The head of the Bank of Korea, Lee Ju-yeol, said that Bitcoin and other major cryptocurrencies lack intrinsic value. However, he believes that all assets will continue to experience significant price fluctuations.
Price Surge Because of Pro-BTC Institutional Investors?
The chief of the Bank of Korea said cryptocurrencies, including Bitcoin, do not possess inherent value. In a recent news report, Lee Ju-yeol blasted the highly volatile nature of the digital asset industry.
“There is no intrinsic value in crypto assets,” said BOK Gov. Lee Ju-yeol at a parliamentary session on 23 February.
The news report quoted lawmakers asking BOK’s chief if the recent surge in the price of BTC is temporary or not.
“It is very difficult to predict the price, but its price will be extremely volatile,” Ju-yeol added.
The bank executive has also said that the recent rally in Bitcoin’s price followed by other significant digital assets may be led by multiple factors. Among them, Elon Musk’s Tesla – investing $1.5 billion. He highlighted that the latest price surge might be a continuation of institutional investors using Bitcoin as a hedge.
Ju-yeol also emphasized that BOK shouldn’t buy bonds issued by the country’s government directly. Otherwise, this would raise worries about fiscal stability and undermine the central bank’s trust.
Bitcoin Volatility Bringing Some More Hard Times For Investors?
The primary cryptocurrency’s volatility has been causing quite some troubles for both retail and institutional investors. This particular character of the digital assets has been a stumbling point for many, thus, causing some hesitations in whether to allocate funds in it or not.
BTC’s price managed to initiate another notable surge during the last couple of months, marking a consequent all-time high. Just a few days ago, it skyrocketed above $58,000, dragging other altcoins like Ethereum behind it for a while.
However, almost immediately after its upgrowth, BTC suffered a significant correction, settling unsteadily around $50K as per the time of the writing. As a result, the cryptocurrency market capitalization lost more than $300 billion in two days.
Interestingly, JPMorgan strategists said recently that Bitcoin’s illiquidity could bring more problems. Analysts from the US multinational banking institution argued that BTC is in a liquidity shortage, warning investors that the primary crypto-asset could suffer another price drop.
The total value locked in decentralized finance platforms dropped 16% to $54.4 billion this week, but the quick rebound in DeFi token prices shows traders are not dismayed.
Decentralized finance and the numerous platforms offering investment services have been the talk of the cryptocurrency sector for several months, and this has resulted in investors capturing spectacular gains for some of the top DeFi tokens like Uniswap's UNI and AAVE.
The fast-moving prices and 1,000% annual percentage yield on staked tokens elicited cheers from investors when the market was going up, but the recent selling pressure seen as Bitcoin's (BTC) price dropped below $45,000 shows that the highest fliers are often the quickest to fall as traders rush to exit their positions and lock in their gains.
On Feb. 22, Bitcoin's price entered a sharp corrective phase that saw the top digital asset pull back by more than 20% from its all-time high of $58,274. As this occurred, the majority of altcoins also saw double-digit corrections, and DeFi tokens like PancakeSwap's CAKE fell as much as 55%.
Total value locked in DeFi shows resilience
The total value locked (TVL) in DeFi platforms also took a hit as Bitcoin and altcoins corrected. Data from DeFi Llama shows the combined TVL of all DeFi platforms fell from $64.89 billion to $54.22 billion on Feb. 24. Cointelegraph also reported that this week's correction led to the second-largest day of DeFi loan liquidations in history.
The decline in TVL is a result of decreasing token values rather than protocol outflows, indicating that tokenholders remain committed to the continued expansion of decentralized finance and that the current yields are still incentivizing investors to remain engaged.
Market analysis indicates that despite the recent $5.8-billion Bitcoin and altcoin liquidation, bulls remain optimistic and see this price pullback as a sign of a healthy market.
The same goes for the DeFi sector, which has been in a strong uptrend since the start of the year. Increasing DEX volume and as a rising TVL show that DeFi is still in the early stages of growth, and while pullbacks are to be expected, the overall trend is positive as institutional and retail investors increasingly gain exposure to this emerging asset class.
There has been an ongoing trend among traditional banks that are reportedly hunting for ways to offer digital currencies as services for their customers. The insider sources told media outlet The Telegraph UK that banks are asking for as much data as is needed to begin the integration process. Other financial institutions are also reportedly in the same boat as they consider adding Bitcoin to their list of assets.
Banks weigh in market risks
Meanwhile, banks are still weighing potential risk factors before they dive in. This is especially crucial for banks as their direct affiliations with the SEC require extra caution. Other than market volatility which has posed as major risk factors for institutions looking to invest in Bitcoin, money laundering is also a rising factor that new-comers have to analyze.
Sources from cryptocurrency start-up Elliptic told The Telegraph that asides from government agencies and cryptocurrency exchanges, the FBI is also amongst its customer’s list, hence the importance of thoroughly understanding the market enough to avoid breaching legal policies.
Financial Institutions join the race
The rising interest in the inclusion of digital currencies from financial institutions has surged dramatically over the years. Initially, many of these institutions were collectively bearish on cryptocurrencies due to their volatile state. But this year, the reception from these firms has evidently taken a more positive turn. PayPal, Mastercard, and Visa all announced plans to enable cryptocurrency payments for their customers.
Other payment platforms like Square have taken things a step further by partnering with crypto-groups to increase the number of millionaires, while also funding designers to make crypto wallets. While PayPal recently revealed that the company would most likely not purchase Bitcoin for itself, Square is already far deep in the game with a 10% profit from its $50 million Bitcoin investment.
Gen Zs are the target audience
Crucially, banks will need permission from regulatory bodies to proceed with their intended strategy. More importantly, banks need to act fast in order to maintain interest from their target audience; generation Z.
Even though Gen Zs are behind on the Bitcoin ownership race, this generation of TikTok-lovers has shown an immense capability to increase adoption in the market. Banks who are reportedly looking to imitate the footsteps of exchanges in order to attract this generation could potentially bridge the gap between the fiat and crypto market.
A survey from digital asset exchange Crypto.com estimated a 15.7% increase in the global crypto population, in January alone. Overall, there are 106 million global crypto users as of January 2021. According to researcher Kevin Wang, at Crypto.com, strong growth in Bitcoin adoption happened to be the main driver for the peak. Major events last […]
A Manhattan federal judge has dismissed a securities fraud class action against Bancor after ruling that the plaintiff’s allegations were not enough to give the court jurisdiction. According to a report, the dismissal of the case against represents the first such ruling “in a suite of similar cases filed by crypto investors represented by Selendy & Gay and Roche Cyrulnik.”
US Courts Have no Jurisdiction
In their motion against Bancor, which has offices in Switzerland and Israel, the plaintiffs led by Timothy Holsworth, had argued that the protocol’s “BNT token is a security and thus falls under U.S Securities law.” In addition, the plaintiffs also alleged that Bancor had “made numerous false statements and omissions that led reasonable investors to conclude that the BNT tokens were not securities.”
However, in their defense, Bancor countered by arguing that a U.S. trial would be “inappropriate due to the company’s international and geographical nature.” According to a report, Bprotocol Foundation is incorporated under Swiss law and the organization has offices in Zug, Switzerland, and Tel Aviv, Israel. Additionally, the four founders of Bancor live in Israel.
US Investors Versus Non-US Token Issuers
Meanwhile, in their submission, the plaintiffs had insisted the 587 BNT tokens purchased on 4 September 2019 by one Wisconsin resident, William Zhang gave U.S. courts jurisdiction. Zhang, who initially filed the lawsuit, bought the tokens valued at $212.50 on Coss, a digital exchange based in Singapore. However, in dismissing the case, the US judge Alvin Hellerstein said:
Wherever the current business location of Bancor, New York is not a reasonable and convenient place to conduct this litigation.
In addition to the lawsuit against Bancor, the plaintiffs have filed motions against issuers of EOS, TRX, KNC, and OMG. Centralized exchanges based outside the U.S. like Binance and Kucoin are also included in the lawsuit.
