Bitcoin Takes Charge; Elon Musk Changes Market Trajectory with A Single Message

The Bitcoin market is roaring higher right after the largest options expiry in BTC’s history, despite the market giving signs of red, all thanks to Tesla CEO, after all, “In retrospect, it was inevitable.”

Today, it is about Bitcoin. The digital asset is back to rising higher and higher. In a big green candle, the digital asset went from about $32,000 to above $38,000.

This move came on the back of $17.84 billion ‘real’ trading volume, as per Messari, which was lower than Dogecoin initially when DOGE recorded $28.4 billion but is now slowing down.

It has been a volatile week for the leading digital asset as it dropped to about $29,000, and today it is making its way to 40,000, not far from the $42k ATH. This is to be expected with the battle going on between Wall Street and the retail investors who put Bitcoin and the world of decentralization as absolute winners.

Crypto-friendly Tesla CEO Elon Musk, who continues to pump Dogecoin, also changed his Twitter bio to simply read “Bitcoin,” much like Twitter and Square CEO Jack Dorsey.

“In retrospect, it was inevitable,” read his subsequent tweet, which the Crypto Twitter (CT) would like to believe is in regards to Bitcoin.

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While the market was looking bearish, with miners selling BTC since 34k that has the number of all miners’ deposit transactions to exchanges hit the year-high, no stablecoin inflow recorded, and exchange Whale Ratio hitting the eight-month high, a small nudge from Musk was enough to turn it bullish.

Musk’s bio change came just after the largest options expiry in bitcoin’s history and with the market expecting it to mean something – the possibility alone of Tesla potentially adding Bitcoin to its balance sheet was “enough to send the market roaring.”

Also, Bridgewater Associates founder Ray Dalio’s thoughts about Bitcoin have endorsed the digital asset to institutional investors. This is evident from the “astounding” number of inquiries One River Asset Management reported about, which is just one firm and the beginning.

BTC is looking strong, and according to Capriole Investments, “the bottom is in,” which means we need to be prepared for new highs yet again. Not to mention, the underlying Bitcoin network, number of active addresses, the hash rate, the block size, and the number of whales have been showing significant strength throughout.

“The first and most critical step for bulls is to reclaim the $33K order block,” reads the firm’s newsletter. A close above this level presents “a great long opportunity,” and should a short-term breakdown occur, “the $27K region has a high degree of price action support and Fibonacci level confluence.”

And when that dip comes, which would still be in line with the previous bull market, that is for buying because “oftentimes bargain hunters are left stranded on the side of the road in parabolic Bitcoin bull runs.”

The Macro Market

The US dollar, meanwhile, is recovering from losses it incurred earlier this month. From the low of 89.2 in the first week of January, the USD Index has strengthened to 90.7 level.

Interestingly, recently, European Central Bank policymakers agreed to open an investigation to look deeper into the euro’s appreciation against the dollar, or as an analyst, Mati Greenspan puts it, “why the US Dollar is sinking faster than the Euro.”

Policymakers are alarmed on the euro’s strength over the past year and that it will further push inflation down, which is already below zero. Commerzbank told clients.

“The ECB is joining the ranks of those central banks who – because domestic tools have largely been used up – discover the exchange rate as a monetary policy ‘tool.’”

Recently, ECBs Governing Council also noted that an increase in US market interest rates also failed to push the dollar higher. “Put simply, the bar for more policy easing to stem currency gains is very high,” said Vasileios Gkionakis, head of FX strategy at Banque Lombard Odier & Cie.

As the greenback looks strong, this week S&P 500 took its biggest drop in three months. While gold remains around $1,845 per ounce, silver jumped to almost $28 after WallStreetBets set its eyes on the precious metal, intending to pump it to $1,000.

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Author: AnTy

OKEx Record Outflow of 29,300 BTC Since Resuming Withdrawals, Following a Five-Week-Long Suspension

Cryptocurrency exchange OKEx recorded a significant bitcoin outflow right after the full range of five-week-long withdrawal suspension was lifted on Thursday at 08:00 UTC.

About 2,822 BTC was moved from the Asian exchange in block number 658,728 mined at 08:12 UTC — this was the most significant single-block outflow since May 2019.

