. Naturally, some have wondered what effect it will have on DeFi.

Thorchain could benefit from BitGo acquisition by PayPal

Early this week, PayPal revealed that it would be supporting crypto assets by enabling purchases and sales of leading digital assets like Bitcoin and supporting cryptocurrency payments between vendors and customers.

This was followed up with the Bloomberg report, which indicated that PayPal is serious about crypto assets.

While many see the potential BitGo deal as fundamentally bullish as it would mark a large capital investment in the space, THORCHain, a cross-chain decentralized liquidity network, says that it may backfire:

“There goes wBTC. The majority of wrapped Bitcoin is custodied by BitGo. PayPal is not a good actor in this space. Position accordingly.”

BitGo holds a majority of the Bitcoin that backs the Wrapped Bitcoin (WBTC) tokens on the Ethereum network.

THORChain‘s comment is an insinuation that PayPal may seek to use BitGo’s influence over WBTC in some way.

Google Payments employee Tyler Reynolds, who moonlights as a crypto analyst on Twitter, made a direct comment that this acquisition should help THORChain itself and its native token RUNE.

THORChain is a network that allows users to swap between assets across chains in a non-custodial manner, which may eliminate some of the need for wrapped tokens.

The start of a great institutional entrance

Whatever comes of this deal, many see the PayPal news as the start of a great institutional entrance into Bitcoin and crypto.

Michael Novogratz, CEO of Galaxy Digital and a former Goldman Sachs partner, commented that with PayPal putting serious capital into this space, other Wall Street firms and banks are going to start to look into digital assets. He specifically highlighted how against bank stocks, PayPal and crypto have strongly outperformed them.

The post Why an analyst thinks Thorchain (RUNE) will benefit from a PayPal BitGo acquisition appeared first on CryptoSlate.

Synthetix founder calls Bitcoin’s weekly chart the “most bullish thing” he has seen

Bitcoin’s price action over recent weeks and months has undoubtedly been bullish. In the face of macroeconomic turmoil and the worst pandemic in a century, the leading cryptocurrency has shot higher. In the past week alone, the price of one BTC has gained just under $2,000.

The cryptocurrency is expected to move even higher in the weeks ahead as the fundamentals and technicals align.

Speaking to that, the founder of leading the DeFi project Synthetix, Kain Warwick, just said that he thinks the “weekly BTC chart is probably the most bullish thing” that he’s ever seen in his life.

That chart he was referring to can be seen below.

The chart shows Bitcoin holding a crucial weekly moving average, along with forming a bullish breakout as per the Parabolic Stop-and-Reversal indicator, which tracks macro trends.

Bitcoin weekly chart
Bitcoin weekly chart (source: Kain Warwick)

His comment comes after some DeFi-focused investors have been laughing at Bitcoin’s price action, comparing it to that experienced by DeFi coins and Ethereum itself over the summer. Yet ideally, a BTC rally should drive capital towards altcoins as investors seek to lever up by moving down the crypto risk spectrum.

The fundamentals line up with Bitcoin’s chart

Elaborating on his point, Warwick explained that Bitcoin’s chart is underpinned by a number of fundamental trends.

First and foremost, he noted that Bitcoin’s breakout is notable because “it basically didn’t move much during the DeFi summer.” This breakout cements it is moving on its own as opposed to following the price of altcoins higher.

In addition to that, the DeFi pioneer noted that the trend of corporations and Wall Street investors investing in BTC to hedge macroeconomic risks is also of note:

“To clarify BTC basically didn’t move much during the DeFi summer. This recent move comes on the back of a fairly surprising new narrative of public co’s with huge cash balances hedging macro conditions.”

Warwick is referring to the entrance of firms like MicroStrategy and Square, which have deployed capital from their balance sheets to buy BTC. Both companies announced this move as a strategic measure to ensure that their holdings are not eaten away at by inflation and to hedge the risks in unprecedented economic and macroeconomic risk.

Analysts in the space expect a flurry of other companies to follow suit, driving Bitcoin dramatically higher as demand begins to greatly exceed supply.

As Mechanism Capital founder Andrew Kang recently noted, the institutional backdrop to adopt Bitcoin has been better than ever.

The post Synthetix founder calls Bitcoin’s weekly chart the “most bullish thing” he has seen appeared first on CryptoSlate.

Chainlink (LINK) Soars 10% Higher Amid Positive Fundamental Trends

Chainlink (LINK) has gained 10% in the past 24 hours as Bitcoin has continued to hold in the $13,000 region. The popular altcoin currently trades for $12, its highest price in many weeks. The coin is currently the top-performer in the top 10 cryptocurrencies, outpacing Bitcoin’s 1.5% gain, Ethereum’s 5% surge, and the 1-3% performances by the other leading altcoins.

Analysts think that the cryptocurrency is poised to gain even further traction in the days ahead as fundamentals and technicals align.

Related Reading: Here’s Why Ethereum’s DeFi Market May Be Near A Bottom

LINK Is Preparing to Soar Even Higher, Technicals Show

Analysts think that LINK is set to continue even higher in the weeks ahead as it forms pivotal technical formations after an over 60% drop.

One crypto-asset analyst shared the chart below, which shows how LINK is breaking through a downtrend that formed at the August highs, which also were the coin’s all-time high price.

Chainlink LINK

Image Courtesy of Edward "Teddy" Cleps. Source: LINKUSD on TradingView.

Other analysts have echoed this assertion.

Another cryptocurrency trader shared the chart later amid LINK’s push higher. The chart shows Chainlink moving above an important horizontal level at $12, which is setting the asset up for a push to at least $13.

“$LINK has emerged from the cloud of red. On to pasture new, and greener. I’m not looking for specific targets (aside from the near term retest of $11.50 and an upper resistance of $13) The green wave is what I’ll ride.”

Image

Image Courtesy of Cold Blooded Shiller. Source: LINKUSD on TradingView.

Chainlink is likely to follow the price of Bitcoin and Ethereum in the near term. If the two cryptocurrencies can push higher, LINK is highly likely to follow.

Related Reading: Tyler Winklevoss: A “Tsunami” of Capital Is Coming For Bitcoin

Chainlink Continues to Gain Traction

Chainlink continues to gain traction in the DeFi space, cementing its products as crucial for the cryptocurrency ecosystem.

The Ethereum-based PoolTogether just rolled out its v3 release. PoolTogether is a “no-loss lottery,” where users pool their funds, which are then deployed in interest-generating activities.

This release includes an integration with Chainlink’s VRF product, which enables blockchain applications to have verifiable randomization within contracts.

Chainlink has also announced a series of other integrations with leading products within the cryptocurrency space, including many DeFi projects.

Related Reading: 3 Bitcoin On-Chain Trends Show a Macro Bull Market Is Brewing
Featured Image from Shutterstock
Price tags: linkbtc, linkusd, linketh
Charts from TradingView.com
Chainlink (LINK) Soars 10% Higher Amid Positive Fundamental Trends