What the Painful DeFi Correction Did, Actually Good For the Market?

The DeFi ecosystem started to recover this week thanks to Bitcoin’s positive momentum that drove the crypto market upwards.

While the likes of YFI, SUSHI, UNI, CRV, RUNE, BAL, and KNC are experiencing mild losses today, less than -5%, considerable gains are recorded by UMA (+32%), AST (-28%), MFT (+27%), and AKRO (+24%) with less than 10% gains seen by YFII, LRC, KAVA, LEND, MKR, COMP, SNX, ZRX, and others.

As a result, the total value locked (TVL) in the sector also saw an uptick, approaching $11 billion yet again.

With this, the DeFi tokens look to be finding the bottom, after all, following the deep correction that went on for a few weeks, that came after a wild rally, resulting in many popular tokens to lose 80% to 90% of their value.

Still, some are glad the pullback happened because “as painful as it was, it accomplished a few things: 1. Washed out the weak hands 2. Gave us a sense of where value for DeFi assets are in a big drawdown 3. Hopefully killed off random food coins offering 10000% APY farming,” noted a former partner at Goldman Sachs who is now part of the crypto fund, The Spartan Group.

According to him, even some of the family offices and high net worth individuals (HNWI) are now “starting to get curious, and they will get into the action via funds as it is too hard for them to do it themselves.”

The Macro Trend

The overall crypto market is currently experiencing the greens, with Bitcoin and altcoins seemingly belonging to the same asset class and being correlated to each other.

However, according to the quant trader and entrepreneur Qiao Wang, “Reality is BTC is increasingly behaving like a macro asset whereas alts are still very much venture bets.”

In the macro world, the markets are eagerly waiting for the US presidential election, coming in November, to end the uncertainty prevalent in the market currently. Moreover, the stimulus package isn’t expected to be approved until then, either.

According to Bloomberg’s latest crypto newsletter, while Joe Biden’s win as the president would be good for Bitcoin, in contrast with Donald Trump’s “hands-off policy,” it would hamper DeFi’s growth.

“The world has morphed into one big macro trade. Asset prices are increasingly driven by global policy expectations rather than underlying fundamentals. Deflation + insolvency risk is rising,” noted Kevin Kelly, co-founder Delphi Digital.

The current environment outlines the bull case for Bitcoin and crypto, “the backdrop has never been more conducive for this industry to thrive,” with historical Q4 performance suggesting we could push to new highs.

But the “risk of deflation, insolvencies, and upside dollar risk are of paramount concern for markets,” including bitcoin and crypto alike, added Kelly.

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Author: AnTy

Bitcoin Futures Trading at a High Premium; Already Hitting $12,000 on CME

Bitcoin has yet again gained momentum, with people expecting for $12k to hit soon. According to analyst Mati Greenspan, for a sustainable rally, a small retracement before we blast through $12,000 would be good for the largest digital currency.

“But judging by the current temperature, I’m not even sure a cooldown period is possible,” he said in his daily Quantum Economics email.

However, bitcoin has already jumped the $12,000 resistance on CME Group. Yesterday while people were awaiting $12k, BTC futures went as high as $12,100 before dropping back under $12k level.

The positive thing is while the spot price is around $11,780, CME Bitcoin futures are trading at $11,955, at a premium of nearly 1.5%.

Source: TradingView

The futures premium has been soaring since last week amidst the bitcoin rally, a trend which is continuing this week as well while the digital asset continues to rise further.

When it comes to September contracts, CME bitcoin futures contracts are trading at even a larger premium than the retail exchanges. The September premium has increased from 2.05% to 2.76% over the last week, as per Arcane Research. Denis Vinokourov of Bequant noted,

“The futures term structure remained in deep contango, suggesting risk appetite is aplenty, and this demand for leverage has been particularly evident in the lending market, where traders were seeking to borrow fiat versus crypto holdings to maximise basis trading strategies.”

