Synthetix (SNX) Releases Aggressive Roadmap to ‘Take on CeFi’ in 2021

This week, while other cryptocurrencies are still struggling to reverse their correction, DeFi tokens swiftly made a recovery, with SNX token hitting a new ATH above $16.50. For now, the 23rd largest cryptocurrency is trading around $14.80 SNX 2.17% Synthetix / USD SNXUSD $ 14.84
$0.322.17%
Volume 409.21 m Change $0.32 Open $14.84 Circulating 110.52 m Market Cap 1.64 b
4 h Synthetix (SNX) Releases Aggressive Roadmap to ‘Take on CeFi’ in 2021 1 d A ‘Massive Transfer of Wealth Among Traders’ Sees DeFi Tokens Winning the Round 1 w Three Arrows Capital Holds 36,969 Bitcoin ($1.24B) via An Over 6% Stake in GBTC
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Derivatives liquidity protocol, Synthetix is the blue-chip DeFi project with a market cap of $1.68 billion. Amidst this uptrend, Synthetix released its roadmap for 2021, painting a picture of a

“future where everyone in the world is connected to one another by handheld devices that allow them to hold, trade, and transfer every imaginable asset.”

The roadmap mentions Optimistic Ethereum, Synthetix V3, Synthetic Futures, Asset expansion, dApp Upgrades, and optionsDAO as its high-level priorities.

A complete re-architecture of the Synthetix contracts will be done for the first time since last 2018. Synthetix V3 will involve a new SNX staking mechanism so that SNX is always freely transferable, introducing eSNX, tokenized debt, continuous staking rewards, continuous vesting, and Keep3r implementation, among other features.

The transition to layer two scaling solution Optimistic Ethereum which will lower the gas costs and provide higher throughput, is one of the most exciting things to come. The combination of this with Synthetic Futures will allow projects to compete with centralized futures markets and provide a minimum of 10x leverage. Also, Synthtix will expand into equities.

In the options, sDAO will provide upfront funding based on certain conditions, and oDAO will enable several improvements over the existing binary options implementation.

⁩”As an investor in SNX, it’s great to see the aggressive roadmap here,” said one of the partners of crypto fund The Spartan Group. “This is how $SNX is getting to $10B.”

2021 will also involve a focus on acquisitions and expansion for Synthetix as the scale of the project grows.

“This year we finally take on CeFi, then we come for TradFi…” concluded Kain Warwick, the founder of Synthetix.

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Author: AnTy

Bitcoin ATH Retest with ‘Negative Divergence’ Calls For a ‘Larger Corrective Risk Scenario’

Since the middle of last week, the price of Bitcoin has been struggling to decide whether it wants to break $20,000 or finally make the much-anticipated pullback.

The range BTC is trading in is getting narrower, which could bring some good movement. For now, BTC price is keeping around $19,000 with volume low at just around $2.3 billion.

Meanwhile, the US Dollar index remains weak, which, combined with the momentum behind talks on a coronavirus relief bill gaining some speed, should keep risk appetite higher.

But in the short term, the market expects a correction after Bitcoin rejected $20,000 to set up for a stronger base for another vertical move and not risk another “uglier” breakdown down the road.

As Sven Henrich, founder of NorthmanTrader, pointed out, the retest of 2017 highs came with that of “negative divergence on the RSI.”

In his opinion, “Should the divergence confirm here as well, then Bitcoin is at risk of a sizable retrace move of the recent rally.” However, this won’t necessarily be bearish.

According to him, a healthy retrace would be the most common one .382 fib, which offers “perfect confluence” with the 2019 high at $13,790. But this corrective risk scenario isn’t a given if $17,000 holds.

“So Bitcoin is in a watch phase now with the risk of a larger corrective scenario unfolding” with the bottomline that a corrective move is actually healthy and a “buying opportunity.”

