Altcoins & DeFi Back in the Game as Bitcoin Consolidates

After having a run-up of over 20% this week, Bitcoin is taking a breather.

On Thursday, the leading digital asset went to nearly $16,000 after starting the month just above $13,000. This started in October when BTC traded around $10,000 and got into action towards the end of the month.

Now, we are trading under $15,330, at the time of writing, in the red with $2.51 billion in ‘real’ trading volume.

But while Bitcoin is consolidating after scoring a 34-months high, this is a good time for the depressing altcoins to finally do something.

Ether that has been silent during Bitcoin’s run-up finally scored above $465, a level not seen since July 2018, which in part was because of the announcement about ETH 2.0 finally coming in December. For the launch of Beacon Chain, the core of ETH 2.0, ETH deposits have started flowing in too.

While almost everything is enjoying gains, it is yet again the DeFi party, which seems to have finally capitulated.

After dominating the Q2 and exploding in Q3, the decentralized finance sector topped out in September. While the total amount locked in the sector tried to keep up, the price of DeFi tokens took a severe beating.

CRV actually went down 99% from its high while the majority of them dropped 75% to 95%.

But now, the DeFi tokens are being exciting once again, especially YFI. The DeFi darling that went above $40,000 crashed to $7,500 on Thursday and has been looking hideous this week when the volume shot up, and YFI price started trending up.

As a matter of fact, in just two days, it gained over 118% of its value back. As of writing, YFI has been trading at $14,200.

“YFI pushed +33% in an hour. No news. Just a monster buyer/s. This is how potential trend reversals look like,” noted one trader.

Other notable gainers include SOL (+35%), Aave (+30%), SNX (+27%), SRM (+24%), and CRV (+20%).

“Do not underestimate the power of what may seem like superfluous narratives in this space. There’s a reason alts have been pulling the same for years; it works,” said trader Hsaka. “AAVE continues to be the DeFi leader with the largest % change in OI too.”

And these gains can be seen reflected in the record DeFi TVL at $12.48 billion, as per DeFi Pulse.

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Author: AnTy

This Election Week is Won by Markets; US Dollar Under Pressure with Risk On

On Thursday, the price of Bitcoin went nearly to $16,000 and is currently holding around $15,500. Having rallied 20% this week, the digital currency seems to be now in consolidation mode providing the altcoins the chance to surge.

These gains came during the US election week, which helped the leading digital currency beat major asset classes this year.

With 115% gains in 2020, Bitcoin exceeds gold’s 28% returns and S&P 500’s 8.60%.

Everything is aiming for their all-time highs following the Nov. 3 election as Joe Biden’s lead strengthened with the possibility of a Republican Senate. Such an outcome of a split government, according to some, could lead to an increase in fiscal stimulus.

“We still anticipate that there will be a fiscal package in excess of $1 trillion next year,” said James Knightley, chief international economist at ING Group in New York.

Besides the escalating pandemic and looser monetary policy, the sliding greenback helps push the digital asset higher as investors seek stores of value.

The dollar has its worst week since March, and according to Kit Juckes, a strategist at Societe Generale, “If you had to write a playbook that would get people to say ‘I need an alternative to the dollar,’ this whole process fits that story.”

During the period BTC rallied, the risk-on backdrop triggered a sell-off in the dollar, which fell to a 2018 low.

“Gold, silver, and Bitcoin have worked like a dream in the weak U.S. dollar environment and has attracted huge client interest,” wrote Chris Weston, head of research with Pepperstone Group Ltd., adding, further weakness in the dollar would encourage “an even more constructive view” on both gold and Bitcoin.

Crypto markets also have a history of wild swings, and it is currently on its third such cycle, riding a tide of liquidity.

Mania isn’t Here Yet

In the stock market, tech stocks are rallying on expectations that key progressive goals like antitrust reforms won’t be implemented by Biden.

According to Goldman Sachs analysts, financial services companies will also benefit from better capital markets and a lower likelihood of tighter regulation.

Already, more than $4 trillion has been added to global equity markets this week, putting it on track for the third-biggest week of 2020.

And with this, investors are back into pouring cash into global markets with a force that hasn’t been seen in months. The same is happening in the crypto markets, which added about $50 billion during the same period.

