Close, but no cigar! Here are 2020’s worst Bitcoin price predictions

Close, but no cigar! Here are 2020’s worst Bitcoin price predictions
Close, but no cigar! Here are 2020’s worst Bitcoin price predictions

Pundits and crypto analysts love to issue Bitcoin (BTC) price predictions regardless of how volatile the asset class is. 

In 2017, there were calls for BTC’s price to hit $35,000–$50,000, and of course, a few brave souls predicted that the price would top $1 million before correcting.

No one will forget how John McAfee infamously promised to chomp off his genitals if BTC’s price didn’t hit $1 million by 2020.

While some of these lofty estimates are based on fundamentals, others are entirely baseless. Regardless of the analyst’s rationale, a handful of them are so far removed from reality that they have become memes.

Let’s review the most outrageous Bitcoin price predictions of 2020.

“Guesstimation” attracts attention because nobody follows them up

Guessing the future price of cryptocurrencies is so embedded in the community that many analysts don’t even consider evaluating their effectiveness. Keeping up with the endless flow of predictions issued on blogs, podcasts, Twitter and YouTube is almost impossible. Imagine the difficulty and energy it would take for a person to follow up with all these random guesses.

To further complicate matters, some of these predictions come from well-known Bitcoin bashers, such as renowned gold bug Peter Schiff, and New York University Stern School of Business professor Nouriel Roubini. Thus, in some cases, personal credentials sometimes matter less than working analytical models.

A month before the March 12 crash, which saw Bitcoin’s price plummet 50% to $3,750, PlanB, the creator of the stock-to-flow model stated that Bitcoin would not return below $8,200. At the time, no one expected the Dow Jones equities index to face its most significant drop since 1987, neither the WTI oil future contract dropping to negative $40.

Despite the outlandish claim, PlanB won’t be nominated to 2020’s worse predictions because hardly anyone expected the coronavirus pandemic to impact the markets in a way that would cause absolute havoc. Furthermore, famous chartist Peter Brandt also made the same error when he said that BTC would never revisit the sub-$6,000 level in January.

CryptoWhale’s quantum model calls for $24,000 BTC in mid-2022

On June 2, 2020, Twitter analyst CryptoWhale revealed a new “quantum” model that would predict Bitcoin’s price. According to CryptoWhale, the model had “effectively predicted every major move since 2018.”

Bitcoin’s price in USD. Source: TradingView

Things could not have gotten worse as the model predicted both a $2,000 bottom in 2020 and a “proper bull run to $24,000” only in mid-2022. Somehow, the quantum particles, molecules and atoms that were supposed to make it more accurate were, in fact, pure blasphemy.

Two lessons that can be taken away from the “quantum model” are: (1) Having a ton of social network followers doesn’t necessarily translate to better price estimates, and (2) complex models are prone to the same errors as humans. Evaluating a new asset class during a period of desperate central bank monetary easing is far from easy.

Ross Ulbricht predicts nine months of downside after Black Thursday

In April, Ross Ulbricht, the founder of the now-defunct Silk Road darknet market, wrote that Bitcoin’s volatility — particularly the March 12 bloodbath — would most likely lead to a bear market, which could last for three to nine months. At that time, Bitcoin had been hovering around $7,000 and was clearly still affected by the recent 50% intraday correction.

Ross Ulbricht’s chart annotations. Source: Medium

Precisely 17 days after that blog post, BTC soared over 30% to $9,000, thus completely invalidating Ulbricht’s analysis. To further show how far off that analysis was, Ulbricht added that a $14,000 bull run was “very unlikely.”

During Ulbricht’s so-called bear market period, Bitcoin’s price rallied more than 300% from December 2018 to June 2019. Furthermore, calling for such a lengthy correction doesn’t align with Bitcoin’s historical data because even during the darkest period of December 2019, Bitcoin’s price remained more than 100% above the previous year’s lows.

Gavin Smith says Bitcoin will close 2020 at $7,000

During a July 27 interview with Forbes, Panxora CEO Gavin Smith said that he expected a $7,000 Bitcoin price by the end of the year. Gavin further added that “a short term washout this year before the true rally takes hold.”

Panxora’s CEO explained that despite the appreciating tendency caused by inflation hedge, the broader impact of demand shock on the economy would potentially drive BTC lower.

This estimate happened after 80 days of Bitcoin’s price consolidating around $9,500. At the time, despite rising 100% from mid-March lows, there was still some doubt about BTC’s ability to break the $10,000 resistance.

ntoni Trenchev calls for $50,000 Bitcoin price in 2020

On Jan. 3, 2020, Nexo co-founder Antoni Trenchev stated that BTC could easily reach $50,000 in 2020.

Besides an overly optimistic estimate, the rationale behind it doesn’t seem to fit. According to Trenchev, Bitcoin had become “the new gold,” and he pointed to the lack of correlation to traditional markets as a potential catalyst.

Gold, USD/OZ (right) vs. S&P 500 (left). Source: TradingView

As shown above, gold traded in tandem with traditional markets for the larger part of 2020, but it should be noted that these asset classes have different volatility. Thus, oscillations in equities tend to be much stronger. Nevertheless, the overall direction of both markets until November has been very much alike.

This price movement creates the impossible task where BTC is expected to act as “the new gold” while simultaneously presenting a lack of correlation. This estimate went doubly wrong for missing its year-end target by a wide margin and also failing to correctly estimate gold’s correlation to traditional markets.

Now that Bitcoin’s price is a mere 7.4% away from $30,000, it will be even more interesting to see what type of extravagant bullish and bearish price estimates are issued for 2021.

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.

Title: Close, but no cigar! Here are 2020’s worst Bitcoin price predictions
Sourced From: cointelegraph.com/news/close-but-no-cigar-here-are-2020-s-worst-bitcoin-price-predictions
Published Date: Fri, 01 Jan 2021 00:30:00 +0000

Close, but no cigar! Here are 2020’s worst Bitcoin price predictions
Close, but no cigar! Here are 2020’s worst Bitcoin price predictions was originally published here https://businessnewsideas0.blogspot.com/2020/12/close-but-no-cigar-here-are-2020s-worst.html

Did Bitcoin prove itself to be a reliable store of value in 2020? Experts answer

Did Bitcoin prove itself to be a reliable store of value in 2020? Experts answer
Did Bitcoin prove itself to be a reliable store of value in 2020? Experts answer

Without any doubt, the year 2020 was unlike any other year in the 21st century: The ongoing COVID-19 pandemic, global governments unstoppably printing money, “lockdowns” and “social distancing” becoming the new normal, protests against racial discrimination and police brutality, and so on and so forth. It even made some claim it to be “the worst year ever.” But as they say: In every storm, each cloud has a silver lining. The most important thing is to learn from what we’ve been through and to improve our world and our future, as there are some problems that we have to solve ourselves.

It’s also true that 2020 was a significant, dramatic year not only for people all over the world but for Bitcoin (BTC) as well: the third halving, increased attention from institutional investors and global regulators, its white paper’s 12th anniversary, etc. Some even called it the “New Testament” of finance, and others suggested using it for the utopian idea of universal basic income. Bitcoin received global attention because of the Twitter hack in mid-July, which required the crypto community to defend Bitcoin’s integrity after the event placed the words “Bitcoin” and “scam” within one headline again. In October, PayPal announced it would offer crypto payments, and later in November, Bitcoin was on the homepage of the Wall Street Journal for its 80% price rally.

Related: Will PayPal’s crypto integration bring crypto to the masses? Experts answer

When 2020 started, it was hard to imagine how the world would change and how fast those changes would be. Despite all the negative impacts of the ongoing COVID-19 crisis, there have been some positive developments, at least within the crypto space. For instance, Bitcoin’s volatility has decreased since its peak in mid-March, and the pandemic has highlighted Bitcoin’s most important value: its decentralized nature. Some even argued that the pandemic has underlined the benefits of cryptocurrencies for the world. And while Europe experienced the shift to a cashless world, the United States remained more conservative and didn’t want to give up its paper money.