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Bitcoin is already ready to start the New year on a high note, with $36,000 Bitcoin call options on Deribit being the leading strike at the moment, with 19,995 contracts having a national value of $378 million in open interest.

“The majority of this is on our monthly January 2021 options,” noted the derivatives platform.

However, as we have been seeing, 2020 is different from the last bull run, with institutions rushing in the market more heavily while the 2017 rally was retail-focused.

According to Teddy Fusaro, chief operating officer at Bitwise Asset Management, we’re seeing marginal buyers right now.

“Oftentimes, once you sit down and you study the asset class, and you do develop an opinion, you do become a buyer. And I think that’s really what we have started to see really since the late summer,” he said.

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Author: AnTy

Bitcoin’s Realized Cap Adds $43 Billion Since the 2017 Peak to Hit A New ATH; A 60% Increase

While the price of bitcoin is struggling around $10,000, although still holding strong to the key psychological level, Bitcoin realized its cap has hit an all-time high.

Compared to the $197 billion market cap of the leading digital asset, which takes into account the current price and circulating supply, the realized cap has reached $115 billion.

Realized cap values each coin at the time they were last moved, as such, serving as an estimate for investors’ aggregate cost basis. This metric eliminates some of the lost, unclaimed, unused coins from the total value or “an indicator of the sum of levels where groups of long-term, legit, buyer-hodlers entered into their Bitcoin positions, with local and immediate emotions and manias stripped out.”

Since BTC price hit the peak at $20,000 in 2017, the realized cap has grown by a whopping $43 billion, an increase of 60%.

glassnode btc realized cap at ATH
Source: Glassnode

Meanwhile, on the price front, after falling to $10,150 level yesterday, today we are back around $10,400, the pre-drop level. Traders are expecting this correction to extend further to fill the CME gap at around $9,700.

“Bulls want to reclaim $11.2k. Bears want to see price below $10.2k,” noted one trader.

Interestingly, despite the selling pressure, there has been a lack of aggressive liquidations, and the bitcoin futures curve has been flat for much of this month.

Meanwhile, unlike spot and futures trading volume that remains subdued with the total open interest on bitcoin futures also falling to $3.8 billion, OI on bitcoin options reclaimed its ATH before the expiry of 88,000 contracts this week.

What needs to be noted is these pullbacks are nothing new for the bitcoin market. As we have reported, during the last bull cycle, Bitcoin had several pullbacks of 30 to 40%.

Moreover, historically, September hasn’t really been a bullish one for the digital asset. Not to mention, the macro environment is also at play here, with the Supreme Court Justice seat vacant now after the death of Ruth Bader Ginsburg, delayed stimulus, and Presidential election just a month away.

While a stimulus before the elections is unlikely to come, Federal Reserve chairman Jerome Powell argued for Congress to do more to support the economic recovery the same as Charles Evans, Chicago Fed president.

Quarter four of 2020 can bring a new wave of gains as it has been historically a green month, and after a pullback, the digital asset is expected to recover the losses and surge higher.

“BTC ranges between 10k and 11k for the rest of the year. This would be amazingly bullish,” said analyst Wolf.

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Author: AnTy

Venezuelan Military Confiscates 315 Bitmain Antminer S9 Bitcoin Miners Over Lack of Permits

Venezuela, the country which has been struggling financially because of hyperinflation, has had quite a love-hate relationship with Bitcoin.

The government wants to push native digital currency Petro for citizens to use. However, the poor design and technical limitations of the Petro make it hard to use. A majority of the population prefers bitcoin as a bridge currency to help them store value as the value of the national fiat keeps receding.

In a recent development coming from the country, the National Guard, the country’s military has seized over 300 ASIC bitcoin miners from local miners for the lack of necessary paperwork and documentation for possessing that equipment.

Bitcoin mining in the country is not illegal, and electricity is also quite cheap; however, due to the government’s passiveness towards crypto, local bitcoin miners often have a run-in with law enforcement agencies.