This can be seen in the open interest in Bitcoin options, which is reaching $4 billion. As per CME’s latest COT report, short interest from hedge funds has made a new all-time high, the same as short interest from dealers and intermediaries.

According to on-chain analyst Willy Woo, Bitcoin is not topping; rather, it will see more bullish action after consolidation.

As for the price action that we have recently, it was the “most organic pump” instead of a squeeze from derivatives traders as a “ridiculous amount of coins were scooped up and moved off to individual wallets,” — the largest one day scoop up in 5 years.

Before the pump started, the influx of new HODLers has been “through the roof,” the kind of momentum last seen in Oct. 2017, just one month before the mania started.

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Author: AnTy

Bitcoin Indicators Following the Same Trajectory They Did Before the 2017 Bull Run

Since Square’s Bitcoin investment news broke out on Thursday, the digital currency has been chasing higher levels. The first bust of momentum saw us reaching for $11,000, the second one breaking it, and then we went nearly to the $11,500 level.

At the time of writing, BTC/USD has been trading around $11,300, back to early September level, in green on the back of the gradually rising volume.

Bitcoin’s gains have brought back the greens in the crypto market, especially DeFi tokens, which have been bleeding for the past few weeks.

Odds for Parabolic Advance

These greens have also brought back the euphoria in the market, with participants expecting a strong momentum.

“New highs after explicitly bearish news is a strong indicator of underlying market strength,” said Ari Paul, the co-founder of investment firm BlockTower Capital.

According to him, “this is the common set up” for parabolic moves, which are rare. “Higher odds of a parabolic advance now than any time since March,” he added.

Interestingly, adding to this bullish case is the 2.88 million BTC that recently flowed out of centralized cryptocurrency exchanges.

As per Crypto Quant, all exchanges’ netflow of bitcoin has hit the year-low, and it is likely to keep negative “when the bull run is about to start,” much like the case was in 2017.

Whales on it

In anticipation of a strong movement towards the north, the number of whales, those entities holding more than 1,000 BTC, has been on an upwards trend for the past few months.

“An indication that more high-net-worth individuals are entering the space to invest in Bitcoin in expectation of BTC price appreciation,” noted Glassnode.

The same momentum in whales’ increased BTC accumulation was seen in 2014-2016 and before that during 2012-2013.

BTC Whales
Source: CoinMetrics

Adding to this bullishness is the Bitcoin’s Realized Cap, which has been steadily increasing just like it did before the 2017 bull market took off.

As per Coin Metrics, “If it continues as it did in 2017, 2021 should be an interesting year.”

Bitcoin MVRV (Market-Value-to-Realized-Value) is also holding the same trajectory as of the last bull run.

Bullishness all around

Interestingly, most of the post-March activity hasn’t been followed by the re-activation of long-term held bitcoin, which supports the idea that holders expect the medium price action to be positive.

The network is also growing in a healthy fashion with the network more secure than ever as hash rate hits a new peak and transfer count growing steadily, indicating an increasing user base.

Amidst all the bullishness, trader, and economist Alex Kruger shared a bearish case, “If price were to move down and linger in the low 10s – upper 9s, it would set a bull trap and could then easily breakdown.”

However, he is not expecting the trend to be bearish; rather, he is bullish, as a matter of fact, “extremely bullish, not just bullish.”

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Author: AnTy

Digital Asset Trading Platform eToro Rolls Out Cardano (ADA) And Tron (TRX) Staking Service

Popular trading platform, eToro, announced on Thursday that it would provide staking rewards for cryptocurrencies starting with Cardano (ADA) and Tron (TRX).

The multi-asset exchange stated that clients that own these cryptocurrencies, ADA, or TRX, would have a chance to earn rewards by staking, which will be paid out monthly. The firm also revealed that it plans to introduce other assets later, but hasn’t revealed what the next digital assets would be.

According to the press statement, the system is fully automated, and users will not need to do anything extra but just trade these assets like normal.

The rewards will be calculated by taking a daily snapshot, which will be taken at 00:00 GMT. The automated system calculates the staking rewards based on the snapshot and distributes them at month-end according to the average daily position size. This means that traders who will change their positions on these cryptocurrencies over the course of the month will see their staking rewards change.