What are your thoughts on this ruling by a U.S. judge? You can share your views in the comments section below.
Dogecoin has been around since late 2013, starting as a joke initially. The coin has been designed to be a satirical homage to Bitcoin. Besides being a joke and meme coin, Dogecoin wasn’t intended to serve any other purpose. Yet, you can use it to transfer value.
5 Interesting Facts About Dogecoin
Here’s a list of five interesting facts about Dogecoin:
Dogecoin started as a joke created by Jackson Palmer and Billy Marcus in November 2013. Marcus recently claimed that he sold all of his DOGE in 2015.
There are 128,264,356,384 DOGE coins in circulation at this moment, compared to 18.5 million bitcoins.
Dogecoin hosts one of the largest communities in the crypto space.
In 2014, the Dogecoin community raised $55,000 to sponsor NASCAR driver Josh Wise and covered his car entirely in Dogecoin and Reddit alien images.
If you wondered which dog is on Dogecoin’s logo – it is the Shiba Inu, which is a hunting dog breed.
The DOGE Cult
The cult surrounding Dogecoin still attracts new users to the world of crypto. Therefore, for many people, it serves as an entry point to the crypto world. On top of that, Dogecoin hosts a very approachable community that catapulted DOGE to cult status.
It’s important to know that the currency is not actively maintained. Dogecoin hasn’t seen many updates since 2015. At the moment, the latest code update is from November 2019.
Presently, the network is being secured by miners, just like the Bitcoin network. For each block that is mined, miners receive 10,000 Dogecoins as a reward.
Let’s take a look at Dogecoin’s design characteristics:
Mining: Dogecoin’s Proof of Work Algorithm
Dogecoin’s blockchain works like any other primary blockchain. Blocks are chained together using a hashing algorithm, and outputs can be spent. In other words, users can spend their Dogecoins by sending a transaction to a DOGE address.
Next, miners who run nodes receive and validate transactions. Any invalid transactions will be rejected. Of course, valid transactions are added to blocks, which are further added to the blockchain.
On top of that, Dogecoin uses the Proof of Work (PoW) algorithm that Bitcoin also uses. It capitalizes on putting in “work.” Any modern computer can quickly calculate a hash. There’s nothing difficult about that, as it takes less than a second to compute a new hash.
To make it more difficult to mine new blocks, the Dogecoin blockchain introduces a “difficulty” property just like the Bitcoin blockchain. Now, the generated hash must match a specific pattern according to the “difficulty” property.
In other words, the higher the difficulty, the fewer matching hashes are possible. Therefore, it takes longer to generate a hash that matches this particular difficulty. For that reason, people refer to this algorithm as Proof of Work (PoW).
Bitcoin mines a new block every 10 minutes, while for the Dogecoin network, miners generate a new block every minute on average.
Supply: Inflationary Design
Bitcoin implements a hard cap for the total number of Bitcoins that node operators can mine, set at 21 million bitcoins. To date, just over 18.5 million Bitcoins have been mined. Once we hit the 21 million mark, nobody would be able to mine more bitcoins. From this point on, Bitcoin miners will only receive transaction fees for finding a matching hash.
Dogecoin takes a different approach to its economic design. The coin has chosen for an inflationary design.
This design choice means that Dogecoin enjoys an infinite supply. As mentioned before, miners receive a reward of 10,000 DOGE coins for each block they mine. Therefore, at the current rate, 14,400,000 DOGE coins are mined daily (= 10,000 DOGE rewards * 24 hours * 60 minutes).
Dogecoin has opted for an inflationary design to replace lost coins. You often see stories about people who lose access to their wallets. In one particular example, a man lost access to his Bitcoin wallet containing 7,002 bitcoins.
Yet, there’s a lot of discussion about inflationary designs (Dogecoin) vs. deflationary designs (Bitcoin). It’s important to note that growth in the money supply does not necessarily lead to inflation.
“Money supply growth doesn’t necessarily lead to inflation if there is an equal growth in the value of the goods and services in an economy. In fact, it could be argued that a productive and growing economy requires a growing money supply to support it.
Though such a system can be more productive over time, it is prone to financial instability due to the difficulty in targeting inflation.” – Reads an article on the matter.
Initially, Dogecoin aimed to reach a stable supply of 100 billion DOGE coins as their stability point. Though, their supply already surpassed this number and continues to grow. In other words, it’s not easy to find the right balance between usage and inflation.
DOGE in 2021: Elon Musk’s Puppy
Elon Musk has shown his interest in Dogecoin several times. In July 2020, Musk openly endorsed Dogecoin, which resulted in a 14% price increase.
Recently, he started talking about Dogecoin again. On February 15th, Tesla’s founder openly criticized whales (large token holders) for hoarding large amounts of Dogecoin.
According to Musk, this hoarding prevents Dogecoin from becoming the “currency of the internet.” Musk believes that Dogecoin’s large community has the most potential to become an actual currency because of the wide variety of people holding DOGE coins.
Whether Dogecoin will become the “people’s crypto” as Elon Musk envisioned is doubtful. Yet, Dogecoin hosts one of the largest communities of all crypto projects. Still, it’s not an ideal candidate to become an official currency because of its lack of technical support and maintenance.
The bulls are increasingly under pressure to keep the upward momentum
The support at $45,000 holds the weekly candles in place amid a selling spree
Profit-booking can bring the $43,500 support level on the hourly charts
Bitcoin price prediction is getting increasingly complex as the price wavers in a tight range between $50,000 to $47,200. The 21-day simple moving average is currently providing relief for bulls who earlier were in charge of the price action. The daily uptrend is still intact, but the short-term profit booking can bring more worries for the bulls.
The selling action intensified after the BTC/USD pair has been rejected from the upper triangle formed near the top of the Bollinger bands at $55,000. The RSI is now sloping downward, and the MACD is also showing a negative bias on the hourly charts. The short-term support at the resistance line is helping the pair remain above $48,000.
The 50-day SMA is providing substantial support to the pair. The bulls need to build a confident momentum above the $50,000 support for a recent bull run to target the all-time highs near the $58,000 level. The breakout to the downside can bring $45,000 in play and increase the selling pressure.
Bitcoin price movement in the last 24 hours – Bears gain momentum
The bullish Bitcoin price prediction is fading away on the hourly charts. Bulls face pressure due to profit-booking and trying to prevent the breakout below the short-term support at $45,000. The earlier bounce from $48,650 has been summarily rejected by the resistance at $53,558 and poses a challenge to the hourly charts’ uptrend.
Currently, the Bitcoin price prediction is dependent on the movement between the Bollinger Bands. A clear breakout below the $47,100 level will bring the Bitcoin price prediction in negative territory. However, the weakness in BTC/USD can intensify if the 10-week uptrend line breaks and the price move under the $39,800 level.
BTC/USD 4-hour chart – Major trendlines hold support
The hourly charts are tilting towards the bearish zone as the price action slowly challenges vital supports. The dwindling Bitcoin price prediction can slide further if the selling activity increases as the day come to a close. A more deep pullback can cause the $49,100 support line to break, with large volumes plunging the price further.
The BTC/USD buyers are awaiting more confirmation on the hourly charts before taking long positions. The present phase can certainly prove another consolidation phase where bulls load up more positions before the next all-time highs are posted beyond $60,000. The RSI is now below 50 level and shows further weakness signs.
The rally from $51,890 to the $58,400 all-time high is now in corrective mode. The 55-day simple moving average is below the price and provides a ray of hope to the bulls. The present recovery continues the journey higher to $52,000 resistance where the ascending price channel’s upper limit lies. The 23.6 percent Fibonacci retracement of the current trendline is situated at $48,500 and represents a vital pivot point.
Bitcoin price prediction conclusion: Key hurdles before $60,000 high
The BTC/USD faces its first prominent resistance at the $51,600 level. The 50 percent Fibonacci retracement lies close enough at $52,000. Primarily, the bulls are looking to cross the $52,000 level before taking more exposure on the long side. The 55-day simple moving average lies below the price, which further holds the bears in place.