The premium rates at retail exchanges have also been rising during this period, indicating strong bullish sentiments. At the time of writing, BTC was trading at $11,800 on Bitfinex, $11,824 on Coinbase, and $11,831 on Bitstamp and Gemini.

Increasing institutional demand

As bitcoin started rallying last week, the futures market saw a sudden increase in its funding rates, a tool to reassure the price of the perpetual swap is kept close to the underlying asset. The funding turns positive when the perpetual contract is trading above the BTC spot price, which has long trades paying a fee while short trades received a rebate.

The funding rates soared this week, on Binance they peaked at 0.14% as “investors sought to get leveraged exposure to the upside,” only to fall back to near normal state at 0.021%. The crypto data provider states,

“This is a healthy sign in the market, as it indicates that the market is stabilizing, and the leveraged longs are on a decline.”

Besides all this, trading volume is also enjoying a surge. Bakkt had its moment when it hit a new all-time high of $132 million, 200% higher than the old record signaling a shift in institutional sentiment to bitcoin exposure after it broke $10,000.

The total open interest on Bakkt futures jumped to $24 million last week, a spike of 550% from the lows on July 16th. This week, it has further grown to $26 million.

CME’s OI has been having even more eventful days as it reaches $830 million, currently holding 16.8% of the total open interest in the BTC futures market, a record high dominance for CME — a clear indication of increasing institutional demand for bitcoin.

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Author: AnTy

Bitcoin Miners Hoarding BTC Just 3 Days from Halving

The price of bitcoin is having strong momentum, as it climbed over $10,000, an important psychological level. Jehan Chu of Kenetic Capital said,

“Bitcoin trades sentiment-driven at its peaks and valleys, and the post-halving hangover is part of the normal price ebbs and flows on top of Bitcoin’s fundamental value.”

But the price is not the only factor enjoying a growth, the bitcoin network fundamentals are just as bullish. Given that halving is just around the corner, it isn’t surprising that the network is booming.

Last week we reported that the hash rate of the network has climbed out yet a new all-time high. But if we take a look at both the price and hash rate, they have been moving in complete harmony. TradeBlock noted,

“During periods of declining bitcoin prices and lower mining profitability, mining resource allocation decreased accordingly resulting in lower hash rates.”

Source: TradeBlock

Higher prices coming post-halving?

Now, about 3 days away, halving or quantitative hardening has gotten bitcoin special attention in the current environment of quantitative easing.

The event that comes every four years will also cut down bitcoin inflation from 3.64% to 1.80%, down from the global inflation rate of 3.56%.

In preparation for this event, bitcoin miners have started hoarding BTC. Post halving, the miners block reward will be reduced in half, from 12.5 BTC to 6.25 coins.

Over the past week, miners have hoarded 1,067 BTC, having sold or distributed less than they have mined. Normally bearish, this close to halving, this hoarding might indicate miners’ bullish long term view of bitcoin. Charlie Morris, co-founder & Chairman of ByteTree wrote,

“We normally see this as bearish because it implies a soft bid in the market. With a recent price surge, clearly this hasn’t been the case, and so we can only assume that the miners also think higher prices are coming post-halving.”

Source: ByteTree

Only higher value transactions will survive

Over the past week, many things have been “somewhat crazy,” with the difficulty of the network seeing a minor uptick despite the generation cooling down. This might have been flushing out the weaker miners.

Meanwhile, network fees surged subsequently above $4 million, up from below $1 million per week a couple of weeks back. This jump in bitcoin network fees came up with a rise in the number of transactions.

“The positive is that high fees reflect network interest and that is good for the Bitcoin price. The negative is that small transactions will dry up.”

Given that post having would mean miners will get 6,300 BTC plus fees per week instead of the current 12,600 BTC per week, fees need to remain high. But this also means, “only higher value transactions will survive.”

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Author: AnTy

Bitcoin Cash Price (BCH) Turns Buy On Dips, $332 Holds Key

Recently, bitcoin cash price gained bullish momentum and climbed above $325.00 and $330.00. BCH to USD turned buy on dips and it is likely to accelerate higher above $350.00.