In total, 24,631 BTC were moved out of OKEx yesterday, which is an 8-month high since March 13 this year, according to blockchain analytics firm CryptoQuant. The same day, Binance saw an inflow of 28.2k BTC.

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Combining today’s outflows, so far, with yesterday’s results in 29,300 BTC, which have been cleaned out of OKEx. During the same time period, 21,600 BTC has also been deposited.

This has reduced OKExs balance to ~212k BTC, as per crypto data provider Glassnode.

Meanwhile, the price of Bitcoin continues to oscillate between $16k and $17k following the big crash the night before Thanksgiving when the price was trading at the highs of $19,600.

This price drop started as soon as BTC whales began depositing their crypto assets to exchanges. As per IntoTheBlock, more than 93,000 Bitcoin were deposited into centralized exchanges.

If these whales continue to do so, the flagship cryptocurrency price is likely to go either sideways or drop.

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Author: AnTy

Cue to Buy BTC: Fed and Bank of England Vows to Do ‘Everything’ to Help their Economy Recover

Markets are flying right now. And the central banks are ready to give them even more reason to continue to do so.

We are less than a week into November, and the S&P 500 has already pumped 7.35% as the US dollar struggles, and yields on US Treasury debt securities remain unchanged.

Gold and Bitcoin particularly enjoy the greens as the precious metal goes back to the $1,950 level, and BTC makes 35-month highs, itching to break $16,000.

While green is splashed across the markets, the Federal Reserve pledged again to do whatever it can use “full range of tools” to sustain the speed at which the US economy is recovering.

Amidst the uncertainty around the still undecided US presidential election, the Fed kept the loose monetary policy intact — asset purchase and interest rate (near zero) remains unchanged.

Chairman Jerome Powell said the Fed has begun to consider whether it needs to extend the emergency credit facilities beyond their expiration on Dec. 31.

But the Fed chief said the economy is now recovering at a slower speed after being boosted earlier in the year by fiscal aid and re-opening of businesses adding the recent rise in coronavirus infections in the US and abroad was “particularly concerning.”

The same day the Bank of England governor also vowed to do “everything we can” to support the economy amidst the resurgence of Covid-19 cases.

As the central bank announced another £150bn of support, Andrew Bailey said it was important policymakers acted “quickly and strongly.”

However, with new restrictions in England and tighter lockdown rules, a slower and bumpier recovery is expected. “We are here to do everything we can to support the people of this country – and we’ll do it and will do it quickly,” said Bailey.

All of this basically, “is code for buy Bitcoin.”

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Author: AnTy

High Chances of a Bitcoin ETF Approval in 2021 as BTC Trades Like Gold

After a strong rally right at the beginning of this week, Bitcoin is now keeping around $13,000 in the second half.

While BTC has taken a breather, volume across the board and open interest are showing solid sessions.

Quant trader Qiao Wang has a hunch that “Once BTC breaks $14k, we’ll likely be in a different regime in terms of volatility, momentum, retail participation, and so on. A lot of things that worked last few months may no longer work and vice versa. $20k will take this regime to a whole new level.”

Meanwhile, bitcoin’s one-month correlation with the stock market has taken a sharp decline, while with gold, it has started to increase.

And this trading more like gold, a store of value is likely to hold as per Mike McGlone, a senior commodity strategist at Bloomberg Intelligence.

Acting Like Gold

Bitcoin has been showing signs of maturity in terms of lower volatility, trading patterns, and more adoption, similar to gold. Moreover, the macroeconomic factors driving gold price higher are likely to push BTC’s price as well, he said.

“The key thing it has been doing since it went to $100 and then to $1,000 and then $10,000, which has really been the consolidation price for the last three years, it just has a history of adding zeros,” McGlone said in an interview.

Amidst the market enjoying a rally, Bitcoin has already hit an all-time high (ATH) in the local currencies of some countries like Brazil, Argentina, Turkey, Venezuela, Sudan, Zambia, and Angola.