Related: How has the COVID-19 pandemic affected the crypto space? Experts answer

One thing became certain due to the effects of COVID-19: There are some serious problems with the currently existing financial system that might be solved by Bitcoin and by the technology behind it. And the similarities between the two recent financial crises — the first back in 2008 and now in 2020 due to the pandemic — revealed the systemic problems of centralized financial systems. While the first crisis gave birth to Bitcoin, the current one has made people turn to decentralized tech and Bitcoin on a massive scale amid the global economic recession. Some even argue that during the next decade, Bitcoin will play a crucial role in the global economy’s transformation, called “The Great Reset,” and that crypto mass adoption will be led by the millennial generation.

Central banks printed an estimated $15 trillion in stimulus by May alone as anti-pandemic measures to save global economies, throwing the U.S. dollar under the bus, as some said. And these measures turned people toward alternative financial tools, making Bitcoin a hedge against inflation and even an alternative to traditional finance entirely. Some even suggested governments make a monetary transition to Bitcoin to solve the national debt problems.

Another important 2020 milestone was the rise of institutional investors’ interest in Bitcoin. Although this trend seemed to be “built on nothing more than hope” earlier this year, 2020 surprised everyone here as well. Forced by the possibility of rising inflation, the hedging abilities of Bitcoin couldn’t go unnoticed by high-profile investors who saw crypto as an important part of a diversified corporate treasury holding, becoming major holders of digital assets this year.

Unsurprisingly, the crypto space has started to consider the rise of Bitcoin mining institutions inevitable. Also, China’s dominance over the world’s Bitcoin mining operations seemed to be challenged. And most importantly, the future of crypto mining will become more sustainable.

With the 2020 shift in public discourse around Bitcoin, it’s becoming more and more important to create a regulatory framework for the crypto space, without which it will have no future. The regulation, some argue, has to be evolutionary rather than revolutionary, and most importantly, it requires dialogue and close collaboration between regulators and crypto businesses.

All in all, it is hard to predict the crypto’s future in the post-COVID-19 world, as the pandemic has not yet come to an end. Meanwhile, it is impossible to neglect the impact it has had on the crypto space this year. The new Bitcoin era, after everything that happened this year, is forming the new financial order. And if fiat money might lose up to 90% in 100 years, Bitcoin’s future seems to be much brighter than it is now, considering that Bitcoin just reached $27,000 for the first time in history and is now targeting $100,000 within the next 12 months and $500,000 within the decade. And with 2020 coming to its end, Cointelegraph reached out to experts in the blockchain and crypto space for their opinions on Bitcoin’s path this year.

Did Bitcoin mature enough this year to become a reliable store of value? Why or why not?

Brian Brooks, acting comptroller of the currency of the U.S. Treasury Department’s Office of the Comptroller of the Currency:

“We hope that our July 2020 letter regarding crypto custody will make Bitcoin safer for institutional and retail holders. Bitcoin was the innovation that opened the door to decentralizing financial services, and the growth of it and other tokens in 2020 shows the beginning of a transformation of cryptocurrencies from an exotic concept to a more familiar and comfortable means of engaging in financial services.”

Da Hongfei, founder of Neo, founder and CEO of Onchain:

“Since its inception, Bitcoin has witnessed and survived various ups and downs, and it now appears that investors, on the whole, are increasingly more confident in its value. More significantly, I believe that this signals how quickly we are moving toward mainstream adoption.

Throughout 2020, the blockchain space experienced an explosion in terms of interest and creativity, and we’re seeing the results now: More and more people are recognizing that blockchain is here, and it is here to say.

Moving forward, I believe we’re on the cusp of mainstream adoption, and I’m very excited for what 2021 will bring.”

Denelle Dixon, CEO and executive director of the Stellar Development Foundation:

“I think that the institutional focus on Bitcoin has created positive momentum for the entire blockchain space. Personally, I think it is a reliable store of value. As is much debated throughout crypto circles and beyond, engagement with the network in the long term may present challenges and affect Bitcoin’s ability to translate to certain business applications and use cases, but I believe that storing value and holding value are irrefutably its strengths.”

Emin Gün Sirer, CEO of AvaLabs, professor at Cornell University, co-director of IC3:

“We’ve seen over time how narratives around cryptocurrencies can shift and evolve to fit market demand or a network’s capabilities. The Bitcoin narrative around store of value and hedge against currency inflation has hardened this year, and I believe it’s now the dominant positioning for BTC, as its most vocal supporters and institutional adopters have rallied around it.

That’s a perfectly fine position for Bitcoin to occupy.

Personally, I’m most excited about currencies that have both a scarce, hard-capped supply like Bitcoin but also push for more sophisticated utility with functionalities like smart contracts, DeFi applications and asset issuance.”

Heath Tarbert, chairman and chief executive of the U.S. Commodity Futures Trading Commission:

“We have definitely seen an increase in digital assets overall. Bitcoin is among that market, but let us not forget about Ether, which I declared a commodity last year. The two of these together represent a large portion of the crypto market. And it has been an interesting year in this market — not just with the halving but also the move to Ethereum 2.0 and both Bitcoin and Ether forking.

Despite this, however, we must still recognize that this market is small compared with other assets we regulate. I think over time, this market will be comparable. Until then, however, there will need to be more regulatory clarity around these digital assets for these markets to grow.”

James Butterfill, investment strategist at CoinShares:

“Bitcoin remains a volatile asset. Many expect a store of value to have much lower volatility, but as gold was developing into an investment store of value in the 1970s, it too had extremely high volatility. As it has matured as a store of value, so too has its volatility declined. We expect the same to happen to Bitcoin, and early evidence alludes to this.

2020 has been crucial for Bitcoin. We see it as the year of legitimization for the broader public and investors, fortuitously aided/accelerated by the COVID-19 crisis and the consequent rapid escalation of quantitative easing and fall in use of cash. Our conversations with institutional clients have changed considerably over the course of 2020. What was typically a desire to speculatively invest has now become one of being fearful of extreme loose monetary policy and negative interest rates, with clients looking for an anchor for their investments. As their understanding of Bitcoin improves, clients have grasped that Bitcoin has a limited supply and fulfills this role as an anchor for their assets while fiat is being debased.

This year, we have seen cumulative flows (stripping out the price effect) into investment products rise from $1.35 billion at the start of the year to $6.1 billion today, with only 24 days of outflows for a total of 241 trading days this year. Investors are buying and holding — a good indicator that it is slowly developing into a store of value.”

Jimmy Song, instructor at Programming Blockchain:

“It’s not that Bitcoin has matured, it’s that we have. The mainstream investors are starting to take notice of Bitcoin’s 12-year history and starting to recognize how valuable it really is in a world of near-infinite quantitative easing. Bitcoin gives us true scarcity, and that’s why it’s useful as a store of value. Literally, nothing like this has existed in human history.”

Joseph Lubin, co-founder of Ethereum, founder of ConsenSys:

“Despite this very difficult year, I think that the broader decentralized protocol ecosystem demonstrated poignantly that we, like our Web 3.0 technology, are anti-fragile and that this technology will prove a worthy evolutionary successor to Web 2.0 systems. We continue to demonstrate that this technology will serve as a new trust foundation for next-generation, increasingly decentralized, financial, economic, social and political systems.”

Michael Terpin, founder of Transform Group and BitAngels:

“Store of value is an interesting concept. It doesn’t mean nonvolatile; after all, both gold and real estate have had their cycles, booms and busts, but to date, they have returned to a reliable mean so that there are very few instances where a 20-year investment in either did not perform as a reliable way of keeping ahead of inflation with very low risk of losing one’s principal.

