The Bitcoin market is shaking off the strong correction to $10,400 last week. The leading cryptocurrency currently trades for $10,700, a few percent above those lows as buyers come in ahead of the legacy market open on Sunday.
In the past 24 hours, Bitcoin is up a healthy 1%, allowing it to actually outperform a swath of altcoins like Ethereum, XRP, and Litecoin.
BTC’s move higher comes in the face of a series of bearish news events that include but are not limited to the $280 million hack of KuCoin, the U.S. CFTC charging BitMEX and its founders over certain concerns, and President Trump catching the disease currently spreading across the globe.
Bitcoin’s resilience in the face of these three news events, analysts say, goes to show the strength of the macro BTC uptrend.
While Bitcoin is pushing higher as can be seen in the chart below, the average derivatives user remains bearish.
According to ByBt, a crypto derivatives tracker, top BTC futures markets still have negative current and negative predicted funding rates. The funding rate is the fee that long positions pay short positions to ensure that the price of the future stays in line with the price of the underlying spot asset or index.
Negative Bitcoin funding rates suggest that shorts are much more aggressive than longs.
Chart of BTC's price action over the past two days from TradingView.com
The case for further upside in the price of Bitcoin remains intact. As reported by NewsBTC, Dan Tapiero, a gold bull that has recently focused much of his time on Bitcoin and cryptocurrency, recently stated on the asset’s macro prospects:
“Massive structural deflation in Europe supports Bitcoin. Causes European Union real interest rates to geo up even as nominal rates are negative. Crushes legacy European Union banks. European Central Bank drags feet and maybe [its] hands [are] tied. Dollar falls as real rates rise faster in the European Union than in the US.”
On-chain trends, such as the number of active BTC users, also shows that the cryptocurrency is likely to move higher, Willy Woo says. Woo is a prominent on-chain analyst.
Credible Crypto Predicts XRP Will Rise 12,900% in Next Bitcoin Bull Cycle
Closely-followed trader and crypto strategist Credible Crypto sees XRP meteorically rising by over 12,900% in the next Bitcoin boom cycle.
In a new tweet, the crypto analyst tells his 68,000 followers that Ripple’s native token has the potential to massively increase one’s net worth in the coming years.
“Keep it real.
XRP price IS NOT ‘pre-determined.’
XRP IS NOT ‘backed by gold.’
XRP WILL NOT reach the prices BTC has ($10,000+).
XRP will NOT replace the dollar.
But it doesn’t need to do ANY of these things to make you and me life-changing money over the next 3 years.”
When asked to provide his price prediction for the fourth-largest cryptocurrency, Credible explains why he believes XRP can skyrocket between $20 – $30 before the current bull market expires.
“…it’s gone 1000x+ in the last run, this would just be 100x. Regarding sell pressure, weak hands have long sold their XRP for other projects. The ones holding now won’t sell soon.”
Not all analysts share Credible’s long-term bullish attitude towards XRP. Widely-followed veteran trader Peter Brandt told his crew of 375,000 to be cautious about investing in Ripple’s native asset.
“Don’t place your faith in XRP.”
Brand notes that Ripple’s ownership of more than half of the total supply of XRP is a potential liability. He believes the token has more downside potential as it continues to underperform relative to other major cap coins.
Meanwhile, Credible is also looking at the short-term performance of Bitcoin. He says the presence of Bitcoin bulls at immediate support of $10,400 may likely send BTC close to $12,000.
“10.4K-10.5K continues to hold. Number go up. BTC”
Why Hardnosed Bitcoiners Can Learn to Love DeFi
I want to talk about stacking sats.
It’s a simple idea: accumulate wealth over time by growing your stack of bitcoin (BTC) and HODLing. People can stack by purchasing bitcoin regularly or earning it through work or rewards. The key is that it’s steady and deliberate, with an eye to the long term. If the vision of a decentralized economy is going to win out, it’s essential that bitcoin continues to be established as a primary means of saving and building wealth.