The RSI is heading above 50 level on the 4-hour chart showing a built-up of the bullish momentum. The volumes, however, do not support the uptrend. The Bitcoin price prediction will remain in the uncertain territory until the buyers build massive momentum to break out from the Bollinger Bands.
The current phase can be termed as consolidation in Bitcoin’s journey towards $65,000 highs. The bulls are certainly booking profits, and bears have not made a mark on the daily charts yet. The recent past’s Bitcoin price prediction is full of examples where profit-booking ended in consolidation and eventually turned into another bull cycle. The fundamentals and the technical both support the same viewpoint.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jerome Powell added that the Federal Reserve needs to consider the health of other markets when creating a digital currency.
Federal Reserve hair Jerome Powell said 2021 will likely have the central bank engaging with the public and lawmakers regarding the digital dollar.
In a House Financial Services Committee hearing today, Powell responded to questions from Rep. Patrick McHenry, who said the digital dollar would likely face national and economic security issues for the United States. Powell said there were many concerns surrounding the project and the Fed intended to reach out to the public.
“This is going to be the year in which we engage with the public pretty actively, including some public events that we’re working on,” he said. “In the meantime, we’re working on the technical challenges and also collaborating and sharing work with the other central banks around the world that are doing this.”
Powell added that the Fed needed to consider the health of other markets when creating a digital dollar, adding that the project may need to go to lawmakers first:
“We could well need legislative authorization for such a thing. It isn’t clear until we see which way we’re going.”
The Fed chair’s remarks come on the heels of his appearance before the Senate Banking Committee yesterday, in which he said the Fed was “looking carefully” at whether the U.S. should roll out a digital dollar, but also that it was unlikely for stablecoins and digital currencies to affect monetary policy transmission. Powell has previously said that it is “critical that the Fed focuses on developing a digital currency.”
In the meantime, the Federal Reserve faced another technical challenge today, as nearly all of the services it provides through its online portal went offline for more than an hour. At the time of publication, all Federal Reserve Bank Services with the exception of Account Services are now back online.
Bitcoin has been doing extremely well for the past nine months. The currency really came to fruition during the initial time of the coronavirus pandemic, and it has been on a serious roll ever since, recently striking a new high of roughly $56,000 per unit. However, despite all the glitz and glam the currency has been attaining, financial giant JPMorgan believes that it’s fintech and not bitcoin or crypto that has garnered true recognition during the time of COVID.
JPMorgan: FinTech Has Done More During the Pandemic Than BTC
In a recent report, JPMorgan commented that while bitcoin is doing relatively well for the time being, it doesn’t boast the long-term financial stamina that many people seem to think it has. The company suggests that it will never earn a place as a payment currency, and that it’s still too vulnerable to price swings and volatility to be taken seriously by anyone.
Now, JPMorgan says that the only reason it’s price is skyrocketing is because companies say they are “looking into it.” However, no serious plans to establish bitcoin as a payment method or use it as such have been cemented just yet. The company claims:
Bitcoin prices have continued their meteoric rise with Tesla, BNY Mellon and Mastercard’s announcements of greater acceptance of cryptocurrencies, but fintech innovation and increased demand for digital services are the real COVID-19 story with the rise of online startups and expansion of digital platforms into credit and payments.
JPMorgan suggests that fintech and digital startups have ultimately pushed bitcoin and crypto aside in many ways, and that companies within this space have done a lot more when it comes to ensuring payments can be made swiftly and with ease. It goes on to say:
Competition between banks and fintech is intensifying, with big tech possessing the most potent digital platforms due to their access to customer data. ‘Co-opetition’ between ‘fin’ and ‘tech’ players lies ahead, with banks stepping up investment to narrow the technology gap, and the battle between US banks and non-bank fintech is also playing out on the regulatory front… Traditional banks could emerge as endgame winners in the digital age of banking due to their advantage from deposit franchise, risk management and regulation.
Bitcoin Could Still See Further Spikes
Despite the attacks on crypto, JPMorgan’s own analysts are predicting that bitcoin is likely to continue its present run, and that the asset could hit a price of roughly $146,000 per unit in the coming future and serve as a potential hedge against further economic damage caused by the pandemic.
Sadly, JPMorgan isn’t the only entity that remains unconvinced about bitcoin’s future. Economist Nouriel Roubini states that the asset bears no “intrinsic value,” while a survey conducted by Deutsche Bank has its investors referring to bitcoin as one of the world’s most “extreme bubbles.”
Community projects are a priority and growing, especially with Hathor CEO Yan Martins having recently emphasized the relevance of Asian business development, with strong focus on Southeast Asia, China and Japan.
Hathor has proven to be a very supportive platform, having brought forward announcements about kickstarting a grants program for developing use cases. Currently, focus has been on HathorSWAP and other tokens that get easily built on HTR wallet platform, also incentivizing users to HODL.
Moving forward to Q2, testnet and implementation of Nano Contracts are becoming a reality, which is perhaps the most highly anticipated feature amongst the HTR user base. As Hathor states “This will be prototypes season!”; new features and several product launches will truly unleash the potential for easy tokenization capabilities and cross-chain settlements becoming faster, safer and cheaper through the use of HTR NET, leading Hathor CEO Mr. Martins to state that Hathor can potentially assist the Ethereum network to deal with its excessive gas fees and delays, in other words, unclogging the transactional bottlenecks.
There is significant synergy in this matter, as well regarding the recently announced partnership with Switzerland-based venture HOPR, which brings data privacy technology and fresh transactional volume to HTR NET. During this time Hathor is also researching and developing how to involve and incorporate DEFI and NFTs, which they see are both crucial and exciting pieces of any layer 1s network product offering.
On a structural note regarding scalability, Hathor is based on SHA 256 and allows BTC oriented hardware to perform merge mining without jeopardizing the operation or production output by using their side-DAGs approach. So, it’s a win-win for SHA 256 Miners as well as the HTR user base.
Ample hashing power capacities and $HTR token rewards manage to motivate miners, which therefore bring users quick transactions with no fees due to the novel side-DAGs architecture Hathor built on the SHA 256 algorithm.
The $HTR mining ecosystem is strong for more than a year now, and will increase soon, as recently Hathor CEO has announced an agreement is taking shape with a major data center in Central Asia, again, another nod to Asian relevance in the digital economy. Strong moves in hashing power reinforce safety, security and agility capacities of the network.
Closing the announcements of this week’s start, $HTR means serious business in scaling up its technical facilities, and seems to be happy with KuCoin listing impact, being frequently amongst top 5 trending pairs as per artificial intelligence analysis, quoting HATHOR CEO Yan Martins on “A.I. don’t lie”, a hint on interest towards this new trending power within the crypto industry. A question remains: what about a next exchange listing? It seems $HTR takes careful moves, and now that KuCoin has been stable and Chinese New Year holidays are done, new listing talks should resume.
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Cryptocurrencies have fees, but so do payment cards.
Credit card providers charge merchants a cut of the payments they accepted, called interchange fees or swipe fees. With two major card providers aiming to elevate rates, could crypto become an alternative?
“Visa Inc. and Mastercard Inc. are planning to raise swipe fees for some types of credit-card purchases in April,” the Wall Street Journal reported on Wednesday, adding:
“Though invisible to consumers, they [interchange fees] are glaring to merchants, which often end up paying fees of about 2% of their customers’ credit-card purchases. The fees are set by the card networks, such as Visa and Mastercard. Merchants pay them to the banks that issue the cards.”
As credit card fees rise, other options will become more attractive to merchants. That includes crypto. Digital assets also incur transaction fees, but some may be cheaper alternatives than the current credit card scene, especially if card fees continue rising.
Bitcoin, in particular, has faced a great deal of criticism over transaction fees that seem to prohibit it ever becoming a reasonable means to pay for everyday purchases. Many, however, completely disregard the costs that merchants incur by Solutions such as Bitcoin’s Lightning Network, also exist, improving transaction fees and speeds for Bitcoin.