To skeptics, Bitcoin was seen as the equivalent of investing in a single high-risk stock that could easily crash to zero — and in its early days, this certainly was possible. But no asset in history has ever gone from under one cent, as it was during the first P2P transactions, to this month’s high-water mark of $28,300. As each year has passed, the fluctuations have gotten more manageable — there will be no more 100-times gains in one year, as happened in 2013. This plus the clear signals from the United States, the European Union, China and Japan that they’re happy to cope with both the ongoing COVID-19 pandemic and economic depression through massive money printing means that these currencies will vastly underperform hard assets in the next two to three years as the money supply in these nations expands at annual rates of above 20% instead of the historic 4% to 5%, which is near the true rate of inflation.

Barry Silbert primed the pump with Grayscale, allowing accredited investors an easy way to invest in Bitcoin that then makes its way into a publicly traded vehicle. Paul Tudor Jones, who made a fortune calling the gold boom in the 1980s, awoke the multitrillion-dollar institutional fund world by having his funds invest in Bitcoin, calling it ‘the fastest horse’ in the race.

Michael Saylor, CEO and founder of multibillion-dollar public firm MicroStrategy, then lit the fuse on corporate fear and greed by using 80% of its $500 million in cash earlier this year to invest in Bitcoin, which has now more than doubled. More recently, he went even further and issued debt to buy even more Bitcoin.

Bitcoin has never been great at microtransactions — dozens of low-fee, faster-settling cryptos are far better at this — but it needed to go through this use case in its infancy. Its true value now is in sending large transactions instantly and safely, and as a store of value for the next century and beyond.”

Mike Belshe, CEO of BitGo:

“The 2020 bull run of Bitcoin is very different from anything we’ve seen before. Unlike the previous rapid rise of 2017, this year saw the influx of new large institutional players. New entrants like PayPal, Square, JPMorgan and others are bringing a new level of credibility, liquidity and stability to the crypto markets.

Institutions and retail investors are recognizing the importance of the principle of scarcity, which is the basic economic principle of Bitcoin. With governments overprinting money across the globe, Bitcoin is the most reliable store of value at this time and a hedge against inflation. Those who understand this will be in a stronger economic position than those who don’t.

I agree with Paul Tudor Jones’ recommendation that individuals who have investable assets put a small amount, perhaps 2%, into Bitcoin. And I’d go a step further and say that institutions should invest 5% of their corporate treasuries in order to stay competitive. Investing small amounts can produce tremendous upside with minimal downside risk.”

Paul Brody, principal and global innovation leader of blockchain technology at Ernst & Young:

“Bitcoin has reached that mature, stable store-of-value stage, but I fear it will never be without some controversy. While the Ethereum ecosystem is becoming a vibrant economic entity — with DeFi, smart contracts and infrastructure services being built atop the system — Bitcoin remains very focused on taking a role as a store of value. This will make it hard for some people to grasp, in the same way that many people still don’t quite realize that there is no gold or other asset that backs any other modern currency either. ”

Roger Ver, executive chairman of Bitcoin.com:

“Clearly not. Anything that can fluctuate from $4,000 to $20,000 in a single year is anything but a store of value. It is still just a speculative investment at this point.”

Samson Mow, chief strategy officer of Blockstream:

“Bitcoin was always a reliable store of value. The only people that say otherwise are the ones looking at it on very short time horizons. As public market companies like MicroStrategy have recently realized, Bitcoin is the only safe haven to store value — cash will just melt away from inflation and quantitative easing, gold is stagnant, and tech stocks are overextended. Now, we’re seeing giants like Guggenheim Partners and Ruffer pile in as they come to that same realization as well. Hyperbitcoinization is inevitable.”

Serguei Popov, co-founder of the Iota Foundation:

“Bitcoin and other popular cryptocurrencies have been a store of value for many people for quite some time already. The considerable capitalization of the crypto market corroborates this, and it’s likely that quite a few readers of this article are using cryptos in this way already. Whether it is ‘reliable’ or not depends on the definition of reliability. Of course, it is true that Bitcoin’s — let alone other cryptos’ — price is quite volatile and will probably remain so, meaning anyone who uses it for a store of value might experience some strong emotions. On the other hand, it is very reliable in the sense that nobody can take your Bitcoin away, as long as you keep your private keys secret and store them safely. This constitutes a unique advantage of cryptocurrencies in the store-of-value context.”

Todd Morakis, co-founder and partner of JST Capital:

“The institutions are here. This year, we’ve seen a number of large traditional firms either announce or begin to explore Bitcoin. While custody is still challenging for institutions, the Paul Tudor Jones announcement earlier in the year as well as the improvement of institutional Bitcoin solutions have led to much broader acceptance of Bitcoin within the traditional financial community. Bitcoin is no longer a bad word on the street.”

Vinny Lingham, CEO of Civic:

“Bitcoin is a speculative investment. Even if we see the price goes up, we have to remember that it’s still speculative. When will it become a reliable store of value? As I’ve been saying for years, Bitcoin may eventually evolve into a reliable store of value, but this growth process will take at least five to 10 years. We’ll know that we’ve reached the goal when Bitcoin becomes far more stable and far less volatile — in a word, boring.”

These quotes have been edited and condensed.

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

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

Title: Did Bitcoin prove itself to be a reliable store of value in 2020? Experts answer
Sourced From: cointelegraph.com/news/did-bitcoin-prove-itself-to-be-a-reliable-store-of-value-in-2020-experts-answer
Published Date: Thu, 31 Dec 2020 18:47:00 +0000

Did Bitcoin prove itself to be a reliable store of value in 2020? Experts answer
Did Bitcoin prove itself to be a reliable store of value in 2020? Experts answer was originally published here https://businessnewsideas0.blogspot.com/2020/12/did-bitcoin-prove-itself-to-be-reliable.html

NFL player Russell Okung isn’t getting paid in Bitcoin; this is what he’s doing instead

NFL player Russell Okung isn’t getting paid in Bitcoin; this is what he’s doing instead
NFL player Russell Okung isn’t getting paid in Bitcoin; this is what he’s doing instead

National Football League player Russell Okung is a strong proponent of Bitcoin (BTC). And while he may be converting a portion of his salary into BTC, his employer, the Carolina Panthers, isn’t paying him in virtual currency — although a few excitable crypto-focused publications were foxed by the story.

A spokesperson from the Carolina Panthers confirmed to Cointelegraph that Okung, like the rest of his teammates, is paid in dollars only. What he chooses to do with the money is his business, the spokesperson said. In other words, the player doesn’t have any agreement with the team to receive compensation in the form of BTC. 

Offensive tackle Okung is currently in the final year of a four-year contract and will earn $13 million this year, according to Spotrac. 

The NFL player is reportedly using a crypto startup called Strike to convert some of his earnings into Bitcoin. A beta version of the application, which claims to allow users to “send money instantly, with no fees, anywhere in the world,” is available for iOS, Android and Chrome.

Okung may have contributed to the confusion in a recent tweet proclaiming that he is being “Paid in Bitcoin.” The tweet was a response to a post from May 2019 when he first expressed his desire to get paid in BTC.

Paid in Bitcoin. https://t.co/Ey6oOcmLjA

— russ (@RussellOkung) December 29, 2020

It’s not entirely clear whether Okung intended to show that he’s getting paid in Bitcoin or to promote the crypto startup with the following tweet:

Do it, now. pic.twitter.com/9eAJxcBxLi

— russ (@RussellOkung) December 29, 2020

The NFL star has amassed a large following on Twitter due to his celebrity status and Bitcoin evangelism. His Twitter headline reads, “life liberty, and #bitcoin.” His followers include Michael Saylor and Anthony Pompliano, among other crypto proponents. 

His recent tweets promote the idea of buying Bitcoin and educating citizens on the impact of inflation on the buying power of the U.S. dollar.

