Increasing stock market volatility drags Bitcoin and altcoin prices lower

Increasing stock market volatility drags Bitcoin and altcoin prices lower
Increasing stock market volatility drags Bitcoin and altcoin prices lower

The cryptocurrency market faced another day of downward pressure as the unease in the traditional markets continues to spread following the recent interest rate spike on the 10-year U.S. Treasury bond. 

Data from Cointelegraph Markets and TradingView shows that the price of Bitcoin (BTC) fell to a low at $44,710 late on Feb. 25 before buying at the key support returned to help the digital asset recover back above $46,500 but generally, analysts are looking for $50,000 to become an established support before expecting bullish continuation.

BTC/USDT 4-hour chart. Source: TradingView

Despite major BTC purchases by MicroStrategy, Tesla and MassMutual, a majority of institutional investors still have security and tax treatment concerns that prevent them from investing in Bitcoin, according to Galaxy Digital co-president Damien Vanderwilt.

Institutional investment has been a significant source of optimism in the cryptocurrency sector in 2021, but its influence in helping BTC reach a market cap of $1 trillion may be overstated as recent analysis shows that stablecoin whales and retail traders still hold the most buying power.

Interest rate increase puts pressure on GBTC

On Feb. 25, the interest rate for the 10-year U.S. Treasury spiked to 1.52%, its highest level in over a year.

According to Chad Steinglass, Head of Trading at CrossTower, the move led to market-wide pressure that pushed the “GBTC premium down as low as negative 6% and it closed around negative 2% today.” The analyst sees interest rate volatility as a major source of market volatility, as the long end of the curve steepens while the U.S. dollar is pushed lower.

Daily cryptocurrency market performance. Source: Coin360

Cryptocurrencies fell under increased pressures as equity markets deteriorated throughout the day, possibly due to a “scramble for liquidity” resulting from traders “pushing up against margin calls and needing to free up cash.”

Steinglass said:

“I interpret the GBTC premium collapse as a sign that either retail is dumping to free liquidity, or large fund holders like ARKW are seeing outflows, which causes them to sell GBTC along with everything else.”

Traditional markets are still choppy

The 10-year Treasury yield pulled back .0582 basis points to 1.46 on Feb. 26, marking a 3.82% decrease from its high on the previous day. This leadi to a choppy day in the markets which saw the major indices close mixed.

The NASDAQ finished the day up 0.56%, recovering some of its losses from the 3.5% drop on Feb. 25. Meanwhile, the S&P 500 and DOW finished the day in the red, down 0.48% and 1.51% respectively.

A majority of the top cryptocurrencies also took on sharp losses on Friday, with the exception of Cardano (ADA), which became the third-ranked cryptocurrency by market cap after its price broke out to a new all-time high at $1.29. The current excitement for the altcoin appears to be connected to the upcoming ‘Mary’ mainnet launch scheduled for March 1.

ADA/USDT 4-hour chart. Source: TradingView

Basic Attention Token (BAT) has also battled back against the market sell-off to post a 6.43% gain following the Feb. 23 announcement of the upcoming Brave Decentralized Exchange (DEX).

Ether (ETH) price is down 7.19%  and trading below $1,500, while Binance Coin (BNB) has dropped 8.36% to $224.14

The overall cryptocurrency market cap now stands at $1.533 trillion and Bitcoin’s dominance rate is 61.3%.

Title: Increasing stock market volatility drags Bitcoin and altcoin prices lower
Sourced From: cointelegraph.com/news/increasing-stock-market-volatility-drags-bitcoin-and-altcoin-prices-lower
Published Date: Fri, 26 Feb 2021 23:02:39 +0000

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Increasing stock market volatility drags Bitcoin and altcoin prices lower
Increasing stock market volatility drags Bitcoin and altcoin prices lower was originally published here https://businessnewsideas0.blogspot.com/2021/02/increasing-stock-market-volatility.html

Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here

Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here
Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here

Bitcoin (BTC) bears thinking that $58,000 was this cycle’s top will be sorely disappointed, fresh investment data from past bull markets shows.

Compiled by on-chain analytics resource Whalemap, statistics covering BTC buys of between $5 million and $7 million conclude that even at recent all-time highs, Bitcoin was far from a “macro top.”

“No FOMO in sight” for BTC

During the 2017 and shorter 2019 bull market, Bitcoin saw mass buy-ins of a similar size — $5-7 million. 

When investments of that amount hit a peak, price action began to reverse, signalling the start of consolidation or a heavier retracement. 

According to Whalemap, cash injections in that area have been far from their previous peaks this year, indicating that the current correction will likely be temporary and on par with BTC’s typical corrections during a bull run.

“Previous macro tops have occurred when thousands of transactions worth 5 to 7 million dollars each were flooding the blockchain. True FOMO,” researchers tweeted on Feb. 25.

“Currently, no such FOMO in sight for BTC.”

Bitcoin $5-7 million transaction volume vs. BTC/USD chart. Source: Whalemap/ Twitter

The expectation of further buy-ins supports existing data that came to light this week, notably from Coinbase Pro, which has seen multiple tranches of over 10,000 BTC leave its books for private or custody wallets.