Economies worldwide abruptly changed paths in March 2020 as COVID-19 concerns and prevention measures took prevalence. Many businesses have reopened in various capacities. Credit cards, however, have gained further dominance over cash usage, especially in light of those seeking web-based purchases amid the current situation with COVID-19, as detailed by the Wall Street Journal.
Crypto assets are also paperless, capable of usage online and in person, although they can also come with other added benefits, such as decentralization.
XRP is currently at risk of being deemed a security by the U.S. Securities and Exchange Commission. However, one of the most prominent technical analysts in the industry believes that it may provide an opportunity for speculators to profit.
XRP Price Movement Ahead
According to 40-year trading veteran Peter Brandt, XRP seems to have developed an inverse head-and-shoulders pattern on its 12-hour chart. The cryptocurrency is currently forming the right shoulder of the bullish formation but has the potential to break out, as this is one of the most reliable trend reversal patterns.
Although Brandt said that he does not trade OTC securities, he emphasized that XRP “would be of interest” if he did invest.
A bullish impulse that allows XRP to close above the pattern’s neckline at $0.66 could lead to a 74% upswing.
XRP could then rise to a new yearly high of $1.15 based on the inverse head-and-shoulders pattern. This optimistic target is determined by measuring the distance between the head and the neckline and adding it upwards from the breakout point.
XRP Must Close Above $0.66
It is worth noting XRP must close decisively above the $0.66 barrier to validate the bullish outlook. If this were to happen, the Fibonacci retracement indicator suggests that XRP would face significant resistance on its way up.
The $0.78 and $0.95 levels will be the most considerable areas of interest that XRP will have to slice through to meet the head-and-shoulders pattern’s target of $1.15.
Traders must wait for a 12-hour candlestick close above the overhead resistance at $0.66 for the inverse head-and-shoulders pattern to be validated. Until that happens, XRP remains at risk of further losses.
A sudden bearish impulse below the $0.41 support level increases the odds for a downswing towards $0.33. Moving past this critical demand wall could invalidate the bullish outlook and lead to a massive correction towards $0.20.
Disclosure: At the time of writing, this author held Bitcoin and Ethereum.
Golem price has rallied 230% since the start of February and on-chain data shows an uptick in active addresses and transfers.
Over the past few weeks Golem (GLM) price saw a strong rally which pushed the token to a 3-year high at $0.65.
The altcoin also underwent a strong pump on Feb. 19, but most of the gains evaporated as Bitcoin (BTC) corrected below $45,000 over the past three days. Nevertheless, GLM still holds a 230% gain in February alone.
Golem is an Ethereum decentralized application that enables users to rent out computing-power resources. Since November 2020 the project has been migrating from GNT to GLM token after deploying a new ERC-20 contract. Although most exchanges supported the move, it is still possible to find GNT activity and listings.
Golem provides an open-source cloud processing framework for both application registries and transactions. Thus, anyone can share and aggregate computing resources, as well as create applications using the network. Ultimately, the solution aims to compete with traditional centralized cloud services like Amazon AWS.
Golem’s ICO took place in November 2016, raising $8.6 million for 820 million GMT tokens. 180 million tokens were retained by the project’s ‘Golem Factory’ foundation, along with early contributors and team members.
The network allows personal computers and large data centers to share resources and contributors are paid in GMT tokens. According to Golem, a transaction system settles payments between providers, requesters, and software developers. To protect the host device, all computations take place in a sandbox environment.
According to the Golem Project blog, its batched transaction approach protects users from Ethereum network congestion and excessive gas prices. Layer-2 scalability is already being offered on the mainnet using Matter Labs' zkSync which is a zero-knowledge technology for the payment API.
Partnerships and protocol testnets back Golem’s uptrend
The results of the Golem Gitcoin Hackaton 2020 included a smart contract called the GLM-stake-pool. The contract allows GLM token holders to obtain yield by staking Uniswap LP tokens.
On Feb. 17 Golem also revealed a new testnet release, called Alpha IV. The update allows users to set up long-running tasks instead of the regular per-use payments. The platform also enables users to receive funds without initializing an account.
On-chain data registers a sharp spike in active addresses and transfers
According to the Golem migration website, 44% of the total supply has been converted to GLM. On-chain data shows that activity spiked on Feb. 19, reaching 1,839 daily active addresses. Curiously, that was the same day that GLM price traded at $0.65, the highest level in three years.
Although the network displays potential, there are only a few applications available and they are not very active. The current applications are video transcoders, bulk image editors, a Sudoku game and a few data analysis and optimization tools.
While there appears to be potential in the project’s product, the team may need to secure an enterprise-level partnership in order for GLM to gain sustainable traction.
It is nearly impossible for the average cryptocurrency trader to evaluate how Golem's solution compares to Amazon AWS and the other top-level cloud services providers that it aims to compete against. Thus, the GLM token upside seems limited until such confirmation happens through real-world use cases.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Major players of the traditional financial industry are looking for new ways how to keep their positions, threatened by the emerging cryptoasset and decentralized finance (DeFi) industries.
The Bank for International Settlements’ Innovation Hub (BISIH) and the Society for Worldwide Interbank Financial Communication (SWIFT) have teamed up to host a hackathon to highlight
While over-leveraged traders are getting crushed by Bitcoin’s volatility, it seems that institutional investors are taking advantage of every downswing to add more BTC to their holdings.
MicroStrategy Buys the Bitcoin Dip
MicroStrategy announced on Feb. 24 that it had purchased 19,452 BTC for roughly $1 billion in cash at an average price of $52,765 per token. This brings its total balance sheet to 90,531 BTC, with those funds acquired at an average of $23,985 per coin.
MicroStrategy CEO Michael Saylor commented on the purchase. “The company now holds over 90,000 Bitcoins, reaffirming our belief that Bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value,” Saylor says.
He added that the firm will continue to to “[acquire] Bitcoin with excess cash” and raise capital to purchase Bitcoin.
The purchase comes after Square Inc. published its annual earnings report, revealing a $170 million Bitcoin purchase at an average price of $51,235. The financial services firm now owns 8,807 BTC, bought at an average price of $25,000 per token.
Stiff Resistance Ahead
Because such significant purchases by institutional investors tend to be carried out as over-the-counter trades, the impact on Bitcoin prices could be delayed. But if buying pressure continues to mount, Bitcoin may be able to recover promptly after the correction and march towards new all-time highs.
IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model reveals that Bitcoin must slice through a stiff supply barrier. Indeed, nearly 600,000 addresses have previously purchased approximately 370,000 BTC at prices between $52,800 and $54,200.
Such a significant interest area may have the ability to absorb some of the buying pressure seen recently. Holders who have been underwater may try to break even on their positions, slowing down the uptrend. But if Bitcoin can break through this hurdle, it would likely resume its parabolic advance.
The IOMAP cohorts also show that Bitcoin sits on top of stable support. More than 600,000 addresses bought roughly 400,000 BTC between $48.500 and $50,000. This crucial demand barrier must continue to hold to avoid a steeper decline towards $40,000.
Disclosure: At the time of writing, this author owned Bitcoin and Ethereum.
January proved significant in terms of Bitcoin futures trading average daily volume for the CME.
Bitcoin’s price rose significantly in January. The Chicago Mercantile Exchange, or CME, also hit record Bitcoin (BTC) futures trading numbers in the same month.
“In January, BTC average daily volume (ADV) reached a monthly record of 17,549 contracts (87.7K equivalent bitcoin),” a CME representative told Cointelegraph. Each CME Bitcoin futures contract is worth the value of 5 BTC paid out in dollars.
“In December 2020, BTC average daily volume (ADV) reached 11,179 contracts (55.9K equivalent bitcoin),” the representative added. “This represents a +57% increase.”
In January, Bitcoin rose from $30,000 up to almost $42,000, according to TradingView data. The month before, the asset had broken its longstanding record high of approximately $20,000, surging up to nearly $30,000 by the end of 2020.