Key Takeaways: BCH/USD

  • Bitcoin cash price is showing a lot of positive signs above $332.00 against the US Dollar.
  • BCH/USD surged above the key $324.00 resistance and a bearish trend line on the 2-hours chart (data feed from Bitstamp).
  • Bitcoin is now trading above $9,050 and it could rise further above the $340.00 resistance area.

Bitcoin Cash Price Analysis

This week, there was a steady rise in bitcoin cash price above the $315.00 and $320.00 levels. BCH/USD even broke the $332.50 resistance area to enter into a positive zone.

Bitcoin Cash Price

Looking at the 2-hours chart, bitcoin cash price gained pace after it settled above $332.50 and the 50 simple moving average (2-hours, purple). More importantly, there was a break above a key bearish trend line at $324.00.

The price extended gains above the $344.00 and $350.00 levels. A high is formed near the $352.83 level and the price is currently correcting lower. It is trading below the 23.6% Fib retracement level of the upward move from $332.61 to $352.83.

An initial support on the downside is near the $343.20 level. Besides, the 50% Fib retracement level of the upward move from $332.61 to $352.83 is near the $342.72 level to act as a strong support.

If there are more downsides, bitcoin cash price could revisit the $332.00 support level. The 50 simple moving average (2-hours, purple) is also positioned near the $332.00 area to provide support.

Any further losses may perhaps push the price back into a bearish zone towards $315.00. Conversely, the price might start a steady increase above the $348.00 and $352.00 levels.

The first major resistance is near the $355.00 level, above which there are high chances of a rally above the $362.00 and $365.00 levels. In the mentioned case, the next stop for bitcoin cash bulls is near the $370.00 level.

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Author: Aayush J

This Uncannily Accurate Bitcoin Chart from Dec. 2018 Predicts a New ATH in 2020/21

  • Analyst ‘s post from Dec. 2, 2018, correctly predicts Bitcoin’s bottom and momentum in 2019

Bitcoin price is currently hovering around $9,000 after surging over 21% to date in 2020. With Bitcoin reward halving coming up in May 2020, investors are extremely excited to see if this historically bullish event will end up pushing BTC to the moon or as some commentators say a dump because halving is priced in.

According to an analysis posted by PentarhUdi on TradingView, Bitcoin price is onto a big rally that will see it hitting a new high by the end of this year. The post has garnered 133,200 views to date.

The analysis is his vision of Bitcoin’s future price dynamics in the context of the broken time log trend. “Bitcoin lost its huge momentum to stay in this trend,” which he said was going to happen sooner or later.

Because as Bitcoin and blockchain technology gets adopted, it starts losing its “blowing popularity,” and leave the straight-style log trend. But all the while it continues to grow in SQRT-style trend more smoothly.

Posted on December 2nd, 2018 when Bitcoin was trading just above $4,000, the analysis called for a local bottom between $1,500 and $3,000 in that month. The world’s leading digital currency won’t be breaking previous lower low at $159, obviously, but he said, “it should be 4-digits,” in the coming weeks. On Dec. 15, we hit the low at about $3,200 level.

As BTC dropped fast, going from $6,400 to $3,200 in just over a month, he said it should bounce fast to retest the last $6,000 level and “log trend at around 10000-20000. 2019-2020 AD,” and “then it should fall back to ~6000 support. This should happen up to 2020 AD.”

Interestingly, he has been right this time as well with Bitcoin hitting $13,900 in June 2019 only to drop back to $6,500 level in mid-Dec. 2019. The next step he says is “Go to new highs. Beyond 2020 year.” Although the analysis calls for a $70,000 peak, he is calling for a new all-time high in 2020-21 without an exact figure.

In 2020 AD, he is expecting bitcoin to find its place in society and its price to become relatively stable in the mid-term but continue to slowly climb in the long term.