The concept of stacking eschews the wanton speculation of the initial coin offering boom, epitomized by “wen moon” and similar memes. It’s much more in line with the bedrock principles that underpin the “real economy.” The ability to save money is an essential component of any financial system. Establishing more avenues for people to get predictable but decent returns on their bitcoin is how we truly start to shift the way the world deals with money.
And that’s why bitcoiners who stack sats should take a hard look at the decentralized finance (DeFi) platforms seeing explosive growth on Ethereum. While the optics may call to mind the wild speculation of 2017, the truth is that much of the growth in DeFi is driven by the same sound money principles as stacking.
Bitcoin’s usefulness and grounding as hard money set it apart from most of the crypto froth from the past several years. The ocean of Ethereum white papers produced has yielded comparatively few working projects, and even fewer that anyone outside the crypto world would call usable.
Regardless of Bitcoin’s advantages, I am on record saying that I am a monetary maximalist, not a Bitcoin maximalist. I believe finance is a human right, just like speech and assembly, and that we need a fair and transparent financial system that empowers individuals, not powerful middlemen. So while I believe in the soundness of Bitcoin and its ability to help reshape finance, I will support any project that furthers this ultimate vision for a new economic system.
Stacking sats is about steadily, gradually, doggedly accumulating wealth over time. And DeFi is in the same spirit when properly implemented.
The fact that Ethereum is not Bitcoin, that it has consistently driven hype and bubbles, and that it still has not found a workable long-term solution for scalability, does not mean it offers nothing of value. In fact, Ethereum’s top DeFi platforms are doing some truly exciting and innovative work, and they have the promise to further the cause of a decentralized future of money.
MakerDAO operates like a credit facility, driving liquidity and encouraging more lending when interest rates are low. Compound, with its developer-focused interest rate protocols, enables the savings and loan functions of traditional banks. In more arcane spheres, projects like Synthetix offer a version of derivatives trading. Together, these platforms represent the germ of a new financial system.
At this point many of you that know me only as a Bitcoiner are rolling your eyes and drawing comparisons to ICOs and tulips. Projects with names like $YAM and $TENDIES do not inspire confidence, I know. But dig a little into what DeFi is and does, and the foundations that have been laid, and you’ll be pleasantly surprised. DeFi is very real, and it’s worth exploring and explaining.
Stacking sats is about steadily, gradually, doggedly accumulating wealth over time. And DeFi is in the same spirit when properly implemented (never a sure thing in the Ethereum community). It’s basic finance: DeFi lets people do things they already do through banks, mutual funds and other financial institutions. But done right, it offers these services in a way that’s fairer, more transparent and more rewarding. So it’s not an exaggeration to say that DeFi is an ally in achieving a vision it shares with bitcoin: a trustless world of democratized, self-sovereign finance.
It would be myopic and self-defeating to ignore the potential of DeFi to advance a goal that is, after all, shared by all of us. It would be even more self-defeating to ignore real opportunities to put money to work, like when there’s a way for BTC holders to earn through cross-chain bridges like tBTC.
As Bitcoiners, we will always believe in the importance of sound money and in the Bitcoin blockchain as the best technology to facilitate it. There is plenty of risk in Ethereum and in DeFi. Potential investors must always do their due diligence. But I’m here to tell you that DeFi is for real. It’s a bubble, but it’s not just another bubble. And although there absolutely are “DeFi” platforms that will crash and burn, many of the concepts are sound. There are real opportunities for people to earn by putting their money to work – and where that’s true, investment and growth will follow.
Polkadot (DOT) Could Incur Strong Correction as Macro Support Nears
It’s been a tough past few days for all altcoins. Polkadot (DOT), especially, has suffered. The native digital asset of the Polkadot ecosystem has shed a few percent in the past 24 hours but is down 10% from its weekly highs.