The first negative premium on the Grayscale Bitcoin Trust (GBTC) since early 2017 may also point to the conclusion that the 2021 bull cycle still has a lot more room to run.

“Another significant Coinbase outflows at 48k. US institutional investors are still buying $BTC,” Ki Young Ju, CEO of fellow monitoring resource CryptoQuant, tweeted on Friday.

“I think the major reason for this drop is the jittering macro environment like the 10-year Treasury note, not whale deposits, miner selling, and lack of institutional demand.”

Liquidity grab?

The start of the turnaround maybe sooner than many think. In his latest analysis, pseudonymous cryptocurrency trader Rekt Capital eyed the 4-hour BTC/USD chart for proof of a turnaround.

“Pulls back but still holds the wick-to-wick Higher Low. Turn $46720 in to support (black) and BTC will move higher. Strong bullish divergences on the 4HR are appearing as well,” he commented alongside an annotated screenshot of the chart.

BTC/USD 4-hour candle chart. Source: Rekt Capital/ Twitter

Speaking to Cointelegraph, the Whalemap team noted that short-term the spent output profit ratio (SOPR) — which tracks overall market profit and loss — was indicating that a deeper sell-off is off the cards, at least for now.

“Hourly SOPR shows potential for at least a short term bounce,” they said.

BTC/USD SOPR chart. Source: Whalemap

Friday further sees a major expiry event on Bitcoin options, something which has dictated temporary downward pressure on BTC in the past. 

The day’s low of $44,150, some say, was merely an attempt to suck up liquidity before the next leg higher.

“Yes, market dumped after ‘mega-whales’ sold into the rally (as warned), but since then, they have been buying dips!” the creator of exchange orderbook data analysis service Material Indicators observed.

“With stonks uncertainty, I don’t know how many more dips there will be, but they’re being bought!”

That “uncertainty” is being exacerbated by concerning trends in bond yields, Cointelegraph reported this week, with behavior seen as similar to before the Global Financial Crisis of 2008.

Title: Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here
Sourced From: cointelegraph.com/news/bitcoin-price-macro-top-not-so-fast-data-shows-the-real-fomo-isn-t-even-here
Published Date: Fri, 26 Feb 2021 12:04:10 +0000

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Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here
Bitcoin price ‘macro top’? Not so fast — data shows the real FOMO isn’t even here was originally published here https://businessnewsideas0.blogspot.com/2021/02/bitcoin-price-macro-top-not-so-fast.html

Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off

Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off
Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off

Bitcoin (BTC) hit fresh local lows on Feb. 26 despite what appear to be ongoing largescal institutional buy-ins.

New lows despite bullish signs

Data from Cointelegraph Markets and TradingView showed BTC/USD $44,150 during Friday trading — last seen two weeks ago — after a rebound to $50,000 fizzled overnight.

Bitcoin had seen good news in the form of asset manager Stone Ridge planning to become the first Bitcoin mutual fund, along with major corporate purchases from MicroStrategy and Square. These, however, failed to stem the bearish mood, with 24-hour losses standing at near 10% at the time of writing.

“Everyone wants 42k, so we probably just go up now or drop to 38k on a savage wick. Crowd rarely gets what it wants,” popular trader Scott Melker summarized on Twitter.

Cointelegraph Markets analyst Michaël van de Poppe had prevously forecast ultimate support lying at around $38,000 should Bitcoin not find buying volume at higher levels.

“Bitcoin doesn’t look too great for a bull continuation coming period,” he said on Thursday.

“Still, retest at $54,000-55,000 could happen, but I’m cautious when we get there. If we lose $47,000, then I’m looking at $42,000-44,000 and $37,000-38,500 next. That should be the low.”

BTC/USD 1-hour candle chart. Source: Tradingview

Institutions are still buying: data

Data from the professional trading arm of U.S. exchange Coinbase meanwhile showed another major tranch of BTC leaving its books for a private or custody wallet — something which traditionally suggests institutional buying.

The latest spike of 12,100 BTC is the second this week, such large volumes themselves being a rarity, a fresh chart from on-chain monitoring resource CryptoQuant confirms.

Coinbase Pro outflow annotated chart. Source: Lex Moskovski/ CryptoQuant

The so-called “Coinbase premium,” the difference in price between Coinbase and Binance, flipped to negative for several brief moments as Bitcoin dropped to nearly $44,200. 

Coinbase premium vs. BTC/USD chart. Source: CryptoQuant/ Tradingview

As Cointelegraph reported citing CryptoQuant, whales appear to favor buying at current price levels, with the result that a dip much below $44,000 would be “unlikely,” according to CEO Ki Young Ju.

On Thursday, Ki described the last Coinbase Pro spike, which occurred at $48,000, as “the strongest bullish signal” he had yet seen in Bitcoin.