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Author: AnTy

Sweden’s Central Bank, Riksbank, Partners with Accenture to Develop CBDC Dubbed ‘E-Krona’

The wave of Central Bank Digital Currency (CBDC) is gaining momentum after China’s progress and expected coin launch in 2020. Sweden is the latest country to announce a pilot test plan for the ‘e-krona’ digital currency; this will be its CBDC in the near future as more governments continue to embrace FinTech in digital payments.

According to a press release on Dec 13 by Sweden’s regulator, Riksbank, they will partner with Accenture to implement this DLT compatible tech. The IT consulting giant will be tasked with designing and creating the UI features for e-krona digital currency in the next one year as per the contract. Riksbank however noted that they are open to work together with Accenture for as long as 7 years which is the schedule period for running pilots on its CBDC.

This move has just brought e-krona digital currency closer to being a reality especially with the Swedish shift to digital payments in recent years. Canada’s Central Bank Deputy Governor had earlier on commented on this shift as he spoke at the Philadelphia Fed Reserve FinTech Conference noting that Swedish authorities need to act before tipping point.

Riksbank started its research on a CBDC back in 2016 and has since documented two reports on this progress. The Central Bank through its Deputy governor said that they are under pressure to shift to electronic money given stakeholders within the Swedish economy have moved away from bills and coins. Events around the globe also largely catalyzed the dive into a CBDC project; notably is Facebook’s stablecoin ‘Libra’. Stefan Ingves, the Governor of Riksbank, termed the move by Facebook as catalytic and important.

It is yet to be clear if the tech that Accenture will implement will be used to run e-krona given this procurement was classified as National Security information. This development by Sweden comes as their Switzerland crypto-friendly counterparts thwarted any plans to launch a CBDC for its population.

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Author: Lujan Odera

IOTA Price Prediction: Long-term (MIOTA) Value Forecast – July 28

Iota-Foundation-partners-with-City-of-Austin-to-better-the-transportation-systems-in-the-city

The bears sustained momentum in the long-term outlook.
$0.02500 in the demand area is on the card.

IOTA/USD Long-term Trend -Bearish

Supply zone: $0.6000, $0.7000, $0.8000
Demand zone: $0.1000 $0.0800, $0.0600

IOTA long-term outlook continues in a down-trending market. With a low of the week at to $0.2768 in the demand area within the 23.6 fib area, the bears are set for a long journey down south in the new trading week.

The week opened on a bearish note at $0.2869 and price already down to $0.2753, the journey down south in the long-term may be confirmed.

Price is below the two EMAs and the stochastic oscillator signal points down at 36%. These suggest a downward momentum in price. Increased bearish momentum may result in new candles opened and closed below the two EMAs.

$0.2510 in the demand area may be retested as the bears’ pressure becomes stronger in days ahead.

The views and opinions expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez Mustapha

BINANCE COIN Price Prediction: Long-term (BNB) Value Forecast – June 2

Binance Coin (BNB) Up $300 Million in 5 Days, Path to $26?
  • The bulls sustained momentum in the long-term outlook.
  • $44.00 in the supply area is on the card.

BNB/USD Long-term Trend: Bullish

Supply zone: $50.00, $70.00, 90.00
Demand zone: $10.00, $8.00, $6.00

BNBUSD is in the bullish trend in its long-term outlook. The bullish momentum was briefly lost on 26th May after a steady increase in price to $38.64 in the supply area. The drop in price to $29.83 in the demand area was initiated by the bearish spinning top.

$29.64 in the demand area was the low of the week at the lowerline of the channel as the candle closed with a wick an indication of exhaustion.


A bounce to the upside is most expected. The confirmation with the bullish hammer closing above the 10-EMA was most suitable on 31st May. Increased bullish momentum the candle pushed price back up to $34.67 in the supply area.

$44.00 in the upper line of the channel is the bulls’ initial target in the long-term.

The views and opinion as expressed here do not reflect that of BitcoinExchangeGuide.com and do not constitute financial advice. Always do your own research

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \ Investment Disclaimer

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Author: Azeez M