However, while not bearish, popular trader Loomdart isn’t bullish either as he believes the ongoing institutions’ FOMO buying narrative is “the foundation for a bitcoin” that provides support and lowers volatility. Still, it also doesn’t imply “ceaseless green days.”

Unlike Tesla, “there’s no gigantic tranche of short interest waiting to launch us to the heavens. It’s way more like gold. As long as derivatives stay muted (oi increase < market cap increase), I simply don’t think we have the fuel for a leveraged long,” he said, adding funds rotating from long to short “isn’t encouraging.”

The Next Phase

With all the maturity Bitcoin is seeing: low volatility, publicly-traded companies making it part of their Treasury, mainstream companies like PayPal supporting cryptos, and increased regulatory scrutiny, the chances of the approval of a Bitcoin ETF are seeing an increase.

“It will be challenging for the SEC to justify rejecting a well-crafted bitcoin ETF proposal in 2021, and I assume there will be many of them,” said Jake Chervinksy, General counsel at compound Finance.

Under the Administrative Procedure Act, SEC’s decision can be overturned by a court if it’s “arbitrary & capricious,” he added.

While it takes about 9 months from the date of filing to a final decision on approval, once approved, the listing can happen almost immediately. And that could also mean, much like the launch of bitcoin futures in December 2017 marked the top of that bull cycle; the bitcoin ETF approval does the same for this cycle.

Chervinksy even expects Grayscale Bitcoin Trust (GBTC) to restructure as an ETF at that point, as even the crypto asset manager has also hinted at this.

In Q3 of 2020, GBTC had yet another record inflow, for the third time in a row, with the premium still around 20%, but as the bitcoin rally intensifies, the demand for GBTC could see it surging higher yet again.

“Expect the Grayscale bitcoin premium to roar in the next few months, particularly so in H1’21, then come crashing down as market starts to price increasing odds of a bitcoin ETF approval,” said trader and economist Alex Kruger.

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Author: AnTy

Get Ready for Some Action as Bitcoin Volatility Hits Historical Lows

Markets are boring right now, with not much going on.

Bitcoin is stuck around $10,700, while altcoins are oscillating between red and greens.

Basically, “all markets, including our beloved digital asset space, seem to be going nowhere fast,” said analyst Mati Greenspan.

After having a blast for about half of the year, even stocks are uncertain thanks to the upcoming elections next month.

September was actually marred with worst monthly performance since March as the broader digital assets market and equities all closed in losses. But according to Greenspan,

“Stocks remain overvalued because there’s too much money in the system that needs a home, and the lower-risk alternatives are no longer attractive.”

While the leading digital asset ended Sept. and opened October both on a negative note, at least for the S&P 500, there were some gains.

While the risk-asset rally may have legs still in this last quarter of 2020, for bitcoin, it might be time to make up for all the losses and move towards beating the 2019 high of $14,000.

“Q4 is where BTC typically makes most if its gains during bull markets. I don’t think this year will be an exception,” stated one crypto trader.

On a Downtrend

While the price isn’t doing anything, for some time now, trading volume has been the one that’s been really disappointing. Bitcoin volume, which is on a downwards trend actually hit the lowest since late February on Saturday.

“The volatility in the market is back at historical lows, and it is not unlikely that we get some more action in the market soon,” noted Arcane Research.

The 180-day volatility has fallen to a two-year low, but according to on-chain analyst Willy Woo it actually spells “bullish.”

“When volatility is at a minimum, it means trade volumes are at a low, which means exchange fees revenue are at lows, which means exchanges sell less BTC profits to fiat, which mean investor buy pressure dominates the next move,” he explained.

Volatility reaching low also means buyers have laid down a floor on spot markets as they continue to accumulate, which ultimately leads to accumulation bottoms as “this stops downward moves and lowers volatility,” added Woo.

However, what’s worth noting is that when BVOL (30-day realized volatility) hit its lowest in 2018, it was followed by the start of the 50% November crash.

Volatility will be coming if not in the near term, then the less than a month away US Presidential elections will surely get the ball rolling.

On an Uptrend

Several indicators, meanwhile, are painting a bullish picture.