You can make “x” a year and watch it slowly erode with inflation or you can protect your hard earned money with #bitcoin

— russ (@RussellOkung) December 30, 2020Title: NFL player Russell Okung isn’t getting paid in Bitcoin; this is what he’s doing instead
Sourced From: cointelegraph.com/news/nfl-player-russell-okung-isn-t-getting-paid-in-bitcoin-this-is-what-he-s-doing-instead
Published Date: Wed, 30 Dec 2020 21:47:03 +0000

NFL player Russell Okung isn’t getting paid in Bitcoin; this is what he’s doing instead
NFL player Russell Okung isn’t getting paid in Bitcoin; this is what he’s doing instead was originally published here https://businessnewsideas0.blogspot.com/2020/12/nfl-player-russell-okung-isnt-getting.html

High volume surge propels Bitcoin price to a new all-time high at $29,000

High volume surge propels Bitcoin price to a new all-time high at $29,000
High volume surge propels Bitcoin price to a new all-time high at $29,000

Within the last hour, Bitcoin (BTC) price rallied to set a new all-time high at $29,000. 

On Dec. 29 Bitcoin price attempted to push through a stiff resistance cluster at $28,500 but after rallying to $28,600 the price rejected with a sharp correction to $27,300.

Daily cryptocurrency market performance. Source: Coin360

Today’s move to $29,000 came after a high volume surge pushed through the $28,500 resistance but the battle for $30,000 is far from over.

Data from Material Indicators shows there are still sell walls near the $30,000 level at Binance and other major cryptocurrency exchanges.

BTC/USD sell walls near $30,000. Source: Material Indicators

Barring another sustained high volume surge in purchasing volume, the presence of sell walls suggests that a rally to $30,000 may trigger a strong sell-off and cause BTC price to revisit key underlying supports at $28,000 and $27,300 where the 20-day moving average currently resides on the 4-hour timeframe.

$30,000 then moon?

Many retail traders expect Bitcoin price to soar well above $30,000 once the psychological barrier is overcome but Nunya Bizniz, a popular trader on Twitter, points out that above $30,000 Bitcoin price begins to look a bit overextended as the 1.618 Fibonacci retracement is at $30,196.

BTC/USD monthly chart. Source: Twitter

Given that Bitcoin price has rallied 64.9% since the start of December, hitting the 1.618 Fib level could provide a signal that a pullback is on the cards but ultimately, volume will be the primary indicator of where the price may go.

Currently, Bitcoin price has gained 302.6% for the year and is vastly outperforming gold and traditional markets like the Dow and S&P500. For Q4, BTC has rallied by 168.32%, securing the second-best quarterly performance since 2017 when the digital asset gained 210.13% in Q4.

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

Title: High volume surge propels Bitcoin price to a new all-time high at $29,000
Sourced From: cointelegraph.com/news/high-volume-surge-propels-bitcoin-price-to-a-new-all-time-high-at-29-000
Published Date: Wed, 30 Dec 2020 21:55:34 +0000

High volume surge propels Bitcoin price to a new all-time high at $29,000
High volume surge propels Bitcoin price to a new all-time high at $29,000 was originally published here https://businessnewsideas0.blogspot.com/2020/12/high-volume-surge-propels-bitcoin-price.html

Bitcoin, stablecoins and DeFi: 2020’s top-performing crypto assets

Bitcoin, stablecoins and DeFi: 2020’s top-performing crypto assets
Bitcoin, stablecoins and DeFi: 2020’s top-performing crypto assets

Title: Bitcoin, stablecoins and DeFi: 2020’s top-performing crypto assets
Sourced From: cointelegraph.com/news/bitcoin-stablecoins-and-defi-2020-s-top-performing-crypto-assets
Published Date: Wed, 30 Dec 2020 20:27:21 +0000

Bitcoin, stablecoins and DeFi: 2020’s top-performing crypto assets
Bitcoin, stablecoins and DeFi: 2020’s top-performing crypto assets was originally published here https://businessnewsideas0.blogspot.com/2020/12/bitcoin-stablecoins-and-defi-2020s-top.html

2020 in review: Cointelegraph art team limited edition NFT drop

2020 in review: Cointelegraph art team limited edition NFT drop
2020 in review: Cointelegraph art team limited edition NFT drop

When you ask someone what superpower they’d most like to have, they usually come up with the ability to fly, or to read thoughts, or maybe to see through multiple layers of clothing.

This year, all we wanted was the ability to hibernate.

Imagine! Going to sleep sometime around the Australian wildfires… taking a peek outside in mid-March and thinking “Ooooh, no, not sure about this at all” and cuddling up in a warm, happy bed until the U.S. election was over.

But think what you would have missed in crypto! 2020 was another decade-in-a-year for the industry, packed full of characters who charmed, hackers who harmed, and degens who farmed.

To celebrate a year that ended on a high note for hodlers, the Cointelegraph team of artists has created a poster-sized limited edition NFT commemorating some of the biggest stories of 2020. It’s titled “In crypto, hindsight is 20/20 and is available for just 0.02020 ETH.

Naturally, there will only ever be 2,020 copies.

get your 20/20 hindsight limited edition nft here

How many of the stories can you spot? We’ll get you off to a start with a few of our favorites…

January: Telegram vs. the SEC

Here’s a story that could have been featured in any one of the first few months of the year. The Securities and Exchange Commission took issue with Telegram’s $1.7 billion private sale, and eventually Pavel Durov gave up on launching the network.

Although the technology didn’t die — it was resurrected and just achieved mainnet status thanks to the Free TON community — it was yet more proof that Jay Clayton’s SEC would maintain an activist stance on crypto in 2020. At least he’s gone now, and good riddance.

February: bZx Flash Loan exploits

Back in February we presciently questioned whether DeFi was coming to an abrupt end as bZx was attacked twice. And when we say “presciently” we mean “wrongly”.

DeFi didn’t disappear, exploits continued throughout the year, and the gainz multiplied in a veritable orgy of yield farming that allowed degens to trade their way to untold riches… and then lose them again when Pickle turned fickle.

This being 2020, that cycle continued all year.

March: COVID-19

The acceleration of the global pandemic brought two key concepts at the heart of the crypto community into sharp focus. It became clear that government control of the money supply spigot means no fiat asset is safe (and that it makes a kind of brrrrrrr-ing sound as it’s turned on) and that Bitcoin’s narrative shift from means-of-exchange to store-of-value might actually help the digital asset’s credibility.

Almost nothing good has come of the disastrous response to the pandemic. While hodlers may have benefited financially from the proof that their thesis on Bitcoin as hard money was correct, the politicization of the virus means that the world has suffered a year that has threatened democracy itself.

Let’s all hope for a better, and healthier, 2021.

pril: Binance buys CoinMarketCap

Despite the wild rumors promulgated by sources who have to remain nameless in case they’re fact-checked, Binance did not pay $400 million for CoinMarketCap. Or anything close to it.

But it was still a mega-deal that demonstrated a 2020 trend: the slow dissipation of public adoration for Binance. Reaction to the deal was wary, to say the least, and the upstart-turned-incumbent found itself embroiled in controversy as ranking changes appeared to benefit it unfairly, following promises of the data aggregator’s independence.

These days, CoinGecko is catching up fast. Bobby Ong was rumored to be on the verge of selling the site for $5 million earlier this year. He must be grateful for the uncharacteristic lack of vision on the part of its suitor…

May: Bitcoin Halving

The third halving (or halvening, for those who prefer Middle Earth’s Westron tongue) was almost entirely devoid of drama.

It was supposed to happen. It happened. Code is law.

Of course, the after-effects have been more intriguing than the event itself (although it certainly threw our video team for a loop).

Plan B’s stock-to-flow model predicted a surge in Bitcoin’s price as a direct result of the halving and subsequent supply crisis, and despite the naysayers it’s right on schedule.

Right. On. Schedule.