Title: Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off
Sourced From: cointelegraph.com/news/bitcoin-price-nears-44k-as-large-coinbase-outflows-fail-to-stop-the-sell-off
Published Date: Fri, 26 Feb 2021 08:54:16 +0000

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Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off
Bitcoin price nears $44K as large Coinbase outflows fail to stop the sell-off was originally published here https://businessnewsideas0.blogspot.com/2021/02/bitcoin-price-nears-44k-as-large.html

6M noobs have bought coins on Robinhood Crypto already in 2021

6M noobs have bought coins on Robinhood Crypto already in 2021
6M noobs have bought coins on Robinhood Crypto already in 2021

Retail-focused trading app Robinhood has revealed the number of new monthly customers buying from its crypto platform this year is 15 times the 2020 average.

According to the company’s new report, “Crypto Goes Mainstream,”more than three million new users purchased from Robinhood Crypto in January, with more than 2.9 million new users having bought crypto during February so far. As such, Robinhood Crypto’s user base has expanded by 6 million in 2021 so far.

By contrast, the platform revealed the largest number of new users transacting on Robinhood Crypto last year was 401,000 in July — when trade activity surged in the lead-up to Bitcoin’s third block reward halving.

The average number of monthly new crypto traders on Robinhood was roughly 200,000 last year. The report also notes an average transaction size of roughly $500 on the platform, an 100% increase when compared to the first three quarters of 2020. The report concluded:

“The numbers are clear: 2021 has started with a crypto bang.”

Robinhood is looking to further expand its crypto services, revealing plans to offer deposits and withdrawals for crypto assets in a Tweet last week.

This year has been an explosive one for Robinhood, with the platform finding itself at the center of controversy after suspending trade in both Dogecoin and stocks that were being pumped by the now infamous Reddit group, r/WallStreetBets, during January.

Last week’s congressional hearings on the incident saw representatives of the U.S. House Financial Services Committee scrutinize Robinhood’s business model — with the platform’s move to suspend trading in GME shares apparently prompted by the platform falling short of its collateral requirements by $3 billion amid the orchestrated pump.

However, Robinhood CEO Vlad Tenev has blamed its collateralization issues with U.S. Securities and Exchange Commission regulations mandating a two-day settlement period after trades are executed.

Title: 6M noobs have bought coins on Robinhood Crypto already in 2021
Sourced From: cointelegraph.com/news/6m-noobs-have-bought-coins-on-robinhood-crypto-already-in-2021
Published Date: Fri, 26 Feb 2021 02:26:49 +0000

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6M noobs have bought coins on Robinhood Crypto already in 2021
6M noobs have bought coins on Robinhood Crypto already in 2021 was originally published here https://businessnewsideas0.blogspot.com/2021/02/6m-noobs-have-bought-coins-on-robinhood.html

Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high

Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high
Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high

Nonfungible tokens (NFTs) are rapidly becoming a focal point of the cryptocurrency market, as evidenced by stories of millions of dollars being raised in minutes for one-of-a-kind tokenized art pieces and rare collectibles that traders rush to get their hands on. 

One project that has been benefiting greatly from the resurgence of NFTs is Enjin Coin (ENJ), which broke out to a new all-time high of $0.67 on Feb. 25 following its listing on the Crypto.com exchange as well as the launch of spot and perpetual futures trading on FTX.

Data from Cointelegraph Markets and TradingView shows that ENJ rose 52% from a low of $0.438 on Feb. 24 to a new high of $0.67 before experiencing a pullback to its current price of $0.611.

ENJ/USDT 4-hour chart. Source: TradingView

A scroll through the project’s Twitter feed details numerous recent partnerships and integrations that have helped fuel Enjin Coin’s price rise.

Minecraft is one of the most notable integrations for the Enjin ecosystem, and users are able to earn special NFTs that unlock secret games inside the video game series.

The platform has also benefited from joining forces with the growing ecosystem of the Binance Smart Chain (BSC), which has launched an NFT educational campaign that Enjin will be part of.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for ENJ on Feb. 24, several hours before today’s price rise.

The VORTECS™ score, exclusive to Cointelegraph, is an algorithmic comparison of the historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. ENJ price. Source: Cointelegraph Markets Pro

As seen on the chart above, the VORTECS™ score for ENJ reached a high of 70 on Feb. 24, shortly before the price began to spike to a new all-time high on Feb. 25.

The growing popularity of the NFT space, along with numerous big-name partnerships has Enjin well-positioned as the current bull market cycle progresses into 2021.

Its recent integration with BSC provides a way to escape high fees on the Ethereum network and could bring a new wave of activity to the Enjin ecosystem.

Title: Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high
Sourced From: cointelegraph.com/news/exchange-listings-and-nft-boom-back-enjin-s-enj-52-rally-to-a-new-high
Published Date: Thu, 25 Feb 2021 21:00:00 +0000

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Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high
Exchange listings and NFT boom back Enjin’s (ENJ) 52% rally to a new high was originally published here https://businessnewsideas0.blogspot.com/2021/02/exchange-listings-and-nft-boom-back.html

Sorare takes fantasy football NFTs to new level after $50 million funding round

Sorare takes fantasy football NFTs to new level after $50 million funding round
Sorare takes fantasy football NFTs to new level after $50 million funding round

Sorare announced today the completion of a $50 million funding round led by Benchmark and with participation from Accel. Leading celebrities in the world of football also took part, such as Antoine Griezmann, Rio Ferdinand, Oliver Bierhoff, Alexis Ohanian and Gary Vaynerchuck. 