The National Guard shared the news on Twitter and noted:

“In the PAC “Toll Guayana” of @GNB_BolivarD625, 315 Bitcoin machines that were transported in a 350 truck were retained, for not having the permission issued by the National Superintendency of Cryptoactive. #6Jul#FANB GNBCCuidandoDelPueblo.“

The National guard claimed that they were undergoing a routine check when they found a truck trying to pass through the Guayana’s Toll Military checkpoint containing 315 of Bitmain’s Antminer S9 Bitcoin mining machines.

When the driver was asked to produce the documents for those mining machines failed to produce the same. The military then seized the machines and alerted the National Superintendence of Cryptoassets and Related Activities (Sunacrip), the authority responsible for regulating cryptocurrencies.

The Bitcoin Mining Industry is Underdeveloped in Venezuela

Venezuela is one of the most oil and mineral-rich countries with abundant crude oil and diamond mines present in the country. The country is also among the places with the lowest electricity rates, which make it a perfect hub for bitcoin mining; however, due to the ongoing financial crisis and the corrupt government, the industry is quite underdeveloped.

Venezuelans have found Bitcoin mining to be a profitable way to earn Bitcoin and trade US Dollars against it, as the national fiat is not worth even the paper it is printed on. Bitcoin mining is legal in the country and requires those who want to operate bitcoin mining farms to register with the authorities.

However, the entrepreneurs and firms interested in the field avoid doing so to avoid coming under the radar of criminals and even corrupt government officials. One such Bitcoin miner in the country expressed his ordeal last year saying:

“I think I’m ‘marked’ by both the police and the community.”

Despite the fear of authorities and criminals, local Venezuelans are increasingly getting involved with bitcoin mining because the reward for mining outweighs the external threats.

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Author: Silvia A

Here’s Why Despite Sluggish Price Movement, Bitcoin is Immensely Bullish

Since recovering from the March lows, bitcoin has been struggling to make its way upwards. We tested $10,000 — the important psychological level numerous times only to fail and get stuck in a range.

Bitcoin refuses to attain five-digit value despite the central bank pumping money into the market. This time, investors are putting all the cash either into their bank deposits or pumping the stock prices, even of the bankrupted companies.

However, the bitcoin market is busy hodling; as such, Rafael Schultze-Kraft, CTO at crypto data firm Glassnode, is “extremely long-term bullish” on the world’s leading digital currency who advises not to get distracted by short-term price action and to look at the bigger picture.

Schultze-Kraft also shared a series of charts that depict this increased hodling behavior and investor confidence, starting with the record amount of bitcoin supply, 61% that hasn’t moved in over a year. This all-time high is a clear indication that investors are anticipating higher value in the future.

Also, 44% of BTC supply hasn’t moved in over two years, which is again approaching ATH, and almost 30% supply hasn’t moved in more than three years.

The average Coin Days Destroyed has been decreasing since the 2017 bull run and is currently at its lowest levels since 2016 — the lower the CDD, the more the long-term hodlers.

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In a similar manner, Bitcoin Binary Coin Days destroyed, which are the number of days per year in which coins were destroyed compared to the historic average, has never been this low as in 2020.

Another factor showing high confidence of long-term bitcoin investors is the Reserve Risk, which at the current level indicates an attractive risk/reward ratio to invest.

Long-term holder MVRV is also “looking strong” which usually drops below 1 after prolonged bear markets. MVRV long/short diff. crossovers indicate moments when average short-term and long-term traders move into profit territory. It tends to be a psychological barrier for many traders, which often kick FOMO and greed, as per Santiment.

Liveliness indicator that increases as long-term holders liquidate positions and decreases as long-term investors accumulate to HODL has been on a downward trend since 2019.

In fact, the number of hodled and lost bitcoins increased by 8% since the beginning of 2019 and is currently at over 7.3 million — 40% of bitcoin’s circulating supply.