The cryptocurrency’s correction comes as Bitcoin, Ethereum, and especially altcoins have inched lower.
While BTC remains in no man’s land from a technical perspective, DOT is reaching a point where it could face a severe correction if it drops under a crucial support level. The support level has held multiple times over recent weeks, suggesting a loss of the level would be disastrous for bulls.
Leading altcoin Polkadot faces an even stronger correction as the cryptocurrency nears a pivotal macro support level.
One cryptocurrency trader shared the chart below on October 3rd, noting that DOT is primed to move below the $4.00 support level, which has held as a daily level of support on at least five occasions over the past month.
“Almost a week later but we got another touch of trend resistance followed by another tap of support. Doesn’t look good. HTF is so important to any trades I make right now. I cannot stress this enough. No interest in anything less than 4H/1D!”
Chart of DOT's price action over the past few weeks with analysis by crypto trader Posty (@PostyXBT on Twitter). Chart from TradingView.com
This concern was echoed by a number of other analysts, who also noted that DOT losing the support of $4.00 could result in a decline into the $3.00 range, then potentially even lower if there is enough sell-side pressure.
DOT does have potential fundamentals, though, that may allow it to negate a further decline.
Fundamentals include Polkadot taking some of Ethereum’s dominance in the decentralized finance market.
Ethereum users have been facing extremely high transaction fees over recent weeks, which could allow Polkadot developers to deploy relatively cheap and efficient applications, thus imbuing DOT with value.
BitMEX charges, Bitcoin stays calm, KuCoin ‘identifies’ hack suspects: Hodler’s Digest, Sept. 28–Oct. 4
Coming every Sunday, Hodler’s Digest tracks every important crypto news story from the previous week. Essential reading for all Hodlers!
The U.S. Commodity Futures Trading Commission has charged the derivatives exchange BitMEX with operating an unregistered trading platform and violating Anti-Money Laundering regulations.
A civil enforcement action has been filed against five entities and three individuals who allegedly own and operate the exchange — including BitMEX CEO Arthur Hayes.
The CFTC is accusing the exchange of failing to take “the most basic compliance procedures,” and it is seeking the restitution of all “ill-gotten gains,” civil monetary penalties, permanent trading bans and injunctions against future violations.
BitMEX lashed out against the “heavy-handed” charges. The exchange said it plans to defend itself vigorously against the allegations, and stressed that its platform is continuing to operate as normal.
Despite this, data from Crystal Blockchain suggests that an unprecedented 45,000 BTC (with a market value of $475 million) has been withdrawn from BitMEX since the charges were levied.
Let’s take a look at what’s been happening over at KuCoin in a little bit more detail now. It’s estimated that the Singapore-based exchange lost upward of $200 million in customer funds as a result of a major hack in late September.
Hot wallets for BTC, ETH and ERC-20 tokens were affected by the incident, and analysts have claimed that as most of the funds stolen were ERC-20 tokens, the ill-gotten gains could easily be laundered through DeFi protocols.
On Saturday, KuCoin CEO Johnny Lyu said a “thorough investigation” has uncovered “substantial proof” that has allowed it to identify some suspects.
“Law enforcement officials and police are officially involved to take action,” he wrote on Twitter.
Lyu added that KuCoin is slowly coming back to full functionality and has reopened deposits and withdrawals for 31 tokens. Services for BTC, ETH and USDT will follow.
It trebles all around for Chainalysis. The IRS has given the blockchain analytics firm a cool $500,000 upfront as it tries to develop tools that can track transactions involving the privacy coin Monero, as well as layer-two protocols.
Another firm, the lesser-known Integra FEC, has also secured a contract on identical terms. If its technology is proven successful and approved for use, it’ll be given another $125,000.
America’s taxman received a total of 22 proposals as it begins its quest to clamp down on privacy coins amid fears they’re increasingly being used by cybercriminals. It said “comparative analysis was used” to decide which companies should win the contract.