Nicolas Julia is the Co-Founder and CEO of Sorare, the global fantasy football game. He says he started his journey back in 1998 when France hosted the World Cup. He completed his very first sticker album that year, and he said it helped to bring him closer to the game of football, but also closer to his friends who were also collecting the stickers. 

Years later, in 2018, Julia and his Co-Founder Adrien discovered the new technology of Non-Fungible Tokens (NFTs). They realised that this could take digital collecting to a new level, and that it would be the perfect fit for introducing digital scarcity into the world of fantasy football. 

Julia says that working with Benchmark has brought his dream to reality. He believes Benchmark to be “one of the best early-stage venture capital firms in the world”. Benchmark has also successfully backed top internet companies such as Twitter, Snap, Instagram and Discord. 

The Sorare CEO says what the company will do with the funding: 

“We’ll be using this new funding to propel our vision forward. Our mission is to create “The game within The game”. We are transforming online football fandom and giving fans like us the power to own the game they love.” 

He goes on to say that the funding will help in hiring a first-class team, onboard the top 20 football leagues in the world, and launch a mobile app. He also adds: 

“More importantly, these funds will serve to delight our current and future community. Clubs, footballers and fans are at the heart of the game. We’re designing an experience where fans can celebrate, share, and live football moments at a deeper connection. We’re making fantasy football a reality.” 

Finally, he describes how the technology of NFTs will work to give digital cards superpowers: 

“Blockchain technology gives Sorare cards superpowers. We are building more than collectibles. Our digital cards have a utility that can be used in our global fantasy football games and myriads of games. The potential is limitless and we can’t wait to see the amazing football projects that are built around Sorare cards!” 

NFT technology is really exploding onto the Blockchain/Cryptocurrency scene currently. Christies is involved with selling art NFTs and the world of DeFi is using the technology in ever more innovative ways. The future does look bright for the companies that can become the first movers. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice. 

Title: Sorare takes fantasy football NFTs to new level after $50 million funding round
Sourced From: cryptodaily.co.uk/2021/02/Sorare-fantasy-football-50-million-funding-round
Published Date: Thu, 25 Feb 2021 17:37:58 +0000

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Sorare takes fantasy football NFTs to new level after $50 million funding round
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What Bitcoin price levels will invalidate the short-term bearish scenario?

What Bitcoin price levels will invalidate the short-term bearish scenario?
What Bitcoin price levels will invalidate the short-term bearish scenario?

The price of Bitcoin (BTC) is continuing to range between $48,000 and $51,000, unable to break out of the $51,600 resistance level.

If Bitcoin struggles to surpass the $51,600 resistance area in the near term, technical analysts say the probability of a correction rises.

BTC/USDT 4-hour price chart (Binance). Source: TradingView

$51,600 is the key level to watch

According to Josh Olszewicz, a cryptocurrency trader and technical analyst, the $51,600 level is currently acting as a strong resistance level.

For Bitcoin to retest the all-time high at $58,000 and initiate a potential rally towards $62,000, it needs to cleanly move past $51,600, he explained. 

Hence, a rally beyond $51,600 is the clear invalidation point for any short-term bearish scenario for Bitcoin.

The failure to break out in the near term could result in a bearish test of lower support areas, found at around $42,000. He said:

“If 4h breaks down, be prepared for some uber bearish calls to start popping at 36.7k meanwhile, I’ll be bidding the daily Kijun at 42k. Alternatively, if $BTC breaks above 4h Cloud at 51.6k, I like ATH retest at 58k, R3 yearly pivot test at 62k, macro PF diag test at 70k, R4 yearly pivot test at 80K. Seasonality suggests we go neutral/sideways through March and then reach for those higher targets in Q2.”

The $42,000 support area is a key level because it marks the top of the previous rally. On Jan. 8, the price of Bitcoin peaked at $42,085 on Binance, seeing a steep correction afterwards.

Bitcoin dropping to $42,000 to retest the previous top as a support area would not be necessarily bearish beyond the short term, however. 

Whale clusters show similar levels of support

Moreover, analysts at Whalemap noted large inflows to whale wallets at $48,500 and $46,500, which they say should provide BTC with some support. 

“The current situation looks similar to the one we had at 29K,” they explained. What’s more, the $46,532 level may now be “the new $29,000,” which held as support during the previous correction in January before the rally continued. They added: 

The $55,400 is an important level to keep an eye on as well. Getting back above it will be a good sign

Whale cluster levels. Source: Twitter/@whale_map

The most compelling argument for a short-term Bitcoin drop

Bitcoin tends to seek liquidity after a prolonged consolidation, which means it can drop down to fill buy orders at lower support areas that can ultimately fuel a new rally.

A pseudonymous trader known as “Salsa Tekila” echoed this sentiment. He said that there is a big support area at $41,000, followed by resistance at $54,000. He wrote:

“My current take on $BTC mid term: 1) Support around $41K. 2) Resistance around $54K. Depending on context, I might trigger swings around those two vicinities. Likely just scalp until then, unless major events come to fruition.”