HODLers are heavily accumulating this year, with only 16 days being the ones in which BTC Hodler Net Position Change has been negative.

glassnode hodl
Source: Glassnode

Amidst this, the average age of bitcoins moved on-chain is constantly decreasing since 2018, as per the Median Spent Output Lifespan (MSOL) indicator.

The amount of bitcoin transferred on-chain meanwhile has stagnated since 2016 despite the growth of the network which Schultze-Kraft says “is a clear indication of Bitcoin’s SoV narrative,” because investors aren’t willing to spend their BTC.

Adding to this narrative is bitcoin velocity, which measures how quickly units are circulating in the network. It has dropped to the lowest point in ten years.

As we have reported, bitcoin balance on exchange has been declining since March, which in part could be investors’ choosing to take custody of their own BTC.

So, overall, the market is long-term bullish and stacking sats waiting for the next big bull run.

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Author: AnTy

Bitcoin May Have A Negative Quarter Ahead But That Won’t Be Atypical

Since falling earlier this week, the bitcoin price has been struggling to get back up. BTC/USD continues to trade under $9,200 in red on low volume.

But this shouldn’t be of much concern if history is any guide.

If we take a look at the quarterly returns, the quarter 3rd of 2016, the year bitcoin had its second halving, the returns were negative 9.21%. The last bitcoin reward halving took place in July 2016.

The month after the halving in 2016, bitcoin recorded negative returns which were because of the Bitfinex exchange hack and Ethereum DAO attack.

As such, analyst Rekt Capital says, “Negative Quarterly Returns for BTC this coming Q3 wouldn’t be out of the ordinary for a post-Halving period.”

In a separate tweet a few days back, the analyst has noted that, based on the world’s leading digital currency’s historical quarterly performance, “Chances are Bitcoin could see some downside in Quarter 3,” as well.

In the past six years, in four years the upcoming quarter recorded negative returns with the exception of the 2017 bull run and 2018 bear market.

Quarter 1 has been pretty much the same, heavily skewed towards losses historically and we end up falling in 2020 as well. Meanwhile, the green Q2 over the years resulted in gains for 2020 as well. Although past performance doesn’t guarantee future results, it is something to keep in mind.

Analyst PlanB also shared that monthly returns during the last halving have been “very asymmetrical.” But if Bitcoin has its typical month with substantial gains, we can easily climb to $12,000.

In contrast, if we look at the downside, the analyst points out there have been only two times that a negative 30% move happened in the last four years but a 30% spike happened 10 times which means the corrections might not be deep.

While many are hoping for bitcoin’s drop to $7,000, a drop of 25% isn’t that typical which we saw in March this year during the coronavirus pandemic wide market sell-off. Before that, we saw it thrice in 2018.

According to PlanB, $7,000 “seems highly unlikely” with all the money printing the governments are doing. “COVID just triggers more QE, which is net positive for both stock markets and BTC,” he said.

However, bitcoin remains correlated with the S&P 500 and a lot of bad news is converging on Wall Street. While the market sentiments have started to turn bullish, COVID-19 and political risks are rising. Moreover, the period of July to October is a seasonally weak time of year.

The International Monetary Fund has also warned that investors are “betting on continued and unprecedented support by central banks” and the disconnect between the market and economy is raising the risk of another slump in prices.

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Author: AnTy

7 Bullish Ethereum Charts that says Ether is “Significantly Undervalued”

The price of Ether might still be struggling around $200 but its fundamentals are screaming bullish. Post Black Thursday sell off, Ether has been seeing a net outflow (62% of days) from exchanges, which is a sign of accumulation.

Blockfyre charted several progress indicators for Ethereum against its price development since its genesis and the growth had them stating, “Ethereum is significantly undervalued at current prices.”

The first metric is development activity which indicates the health of the network that has been constantly increasing since 2014. Regardless of the price movement, the Ethereum foundation and its developers have been hard at work.

