A Possible Crypto Recovery Moving into New Year, Risk-on Sentiments Send Stock Market to Record Highs

Bitcoin and Ether continue to struggle as they trade around $48k and $3,800 respectively on Friday.

The leading cryptocurrency is now testing a key technical level that has been acting as a floor for Bitcoin over the past two years.

The latest drop in the largest crypto asset’s price has taken it to its 55-week moving average, a decisive break below which would take it to as low as $40,000.

According to Katie Stockton of Fairlead Strategies, a research firm focused on technical analysis, Bitcoin has notched a new short-term buy signal and suggests a two-week rebound. However, it is “low-conviction” due to another measure as per which conditions aren’t oversold, she said.

While crypto is struggling at the end of the year, the stock market hit a new all-time high driven by improved sentiments as governments resist imposing new, widespread lockdowns, even as the new coronavirus variant, Omicron, surges.

The risk-mood sent Wall Street’s main indexes to end the year with their sharpest three-year surge since 1999. The S&P 500 had its 69th record close of the year as it made a new high and is up 28.8% in 2021.

The Dow Jones Industrial Average also closed at all-time highs, rising for a sixth session and up 19% in 2021. The tech-heavy Nasdaq is also up 23% this year and recorded 98 new highs.

As a result, the dollar has also fallen at the low end of its recent ranges as investors favor riskier assets. The benchmark 10-year yields meanwhile reached 1.56%, the highest since late last month after the Treasury sold $56 billion in seven-year notes to weak demand. All eyes are now on the impending US interest rate hikes.

The stock market is currently enjoying the “Santa Claus Rally” that typically occurs in the last five trading days of the year and the first two of the new year. As the crypto market failed to have a “Santa Claus Rally,” investors and traders are now waiting for the rally that comes in the first ten days of a year.

This year “has seen crypto and blockchain mass adoption increase significantly with a large influx of institutional investments that has renewed confidence in this sector,” said Walid Koudmani, an analyst at XTB Market. That “could ultimately lead to significant price gains and increased volatility as retail investors attempt to catch up,” he added.

The crypto market is currently expecting 2022 to be a positive year for Bitcoin and the majority is further not expecting a repeat of the 2018 bear market.

“We can expect relief moving into the new year and a possible recovery drive,” said Joe DiPasquale, CEO of BitBull Capital. “$100,000 is definitely on the charts, but the timing can vary, especially as macro economic policy shifts and regulations start to emerge in the year,” he added.

While the major crypto assets, Bitcoin and Ether, are struggling to rally, altcoins have shone brightly this year with massive gains. Retail investors are likely distracted by these rallies in alternative coins.

“That puts some pressure on Bitcoin as well,” said Rosh Singh, CEO, and founder of Quadency, in an interview. Still, “a lot of people in crypto are pretty optimistic about the next year and think we should see a rally with the way that things have been going,” he added.

Despite the ongoing weakness in the price action, MicroStrategy purchased another $94 million worth of Bitcoin in December. The coin is down 17.5% in the last month of 2021 but still up 62% this year.

The business intelligence company bought 1,914 BTC this time and now owns a total of 124,000 Bitcoin, acquired at an aggregate price of $3.75 billion.

This month, CEO Michael Saylor said on the company’s investor day call with shareholders that they are now looking for ways to generate yields on its Bitcoin stash by either “putting a lien on it” or a “mortgage against it.”

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Author: AnTy

Cryptocurrency Market Calls for $70,000 as Bitcoin Bulls Struggle to Reclaim $58k

Cryptocurrency Market Calls for $70,000 as Bitcoin Bulls Struggle to Reclaim $58k

The cryptocurrency market is on the move today in the upward direction after recording losses in the last two weeks, which came following Bitcoin’s new all-time high at nearly $62,000.

The green start of the week had BTC/USD going as high as $58,500.

This fight to reclaim the $58k level has open interest on perpetual swaps back above $15 billion, not seen since nearly a fortnight.

With these gains, the funding on Bitcoin perpetual contracts also climbed up. Currently, the highest reading of 0.1013% is on Bybit on Bitcoin’s Coin Margined Perpetuals and 0.1056% on FTX’s USD or USDT Margined Perpetuals, as per Viewbase.

Funding on Bitmex Bitcoin perpetual contracts also went above 0.1%, and according to data provider Santiment,

“When Bitmex funding rates get high, it’s one of the best public examples of crowd greed. Vice versa when funding rates go negative, indicating fear.”