Bitcoin tested the $44,800 support level in the past 72 hours, but it was not enough to propel BTC above $51,600.

This trend could cause the price of Bitcoin to drop back to the $44,800 level or to a lower support level, at $42,000.

The ideal scenario would be for Bitcoin to hold onto the $44,800 support area if it drops again, stabilize it as a macro support level, and move back up.

Title: What Bitcoin price levels will invalidate the short-term bearish scenario?
Sourced From: cointelegraph.com/news/what-bitcoin-price-levels-will-invalidate-the-short-term-bear-scenario
Published Date: Thu, 25 Feb 2021 09:00:00 +0000

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What Bitcoin price levels will invalidate the short-term bearish scenario?
What Bitcoin price levels will invalidate the short-term bearish scenario? was originally published here https://businessnewsideas0.blogspot.com/2021/02/what-bitcoin-price-levels-will.html

Traders remain bullish even as DeFi’s TVL falls to $54.4 billion

Traders remain bullish even as DeFi’s TVL falls to $54.4 billion
Traders remain bullish even as DeFi’s TVL falls to $54.4 billion

Decentralized finance and the numerous platforms offering investment services have been the talk of the cryptocurrency sector for several months, and this has resulted in investors capturing spectacular gains for some of the top DeFi tokens like Uniswap’s UNI and AAVE. 

The fast-moving prices and 1,000% annual percentage yield on staked tokens elicited cheers from investors when the market was going up, but the recent selling pressure seen as Bitcoin’s (BTC) price dropped below $45,000 shows that the highest fliers are often the quickest to fall as traders rush to exit their positions and lock in their gains.

Daily cryptocurrency market performance. Source: Coin360

On Feb. 22, Bitcoin’s price entered a sharp corrective phase that saw the top digital asset pull back by more than 20% from its all-time high of $58,274. As this occurred, the majority of altcoins also saw double-digit corrections, and DeFi tokens like PancakeSwap’s CAKE fell as much as 55%. 

Total value locked in DeFi shows resilience

The total value locked (TVL) in DeFi platforms also took a hit as Bitcoin and altcoins corrected. Data from DeFi Llama shows the combined TVL of all DeFi platforms fell from $64.89 billion to $54.22 billion on Feb. 24. Cointelegraph also reported that this week’s correction led to the second-largest day of DeFi loan liquidations in history. 

Total value locked in DeFi. Source: DeFi Llama

The decline in TVL is a result of decreasing token values rather than protocol outflows, indicating that tokenholders remain committed to the continued expansion of decentralized finance and that the current yields are still incentivizing investors to remain engaged.

Market analysis indicates that despite the recent $5.8-billion Bitcoin and altcoin liquidation, bulls remain optimistic and see this price pullback as a sign of a healthy market.

The same goes for the DeFi sector, which has been in a strong uptrend since the start of the year. Increasing DEX volume and as a rising TVL show that DeFi is still in the early stages of growth, and while pullbacks are to be expected, the overall trend is positive as institutional and retail investors increasingly gain exposure to this emerging asset class.

Title: Traders remain bullish even as DeFi’s TVL falls to $54.4 billion
Sourced From: cointelegraph.com/news/traders-remain-bullish-even-as-defi-s-tvl-falls-to-54-4-billion
Published Date: Wed, 24 Feb 2021 23:00:00 +0000

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Traders remain bullish even as DeFi’s TVL falls to $54.4 billion
Traders remain bullish even as DeFi’s TVL falls to $54.4 billion was originally published here https://businessnewsideas0.blogspot.com/2021/02/traders-remain-bullish-even-as-defis.html

Sam Bankman-Fried: The crypto whale who wants to give billions away

Sam Bankman-Fried: The crypto whale who wants to give billions away
Sam Bankman-Fried: The crypto whale who wants to give billions away

Title: Sam Bankman-Fried: The crypto whale who wants to give billions away
Sourced From: cointelegraph.com/magazine/2021/02/24/sam-bankman-fried-the-crypto-whale-who-wants-to-give-billions-away
Published Date: Wed, 24 Feb 2021 15:04:45 +0000

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Sam Bankman-Fried: The crypto whale who wants to give billions away
Sam Bankman-Fried: The crypto whale who wants to give billions away was originally published here https://businessnewsideas0.blogspot.com/2021/02/sam-bankman-fried-crypto-whale-who.html

3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction

3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction
3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction

The price of Bitcoin (BTC) quickly recovered from around $44,800 to over $50,000 within merely 22 hours. 

Behind the rapid recovery are three major factors, including low funding rates, Square’s $170 million Bitcoin purchase, and the spot market stabilizing.

Bitcoin futures funding rates substantially drop

Across major futures exchanges, including Binance, Bybit and Bitfinex, the funding rate of Bitcoin has dropped to 0.01%.

The Bitcoin futures funding rate was consistently above 0.1% throughout the entirety of the rally from the $40,000s to $58,000.

BTC/USDT 4-hour price chart (Binance). Source: TradingView.com

When the futures funding rate is high, it means the market is overcrowded with buyers and the rally likely overextended.