To start with, “The Market Cap to Thermocap Ratio suggests that Bitcoin has massive room to grow from here. It has not even started to show the sharp increase that is typical in bull markets. Current levels are a whole order of magnitude away from previous BTC tops,” as per Glassnode.

Thermo cap is the aggregate amount of bitcoins paid to miners, which serve as a proxy metric to the true capital flow into the Bitcoin network.

Bitcoin addresses are also telling a bullish story, moving away from the usual norm of 5-10k new BTC addresses per day; last week, it grew to its highest level in over two years, peaking above 22k.

Not to mention, Tether’s market cap is ready to burst through $16 billion as well, just three and a half months after hitting $10 billion.

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Author: AnTy

YFI Ready to Take Off As The ‘Ultra High Beta’ or About to Get Smoked?

The DeFi market is going through winter right now, as prices of these tokens take a pullback after making all-time highs during August and September.

Since hitting those peaks, some Defi tokens have taken a harsh beating, like CRV, SUSHI, and bZx, which are down over 90%, some like Aave, Maker, and Loopring only went down about 40%. Amidst this, Yearn.Finance’s governance token YFI is somewhere around the middle.

In August, 1 YFI became equal to 1 BTC and then went past Bitcoin’s ATH $20,000 soon after. It was in the mid of September that YFI hit its peak at $43,678, as per CoinGecko.

Making new highs means the digital assets have to get ready for a correction, and that’s exactly what happened as the DeFi sector as a whole went through a winter.

So Much More Affecting YFI

YFI’s losses were exacerbated because of Eminence.Finance, a project by YFI founder Andre Cronje that rug pulled $16 million. Trader and economist Alex Kruger said,

“YFI has been getting Creamed. Recent underperformance relative to other cryptos has been notable. One could argue it is the chart. But it is not. One can find plenty equally poor charts across crypto. This IMO is the marketplace punishing YFI by removing the Cronje premium.”

According to him, although yields matter which has fallen, the blatant negligence around the EMN launch from Yearn and “how poorly the aftermath was handled… many exited/reduced YFI positions because of it.”

At the time of writing, YFI/USD has been trading at just above $18,000.

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Another reason for this poor performance could be the overall drop in activity in the DeFi sector. Jason Choi of crypto fund The Spartan Group said,

“August has been a phenomenal month for DeFi bulls. Now we’re in the hangover phase of the DeFi party.”

Amidst this rout, we are seeing “flight to quality in yield farming,” with Uniswap accounting for 70% of all TVL in yield farms despite its modest returns of 20%-30%. Choi said,

“The shift in sentiment was rapid. Even “degen” farms offering north of 1500% APY are only attracting ~1/10th of the TVL they did just a month ago.”

“drop is risk appetite and collapse in APY is a direct result of -ve price performance of new crop tokens.”

Moreover, with CRV “buckling under continual inflation sell pressure,” it is affecting YFI as well as yCRV APYs on Yearn.Finance accounts for 60% of its activity.

Macro in Focus

While some call for YFI to go down to four digits due to a head and shoulders pattern, trader Josh Rager sees it making new highs as it has found support at a major 0.618 fib level.

Kruger is also still bullish on this DeFi token despite the price of the token crashing 45% in six days as he said,

“The YFI bigger picture bull case remains unchanged. Odds are high this whole ordeal is short term noise.”

The EMN event, however, should remind speculators of YFI’s high ‘founder risk’ as seen in early August when an interview about Cronje “close to quitting DeFi” tanked the price of YFI.

Overall, the trader expects crypto to take off again after the elections and for DeFi to push even further “as the ultra high beta.” Kruger said,

“Macro matters now. So it makes sense to play from the long side. But if crypto crashes, YFI would get smoked, and no fundamental analysis would stop that.”

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Author: AnTy

Euphoria Back in the Market? Bitcoin to Hit $11,000 But Ether is Struggling This Time

The leading digital currency is approaching the levels seen right at the beginning of this month before we went down under $10,000 to hit as low as $9,800.

In a bullish start of the week, bitcoin first hit $10,750 yesterday, and now today, the crypto asset recovered some more and went further up to as high as $10,945 on Bitfinex, for now.