The renewed green has the market excited and looking for new highs soon.

As Bitcoin enjoys gains, crypto traders, including TheCryptoDog and SmartContracter, are now calling for $70,000 as the next target, with another trader who goes by Mr. Anderson on Twitter saying, “$100k is already written.”

Still, others like trader Rekt Capital believe Bitcoin may take some time in its consolidation phase before it makes its way up for good to new highs, yet again.

“I wouldn’t be surprised if BTC continues its consolidation for a couple more days as per the red box, even if we do see some unsustainable upside wicking in the meantime. Throughout 2021, we’ve seen consolidation periods form during retrace bottoms where upside wicks were common.”

Breaking above $59k, however, will help the Bitcoin price reach new highs, he added.

March is also coming to an end, which historically hasn’t been a bullish month. While this month wasn’t exactly bearish, having climbed from $43k to $62k only to make our way to about $50k last week, April holds promise. Eight out of ten times, April has been a green month, that too in double-digits.

The new quarter is also expected to bring even more bullishness, as historically it has been the best quarter.

With three days left in the month to end, Bitcoin meanwhile is looking to deliver its best Q1 in years with more than 100% returns.

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Author: AnTy

UNI Holders Continue to Increase as Uniswap Dominance Jumps 24% in Just Over a Month

While centralized cryptocurrency exchanges struggle to live, with at least 75 of them closed down due to hacks and scams so far this year, Decentralized Exchanges (DEX) are leading 2020.

These past couple of weeks, even big exchanges like KuCoin and BitMEX weathered some storms.

Decentralized Finance (DeFi) has some part to play in this. With DEXs growing rapidly, as evident from its volume hitting $24 billion, an increase from $11.6 billion last month, a shift has been seen from CEXs to DEXs.

Until last year, the total monthly DEX volume never saw $500 million, and in 2020, it never went below this figure.

As we reported, the popular DEX Uniswap that saw $15 billion traded last month actually surpassed the volume on the leading centralized cryptocurrency exchange Coinbase. Increasing every month, Uniswap volume also makes up for 65% of all DEX volume as such the fourth largest crypto exchange by volume.

Liquidity on the platform also continues to hit new highs, keeping above $2 billion in October.

Interestingly, while the total value locked (TVL) in the DeFi sector decreased from $11.23 billion this week to $10.18 billion, TVL in Uniswap increased 12% to over $2 billion, becoming the first DeFi project to hit $2 billion in total crypto funds locked.

Uniswap is the dominant force in the DeFi ecosystem, with the amount of ETH locked in the project hitting a new high of 3.2 million. Uniswap’s dominance currently sits at 21.9%, up 24% from the beginning of last month, as per DeFi Pulse.

Its governance token UNI is currently trading at $2.64 in the red, down nearly 36% in the past seven days.

However, despite the recent fall in UNI’s price, along with the rest of the DeFi tokens, the number of UNI holders continues to increase daily.

As per data source IntoTheBlock, as of Oct. 5, the number of addresses holding UNI tokens reached a new high of 85.02k addresses.

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Author: AnTy

Bitmain’s Wu Regains Power Over Micree Zhan As Jihan Named Legal Representative

The struggle for Bitmain’s control has taken a different turn, with Jihan Wu regaining the position of executive director and legal representative of this Chinese Bitcoin mining rig manufacturer. According to the latest update on China’s business registration record, Macree Zhan will no longer serve in the above capacities but remains a general manager in the company.

This turn of events comes as an upper hand to Wu’s side of the company, given the powers embedded within the legal representative and executive director role in Chinese-domiciled entities. Wu is now the one in control of Bitmain’s seal hence broad powers to act on behalf of the company as well as sign strategic decisions into effect.

Bitmain’s Power Brawl

With cryptocurrencies on the rise, Bitmain pivoted as one of the leading mining rigs manufacturers, but the firm’s internal brawls since late 2019 have cost the business a fortune. The real trouble began when Wu ousted Zhan towards the end of 2019; a move that Zhan later termed to be illegal and took the battle to the courts. Since then, Bitmain’s operations have been at the mercies of the two opposing camps.

Fast forward, Zhan was able to regain control of Bitmain’s Beijing offices in June 2020 and proposed to buy Wu’s shares at a valuation of $4 billion. His helm at the firm, however, seems to have been cut short with the latest developments. Nonetheless, Wu has maintained that Bitmain’s respect for Zhan remains unchanged in a recent WeChat post on the Bitmain AntMiner brand account.