This creates a major risk of a long squeeze, which can cause the price of Bitcoin to drop quickly in a short period.

With the funding rate back to 0.01%, the risk of a long squeeze is significantly lower and if a new uptrend ensues, the rally could be more sustainable.

BTC and ETH funding rates. Source: Bybt.com

Square buys $170 million worth of BTC

On Feb. 24, the U.S. payments giant Square bought $170 million worth of Bitcoin. This comes after purchasing $50 million worth of Bitcoin on Oct. 8 of last year. At the time, Square’s chief financial officer Amrita Ahuja said:

“We believe that bitcoin has the potential to be a more ubiquitous currency in the future. As it grows in adoption, we intend to learn and participate in a disciplined way. For a company that is building products based on a more inclusive future, this investment is a step on that journey.”

The additional purchase of Bitcoin by Square carries a significant meaning because it shows that the company is confident in BTC over the long term.

The price of Bitcoin is substantially higher than where it was in August of last year, which indicates that as its price rises, the confidence from institutions also increases.

Spot market is stabilizing

When the price of Bitcoin was correcting, the price of Bitcoin on spot exchanges, like Coinbase, was much lower than futures exchanges

On Feb. 23, for instance, Bitcoin was trading $600 lower on Coinbase at one point when the price was near $44,800.

When the price of Bitcoin initially recovered from $44,800 to $48,000, there were signs of a bearish retest.

John Cho, the director of global expansion at GroundX, said:

“We were expecting it, but didn’t think it’d come this soon or this fast. A solid bounce from here would be ideal; but some potential retracement support regions I’m watching. My bias is towards the 40-41k region as it would fulfill a 30% correction from ATH.”

Bitcoin price has recovered above $50,000 since, and that could have reduced the likelihood of a bearish retest and the potential for more downside.

In the near term, if Bitcoin continues to remain above $50,600, which has turned into a support area, the probability of a rally toward the next resistance level at $56,000 rises.

Lastly, such corrections are quite normal for a Bitcoin bull market cycle, as Cointelegraph previously pointed out. In fact, they were commonplace during the 2017 bull market, which had nine major pullbacks between 20–40%. But despite these reoccurring “severe” corrections, the price of Bitcoin still increased by 20 times from its previous all-time high during that year.

Title: 3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction
Sourced From: cointelegraph.com/news/3-reasons-bitcoin-price-is-quickly-recovering-from-its-severe-23-correction
Published Date: Wed, 24 Feb 2021 12:00:00 +0000

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3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction
3 reasons Bitcoin price is quickly recovering from its ‘severe’ 23% correction was originally published here https://businessnewsideas0.blogspot.com/2021/02/3-reasons-bitcoin-price-is-quickly.html

Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery

Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery
Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery

The decentralized open-source project running a public blockchain platform for smart contracts, Cardano, plans to implement several significant upgrades in the upcoming few months. During a recent interview, the project’s founder, Charles Hoskinson, also noted that Cardano has been negotiating potential partnerships with many industry names such as Celsius, Fireblocks, and Prime Trust.

Significant Updates Coming for Cardano

The 33-year-old co-founder of Ethereum spoke about his current project’s upcoming plans during an interview with the Financial Fox. Although he failed to provide more precise information on what’s coming, he said that the network will see many “smart contract stuff” in the next up to three months.

Simultaneously, the research arm of the Cardano Foundation is working on several new implementations:

“We are going to be announcing several new things like a smart contract institute that specializes in smart contract development design embedded at a university.”

Cardano’s founder said that he and his team have met with representatives from Prime Trust, Fireblocks, SingularityNET, and Celsius to discuss potential partnerships, such as support for Cardano.

He believes that integrations on larger-scale companies like the aforementioned names could enhance the adoption of the entire ecosystem.

“You need that for dApps, you need that for institutional investors to come in, you need that for all different kinds of actors, and that’s what consumes the majority of our time right now as a company.”

CryptoPotato recently reported that Cardano plans to release its long-anticipated Hard Fork Combinator (HFC) called Mary on March 1st, while all quality assurance and developer checks take place on February 24th.

DA’s Price Performance

Cardano’s native cryptocurrency, ADA, has been among the best performers in the past several weeks by taking full advantage of the bull run.

The asset entered the new year at $0.16, but it exploded in value in the following weeks. Several days ago, ADA breached $1 and continued north to a new 3-year record above $1.20. Following this 650% price surge, though, came the most recent cryptocurrency market correction.

ADA traded at about $1,15 when the sentiment changed, and the bears took control. In about 24 hours, the asset plummeted by more than 30% and bottomed beneath $0.80. Nevertheless, it has reclaimed some ground since then and has neared $1 once again.

ADAUSD. Source: TradingViewTitle: Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery
Sourced From: cryptopotato.com/charles-hoskinson-reveals-significant-updates-for-cardano-ada-as-price-attempts-recovery/
Published Date: Tue, 23 Feb 2021 22:53:38 +0000

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Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery
Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery was originally published here https://businessnewsideas0.blogspot.com/2021/02/charles-hoskinson-reveals-significant.html

Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?

Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?
Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?

ETH/USD – Market Falls Of Out Rising Pirce Channel

Key Support Levels: $1465, $1425, $1358.
Key Resistance Levels: $1600, $1681, $1700.

Yesterday, Ethereum dropped to $1550 but quickly recovered by the end of the day to close the daily candle just beneath $1800. Today, the market tumbled again and declined by another 10% to reach the current $1550 level.

Ethereum had slipped further earlier in the day, reaching a low of $1358 before recovering to its current rate. The support here was provided by the low seen on February 2nd, 2021, and was further bolstered by a rising trend line.

If ETH closes near these levels today, it would have fallen out of the ascending price channel that it has been trading within throughout the entire period of 2021.

ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, if the bearish action continues, the first support lies at $1465 (.382 Fib & 50-day MA). This is followed by $1425, $1358 (today’s low), and $1291 (.5 Fib). Additional support lies at $1250 (downside 1.618 Fib) and $1173 (100-days EMA).

On the other side, the first resistance lies at $1600. This is followed by $1681 (previous channel support – now resistance), $1700, $1765, and $1800.

The daily RSI took a precipitous drop over the past few days as it fell from the bullish favor into extreme bearish territory. It has not been this bearish for quite some time, and we have to go all the way back to September to see a similar level. This is quite a promising situation as it gave the momentum an opportunity to reset after being parabolic for an extended period.

ETH/BTC – Bulls Attempting To Defend 200-days EMA

Key Support Levels: 0.0318 BTC, 0.03 BTC, 0.0295 BTC.
Key Resistance Levels: 0.0337 BTC, 0.035 BTC, 0.0361 BTC.

Against Bitcoin, Ethereum is also struggling quite significantly as it spikes as low as 0.03 BTC today. The cryptocurrency has now established a descending price channel and is trading above the midline of the channel.

It started the month by hitting a fresh 2021 high at 0.046 BTC but quickly rolled over from here to begin the downtrend. After hitting 0.03 BTC today, the bulls quickly regrouped to bring the price back above 0.032 BTC (200-day EMA).

A break beneath this 200-days EMA might send Ethereum into an extended bearish spiral over the next few weeks.

ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, the first support lies at 0.0318 BTC, which is combined support provided by the 200-days EMA, the December 2020 highs, the .618 Fib, and a downside 1.618 Fib Extension. Beneath this, support lies at 0.03 BTC, 0.0295 BTC (downside 1.272 Fib Extension), and 0.0284 BTC (Feb 2020 Highs).

On the other side, the first level of resistance now lies at 0.0337 BTC (Nov 2020 Highs). This is followed by 0.035 BTC, 0.0361 BTC, and 0.038 BTC.

The RSI has been in bearish territory for most of February for ETH/BTC. It is starting to level out today, which could suggest the bearish momentum is ready to start fading.

Title: Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?
Sourced From: cryptopotato.com/ethereum-price-analysis-30-correction-in-two-days-but-is-the-worst-over-for-eth/
Published Date: Tue, 23 Feb 2021 22:53:41 +0000

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Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?
Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH? was originally published here https://businessnewsideas0.blogspot.com/2021/02/ethereum-price-analysis-30-correction.html

Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures

Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures
Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures

In the past 48 hours, Bitcoin’s (BTC) price has dropped by $13,360 and more than $2.6 billion worth of futures contracts have been liquidated. When including altcoins, the total sum of liquidations equaled $5.9 billion.

After marking a record-high open interest at $19.5 billion on Feb. 21, the metric has stabilized at $16.5 billion. This means that half of the terminated leverage positions have been reopened.

According to the top traders’ long-to-short data and various funding rate indicators, retail traders took the largest hit.

Top traders bought the dip

The top traders’ long-to-short indicator is calculated by using clients’ consolidated positions, including spot, margin, perpetual and futures contracts. Unlike the futures premium or options skew indicators, this metric gathers a broader view of professional traders’ effective net position.

Top traders long-to-short ratio. Source: Bybt.com

Despite the discrepancies between crypto exchange methodologies, analyzing changes over time provides valuable insights.

Top traders at Huobi held a 0.81 long-to-short ratio on Feb. 20, favoring shorts by 19%. By adding net long positions over the following 48 hours, the indicator peaked at 0.95, indicating that buy-side activity prevailed.

OKEx top traders were aggressive net buyers over the past three days. Starting from a 0.86 indicator favoring shorts by 14%, they’ve managed to revert it to a 69% net buyer position.

Lastly, Binance top traders started at 1.36, favoring net longs, but were either liquidated or opened net shorts until reaching the current 1.23 level. Either way, those traders haven’t been adding positions over the past three days.

Overall, the average top traders’ long-to-short position went from 1.01 (flat) on Jan. 20 to the current 1.37 favoring net longs. Therefore, it’s clear that arbitrage desks and whales increased their longs throughout the liquidations.

The reduced funding rate shows retail investors reduced their longs

If top traders are net buyers, then retail must be holding the other end, even if that happened through leveraged long liquidations.