June: Wirecard bankruptcy

Hope for the mass adoption of crypto as a payment solution has often been predicated on debit or credit cards that make it easier to spend. So when Wirecard, which counted major companies such as Crypto.com and TenX as customers, appeared to misplace $2.1 billion there were… concerns over the future of the sector.

Those concerns haven’t dented the ambitions of Crypto.com, which soon replaced Wirecard with PayrNet, while some saw the fall of Wirecard as a net positive for the industry.

July: Yearn.finance launch

One man and a worthless token can change the world.

Of course, that one man now works with a dedicated team of DeFi developers, the worthless token topped out at $43,678, and the world was already changing… but don’t let the details fool you.

The story of Andre Cronje’s contribution to technology and finance may well be told over drinks in the boardroom for decades to come.

At least the Wright brothers had each other.

ugust: MicroStrategy enters, stage left

Michael Saylor may be a genius (he’s invested over a billion dollars of his company’s treasury in Bitcoin) and he may be a lunatic (read his Twitter feed) but what we can say for certain is that he’s boldly going where no major company has gone before.

Saylor’s dramatic announcement has been heralded as the moment that mainstream business entities beyond funds and investment banks had to confront a new reality. If MicroStrategy’s bet was successful, it could immediately place other corporate treasuries at risk — specifically, at risk of being unable to claim similar portfolios due to Bitcoin’s limited supply.

There’s often a fine line between courage and craziness. Perhaps Saylor is 2020’s best crypto example of that truth.

September: PayPal goes crypto

If MicroStrategy was a pointer to increased institutional adoption of crypto, PayPal was the biggest indication yet that Josephine Public would soon be exposed to digital assets.

Crypto assets aren’t tradeable outside the PayPal ecosystem, but that hasn’t stopped the company buying an estimated 70% of all newly-issued Bitcoins as a reserve.

And while PayPal’s own stock soared on the news that it would support Bitcoin, it also provided the impetus for an increasingly parabolic price movement for the leading digital asset… which rapidly flippened the company’s market cap.

October: McAfee eats his own… words

“Taxation is illegal,” declared John McAfee in January of 2019, clarifying (for those who might have a vested interest) that he hadn’t filed a return in eight years.

“No, you’re illegal,” the IRS responded — we’re paraphrasing — and had him arrested and thrown in a Spanish jail.

It was certainly quite the year for crypto-related arrests.

November: Bitcoin all-time high

Gradually, then suddenly. That’s how Bitcoin reclaimed the territory lost since the FOMO days of December 2017.

Despite ‘dying’ over and over and over again (in the minds of critics, at least) Bitcoin is now sitting comfortably at well over $25,000 and enjoying a growing consensus that it is a genuine alternative to gold.

Even the most conservative prognosticators are coming around.

Gradually, then suddenly.

December: Ethereum 2.0

Speaking of gradually… Ethereum took a long and winding road to the next iteration of the leading smart contract platform. But as the deposit contract filled up, the prospects for a successful December 1st launch finally became clearer.

Many of the year’s top trends — from DeFi to the growing adoption of NFTs — feature Ethereum as a key player. It’s tough to imagine another platform seizing its crown in the near future.

Although full deployment of Ethereum 2.0 will take a lot longer, the roadmap for is shiny and bright.

As indeed is its price, which has risen 576% since the depths of the initial COVID crash.

GET YOUR 20/20 HINDSIGHT LIMITED EDITION NFT HERE

Title: 2020 in review: Cointelegraph art team limited edition NFT drop
Sourced From: cointelegraph.com/news/2020-in-review-cointelegraph-art-team-limited-edition-nft-drop
Published Date: Wed, 30 Dec 2020 14:30:14 +0000

2020 in review: Cointelegraph art team limited edition NFT drop
2020 in review: Cointelegraph art team limited edition NFT drop was originally published here https://businessnewsideas0.blogspot.com/2020/12/2020-in-review-cointelegraph-art-team.html

Bitcoin price inches closer to $30,000 with new all-time highs

Bitcoin price inches closer to $30,000 with new all-time highs
Bitcoin price inches closer to $30,000 with new all-time highs

Bitcoin (BTC) returned to hitting records on Dec. 30 after a fresh rebound took it above its $28,400 all-time high.

BTC price nails fresh all-time high

Data from Cointelegraph Markets and TradingView showed BTC/USD tackle its existing historic top during trading on Wednesday.

In a strong resurgence overnight, Bitcoin confirmed that it had no time for bears after briefly dipping as low as $25,830 over the past 24 hours.

Daily gains were at 7.5% at press time as $28,560 became reality.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

The move brings Bitcoin ever closer to sealing $30,000 as a new psychological level before the end of the year, something which seemed all but impossible just one week ago.

As Cointelegraph reported, however, analysts still believe that a reversal could take the largest cryptocurrency down to existing support at $19,500.

On Tuesday, Cointelegraph Markets analyst Michaël van de Poppe noentheless highlighted $27,500 as the critical area to break in order to pave the ways for new all-time highs.

Ether price leads altcoin gains

The knock-on impact among major cap altcoins was clearly felt, with Ether (ETH) nearing $740 after rising 5.5% on the day.

Polkadot (DOT) added to existing strength to see weekly performance approach 50%.

As before, the exception was XRP, which maintained 10% daily losses as continued delistings by major exchanges further weighed on sentiment. The troubled coin nonetheless managed to reclaim $0.20.

Title: Bitcoin price inches closer to $30,000 with new all-time highs
Sourced From: cointelegraph.com/news/bitcoin-price-inches-closer-to-30-000-with-new-all-time-highs
Published Date: Wed, 30 Dec 2020 07:00:00 +0000

Bitcoin price inches closer to $30,000 with new all-time highs
Bitcoin price inches closer to $30,000 with new all-time highs was originally published here https://businessnewsideas0.blogspot.com/2020/12/bitcoin-price-inches-closer-to-30000.html

Zilliqa, Terra (LUNA) and VeChain rally off good news and strong fundamentals

Zilliqa, Terra (LUNA) and VeChain rally off good news and strong fundamentals
Zilliqa, Terra (LUNA) and VeChain rally off good news and strong fundamentals

During a bull market, negative news is quickly digested and the collateral damage is often limited. Therefore, even as XRP price dumped aggressively due to the uncertainty regarding the outcome of the U.S. Securities and Exchange Commission lawsuit, other altcoins have largely been unaffected.

Crypto market data daily view. Source:Coin360

Moreover, as Bitcoin’s (BTC) strong rally takes a breather, several altcoins have broken out of their overhead resistance levels and are attempting to resume their uptrend. Let’s look at a few tokens that have risen sharply in the past few days and analyze their charts to ascertain whether the rally could extend further.

ZIL/USD

Zilliqa (ZIL) has risen sharply in 2020. Part of the rally could be attributed to the decentralized finance boom that dominated a large portion of the year.

After launching its decentralized exchange ZilSwap on Oct. 5 and non-custodial staking on Oct. 14, the token rallied considerably. These new features allowed the community to stake directly into the smart contract whereas previously they had to do it through a third-party intermediary.

To date, the community has staked about 30.49% of the total outstanding supply and the low eligibility threshold of 10 ZIL may have attracted greater participation from token holders.

During the coronavirus pandemic, most people stayed indoors and spent their time on social media. Thus, the timing of Zilliqa’s SocialPay launch could not have been better. The platform launched in May and it rewards users for sharing Zilliqa’s updates and announcements on Twitter.

All these fundamental developments may be the reason for the increase in the number of wallet addresses and monthly transactions in 2020. But can the token continue its outperformance in 2021? Let’s study its charts to find out.

The altcoin has been in a strong uptrend and it rallied from an intraday low at $0.0296388 on Dec. 12 to an intraday high at $0.0996 on Dec. 27, a 236% rally in about two weeks. Usually, these vertical rallies are not sustainable in the long run. Periodic corrections or consolidations are needed that can cool the up-move and increase the longevity of the trend.