Bitmain’s Woes Might Be Far from Over!

While the latest changes may have signaled calm waters for Bitmain’s operations, it is still too early to predict whether the firm’s internal power struggles will persist. For starters, a lawsuit between the two divides is still pending in the Cayman Islands, where Bitmain’s holding entity is domiciled. This regulatory uncertainty has ultimately threatened the firm’s operational side as well; Wu, however, noted that they are looking to find long-term solutions for the troubles caused to Bitmain stakeholders.

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Author: Edwin Munyui

Bitmain Power Struggle: Truce is Over & Fight for Control Resumes; Bitcoin Miners Could Suffer

The struggle between the co-founder of bitcoin’s biggest miner manufacturer is not looking to end anytime soon. It hasn’t even been two weeks, and they are back at it.

The fight restarted when Bitmain co-founder Micree Zhan or Zhan Keutan attempted to redirect customer payments to a new bank account in a Wechat post at midnight. Dovey Wan, founding partner at Primitive Crypto tweeted,

“This marks the DEATH of Jihan in the Bitmain power struggle IMO: Bitmain just announced it will change the miner sales payment bank account & wiring info into a company Micree serving as legal representative. Micree now financially takes over Bitmain’s core business.”

It may not be a death blow to Jihan yet, but sure seems like a hard blow to the bitcoin miners who are awaiting their big orders.

The infighting between the co-founders could interrupt the product deliveries as it affects the shipments and supply chain. While some are reluctant to buy bulk orders, it is not stopping others from buying machines from Bitmain.

Last week, Core Scientific announced that the hedge fund Horizon Kinetics extended its partnership with the US-based blockchain hosting provider and upgraded its crypto service to Bitmain Antminer S19 and S19 Pro models.

Recently, Core Scientific purchased 17,000 of the latest generation crypto miners from Bitmain.

Source: Twitter

On Monday, Hive Blockchain technologies also announced that it had ordered 200 Bitmain Antminer S17e 60 terahash per second (TH/s) SHA 256 mining machines to scale up its mining power at its bitcoin mining operation in Quebec.

With the cost for the S17e machines approximately US$950 per unit, the purchase was just under US$0.2 million, and the company is anticipating delivery in July, but that’s to be seen. F2Pool noted,

“The slowdown in hashrate growth may continue, as many of the large hardware orders reported recently won’t deliver until late in the summer.”

So far, both the co-founders are claiming to be the company’s real CEO. While Zhan controls the Shenzhen headquarter and factory Wu has the bank accounts and support of the board.

The rivals did reach an agreement to resume deliveries less than two weeks ago. On June 23, the company even published an article to reassure its customers that they have resolved the issue only to delete it within a few hours.

It hasn’t been 24 hours to Zhan’s document with changed sales information, (including the bank account for payments, after-sale service website, and e-mail address) that another official Bitmain WeChat account associated with Wu revoked the document stating it contained false information.

In the new document also posted on the website, citing “abnormal conditions,” Zu said “criminals” are trying to impose Bitmain representations.

It looks like Wu is here to fight, and customers will also have to pay the price.

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Author: AnTy

Bitmain’s Ousted Co-Founder Proposes Share Buyback at $4B Valuation; Wu Acted ‘Illegally’

Bitmain’s power struggle may be at an end, should the Jihan Wu team accept a buyback offer by Micree Zhan. According to a recent letter by the recently ousted Bitmain Co-CEO, he is willing to buy Wu’s shares at a company valuation of $4 billion. This comes as the control battle for Bitmain intensifies after Zhan regained the Beijing office earlier this month.

The alleged Zhan letter – which was first shared on Chinese media – highlights that Wu acted illegally during the ousting process. Zhan owns 36% of Bitmain’s shares, making him the largest shareholder.

Consequently, he enjoys majority voting rights of up to 60%; hence any decisions without Zhan’s consent are considered ‘illegal.’ While this is the case, Zhan was still ousted after Wu claimed to have held a shareholder meeting in the Cayman Islands. Zhan has since condemned the move as illegal based on Bitmain’s shareholder structure and voting rights:

“WITHOUT MICREE’S CONSENT, NO ONE CAN CHANGE THAT LEGALLY. BUT JIHAN FORGED A SHAREHOLDER’S MEETING RESOLUTION SAID HIS 10X VOTING RIGHT NO LONGER COUNTS, AND FIRED MICREE AS THE COMPANY DIRECTOR. BUT MICREE SAID IN THE ANNOUNCEMENT, THAT SHAREHOLDER’S MEETING NEVER HAPPENED.”