As we reported, the Ethereum usage is at its all-time high with the amount of gas used continuing to surge. Gas usage indicates the growing adoption of the Ethereum network.

“More than 60 billion gas is now being used on a daily basis — a sign that Ethereum blockspace demand has never been higher,” pointed out Spencer Noon, head of Digital Currency Group.

Interestingly, the increased usage of the network also caused the gas price to jump 300% since the end of April at 40 Gwei. On May 21st, it went up as high as 50 Gwei and is currently averaging around 37 Gwei.

The number of addresses holding Ether has just hit a new peak at 40 million, up 350% since early 2018.

The total daily active addresses are also at 380k, a figure not seen in over two years.

The mean dollar invested age that measures how long the Ether has stayed in an address before being moved has also been increasing since 2018. Recently, this metric also hit a new all-time high which shows investors accumulating and holding their Ether at these price levels.

What’s even more interesting is that the same accumulation behavior is seen in miners.

Ether miners’ balance is in an uptrend since its creation indicating even miners who are required to sell their ETH rewards to cover their expenses are preferring to hold their coins.

DeFi is already growing like crazy, now its users are starting to go parabolic. Currently, there are 178k DeFi users which is up from 90k five months ago.

Also, seven of the DeFi projects have more than $30 million assets under management (AUM) while a year ago there was only one such project.

The system is maturing rapidly and now becoming an “economic vacuum for all assets,” starting with Bitcoin as since May 1st, DeFi project WBTC has minted $25 million.

In 2020, while the world went into chaos, Ethereum averaged 850k transactions per day, which is up from 580k in early January. This is three times more than bitcoin averages on a daily basis.

Also, ETH fees have totaled at $426k in the past 24 hours, which is more than 237x than the third largest cryptocurrency XRP. As of May 18, 2020, Ethereum fee based ‘revenues’ have totaled more than $15 million in 2020.

Moreover, “Ethereum is the only network besides Bitcoin that has a meaningful market for security paid in fees.”

But the most prominent growth has been seen in stablecoins, with more than $7 billion in fiat-backed tokens now issued on Ethereum. Over the past three months, a major demand for crypto dollars was seen in about $4 billion in new issuance.

Adding to this bullishness is the 1 million new shares of Grayscale Investments ETHE product that has been issued in the past 3 weeks, noted Noon. This is a sign that institutions are showing an interest in ETH, he said.

All of this progress while Ether price is at two-year low are “very promising” for Ethereum Network and the prices.

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Author: AnTy

Swiss Govt. Rejects Crypto Valley’s $103M COVID-19 Relief Loan for Blockchain Startups

Switzerland’s own crypto valley located in the Canton of Zug known for its business-oriented regulations is struggling to keep businesses afloat.

Its request of 100 million francs, which is around $103 million USD, as a COVID-19 relief package has been rejected by the Swiss government. The request for the relief package was initiated back in April by the finance director Heinz Taennle, reported a local daily.

The crypto valley would now have to depend on the 15 million Swiss Francs loan announced by the canton of Zug. The application for 100 million francs relief package was the only one rejected by the federal government among 24 similar COVID-19 related relief packages.

Almost two-thirds of the crypto valley blockchain firms which applied for the Federal loans failed to receive any assistance from the government.

The capital crunch in the crypto valley mainly occurred due to the ongoing coronavirus pandemic. Forcing many private equity investors into offering capital support in the fintech valley.

The New Loan Scheme Would be a Joint Effort by Federal and State Government

The newly announced 15 million swiss francs loan scheme would require fintech firms in the valley to submit their loan application by May 27th, 2020, and the loan can be applied to any bank in Switzerland. The loan amount would be covered by both the Federal government and the canton of Zug, where the federal government would offer 65% of the amount and the Zug would offer 35% of the loaned amount.