“We are continuing to see robust interest in our Bitcoin futures contracts, with a record 528 accounts added in January, helping drive BTC average daily volume (ADV) to a monthly record of 17,549 contracts (87.7K equivalent bitcoin), up 63% YoY,” the CME representative said.
CME’s BTC futures trading product has gained a notable number of users since its inception in December 2017. “7,400+ unique, active accounts have traded since launch,” CME said in a recent report showing numbers up to Feb. 17, 2021. “Of those, 733 were added in 2021, 2.3x more than in 2020,” the report added.
The former CEO of the London Stock Exchange Group, Xavier Rolet, has advised the UK government to look into cryptocurrencies and SPACs to minimize the adverse impact of Brexit. In a recent report, Rolet claimed that the UK has trailed behind other countries in both aspects.
The UK Should Turn To Crypto And SPACs?
Born in France, Rolet is a businessman and the Chief Executive Officer of the London-based credit-focused asset management firm CQS. Before assuming this position, though, he served as the CEO of the London Stock Exchange Group and was named as one of the 100 best CEOs in the world in 2017 by the Harvard Business Review.
In a report cited by Bloomberg, Rolet touched upon the potential consequences to the UK economy following the withdrawal from the European Union and the European Atomic Energy Community, better known as Brexit.
The executive believes that the UK has two viable options to consider if it wants to minimize the risks and help the nation flourish.
In the first one, he urged the government to “promptly consider the SPAC revolution.” Also referred to as “blank check companies,” these special purpose acquisition companies (SPAC) operate as shell corporations listed on a stock exchange with the idea of buying out a private company, thus making it public. Ultimately, this strategy eliminates the need to go through a traditional initial public offering (IPO).
While the US has seen significant adoption in the past year with a 10x increase in the raised funds compared to 2019’s results, the UK regulators have halted their progress on the London markets.
Rolet’s second advice involved digital assets as he noted that “all relevant UK government agencies should be resourced to thoroughly understand cryptocurrencies.”
With proper regulations, the crypto ecosystem could “place London and the UK at the center of a reputable and safe financial market.”
The UK’s Regulatory Approach To Cryptocurrencies
While UK’s regulators have hindered SPACs’ progress within the country, the nation’s financial watchdog, the FCA, has also been rather harsh against the cryptocurrency industry.
As of the start of this year, the Financial Conduct Authority banned crypto derivatives and exchange-traded notes (ETNs) to retail customers.
Additionally, the watchdog has issued several warnings to investors that they could lose all their funds if allocated in digital assets.
The regulator also announced that all UK-based digital asset businesses need to be registered with it but extended the deadline for applications to July 9th, 2021.
Cardano, like most alts in the market, depreciated significantly between the 21st and 23rd of February. In fact, ADA dropped by as much as ~30%, with the crypto-asset falling to $0.81 at one point. It should be noted, however, that the crypto-asset managed to consolidate its position above $1 over the last 24 hours, with […]
On Sunday, February 21, the price of bitcoin touched a new all-time high (ATH) at $58,354 and at the time, inflow into exchanges spiked as well. According to data from the onchain analysis firm, Santiment, stats indicate that exchange inflow jumped 11x on Sunday and data also shows one whale address was responsible for the second-largest bitcoin transaction in 2021.
Second-Largest Bitcoin Transaction and 11x the Exchange Flow Shakes the Crypto Market
Bitcoin prices jumping to new heights has sparked a lot of crypto market movement in recent months and even ancient UTXOs waking up after sleeping for over a decade. The last few days have been brutal as BTC prices slid around 20% after reaching the $58,354 ATH recorded on Sunday. Of course, market observers and onchain analysts saw things from a different perspective and the company Santiment tweeted about all the action on Tuesday.
“As we noted yesterday,” Santiment said. “There was an 11x exchange inflow spike that initiated bitcoin’s price correction from its $58.3k ATH. Further data combing revealed that an address was responsible for the 2nd largest BTC transaction of the year, an import of 2,700 tokens to the wallet before a quick sell-off,” the researchers added.
This same address also made a 2,000 BTC import last March right as the Black Thursday correction took place. In total, it made 73 transactions in its one-year existence, for a total of 91,935 BTC imported, with all tokens moving away within minutes after arrival.
Whale Address May Belong to Gemini Exchange, F2pool Conspiracies
An analysis of the whale address shows the transaction of 2,700 BTC was sent with great privacy according to blockchair.com stats. The block explorers privacy meter indicates the rating was a 100 as the tool “shows whether your transaction is susceptible to some of the heuristics used by numerous transaction tracing tools.” The 2,700 BTC spend that also saw a 2,000 BTC spend on ‘Black Thursday’ also coincidentally follows the same pattern as the 2010 awakenings news.Bitcoin.com has been investigating.
One awakening of 1,000 BTC worth of 2010 block rewards was also mysteriously spent on March 11, 2020, the day before ‘Black Thursday.’ This continued throughout 2020 as multiple strings of 2010 block rewards were spent and there was also a large string spent on the anniversary of the Bitcoin network’s launch. One Russian blockchain researcher, Issak Shvarts told our newsdesk that the coins were sold to Coinbase.
The whale address Santiment caught has signs that the address may belong to the Gemini exchange, at least from data stemming from oxt.me. Santiment noted that exchange inflow was massive as the research team caught “59,915 BTC in a single hour, just as prices jumped over $58,300.”
“This was the largest spike in 16 weeks,” Santiment’s report details. “And for context, the 200-hour resting average was sitting at 5,032 BTC moved to exchanges per hour. This means this spike was 1,091% higher than the recent mean. This exchange inflow was assisted by the 2nd largest BTC transaction of 2021 to a large whale address, which instantly disposed of the funds,” the researchers added.
WARNING WARNING WARNING…F2POOL OUTFLOW IS MASSIVE…DUMP INCOMING???
In addition to the second-largest transaction of the year, a myriad of market observers blamed the mining operation F2pool for the recent dump. Reports say that F2pool, which is the largest mining pool in terms of BTC hashrate, has been selling BTC like hotcakes.
Cityam.com’s resident trader dubbed ‘TMG’ said: “3,633 bitcoin in a single transaction out of their bitcoin mining wallet and right onto the exchanges.” Dumping accusations toward the mining pool with 15.1% of the hashrate (23.14 EH/s) are littered across social media in great number.
What do you think about the whale address theories and accusations directed at F2pool? Let us know what you think about this subject in the comments section below.
The U.S. Federal Reserve’s payments system has been restored to operation after a three-hour outage, according to status reports from the government body’s website.
Services Experienced Three-Hour Outage
On Feb. 24, several Federal Reserve services went down, including Account Services, Check 21, Check Adjustments, FedACH, FedCash, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web, Fedwire Funds, Fedwire Securities, National Settlement.
The first issues began at 11:15 a.m. Eastern Time. Problems around central bank applications were resolved at 2:17 p.m, and access to FedCash Services was restored by 2:30 p.m. The Federal Reserve also extended cash order deadlines to 3:30 p.m due to the outage.
In a statement, Federal Reserve Bank of Richmond representative Jim Strader suggested that the issue was due to an “operational error [that] resulted in disruption of service in several business lines.”
Crypo Exchanges Affected
Several cryptocurrency exchanges have reported issues due to the outage, including Binance.US, Kraken, Coinbase, and Gemini. The outage has prevented exchanges from variously accepting and performing wire payments, ACH payments, and bank transfers.
Though the issue has been resolved at the Federal Reserve level, it appears that exchanges have not fully resolved the issue on their end and are still experiencing delays.
This is the second notable crypto-related outage of the month; several exchanges were affected by an AWS outage on Friday.
Cryptocurrency exchanges were not the only service affected by the issue. According to Reuters, the service is the “hidden backbone” of the U.S. Financial system. It reportedly handles more than 835,000 transactions per day, amounting to $3.4 trillion per day.
At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.