Chainalysis is among the leading firms in crypto analytics and routinely wins such contracts with a range of government agencies.
The coronavirus has ripped the global economy to shreds — but worry not… Reddit may have just saved the day.
Traders have apparently devised a way to exchange the social network’s crypto-based “Community Points” tokens for fiat.
Etherscan had said more than 30 septillion MOONs have been distributed to 7,800 addresses. Given these tokens were changing hands on Honeyswap for $0.088 of xDAI at one point, that would result in a market cap of $2.66 septillion. By contrast, the entire global economy was worth roughly $133 trillion in 2019.But don’t pop the champagne yet. It seems more than possible this is just a badly written smart contract. MOON’s stated supply is actually 30 million tokens, giving the project a market cap of just $2.64 million. That’s hardly enough to make the good times roll again.
This next story helps illustrate the Everestian challenge that Bitcoin faces.
A new study by the Cambridge Centre for Alternative Finance recently revealed that 100 million people around the world currently hold Bitcoin and other blockchain-based assets.
This is a 189% increase from 2018 when there were estimated to be 35 million identity-verified crypto users worldwide.
Figures from the third quarter of 2020 also showed there are up to 191 million accounts at crypto exchanges — a number that doesn’t include self-hosted wallets.
At the end of the week, Bitcoin is at $10,614.21, Ether at $348.89 and XRP at $0.24. The total market cap is at $339,870,924,686.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Celsius, Arweave and Zilliqa. The top three altcoin losers of the week are Yearn.finance, PumaPay and SushiSwap.
For more info on crypto prices, make sure to read Cointelegraph’s market analysis.
“KuCoin is acting quickly and transparently to deal with it. We are trying our best to mitigate the impact of the incident by working with many blockchain projects, security firms and crypto exchanges.”
Charlie Cai, KuCoin media manager
“Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!”
Donald Trump, U.S. President
“I think, once and for all we can all agree that #btc is not correlated to gold and is correlated to equities, no chopping and changing whenever it suits our bias, this is how it is now.”
“Benjamin Blunts,” pseudonymous trader
“NBA Top Shot, on a scalable blockchain like Flow, is the first time fans can own a piece of the on-court action.”
Aaron Gordon, professional NBA player and Dapper Labs investor
“The Bitcoin market has always reacted negatively to major exchange issues or government confiscations. Historically this has always presented a great buying opportunity for Bitcoin. The Department of Justice action against BitMEX will be no different.”
Vijay Boyapati, Bitcoin researcher
“In public statements and at public events promoting Kin, Kik extolled Kin’s profit-making potential. Kik’s CEO explained the role of supply and demand in driving the value of Kin: Kik was offering only a limited supply of Kin, so as demand increased, the value of Kin would increase.”
Alvin Kellerstein, U.S. District Judge
“We’re seeing a spike in activity by new participants coming into BTC not yet reflected in price, it doesn’t happen often. This is what traders call a divergence, in this case it’s obviously bullish.”
Willy Woo, on-chain analyst
“DeFi is the new overhyped concept in Ethereum. The noise is too much, so everyone is just like running around trying to figure out what the next big thing is and then putting a ton of money inside without doing enough research.”
Kosala Hemachandra, MyEtherWallet CEO
“Apparently there is some kind of bitcoin buying race between MicroStrategy and Grayscale. Game on.”
Barry Silbert, Grayscale CEO
A judge has sided with the U.S. Securities and Exchange Commission, ruling that Kik’s $100-million initial coin offering did violate federal securities laws.
Judge Alvin Kellerstein concluded that ICO participants would have had a reasonable expectation of profit.
“In public statements and at public events promoting Kin, Kik extolled Kin’s profit-making potential,” he said.
The SEC brought its complaint against Kik in June 2019, arguing that the firm had violated securities laws by selling $55 million worth of Kin tokens to U.S. investors in 2017 (and the remainder to overseas investors).