At the time of writing, BTC/USD has been trading at $10,900 in the greens, with real trading volume also slowly climbing to $1.9 billion. The greens have also turned market sentiments from “fear” to “neutral.”

Ether’s Lack of Upside

This time, Bitcoin is leading with Ethereum slow on the uptake, barely in the green at $375.

Just like Ether’s gains have been attributed to the success of DeFi, the underperformance is linked to DeFi as well. Meanwhile, with the Ethereum network already clogged up, the trading activity across DEX will suffer yet again because of the elevated fees.

“This double edged sword notion is nothing new,” said Denis VinoKourovo of London-based broker Bequant but noted, with Ethereum 2.0 on track for a November 2020 launch, it “may soon cause a bit of a stir in the derivatives market place.”

While the much-needed upgrade is on track, Ethereum Foundation also announced the impending launch of a second parallel testament called Spadina, which will run alongside the currently active Medaala testament.

The second “dress rehearsal,” Spadina has a mainnet like configuration. It will last for three days, giving everyone another chance to go through the process of deposits and the launch of the genesis block. VinoKourovo added,

“If markets are indeed underpricing the success of Ethereum2.0 launch, then vol spread between Ethereum vs. Bitcoin will narrow, as it stands 1m IV ETH vs. BTC is 77% vs. 55%, whereas 6m out the same spread is at 82% vs. 72%.”

Rest of the Market

Just like Ether, DeFi tokens aren’t feeling as euphoric either.

In the DeFi space, bZx Network is currently down 22%, which has been because of yet another hacking that resulted in the theft of $8 million worth of cryptocurrency.

Other notable losers include RUNE (8%), CRV (7%), SUSHI (5%), SNX (4%), and COMP (2%).

Meanwhile, YFI is trading in the green by 6.42% at $41,843, along with LPC (3.59%), BAL (3%), UMA (2.35%), and CREAM (1.24%).

But it is KIMCHI, which is leading with 46% gains and YAMV2 with over 13%.

Among the top digital assets, Bitcoin Cash (BCH) is up by 4.43% and Crypto.Com Chain (CRO) 3.73%.

Meanwhile BNB (-8.47%), Tron (-4.60%), and LINK (-2%) are recording losses.

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Author: AnTy

FTX CEO Proposes Deploying SushiSwap to Solana, Votes in Favor

Digital assets derivatives platform FTX is ruling the cryptocurrency market right now.

The company is building right, left, and center, and with a CEO who barely sleeps, it makes sense that they are so ahead of the curve.

The exchange has been out-innovating others, launching the Uniswap index, DeFi perpetual futures, and also removing the maker fees for the rest of 2020. Hiring Sina Nader, the former head of crypto at brokerage firm Robinhood as the COO, the company is focused on scaling up “massively” in the US.

Launched in the spring of 2019, the exchange made the sixth-largest acquisition with the popular portfolio tracking app Blockfolio just last month.

It also took a deep dive into the world of decentralized finance (DeFi), launching the DEX Serum built on the Solana blockchain. Now, CEO Sam Banman-Fried is proposing to deploy the Uniswap clone Sushiswap to the Solana blockchain within a month and be completed before 2020 ends.

The proposal has over 79% votes in favor compared to a few hours back when “No” were in dominance at 84.6%, which are now at just 19.53%.

In the proposal, he points out how Solana is the “fastest” blockchain with low cost ($0.00002 per transaction) as such support should be built for Sushiswap on Solana.

It is proposed that Sushi rewards are paid to both Ethereum and Solana/Serum based Sushiswap, proportional to the TLV in each or alternately fixed to each pool, which is composed with the Serum order books.

Additionally, each Sushi pool has a curve where the pool sends bids/offers into the associated Serum orderbook to simulate that curve. This allows the Sushi AMM to share liquidity and volume with the orderbook.

While FTX already has a bridge from ERC20 <> SPL (Solana token) Sushi, in the next week, the Solana token wallet (sollet.io) will have as well, he said. Sam proposed,

“Sushi will also be able to compose with a borrow/lending protocol on Serum to allow the pools to trade on margin.”