In the past few years, recruiters showed great interest in people with higher education, which led to a greater need for money among potential students. However, due to the economy’s fragility, students began searching for alternative solutions that didn’t depend on banks – and it’s not just students. Entrepreneurs who are struggling to raise money to bring their business ideas to life also need alternative options. Bank practices are inconsistent, and start-up financing programs are highly competitive.
These recent years have resulted in good news as cryptocurrencies are becoming more popular with each passing day. That fact alone has made people feel more secure in both their finances and data. But no one considered that this technology could also respond to the prayers of students and entrepreneurs, except for Student Coin’s team.
What is Student Coin
Student Coin is an ecosystem built on blockchain technology that increases the functionality of cryptocurrencies. The project was designed to make it possible for individuals and legal entities to build their tokens and cure others of digital anxiety.
Student Coin is sustained by over 500 academic institutions, all of them conquered by its potential. Top universities such as Stanford, Harvard and Newcastle are just some of the names that support it.
What Student Coin offers
There are currently two features already available and two more that will be valid from the Q3 of 2021.
Crypto learning program – The board consists of five sections, ranging from basic details about blockchain technology, to studies about the most influential cryptocurrencies. To complete a written course, you need to pass the exams as you go.
Voting option – You have the right to vote for project implementation decisions, sign multiple petitions, and even participate in university elections by keeping the STC token, the platform’s core currency.
Exchange platform – This is an essential feature that will boost the value of STC-based tokens over the years.
Personal tokens – Users can build these tokens without vast technical knowledge, opening the door to an impressive income strategy – crowdfunding.
How it works
Each student can build their own token and put it on the market for sale. These tokens are then bought by other users, giving the student the money he needs for tuition. Once he graduates and becomes employed, he will start paying back the loan. This approach provides students with funds while eliminating the fear of major changes in their interest rate or the bank’s operations.
Those who want funding to start their own company may also use this approach.
In recent years, the crypto space has changed a lot. As long as brilliant minds discover new blockchain technology applications, the economy will regain its balance, and we will have a better lifestyle.
This content is sponsored and should be regarded as promotional material. Opinions and statements expressed herein are those of the author and do not reflect the opinions of The Daily Hodl. The Daily Hodl is not a subsidiary of or owned by any ICOs, blockchain startups or companies that advertise on our platform. Investors should do their due diligence before making any high-risk investments in any ICOs, blockchain startups or cryptocurrencies. Please be advised that your investments are at your own risk, and any losses you may incur are your responsibility.
Bitcoin price is attempting to flip the $50,000 level back to support, while many altcoins are capitalizing on BTC's consolidation by moving higher.
Institutional investors continue to pour money into the crypto sector even with the current dip below $45,000. On Feb.24, business intelligence firm MicroStrategy announced that it had recently purchased over $1 billion worth of Bitcoin (BTC) at an average rate of $52,765 per coin. This takes the company’s total holding to 90,531 Bitcoin.
Another company that bought Bitcoin during the current market correction is Square. The company said it had acquired roughly “3,318 Bitcoin at an aggregate purchase price of $170 million.”
These purchases by institutional investors show they are bullish on the long-term prospects of Bitcoin and believe that it is a good buy near $50,000.
While the institutional purchases are a bullish sign, traders must also remember that for every buyer, there is a seller. Glassnode data suggests that Bitcoin whales, holding between 1,000 Bitcoin to 10,000 Bitcoin and “humpback whales” holding more than 10,000 Bitcoin have sold more than 140,000 Bitcoin in February.
In the past, the whales swayed the crypto markets at their will. But the entry of institutional investors has reduced their dominance. Therefore, along with the whales, traders must also keep an eye on the institutional activity.
While large investors can buy and hold for the long-term, the smaller investor would do well to buy at the right time to make the most of the limited available capital. Let’s study the charts of the top-10 cryptocurrencies to determine the trend.
Bitcoin’s pullback from the 20-day exponential moving average ($48,323) on Feb. 22 was greeted with aggressive selling on February 23. The bears dragged the price below the channel, but the long tail on the day’s candlestick shows buying at lower levels.
The buyers are currently attempting to keep the BTC/USD pair inside the channel. However, the inside day candlestick pattern today suggests indecision among the bulls and the bears. The flat 20-day EMA and the relative strength index (RSI) just above the midpoint also suggest a balance between supply and demand.
If the bulls can sustain the price above $50,000, the pair will try to rise to the resistance line of the ascending channel. The next leg of the uptrend may begin after the price breaks above the all-time high at $58,341.03.
Contrary to this assumption, if the bears again sink the price below the channel, the pair may drop to $45,000 and then to the 50-day simple moving average ($40,541). A break below this support could signal a deeper correction to $28,850.
Ether (ETH) fell below the support line of the ascending channel and the 50-day SMA ($1,487) on Feb. 23, but the bulls purchased the dip and managed to keep the price inside the channel.
The bulls are currently attempting to push the price above the 20-day EMA ($1,728). If they succeed, the ETH/USD pair may again try to rise to the resistance line of the channel.
However, the 20-day EMA has started to turn down and the RSI is near the midpoint, which suggests that the bears are trying to make a comeback.
If the price turns down from the 20-day EMA, the bears will once again try to sink and sustain the pair below the 50-day SMA. If they can manage to do that, the pair may enter a deeper correction and slump to $1,000.
Binance Coin (BNB) remains volatile within a large intraday trading range. The bears pulled the price down to the 20-day EMA ($182) on Feb. 23 but the altcoin made a smart recovery as seen from the long tail on the day’s candlestick.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for BNB on Feb. 23 prior to the recent price rise.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.
Even as Binance Coin’s price started to correct from $273 on Feb. 23, the VORTECS™ score started to turn up from 71.
The score reached 82 just after the announcement of UFT token listing on Binance and this was followed by several other revelations related to BNB’s integration to the DeFi space. Following these announcements and the bullish outlook seen in the VORTECS™score, BNB price started to rally from $201.
That was soon followed by a sharp recovery in the price. After a brief dip, the VORTECS™ score started to strengthen from 71 and reached 80 as the price recovered to $271 on Feb. 24.
The bulls are currently attempting to push the price above the downtrend line, but the long wick on the candlestick shows selling at higher levels.
If the price again turns down from the downtrend line, the BNB/USD pair could drop to the 20-day EMA. A break below this support could intensify the selling and drag the price down to $118.
Conversely, if the bulls can push and sustain the price above the downtrend line, the BNB/USD pair may rally to $300 and then to $348.6969.
The long tail on the Feb. 22 and 23 candlesticks shows that traders are aggressively buying the dip in Polkadot (DOT).
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for Polkadot on Feb. 23, prior to the relief rally from the intraday lows.
The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity
The VORTECS™ score for DOT moved above 70 on Feb. 23 when the price was at $36.78. Even as the price continued to fall, the VORTECS™ score reached 82 when DOT’s price was below $30. This strength in the VORTECS™ score was followed by a sharp recovery in price to $36 on Feb. 24.
DOT’s recovery coincided with the rebound in most major cryptocurrencies, which followed Bitcoin’s relief rally from the $45,000 intraday low made on Feb. 23 to about $50,000 on Feb. 24.
The bulls are currently attempting to push and sustain the price back above the resistance line of the ascending channel. If they succeed, the DOT/USD pair may rally to $42.2848.
A breakout and close above the all-time high could open the gates for a rally to the psychological level at $50. The upsloping moving averages and the RSI near the overbought territory suggest advantage to the bulls.
This bullish view will invalidate if the pair turns down sharply from the current levels and plummets below the support line of the ascending channel.
The bears once again tried to sink Cardano (ADA) below the 20-day EMA ($0.867) on Feb. 23 but failed. This shows the sentiment remains positive and traders are viewing the dips as a buying opportunity.
The bulls have again pushed the price above $0.9817712. If they can sustain the price above the psychological level at $1, a retest of $1.1980811 is possible. A breakout and close above this resistance may signal the resumption of the uptrend.
Both moving averages are sloping up and the RSI is near the overbought territory. This suggests the path of least resistance is to the upside.