The situation in the crypto valley is getting worse with each passing day, as 80% of the operating companies in the valley report that they won’t be able to make it through the end of the year.

The main reason behind such outcry is the reluctance of equity investors to invest their money amid financial uncertainty which has been looming even before the pandemic struck which made the situation even worse. Almost 57% of the firms in the crypto valley have laid off a significant portions of their workforce, turning the crypto valley into death valley.

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Author: James W

Irish Crypto Service Providers Were Denied Banking Help Due to Delays 5AMLD Implementation

The Irish crypto service providers are struggling to get any banking help locally as cryptocurrencies are still unregulated in the country and the government has failed to formulate any laws based on the new EU directives.

However, the issue is not new, in fact, crypto service providers highlighted this same issue almost two years ago. Revealing that they had to open a foreign bank account since under existing laws banks were not willing to offer them any form of service.

According to the IrishTimes, a few local banks which did offer their service also terminated their contract citing unregulated markets and no laws governing virtual assets in the country. Boinnex, a bitcoin ATM operator, received a similar message recently when the AIB bank sent a letter revealing termination of services. Citing the delays in implementation of the latest 5th Anti-Money Laundering Directives (5AMLD) being implemented by the government.

Tierney, Boinnex founder expressed the frustration and said,

“Entering into a formal relationship with entities carrying out this type of business activity is outside of our risk appetite at this time.

We’ve been forced to get a banking partner abroad. A lot of companies in the space are in a similar situation.

Some of these foreign banks charge exorbitant fees as they know they’re the only show in town.”

The 5th AMLD directives were supposed to be implemented by the end of January but due to the upcoming general elections and the political parties failing to ensure a stable government in the times of crisis has led to continuous delays in the implementation of the new EU directives

Tierney also revealed that the crypto operators have been in touch with the central bank since 2018 and have also paid significant legal costs to ensure proper implementation of AMLD directives, but they did not offer any assurance. In fact, central banks noted that these crypto asset service providers are outside the supervisory framework.

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Author: James W

Bitcoin (BTC) Price Analysis (April 22)

Key Highlights

  • Bitcoin continues struggling to recover in a range formation of around $7,200 and $6,800 marks.
  • BTC/USD bulls now appear to be regaining momentum around the $6,800 lower range price line.
  • A bearish reversal of the pair’s price may potentially set the crypto’s uprise to the northbound.

Bitcoin (BTC) Price Analysis

• Major supply zones: $7,600, $8,000, $8,400
• Major demand zones: $6,400, $6,000, $5,600

The price worth of Bitcoin continues struggling to recover in a range formation of around $7,200 and $6,800 marks. The US dollar has continued lowering the crypto’s value from the upper range point to around the lower range line as earlier mentioned.

The BTC/USD bulls now appear to be regaining momentum around the $6,800 lower range price line. A break downward at that point will lead the crypto market to locate a sit around $6,400 demand zone. In the meantime, the price has been trading in the middle of range zones.

Bitcoin (BTC) Technical Indicators Reading

As at the time of writing, most of the trading indicators trend towards the east direction. The 50-day SMA has briefly crossed the Middle Bollinger Band to the south as they both point to the east. That signifies the pace at which the BTC/USD market ranges in its current price moves. The Stochastic Oscillators have touched range 20. They have crossed the hairs towards pointing to the north to signal an upswing.

Conclusion

Since April 16, after the emergence of a second 4-hour candlestick, BTC/USD market has been significantly moving in range zones. In a while, the crypto-trade may continue to keep on with the present trading trend until a couple of trading days’ sessions. Three key price points at $7,200, $6,800 and $6,400 are instrumental in determining the next definite direction of the BTC/USD trade. Meanwhile, a bearish reversal of the pair’s price from the immediate demand zone may potentially set the crypto’s uprise to the northbound.

Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (bitcoinexchangeguide.com) holds any responsibility for your financial loss.

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Author: Ben Jordan