The proposal is submitted on behalf of EcoSerum, a Serum node, and “not on behalf of or related to FTX,” mentioned Sam, who owns both SRM and SUSHI.

He also proposes rewards of 20k SRM (for 1+2) and another 10k (for 1-5) to the team who builds it and 50k SRM (for 1+2), one locked MegaSerum (1 million Serum put together, for 1-5) for the Sushi community. The tokens will be fully locked until August 1st, 2021, and will be unlocked linearly over the next six years.

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Author: AnTy

Tron (TRX) Defies Market Trend & Gravity to Climb the Ranks Thanks to DeFi Hype

You can hate him, you can love him, but you can’t ignore him because this marketer gets it done.

That’s right, Justin Sun, known for making announcements of announcements of announcements and who once called his own token “shitcoin,” does everything to keep his crypto afloat.

On Thursday, there has been a bloodbath in the majority of the markets with crypto markets experiencing a deep correction.

Following Bitcoin, which went down to almost $10,000 level, altcoins shed 20% to 30% of their values.

But one coin that was decoupled from the king and the general trend in the markets was Tron.

The token started surging right from the beginning of this week but gained momentum yesterday when it spiked 60%.

Although TRX did crash, 32%, as well, along with the rest of the market, it started the day strong and in the green. Still, the digital asset is currently in the green, though barely, while trading around $0.0390.

“TRX defying gravity while everything else including traditional markets are crashing,” applauded trader CryptoSqueeze.

These gains had TRX going to the level last seen in mid-June 2018, and making its way back into the top 10 cryptocurrencies. However, this digital asset that has a market cap of $2.67 billion is still 86% down from its all-time high of $0.30 made in July 2018.

Tron-based decentralized lending platform JUST, Sun’s foray into the DeFi world, was also on the up and up at $0.068 yesterday before finally feeling the heat and falling 22% today.

JUST then ventured into DEX as well as its liquidity pool, JustSwap, which surpassed 80 million worth of USDT within 10 minutes of its launch. This AMM reached $600 million in trading volume today, in just 17 days of its launch and also records transactions “two times higher than Uniswap,” shared Justin.

Justin is wasting no opportunity, and with that earlier this week, he also announced the launch of SUN Genesis Mining. This new venture comes with features like venture capital investments, private equity investments, no pre-mining or reserves for the team, and wholly operated by the community through its open-source smart contracts. He tweeted,

“We hope to use SUN to promote the development and possibilities of TRON’s DeFi self-governance community. I hope the entire crypto community may judge its success, not by its price, but instead by the indomitable spirit that underpins the SUN: its community!”

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Author: AnTy

Ethereum 2.0 Testnet Medalla Running Smoothly with 39,000 Active Validators & More in Queue

All is good for Ethereum right now.

The second-largest network is working at full capacity, as evident from the skyrocketing gas prices and miners pulling in a whopping $113 million in transaction fees last month.

The price is also rallying, breaking a new two-year high, surging as high as $483 today.

Now, much-awaited ETH 2.0’s testnet Medalla has been said to be running smoothly. Launched earlier last month, the testnet that went live with 20,000 validators has now expanded to 39,000 active validators.

Eth 2.0 network is expected to be launched by the year’s end.

At the time of the initial launch, it crashed because of the Cloudflare that went down. Prysmatic Labs then made a few fixes and released an upgrade.

“Client software is much more robust following this incident,” reads the latest update by Ethereum. And ever since that incident, Medalla is reported to be running quite smoothly with 39k active validators and another 12k in the activation queue.

The network, however, is currently dominated by a single client, Prysm, which has “good historical reason” for its dominance. The blog mentions how Prysm has been the one that prioritized early testnets, community engagement, and usability for the past year.

But at the same time, Prysm’s dominance amplified the failure on August 14th. The team, however, assures that now most of the clients are robust and well documented.

Eth clients are also working on ensuring the switching clients is easy and safe, and soon users will be able to “hop from one client to another with minimal downtime and no risk of accidental slashing.”

Right now, one of the primary goals of ETH 2.0 is to reach Phase 1.5, The Merge, and this transition is “designed to be as seamless as possible to existing users and applications.”

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Author: AnTy