This bullish view will be negated if the price turns down and breaks below the 20-day EMA. Such a move could pull the ADA/USD pair down to $0.6879684.
XRP has been all over the place in the past few days. After the bulls failed to sustain the price above $0.65 on Feb. 22, the altcoin witnessed intense selling pressure and plunged to $0.365 on Feb. 23. However, the long tail on the day’s candlestick shows aggressive buying at lower levels.
Buying on dips and selling on rallies is a sign of consolidation. The XRP/USD pair could trade between $0.359 and $0.65 for a few days. The flattish 20-day EMA ($0.499) and the RSI near 50 also point to a possible range-bound action for a few days.
The next trending move could start after the bulls push and sustain the price above $0.65 or the bears sink the pair below $0.359. Until then, volatile range-bound action is likely to continue.
The failure of the bulls to build upon Litecoin’s (LTC) recovery on Feb. 22 shows a possible change in sentiment. Traders seem to be using the rallies to book profits. The altcoin turned down on Feb. 23 and this may have caught the aggressive bulls on the wrong foot, resulting in liquidation of long positions.
The LTC/USD pair broke below the 50-day SMA ($166) on Feb. 23, but the bulls defended the uptrend line. However, any relief rally is likely to face stiff resistance at the 20-day EMA ($195) that has started to turn down.
If the bulls fail to drive the price above the 20-day EMA, the pair may witness one more bout of selling that could pull the price down to the $120 support.
This negative view will invalidate if the bulls can push and sustain the price above the 20-day EMA. Above this level, a retest of $246.9679 may be on the cards.
Chainlink (LINK) plunged below the support line of the ascending channel on Feb. 23 and this could have trapped the aggressive bulls who had purchased the dip on Feb. 22. Stop losses may have triggered below $25.2312, which pulled the price down to the critical support at $20.1111.
The dip buyers purchased the fall on Feb. 23 and are currently attempting to push the price back into the ascending channel. However, the buyers are likely to face stiff resistance at the 20-day EMA ($29.58).
If the price turns down from the 20-day EMA, it will indicate that traders are selling on rallies. The bears will then try to sink the price back below the 50-day SMA and retest the $20.1111 support.
This negative view will invalidate if the bulls can push and sustain the price inside the ascending channel. Such a move could result in a rally to $34 and then to $36.9307.
Bitcoin Cash (BCH) sold off on Feb. 23 and broke below the 50-day SMA ($514). However, the bulls purchased the dip to the uptrend line and are currently attempting to push the price back above the $539 resistance.
The 20-day EMA ($596) has turned down and the RSI is just below the midpoint, suggesting a marginal advantage to the bears.
The sellers are likely to defend the 20-day EMA. If the price turns down from this resistance, it will suggest that traders are selling on rallies. A break and close below the uptrend line could clear the path for a decline to $370.
Contrary to this assumption, if the bulls can push and sustain the price above the 20-day EMA, the BCH/USD pair may rise to $631.71 and then to $745.
Stellar Lumens (XLM) plunged below the $0.35 support on Feb. 23, but the long tail on the day’s candlestick suggests the bulls bought the dip. The altcoin is currently trading inside a descending channel.
If the bulls can push the price above the 20-day EMA ($0.439), the XLM/USD pair could rise to the resistance line of the channel. A breakout of the channel will indicate that the bulls are back in the game. The buyers will then try to propel the price to $0.600681.
On the contrary, if the price turns down from the 20-day EMA and plummets below $0.35, it could open the doors for a deeper correction to $0.23.
The flat 20-day EMA and the RSI near the midpoint do not indicate a clear advantage either to the bulls or the bears.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Meltem Demirors: You Needed to Invest in BTC Yesterday
During a discussion with CNBC, Demirors commented that one of the primary reasons many have not invested in bitcoin is likely due to regulatory hurdles that may allegedly appear in the coming future. However, she is confident that many of the regulatory changes that are set to occur will not hurt bitcoin, but rather enhance it, and that those that didn’t invest early will be sorry. She says:
The regulatory issues have been around for a long time. We’ve been dispelling for a long time. At this point, our belief is bitcoin is not a question of if, but when. We certainly believe, you know, the best time to invest in bitcoin was yesterday. The second-best time to allocate is today.
Bitcoin has been doing extremely well as of late. The world’s number one digital currency by market cap recently hit a new all-time high of roughly $57,000 per unit, making the recent $40K mark it struck at the end of 2020 look relatively small by comparison. Anyone who invests in the asset today is going to have a particularly hard time getting more bang for their buck when compared with someone who got involved a few years ago.
Dave Chapman – executive director at BC Group – says that bitcoin is here to stay, and there is no longer reliable justification regarding why a person wouldn’t invest in the asset. He comments:
It’s becoming increasingly difficult for the bitcoin naysayers to continue with their decade-old narrative that bitcoin will never be utilized by traditional… financial institutions. Frankly, I’m not sure how much more evidence one needs to conclude that bitcoin isn’t going away.
When one looks at the serious facts of the previous week, it’s hard to say he doesn’t have a point. After all, many major banks – including BNY Mellon in New York, one of the oldest financial institutions in the United States – have begun offering crypto custody services to their clients, while large companies from General Motors to Uber have commented that they are now looking to permit bitcoin and crypto payments in the future.
The Price Swings Are Still Problematic
Still, digital assets are somewhat marred by volatility, as was the case recently when bitcoin fell by about $3,000 from $56,000 per unit to $53,000 at press time. The dip followed a series of tweets by South African entrepreneur Elon Musk, who commented on social media that both bitcoin’s and Ethereum’s prices were “too high.”
For this reason, Demirors says that people shouldn’t be investing all their money into BTC just yet, and that around four percent is strong enough to avoid certain risks.
U.S. Treasury Secretary Janet Yellen is outlining her concerns about the leading cryptocurrency, Bitcoin.
In a New York Times DealBook conference, Yellen questions Bitcoin’s technical prowess, energy consumption and use for illicit activity.
“I don’t think that Bitcoin, I have said this before, is widely used as a transaction mechanism. To the extent it’s used, I fear, often for illicit finance. It’s an extremely inefficient way of conducting transactions. And the amount of energy that’s consumed in processing those transactions is staggering.”
According to the latest Global Cryptoasset Benchmarking Study from Cambridge, 75% of crypto miners use renewable energy sources, and crypto proponents like Kraken executive Dan Held maintain that BTC uses far less energy than the banking industry.
Bitcoin’s transaction speed is far slower than the throughput of payments companies like Visa. However, Bitcoin users are able to send the digital asset around the world in a matter of minutes for pennies on the dollar, which decidedly outperforms the traditional banking system.
As for claims that Bitcoin is used for illicit activity, a recent study from Chainalysis found crypto-related crime dropped to 0.34% of total transaction volume in 2020, down from 2.1% in 2019.
The Treasury Secretary says she is also concerned about the losses that Bitcoin investors could incur due to the flagship crypto asset’s volatility.
“…It is a highly speculative asset. And, you know, I think people should beware it can be extremely volatile. And, you know, I do worry about potential losses that investors in it could suffer.”
On the subject of Central Bank Digital Currencies (CBDC’s), Yellen says she believes they would promote ‘financial inclusion’ in the U.S.
“…We do have a problem with financial inclusion. Too many Americans really don’t have access to easy payment systems and to banking accounts. And I think, you know, this is something that a digital dollar, a central bank digital currency, could help with. And, you know, I think it could result in faster, safer and cheaper payments…”
Yellen, however, cautions that there are concerns that need to be addressed before a digital dollar is launched.
“… There are a set of issues around central bank digital currencies that have to be examined. What would be the impact on the banking system? Would it cause a huge movement of deposits out of banks and into the Fed? Would the Fed deal with retail customers or try to do this at a wholesale level? Are there financial stability concerns? How would we manage money laundering and illicit finance issues?
So there’s a lot to consumer protection, a lot to consider here… but it’s absolutely worth looking at.”