In a statement, Kik CEO Ted Livingston said the company is “obviously disappointed” by the ruling and confirmed that an appeal may be filed.
A new CipherTrace study says 56% of exchanges worldwide have weak KYC identification protocols, and platforms in Europe, the U.S and the U.K. are among the worst offenders.
The blockchain analytics firm analyzed more than 800 decentralized, centralized and automated market maker exchanges for its research.
Even though Europe is renowned for having stricter regulations, it was also found to have the highest proportion of Virtual Asset Service Providers with deficient KYC practices. The U.S., U.K and Russia are the three countries with the highest numbers of exchanges with weak KYC.
In light of the findings, CipherTrace CEO Dave Jevans warned that he doesn’t believe DeFi will manage to escape regulations for long.
It looks like the CEO and founder of MyEtherWallet, Kosala Hemachandra, has a dim view of the decentralized finance industry.
In an interview with Cointelegraph, he said: “DeFi is the new overhyped concept in Ethereum. The noise is too much, so everyone is just like running around trying to figure out what the next big thing is and then putting a ton of money inside without doing enough research.”
Hemachandra also warned that DeFi is to blame for Ethereum gas prices skyrocketing in recent weeks. At times, they have cost users between $40 and $80 per transaction.
Three blockchain analytics firms reportedly have Monero-tracking abilities, which could affect XMR’s price — but can anyone actually track it? Here’s Benjamin Pirus.
The majority of global jurisdictions have crypto asset taxation guidelines, but Rachel Wolfson argues additional frameworks are required to keep up.
A society without paper money might be a less equitable society, and Andrew Singer warns that those lacking digital connectivity would suffer.
Author: by admin
Here’s the Mt. Gox catalyst Bitcoin needs to watch out for
September was an eventful month for the crypto-market, to say the least, with the month seeing a major crypto-exchange hack among a host of other developments. However, despite the quarter ending as it did, Bitcoin did witness its second-best Q3 close in history.
$150M drained from KuCoin: BTC down 1%
BitMEX charged by DOJ, CTO arrested: BTC down 2%
Trump tests positive for COVID: BTC down 1%
Bullish tweet from CZ: BTC down 2%
Sun explodes, obliterates all life on earth: BTC down 1%
— Zack Voell (@zackvoell) October 2, 2020
In fact, even recent developments in the month of October like the CFTC charging BitMEX have done little to significantly affect the price of Bitcoin. While the cryptocurrency did fall in its immediate aftermath, it soon recovered and was trading at around $10,500, at the time of writing. This has contributed to many growing increasingly bullish about Bitcoin and the larger crypto-market.
However, there may be a few short-term bearish catalysts to be mindful of in the month of October, a topic recently touched upon by Lark Davis in a video.
The first prospective catalyst here is the Mt. Gox Rehabilitation plan that is scheduled to finally take place on 15 October. This event could see 140,000 BTC distributed to Mt. Gox creditors. While a majority of them could be HODLers in this market, even if half of these people sell, it would fuel a selling pressure worth 70,000 BTC on the market, all at once.
The second catalyst that could contribute to some amount of disarray is Venezuela’s recent move to evade U.S sanctions using cryptocurrencies. Such a step could encourage U.S regulators to double down on regulations in the crypto-space, while also strictly enforcing KYC compliance to make sure there is no movement of crypto-funds between the two countries. An announcement concerning regulations would undoubtedly affect the market to a certain degree, with the probability of this happening very likely.
Since the correlation between Bitcoin and equity markets has remained largely positive off-late, non-native crypto-market events may impact crypto-markets more significantly than before.
Consider this – This is an election year, and October has been the stock market’s weakest month, according to historical data. In the event that the election results end up being contested, it is likely that the markets will be negatively impacted. Moreover, the new bill on the fiscal stimulus package, which is likely to be passed in October, may get delayed again, a development that could also have a negative impact on the crypto-market.
Author: by admin