ZIL/USDT daily chart. Source: TradingView

The ZIL/USD pair has formed successive inside day candlestick patterns on Dec. 28 and today. This suggests a contraction in volatility as the bulls and the bears decide on the next directional move.

If the inside day resolves to the upside, the uptrend could resume. Conversely, if the inside day candle is followed by a sharp down-move, the bears may have gained the upper hand and a deeper correction would be expected.

Therefore, if the bears sink the price below the 38.2% Fibonacci retracement level at $0.0728748, a drop to the 50% retracement level at $0.0646194 and then to the 20-day exponential moving average ($0.0570) is possible.

A strong bounce off this support hi that the positive sentiment remains intact as traders are accumulating on dips. The bulls will then attempt to resume the uptrend and if they can push the price above $0.0996, a rally to $0.14 may be possible.

On the other hand, if the price slides below the 20-day EMA, it will suggest that a short-term top could be in place as bulls are not keen to buy on dips.

LUNA/USD

Terra Protocol’s LUNA seems to have benefited from greater adoption of its existing products and the proposed launch of new ones. Its Chai payments app witnessed over 2.8 million transactions in November with payment volumes crossing $90 million.

To capitalize on the strong demand for U.S. stocks, commodities, and ETFs, Terra launched the Mirror Protocol on Dec. 4, enabling the creation and trading of synthetic assets. This could continue to attract traders as long as the assets remain in a strong trend.

Terra is also attempting to address the product referral marketing category that mainly benefits the direct referrer. The protocol plans to officially launch BuzLink, a marketing tool in February 2021, that will reward the entire referral chain after the sale is done.

LUNA has risen from an intraday low of $0.45 on Dec. 24 to an intraday high at $0.70 today, a 55% gain within a week. The upsloping moving averages and the relative strength index (RSI) close to the overbought zone suggest bulls have the upper hand.

LUNA/USDT daily chart. Source: TradingView

The LUNA/USD pair broke above the $0.57 overhead resistance on Dec. 28, which completed a rounding bottom pattern. This bullish setup has a target objective of $0.86.

However, the Doji candlestick pattern with a long wick today shows that traders are booking profits at higher levels. This could drag the price down to the breakout level at $0.57.

If the pair rebounds off this level or even from the 20-day EMA ($0.51), it will suggest that bulls are in control. A break above $0.70 could resume the uptrend.

Contrary to this assumption, if the bears sink and sustain the price below $0.57 and the 20-day EMA, it will suggest that the recent breakout was a bull trap. The trend may favor the bears if the pair drops below $0.45.

VET/USD

The coronavirus pandemic has made people and businesses even more aware of the power of digital technology. VeChain (VET) developed the E-HCert App in collaboration with the Mediterranean Hospital of Cyprus to store COVID-19 test records. After its successful implementation, Aretaeio Hospital has also joined the VeChain ecosystem to integrate its lab testing services, which will make the data readily accessible to patients to use as required.

The VeChainThor blockchain also recently received a 5-Star-Rated Blockchain Service Certificate from TÜV Saarland, a European certification body. This could increase confidence in its ecosystem and also improve investor sentiment about VET token. In a further boost, Grant Thornton Cyprus revealed itself as one of the VeChainThor Authority Masternodes. These developments could open up new possibilities for the future.

VET has rallied from an intraday low at $0.011724 on Dec. 23 to an intraday high at $0.02120375 today, an 80% gain in a short time. The bears are likely to defend the $0.02210 level aggressively as it has been acting as a stiff resistance for the past few months.

VET/USDT daily chart. Source: TradingView

However, if the VET/USD pair does not break below $0.018, the bulls will make one more attempt to drive the price above $0.02210. If they succeed, the pair will complete a rounding bottom pattern that has a target objective at $0.0353.

The 20-day EMA ($0.0165) has started to turn up and the RSI is above 60, which suggests that bulls have the upper hand. Even a consolidation between $0.018 and $0.0221 will be a positive sign and it will increase the possibility of a breakout of the overhead resistance.

Contrary to this assumption, if the price again gets rejected at $0.02210, it could attract profit booking from the short-term traders and that may pull the price back below the moving averages. Such a move could suggest that the pair may consolidate in a large range for a few days.

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.

Title: Zilliqa, Terra (LUNA) and VeChain rally off good news and strong fundamentals
Sourced From: cointelegraph.com/news/zilliqa-terra-luna-and-vechain-rally-off-good-news-and-strong-fundamentals
Published Date: Tue, 29 Dec 2020 22:05:42 +0000

Zilliqa, Terra (LUNA) and VeChain rally off good news and strong fundamentals
Zilliqa, Terra (LUNA) and VeChain rally off good news and strong fundamentals was originally published here https://businessnewsideas0.blogspot.com/2020/12/zilliqa-terra-luna-and-vechain-rally.html

Bitcoin mining: The next decade of sustainable crypto innovation begins today

Bitcoin mining: The next decade of sustainable crypto innovation begins today
Bitcoin mining: The next decade of sustainable crypto innovation begins today

Since the creation of the first cryptocurrency over a decade ago, many have often been skeptical of their legitimacy, with some even dismissing them as a fraud. But in 2020, this paradigm seemed to have shifted. What has emerged is a shared recognition that Bitcoin (BTC) and other digital assets are here to stay and that they will play a key role in the future of global finance. 

This is not some far-fetched vision reserved to crypto-anarchists — financial actors that were traditionally wary of cryptocurrencies are now expressing confidence in their disruptive potential. JPMorgan and Goldman Sachs, for instance, have recently reversed their initial opposition to cryptocurrencies, becoming some of the latest to offer new banking services and offerings for the digital assets market.

Related: Will PayPal’s crypto integration bring crypto to the masses? Experts answer

As optimism and appreciation for the long term potential of cryptocurrencies continue to grow, so will the opportunities for revenue expansion among players within the ecosystem. Bitcoin miners, for instance, saw their topline figures surge by close to 50% on a month-on-month basis in November, as Bitcoin prices rallied more than 60% to above $18,000 over the same time period. Yet, in a highly competitive environment, success has largely been confined to a few industry leaders while remaining elusive to many.

For miners, gaining access to highly advanced mining equipment — one that boasts the highest level of power and cost efficiencies, and the fastest processing speeds — remains the single most critical factor to securing a competitive edge.

Related: Cryptocurrency mining profitability in 2020: Is it possible?

The evolution

The crypto mining industry has undergone a succession of substantial transformations to arrive at today’s advanced technical state. In its early days, mining was done using simple computers without any complex or high-powered devices. General-purpose central processing units, or CPUs, were all it took to produce Bitcoin. This led to a rapid expansion of the Bitcoin network, as the allure of easy money prompted an influx of new entrants — so much so that these first-generation miners were unable to keep pace with demand, rendering them obsolete in just a year’s time.

Graphics processing units were introduced next and made mining Bitcoin more efficient and profitable. Combining several GPUs became a common sight, as miners sought to further increase their mining performance and capabilities while maximizing gains. Despite these advancements, second-generation miners did not stand the test of time due to their high energy consumption and lack of long-term efficacy.

In 2011, field-programmed gate arrays, or FPGAs, emerged as the next logical step of progression. They were fast, highly energy-efficient, offered better performance and easier cooling than their predecessors. Nonetheless, FPGA miners were short-lived and eventually replaced by ASICs, which, until today, remain the dominant technology for the Bitcoin mining industry. Designed, built and optimized for the sole purpose of mining, ASICs are recognized for their superior harmonization of power consumption, performance and cost — around a million times more energy efficient and 50 million times faster in mining Bitcoin than the CPUs used in 2009.

The road ahead

Indeed, crypto mining has come a long way. Aside from performance-related developments, there have also been notable improvements to the environmental aspect of the technology, such as higher energy efficiency and faster hash rates. With a growing emphasis on sustainability, this is a trend likely to continue as chip design providers look to develop innovative solutions to cater to this evolving demand.