To keep a balanced risk exposure, derivatives exchanges charge either perpetual futures longs (buyers) or shorts (sellers) a fee every eight hours. Known as the funding rate, this indicator will turn positive when longs are the ones demanding more leverage.

On the other hand, periods of fear and heavy selling activity lead to negative funding rate turns. This time around, shorts would be the one paying up.

BTC perpetual contacts funding rate. Source: NYDIG

Since Feb. 6, the average weekly funding rate has exceeded 2.3%. That happened while Bitcoin surpassed $38,000, indicating excessively leverged retail longs. On the other hand, top traders usually opt for fixed-calendar futures in order to avoid the exorbitant funding fees during rallies.

This movement faded completely on Feb. 23 as Bitcoin’s price plunged below $50,000. After briefly flirting with a negative funding rate, it has now stabilized near 0.5% per week. The metric signals that retail traders were liquidated, hence causing the indicator to return to neutral levels.

Although $50,000 sounds like a meaningful psychological level, Bitcoin’s 67% year-to-date gains will likely continue to attract investors. The modest 3% performance from the S&P 500 and a 0.6% yield on  five-year U.S. Treasury Notes offer no match for the potential upside that can be captured from cryptocurrencies.

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: Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures
Sourced From: cointelegraph.com/news/pro-traders-went-long-as-bitcoin-fell-to-45k-liquidating-5-9b-in-futures
Published Date: Tue, 23 Feb 2021 18:51:42 +0000

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Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures
Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures was originally published here https://businessnewsideas0.blogspot.com/2021/02/pro-traders-went-long-as-bitcoin-fell.html

$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?

$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?
$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?

Title: $5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?
Sourced From: cointelegraph.com/news/5-64-billion-liquidated-in-24-hours-as-bitcoin-extends-losses-is-a-relief-rally-near
Published Date: Tue, 23 Feb 2021 11:38:18 +0000

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$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?
$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near? was originally published here https://businessnewsideas0.blogspot.com/2021/02/564-billion-liquidated-in-24-hours-as.html

Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip

Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip
Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip

Bitcoin (BTC) lost 20% in a day partly thanks to the actions of a single whale, new research suggests. 

Data from on-chain analytics firm Santiment on Feb. 23 showed that BTC/USD dipped to $47,400 after Bitcoin’s second-largest transaction of 2021 took place.

Ghost of Bitcoin sell-offs past returns

The transaction, 2,700 BTC worth $156.6 million at $58,000 per token, resulted in a sale which piled pressure on the market, this snowballing into the largest one-hour candle in Bitcoin’s history.

“As we noted yesterday, there was an 11x exchange inflow spike that initiated #Bitcoin’s price correction from its $58.3k #ATH,” Santiment wrote in accompanying comments on Twitter.

“Further data combing revealed that an address was responsible for the 2nd largest $BTC transaction of the year, an import of 2,700 tokens to the wallet before a quick sell-off.”

Import chart for suspect whale sell-off address. Source: Santiment/ Twitter

The findings shed light on what exactly was happening as volatility took over for Bitcoin, which managed to recover to $54,000 before trading below $50,000 once more at the time of writing.

Some believe that the market was overextended, with naysayers in particular claiming that a bubble-like process had long been underway. Others argued that it was simply “business as usual” for crypto trading, but as Cointelegraph reported, concerns had mounted about unusual inflows to exchanges.

Santiment noted that the same address had also sold immediately before the cross-asset price crash in March 2020. At the time, Bitcoin lost almost 60% of its value and hit $3,600.

“This same address also made a 2,000 $BTC import last March right as the Black Thursday correction took place,” it revealed.

“In total, it’s made 73 transactions in its one-year existence, for a total of 91,935 $BTC imported, with all tokens moving away within minutes after arrival.”

Whales in the spotlight

Suspicions had long been eyeing whales, who had profited from small wallets selling during previous price dips throughout Bitcoin’s recent bull run. As Cointelegraph reported, the number of whale-sized wallets had been growing, while smallholders had been decreasing.

Bitcoin whale addresses vs. BTC/USD chart. Source: Dovey Wan/ Twitter

“The most interesting side by side tells you how Bitcoin investor profile progress – ‘whales’ diminished as price elevated in the last cycle; new group of whales just keep popping up this time, while shrimps are the weak hands who sold too early,” Primitive founding partner Dovey Wan tweeted last week alongside a chart comparing the 2017 and 2021 bull runs.

“THE GREAT WEALTH TRANSFER,” she added. 

Some responses to the research meanwhile noted that the wallet in question had been responsible for a fraction of total trading volume and that its influence should therefore be limited.

“We don’t believe that one address alone triggers the price retracement of the largest crypto asset in the world, so we certainly wouldn’t want you to believe it either,” Santiment replied.

“Was this address activity a contributing factor though? Yes.”Title: Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip
Sourced From: cointelegraph.com/news/whale-who-sold-bitcoin-before-2020-crash-cashed-out-156m-before-this-week-s-20-dip
Published Date: Tue, 23 Feb 2021 08:46:00 +0000

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Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip
Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip was originally published here https://businessnewsideas0.blogspot.com/2021/02/whale-who-sold-bitcoin-before-2020.html