A Response to Bitmain Hong Kong

Zhan’s response has coincided with Bitmain Hong Kong’s move to cut Beijing from its chips supply chain. The Hong Kong headquarters, and also in charge of Bitmain Beijing, reports to the Cayman Islands holding entity but is currently controlled by Wu’s team. The subsidiary posted on its website that it is suspending chip supplies to Bitmain Beijing following Zhan’s takeover:

“Bitmain Hong Kong has suspended the chip supplier for the time being to Century Cloud Core, which is now controlled by Zhan’s relatives, until we are assured, through negotiation with Zhan’s relatives, that they are committed to protecting the interest of Bitmain’s customers and the company as a whole.”

This supply chain war, however, seems to have started earlier when Zhan took the helm of the Beijing office. The ousted CEO interfered with the supply of mining equipment from Bitmain’s Shenzen factory to clients, an issue that forced Wu’s team to clear the air noting that all is well.

Since then, tensions have been high given the events that unfolded during the Beijing office takeover, coupled with pending legal battles in Hong Kong and the Cayman Islands.

Bitmain’s Value Sliced Significantly

As one would expect, uncertainty caused by Bitmain’s control brawls has affected the company’s value.

Just two years ago, its valuation could have gone as high as $14 billion as it prepared to launch an IPO. Today, the value was reduced by over half and might be heading towards the $1 billion recorded during Bitmain’s Series A funding back in 2017. However, if Zhan and Wu agree, Bitmain could regain its glory days.

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Author: Edwin Munyui

Bitcoin Price Ranging But Retail Interest High with Central Banks Vowing to Do More

After the sell-off in March, the Bitcoin price grew in the next two months only to struggle in June. The price movement is slow right now, making its way downwards. Starting the month at about $10,000, we are currently trading under $9,250, with 1.24% losses with just over $1 million “real” volume.

The price might be ranging with not much going on in the market, but retail interest is hitting new highs with now more than 3 million addresses holding at least 0.1 BTC.

Moreover, BTC’s daily active addresses are once again reaching 1 million; this level was only seen twice before in the leading digital currency’s history. The current level was seen back in December when BTC was approaching $20,000 and in July last year when BTC price climbed from around $5,000 to $13,900.

On top of this, 60.8% of bitcoin circulating supply hasn’t moved in over a year while 42.9% in over 2 years. In over 3 years, 28.5% of bitcoin circulating supply hasn’t moved either.

Glassnode-BTC-Supply
Source: Glassnode

Bitcoin’s market cap is still stuck around $170 billion, but the realized cap has hit a new all-time high at $106.63. Realized cap values each UTXO by the price when it was last moved.

This new peak has broken the previous record set just before the Block Thursday crash three months ago.

Support and Resistance

Bitcoin could soon see volatility yet again given that its sentiments on Twitter are still a net negative on prospects of its future price, which, according to Santiment, is generally “a bottom forming signal.”

Not to forget that 60% of all bitcoin options closing at $1 billion are also expiring next week.

Currently, bitcoin is consolidating with buyers expected to create support near the $9,000 range and sellers to provide resistance around $9,500.

A critical resistance level is present at $9,307 and $9,578, where more than 2.1 million addresses previously purchased 1.42 million BTC. As for the support levels, nearly 1 million addresses purchased a total of 559k BTC between $9,018 and $9,288 which is “expected to act as a strong support as holders in this range will attempt to remain profitable on their positions and push prices above this level,” said IntoThe Block.

In the meantime, this consolidation in a bullish configuration in the bull market could bring back a mini alt-season.

Central Banks are here to support

Moving forward, the US Federal Reserve’s dovishness that is helping the US stocks market could further fuel bitcoin. Just this Friday, Fed vice chair Richard Clarida said there is more the central bank can do to support the US economy and more they will do. He said,

“We’ve taken very aggressive, proactive actions. There’s more that we can do, I think there’s more that we will do.”

Meanwhile, Bank of Engal pumped another £100 billion into the UK economy as it believes the country could face its worst recession in 300 years. So far, it has printed up to £745 billion (nearly $920 billion).

“Debt records being shattered. UK is just the latest to report. Bank of England printing presses running full speed turning this new debt into currency to make UK gov’t appear solvent,” said James Turk, founder of GoldMoney who advised to buy physical gold to protect savings after the UK’s public debt exceeded 100% of its GDP for the first time since 1963.

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Author: AnTy