Two main developmental areas come to mind. First, the reengineering of current mining hardware to radically utilize less energy; and, second, a reprogramming of current mining chips to allow the use of hybrid energy for optimal cost performance.

Reengineering of the current mining hardware. Already, there are several concepts out in the market that are being researched and rigorously put to test — one of them being the use of photonic chips to perform computing. In theory, the technology appears promising, with two to three orders of magnitude better energy efficiency over current electronic processors. Yet, in reality, it remains inconclusive as to whether the power savings are realizable, particularly as Bitcoin scales. Until then, ASICs and their ongoing enhancements will continue to dominate the crypto mining space and lead the charge on energy efficiency in crypto mining.

Reprogramming of the current mining chips. Against common belief, the crypto mining industry is a relatively green one. As of December 2019, Bitcoin was powered by over 70% of renewable electricity. While the benefits of using renewables are undisputed, the truth is that renewables are an intermittent source of energy and are not always reliable for Bitcoin miners, who have a constant energy requirement. Fossil fuel-based power, on the contrary, serves generally as a more steady source of energy. To strike a balance between the sustainability of the industry and sustainability more broadly, a hybrid model can be adopted, whereby renewables are used predominantly as an energy source, with fossil fuel-based power setting in during production shortages. This entails redesigning and reprogramming current mining chips to enable greater ease of toggling between the two variants of energy sources, with no disruption to the mining processes.

As cryptocurrencies continue to rise in prominence, so will the influx of competition from new providers wanting a slice of the pie. Healthy competition can be positive in that it can lead to more innovation that brings greater efficiencies and maturity to the industry. To fully capitalize on the growth of the nascent cryptocurrency market, however, incumbent chip designers will need to invest further into research and development, particularly in areas of energy optimization and power performance.

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

Nangeng Zhang, also known as NG, is the founder, chairman and CEO of Canaan Inc., a leading provider of supercomputing solutions. While specializing in the field of supercomputing, NG explored the potential of application-specific integrated circuit design, consequently launching the world’s first digital cryptocurrency miner based on ASIC chips and catalyzing the era of ASIC mining.Title: Bitcoin mining: The next decade of sustainable crypto innovation begins today
Sourced From: cointelegraph.com/news/bitcoin-mining-the-next-decade-of-sustainable-crypto-innovation-begins-today
Published Date: Tue, 29 Dec 2020 19:37:00 +0000

Bitcoin mining: The next decade of sustainable crypto innovation begins today
Bitcoin mining: The next decade of sustainable crypto innovation begins today was originally published here https://businessnewsideas0.blogspot.com/2020/12/bitcoin-mining-next-decade-of.html

Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’

Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’
Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’

Bitcoin (BTC) fell below $26,000 on Dec. 29 as fresh fallout from Ripple’s threatened U.S. lawsuit was felt throughout crypto markets.

Cryptocurrency market overview. Source: Coin360

BTC price dips as Coinbase halts XRP trading

Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD hitting lows of $25,830 during Tuesday trading.

$27,000 support failed to hold overnight, sparking a retest of lower levels which now center on $26,000. At the weekend, Bitcoin hit all-time highs of $28,400 before swiftly reversing.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

The latest losses come as XRP, the fourth-largest cryptocurrency by market cap, hits $0.23 thanks to major U.S. exchange Coinbase opting to suspend trading from next month. The reason is a lawsuit from the U.S. Securities and Exchange Commission (SEC), which threatens to classify XRP as an unlicensed security and make trading it all but impossible.

“There is going to be a rangebound construction, after which 2021 will most likely break out again,” Cointelegraph Markets analyst Michaël van de Poppe summarized about Bitcoin’s short-term perspectives in a video update on Monday.

nalyst braced for altseason

Van de Poppe is eyeing altcoins as next in line to see major gains. XRP notwithstanding, the market is already showing signs of life, with Ether (ETH) climbing above $700 for the first time since May 2018 this week.

Another winner on Tuesday was Polkadot (DOT), now the seventh-largest token by market cap, which saw a 22.5% daily rise, capping weekly performance of nearly 34%.

For Van de Poppe, the next “impulse wave” on Bitcoin in 2021 should take the market to $40,000 or $50,000, but “until then, altcoins will most likely do well.”

Bitcoin dominance historical chart. Source: CoinMarketCap

He additionally pointed to a likely top in Bitcoin market cap dominance, which at almost 70% should soon give way to altcoin presence. December tends to see BTC dominance peaks, with 2017, the time of Bitcoin’s first attempt to crack $20,000, a notable comparison.

Title: Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’
Sourced From: cointelegraph.com/news/bitcoin-price-rally-cools-down-as-polkadot-gains-34-in-first-week-of-altseason
Published Date: Tue, 29 Dec 2020 08:09:32 +0000

Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’
Bitcoin price rally cools down as Polkadot gains 34% in first week of ‘altseason’ was originally published here https://businessnewsideas0.blogspot.com/2020/12/bitcoin-price-rally-cools-down-as.html

Bitcoin whales are buying more aggressively since Christmas, data finds

Bitcoin whales are buying more aggressively since Christmas, data finds
Bitcoin whales are buying more aggressively since Christmas, data finds

Bitcoin (BTC) whales have been buying more since Christmas, on-chain data shows. This indicates that high-net-worth investors are continuing to eat up the supply of BTC.

It is nearly impossible to segregate institutional investors from individual investors through on-chain data. However, the trend shows that investors with large capital are increasingly entering into the Bitcoin market despite its rally.

Bitcoin large supply holders. Source: Santiment

Why are whales continuing to buy more Bitcoin?

According to the analysts at Santiment, around $647 million worth of Bitcoin likely transferred from small addresses to large addresses.

Addresses holding over 1,000 BTC or more are considered as whales by many analysts, as 1,000 BTC is equivalent to over $27 million at the current price at $27,100. The analysts wrote:

“Over the last 48 hours since Christmas, #Bitcoin addresses with 1,000 or more $BTC now own 0.13% more of the supply that smaller addresses did previously. This is about 24,158 tokens, which translates to $647.7M at the time of this writing.”

Bitcoin has increased by nearly three-fold since mid-2020 and the upside for BTC is arguably limited in the near future.

Still, most on-chain data points show that fewer whales are selling across major exchanges. Ki Young Ju, the CEO at CryptoQuant, said:

“BTC whales seem exhausted to sell. Fewer whales are depositing to exchanges. I think this bull-run will continue as institutional investors keep buying and Exchange Whale Ratio keeps below 85%.”

Bitcoin Exchange Whale Ratio. Source: CryptoQuant

There are two main reasons why whales might be accumulating Bitcoin at the current price range.

First, in spite of Bitcoin’s overextended rally, whales might believe that the psychological barrier at $30,000 would break. If so, options data suggest $36,000 could be a likely target in the near term.

Second, there is no solid reason to anticipate a major correction coming apart from the CME gap and the high futures market funding rate.

But, if Bitcoin consolidates after each rally, as seen in the past two days, then the funding rate would likely normalize. When that happens, the derivatives market would be less overheated, raising the probability of a new rally.

A pseudonymous trader known as “Byzantine General” said that the market is currently giving conflicting signals. Both long and short contract holders are being aggressive, which makes both long and short squeeze possible. He said:

“Such conflicting signals rn. Both longs & shorts are being overly aggressive lol. I should probably sit on my hands.”

The likely near term scenario is more consolidation

Typically, the price of Bitcoin on Coinbase is higher than Binance and other Tether-reliant exchanges. However, in the past week, Bitcoin has been trading slightly lower on Coinbase by around $20 to $30.

Although the gap is small, it shows that the U.S., which drove Bitcoin’s rally throughout December, might be seeing slowing buyer demand. But, the Asian market and the derivatives market are seeing an increase in buyer demand.