Like most proof of staking (PoS) tokens, investors will need to hold the assets for a certain number of days before they receive the first reward. However, the amount of time required is variable. For Cardano, one must hold the asset for nine days.

According to the press release, the rewards will be compounded on a monthly basis. It says:

“Clients staking on eToro benefit from doing so on a regulated and globally trusted platform. We also believe staking rewards on our platforms are among the most generous in the market, from a minimum of 75% of the staking yield.”

In late July, Cardano introduced staking on its mainnet following a successful trial using an incentivized testnet. In the recent past, staking as a service has gained prominence, and eToro will now be competing with various exchanges and independent staking providers such as Binance, Coinbase, Bison Trials, and many more.

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Author: Joseph Kibe

Bitcoin Trading Like a ‘High Beta’ But Social Sentiment Remains Subdued

After a somber start of the week, Bitcoin is all set to end it on a higher note.

In the late hours of Thursday, the leading digital currency started recovering and went above $10,800. Since then, we have been keeping around $10,700 in the green on the back of just over $1 billion ‘real’ trading volume.

Altcoins are also feeling the gains with YFI around $29,500 and more cryptos in green than red.

According to trader @SmartContracter, however, over the next few days, a decline from $11,200 will signal the start of a move down and “not the end of it.” “Will be looking to short 10.9k and only longing if 11.2k is taken out again although I suspect it wont,” he said.

Many still expect that a move below $10k might not come, given that during the last bull market, the flagship cryptocurrency kept holding its weekly 21 EMA.

What’s disappointing is BTC’s weighted social sentiment for Twitter, “which measures the positive/negative ratio of comments multiplied by the overall frequency of comments.”

It is currently sitting at a 2-year low, showing a clear pattern of non-believers in the community after the crypto market experienced an aggressive retracement over the past few days.

However, “this level of negativity can often lead to a positive rally, as we’re seeing thus far today. Markets most commonly follow the path of least expected,” noted crypto data provider Santiment.

Still, it’s worth mentioning that the upcoming US Presidential elections, in early November, spells uncertainty and volatility across the markets. All the markets are acting like the same, whether it’s stock, gold, bond, or crypto.

“It’s really all the same at the moment. Crypto is simply trading like a high beta, and Defi like the highest beta of them all,” said trader and economist Alex Kruger.

But bitcoin’s correlation with the equity market is short-term, which many believe will soon end. The number of bitcoin entities, which is organic growth as opposed to hedge funds and whale trades moving capital in and out of BTC as they trade and hedge positions, continues to grow that will make sure of it.

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Author: AnTy

65% Vote For ‘Zero Compensation’ For MakerDAO Vault Owners Who Lost $8M On Black Thursday Crash

  • MakerDAO votes against compensating vault owners following the Black Thursday crash in March of this year.
  • Over 65% of the votes cast opted for zero compensation.

A vote completed on Sept. 22 after two weeks of community participation, MakerDAO protocol, a decentralized lending platform, decided not to compensate vault owners who lost up to $8.83 million in the Black Thursday crash on March 12.

MakerDAO raised a vote in August to decide whether the wipeout on March 12 constituted a refundable action and what means of payment would be most applicable. In the just-completed vote, over 65% of the 87,899.67 MKR (8.4% participation) votes cast opted for zero compensation in both MKR and DAI tokens.

Only 18% and 15% of the remaining votes wanted partial compensation of the vault owners in MKR and DAI stablecoin. According to the MakerDAO protocol rules, 1 MKR represents one vote. Despite the decentralization, the pool of voters was still short – with only 38 unique voters participating – highlighting the overall issues facing DeFi governance at the moment.

During the March 12 market crash, Ethereum (ETH) – the most popular collateralization asset on Maker – dipped heavily to sub-$90 levels. Vault owners who stake their collateral in Maker to mint DAI stablecoin saw their overall collateral value dip as ETH crashed, causing under-collateralization. In effect, vault owners should be liquidated at $100, but the protocol’s oracles did not reflect the price causing some of the auctions of DAI to be executed.

Some orders as low as 0 ETH for DAI were executed, causing an $8 million wipeout for the vault owners who carried the burden of the collapse. The collapse caused a $4 million debt hole in Maker’s protocol leading to the very first debt auction in the decentralized finance industry.