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Polkadot and Kusama turned out to be two of the biggest projects in 2020. Both are high-speed, highly secure blockchains that allow developers to issue their own projects and get funded by the network itself—a type of development that opened the doors to an entirely new technical area achievable with blockchain and crypto technology.
Dieter Fishbein is one of the many smart people working on the above ecosystem. Fishbein’s the Head of Ecosystem Development at Web3 Foundation and is responsible for business development and strategic partnerships. He previously with Hong Kong- and Toronto-based CMCC Global, a blockchain-focused venture capital fund, and was formerly a cryptography researcher.
Fishbein caught up with Alex Fazel for today’s episode of Cryptonites, the crypto edutainment channel and podcast operate by crypto investing app Swissborg. He shared his thoughts on decentralized finance (DeFi), developing on Polkadot and Kusama, and where the future of decentralized systems was heading towards.
What is Web3?
As a part of the Web3 Foundation, the firm that builds decentralized web protocols and the team behind Polkadot and Kusama, Fishbein started off the podcast with a bit about what the Foundation did.
“Web3 comes down to the promise of technology to really give us new coordination tools,” he said, adding the team is focused on creating pieces of technology that fundamentally give people a different way of coordinating with each other to build technical ecosystems.
“You’re going to see these groups, enter into business transactions on property, generate income on behalf of their users and stakeholders,” he added, noting that such a governance structure was a fundamentally new power structure in itself—powered by an on-chain governance mechanism that is popular today.
Speaking about governance and DeFi, Fishbein said that although current projects were innovative, they failed to add value to the world externally. “These are essentially centralized finance type structures that we’re just seeing on chain, right,” he said, adding:
“What you get are crypto native experts using kind of a decentralized version of centralized banking and finance infrastructure. And people make money, it’s a bit of a casino. But at the end of the day, I don’t think it’s like actually adding that much value externally.”
How Kusama came to be
Fishbein shared some alpha on how Kusama came into existence in the first place. The project’s touted as the “cousin” of Polkadot: Its tagline is to “expect chaos” and developers describe it as “Polkadot on steroids,” or a platform when highly experimental projects and DeFi protocols can test out their designs in the real world.
“This was August 2019, or so. And Polkadot was actually largely done that I think we’re about 80% there in terms of building the codebase. And at the time, there were a lot of crypto-economic questions that still remained that we really wanted to test out. But in order to actually test crypto-economic security guarantees, it’s really difficult to do this with a valueless network, right? Because people naturally will not behave the same way when there’s nothing at stake, basically. So it was decided that that’s the foundation with the launch of Kusama,” shared Fishbein, adding it was an early version of Polkadot and not a mere testnet.
He added that Kusama’s primary use case was to harden Polkadot, meaning any new technology is first launched (and battle-tested) on the former. “Ultimately, this is up to governance, but this is the intention at least for the short and medium-term to basically see how they behave in a live network,” Fishbein said.
However, that’s not to say that Polkadot isn’t eventually the platform where Kusama projects go to. “I think like a lot of DeFi applications, especially the ones that use high-value transactions…move to the security and robustness that Polkadot can provide,” Fishbein said.
(Is Kusama limited to such usecases? Is DeFi indeed just a casino? What’s the future of Polkadot in the coming years? Catch Fishbein answer this and much more on the entire Cryptonites episode. It’s available for streaming in full right below!)
Business intelligence firm MicroStrategy has purchased another $1.026 billion worth of Bitcoin on Wednesday. This marks the fourth time the firm would purchase Bitcoin, bringing its total holding to 90,531 BTC worth $4.78 billion at the time of writing.
According to the firm’s CEO, Michael Saylor, holding Bitcoin is now critical to the firm’s corporate strategy to grow. “The Company remains focused on our two corporate strategies of growing our enterprise analytics software business and acquiring and holding Bitcoin,” said Michael J. Saylor.
The CEO reaffirmed his belief in Bitcoin, stating that the widely adopted cryptocurrency can serve as a dependable store of value. He noted that MicroStrategy would continue to pursue its strategy to acquire Bitcoin with excess cash and use other possible means to accrue the cryptocurrency.
However, MicroStrategy President & CFO Phong Le said that Bitcoin is only complementary to their software business. “MicroStrategy remains dedicated to our enterprise analytics customers and our goal of operating a growing profitable business intelligence company.
“We believe our Bitcoin strategy, including our Bitcoin holdings and related activities in support of the Bitcoin network, is complementary to our software business by enhancing awareness of our brand and providing opportunities to secure new customers,” Phong Le said.
The business intelligence firm leads all other corporate investors regarding the highest amount of money staked in Bitcoin. The second corporate investor with the highest amount of Bitcoin is Tesla, who only recently joined the crypto race. The business intelligence firm is likely to remain the non-crypto firm with the highest Bitcoin holding as the firm’s CEO has no plan to stop amassing Bitcoin.
Apart from MicroStrategy and Tesla, the two firms with the highest Bitcoin holdings, other corporate investors with a stake in Bitcoin are Galaxy Digital Holdings, Grayscale Bitcoin Trust, Ruffer Investment Company, CoinShares, among others.
On Wednesday (February 24), IOHK, the company developing the Cardano (ADA) protocol, announced that the “Mary” protocol update (which will require a hard fork) will be applied to the mainnet on March 1. The “Mary” protocol update is an important part of the rollout of phase 3 (“Goguen”) of Cardano’s development. As the Cardano roadmap […]
At the time of writing, Bitcoin was trading around the $50,000-level, with the crypto-asset on the road to recovery following the market-wide depreciation on the 23rd of February. Now, the price drop was largely due to miner inflows, stablecoin inflows, and activity on Bitcoin’s network. However, what often gets forgotten is the fact that activity […]
Polychain Capital led a $5 million seed round for DFX, a DEX aimed at expanding DeFi to international markets.
DFX Aims to Bring DeFi Worldwide
Former staff from the Ethereum Foundation, Deloitte, and ConsenSys are building out the DFX decentralized exchange for stablecoins.
The DEX protocol is designed to work with non-USD stablecoins, including three pegged to the Canadian and Singapore dollars and the Euro. The variety of currencies is aimed at bringing DeFi to a wider global audience.
We’re very excited to announce that we have raised north of $5M from a great group of strategic partners led by @polychain and @trueventures! We'll be launching our liquidity mining program today with 3 awesome stablecoins $CADC$EURS$XSGD paired with $USDC!
One of the pain points in DeFi is the over-reliance on USD stablecoins such as Tether and USDC, exposing international users to US dollar inflation. DFX will launch liquidity mining with the CADC, EURS, and XDGD stablecoins to offer non-USD options in DeFi.
DFX users will be able to vote for which new coins they would like to add to the protocol.
DeFi Boom Continues
Despite a bearish correction in the last week, DeFi is booming with over $37 billion in assets currently locked into the ecosystem.
However, the process of contributing liquidity or lending and borrowing can still be quite convoluted on many platforms. VC firms such as Polychain Capital clearly feel that solutions such as the DFX exchange’s answer to USD exposure are worth pursuing.
"A Federal Reserve operational error resulted in disruption of service in several business lines," said Jim Strader from the Richmond Fed.
All of the services available through the Federal Reserve's online portal have been down for more than an hour.
According to the Federal Reserve Bank Services' website, the bank is experiencing a disruption in its account services, central bank, Check 21, check adjustments, FedACH, FedCash, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web, Fedwire Funds, Fedwire Securities, and National Settlement — all services typically available — which started at 6:18 PM UTC today. In addition, all the access solutions that the Fed offers, with the exception of FedMail, are also offline.
Washington Post reporter Rachel Leah Siegel reportedly received an alert from the Fed saying its staff were "currently investigating a disruption to multiple services" and would "continue to provide updates as soon as they are available."
"A Federal Reserve operational error resulted in disruption of service in several business lines," said Jim Strader from the Federal Reserve Bank of Richmond. "We are restoring services and are communicating with all Federal Reserve Financial Services customers about the status of operations."