Considering that the demand for Bitcoin in the U.S. spot market appears to be cooling down, Bitcoin could consolidate for longer with lower volatility.

Title: Bitcoin whales are buying more aggressively since Christmas, data finds
Sourced From: cointelegraph.com/news/bitcoin-whales-are-buying-more-aggressively-since-christmas-data-finds
Published Date: Mon, 28 Dec 2020 20:00:00 +0000

Bitcoin whales are buying more aggressively since Christmas, data finds
Bitcoin whales are buying more aggressively since Christmas, data finds was originally published here https://businessnewsideas0.blogspot.com/2020/12/bitcoin-whales-are-buying-more.html

Binance launches bilateral Bitcoin European options

Binance launches bilateral Bitcoin European options
Binance launches bilateral Bitcoin European options

Back in April, Binance joined the expanding cast of exchanges rolling out Bitcoin choices trading with the launch of American-style BTC alternatives agreements. Binances previous iteration of Bitcoin options was also criticized for being one-sided as users were unable to “compose” choices and pocket the premium. As a consequence, Binance alternatives were generally more pricey due to the inability to perform arbitrage.The European BTC alternatives announcement is the newest from Binance in a hectic December.

Binance launches bilateral Bitcoin European options
Binance launches bilateral Bitcoin European options was originally published here https://businessnewsideas0.blogspot.com/2020/12/binance-launches-bilateral-bitcoin.html

Altseason and $30K in sight: 5 things to watch in Bitcoin as 2020 ends

Altseason and $30K in sight: 5 things to watch in Bitcoin as 2020 ends
Altseason and $30K in sight: 5 things to watch in Bitcoin as 2020 ends

Bitcoin (BTC) has had a week like no other, hitting fresh record highs of $28,400 and staying near the top — what’s next.

As markets return to digest a wild Christmas, Cointelegraph presents five factors set to help with Bitcoin price direction this week.

Gold surges as Trump signs stimulus bull

Markets have been spared a nightmare this week after U.S. President Donald Trump agreed to sign off on Congress’ $900 billion coronavirus stimulus bill.

Set to add a large amount of debt to the Federal Reserve’s existing mountain, the package includes various benefits for businesses but stops short of providing Americans with the same level of direct financial support seen in March.

Trump had said that the low direct payment amount of the second stimulus — $600 against $1,200 last time — meant that he could not condone it, but subsequently changed his mind.

Markets have thus begun a new week on a positive note, with slight gains seen on S&P 500 futures prior to the Wall St. open.

At the same time, gold has returned in style, with data showing that the precious metal is now on track for its biggest one-year gain in a decade.

Versus the end of November, XAU/USD is up $111 or 6.25%.

XAU/USD daily candle chart. Source: TradingView

“As President @realDonaldTrump vetoed just nine bills, the fewest number since Warren Harding, who served just two years, from 1921-1923,” gold bug and infamous Bitcoin naysayer Peter Schiff tweeted as the bill was signed.

“Not since Chester Arthur (1881-1885) has a president who served a full term vetoed fewer bills. You can’t drain the swamp by making it deeper.”

Regulations coming for mainstream Bitcoin

After striking a fresh tone with a wider audience over Christmas with runs to new all-time highs, Bitcoin may soon have to face the music with the establishment, sources warn.

Hitting $28,400 and capping monthly gains of 55%, Bitcoin is now firmly on regulators’ radar as its mainstream appeal heightens. Even for its proponents, the next year may prove to be a challenging time.

With outgoing Treasury Secretary Steven Mnuchin leaving his mark with an attempt to force new laws over noncustodial wallets, his replacement, Janet Yellen, may hardly be an improvement, they say.

“Generally, I think we have had challenges with the Dems — they prefer more regulation, more oversight,” Meltem Demirors, chief strategy officer at digital-asset manager CoinShares, told Bloomberg on Sunday.

“I am a bit worried about the direction things are trending.”

As always in the U.S., the patchwork of political allegiances means that any assault may be tempered by the presence of crypto-friendly figures elsewhere. The new chair of the Securities and Exchange Commission (SEC), Elad Roisman, is considered to be a fan.

Bitcoin rebuttal at $28,400 “very healthy” — analyst

Concentrating on the latest Bitcoin spot market action, Monday is shaping up to be a major test for bulls given the momentum seen over the weekend.

After hitting all-time highs of $28,400 on Sunday, Bitcoin saw a pullback which many had already expected.

“#Bitcoin undergoing a very healthy correction as it went quite vertical. Might be the temporary top for now,” Cointelegraph Markets analyst Michaël van de Poppe summarized on social media.

“What’s next? Consolidation, sideways action, less volatility. Giving space to the rest of the markets to pace up. $BTC pairs doing well.”

BTC/USD hourly candle chart. Source: TradingView

Van de Poppe is eyeing the potential for altcoins to begin their response to Bitcoin’s recent glories, arguing that signs are already beginning to appear that “altseason” is around the corner.

“After #Bitcoin finishes the run (and it is quite vertical), the money will flow towards large caps. And after that towards mid-caps and small caps,” he continued.

“Altcoins are not dead, the money flow is still the same.”

While floundering against BTC, some popular altcoins are still delivering significant returns in USD terms, with market leader Ether (ETH) trading above $700 for the first time since May 2018. Versus its lows of $113 in March, ETH/USD is now up 530%.

ETH and BTC vs. USD performance YTD. Source: Digital Assets Data

Record Bitcoin futures gap

Bitcoin is contending with the largest “gap” to ever appear on futures markets this week.

Data from CME Group’s futures shows that on Friday, trading ended at around $23,825. Monday began with a wick to lows of $26,500 from opening levels, with the difference ranking as the biggest ever seen in a weekend.

These so-called futures “gaps” refer to the void between Friday and Monday trading sessions, and the BTC/USD spot price has a habit of returning to “fill” them later on.

In recent weeks, however, this trend has weakened, with gaps remaining between $16,900 and $19,500 which have only been partially filled.

This has in turn given rise to theories among analysts — including Cointelegraph’s Van de Poppe — that Bitcoin could still reverse downwards to revisit sub-$20,000 levels just long enough to take care of its unfinished business.

Should that not in fact occur, analysts may instead need to come to terms with the loss of what was once a solid indicator of near-term Bitcoin price trajectory.

CME Bitcoin futures chart showing gap. Source: TradingView

Stock-to-flow forecasts the high

On the topic of price trajectory, the latest action puts Bitcoin at odds with one of its best-known and most reliable price models — stock-to-flow.

After rising to hit exactly what the model’s demands last week, the weekend ensured that BTC/USD outperformed, with Sunday’s retracement to the mid $26,000 range ensuring compliance swiftly returned.

As noted by both its creator PlanB and Saifedean Ammous, author of “The Bitcoin Standard,” Bitcoin is overall staying highly faithful to what stock-to-flow requires on an almost daily basis.

“Bitcoin’s price continues to track the predicted value from @100trillionUSD ‘s stock-to-flow model with astonishing precision,” Ammous summarized.

Bitcoin stock-to-flow chart. Source: Digitalik

Going forward, the model’s various incarnations demand price levels of anywhere between $100,000 and $576,000 between now and the end of the current halving cycle in 2024.

Title: Altseason and $30K in sight: 5 things to watch in Bitcoin as 2020 ends
Sourced From: cointelegraph.com/news/altseason-and-30k-in-sight-5-things-to-watch-in-bitcoin-as-2020-ends
Published Date: Mon, 28 Dec 2020 08:06:59 +0000

Altseason and $30K in sight: 5 things to watch in Bitcoin as 2020 ends
Altseason and $30K in sight: 5 things to watch in Bitcoin as 2020 ends was originally published here https://businessnewsideas0.blogspot.com/2020/12/altseason-and-30k-in-sight-5-things-to.html