The decentralized vote on Maker is the final nail on the coffin for vault owners who pushed for compensation through newly minted DAI or MKR tokens. However, the result of the vote shows MKR holders were not of the idea of diluting their MKR tokens by adding supply to repay the vault providers.

With the vote completed, MakerDAO is still fighting its battle in court with a $28 million class lawsuit opened over the Black Thursday meltdown.

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Author: Lujan Odera

Libra Association Hires Former HSBC Europe Managing Director, James Emmett

In an announcement on Thursday, Libra Association announced James Emmett, former European head at HSBC as the new managing director of its subsidiary, Libra Networks LLC. Emmett will start his role at the digital stablecoin firm on October 1.

According to the statement, James Emmett is a well-experienced financial services leader in “business, strategy, technology, and operations” having worked 25 years at the global financial institution. Emmett becomes the second high-profile manager from HSBC to join Libra, after Stuart Levey joined as the CEO of the Libra Association earlier this year.

Speaking on Emmett’s appointment, Levey showed his excitement saying the new appointee’s “leadership will help make Libra’s vision a reality.”

Emmett’s 25 years at HSBC saw him take on a number of roles including chief executive of HSBC Bank PLC and Europe. In his capacity as the chief executive of HSBC PLC, Emmet was responsible for the bank’s wholesale and retail operations across Continental Europe, Sub-Saharan Africa, and Bermuda. Emmett has also acted in the position of COO of HSBC overseeing overseas technology operations. Passionate in the opportunities that digital currencies offer the current financial services, Emmett said,

“I am delighted to be joining Libra Networks with a mission to enhance financial innovation and inclusion and to deliver the operationalization of the network.”

With global regulators on Libra’s neck as the Association plans to launch its stablecoin, Libra is moving to employ more legal experts to smooth the relationship with global regulators. Shortly after appointment of Stuart Levey and CEO of Libra Association, Libra appointed Ex-Goldman Sachs Executive, Sterling Daines as its global compliance lead and Stevan Bunnel, former Homeland Security general counsel to replace Robert Werner as Libra’s general counsel.

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Author: Lujan Odera

Liquidity Coming to Serum: Veteran Market Maker & Liquidity Provider, Jump Trading, Joins the DEX

Amidst the market-wide deep correction on Thursday, the decentralized derivatives platform (DEX) Serum, a collaboration between FTX and Solana blockchain, announced a “huge addition” in the form of Jump Trading.

One of the world’s leading liquidity providers in the financial ecosystem, who is also a market maker for Robinhood and in the crypto world for BitMEX and Bitfinex, Jump Trading has entered into a partnership with and made an undisclosed investment into Serum.

“Liquidity is coming: enough to scale,” tweeted FTX co-founder and CEO, Sam Bankman-fried.

A major step towards the maturation of the DeFi space, Jump Trading, will be providing market making and liquidity services to assets on the Serum platform that was launched just last week.

This past weekend, Serum went live and currently has markets for BTC, ETH, SOL, SRM, FTT, SUSHI, SXP, MSRM, YFI, and LINK with trading pairs against USDT and USDC each.

Founded in 1999, Jump Trading is known for maintaining a low public profile and is active in futures, options, cryptos, and equity markets worldwide and is a member of the Principal Traders Group.

Jump Capital, the sister company, is an active investor in the crypto market and has backed firms like BitGo, Digital Assets Data, Curve, and Bitso, among others.

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Author: AnTy

The Fed Fires Shots At Libra: FedNow Will Provide Instant Payments Without Bypassing Regulations

In a speech given on Thursday, Lael Brainard, the Federal Reserve governor canvassed on various financial issues in the United States and the world and the issue of stablecoin like Libra was raised.

The Facebook led project that was launched last year with lots of publicity, has been said to fuel the clamor by central banks in the world to develop their own digital currencies. Libra has also elicited criticism across the world with some financial regulators vowing to never allow the stablecoin to operate within their borders.

Jerome Powell,the Fed’s chair, explained to Congress that Libra ‘really lit a fire’ in regards to the works of the US central bank.

On her part, the Fed governor has previously stated that they are working with several central banks across the globe to come up with a way of introducing central banks issued digital currencies (CBDC).

Brainard’s speech majorly talked on FedNow which is a platform that is being created by the Fed which will allow financial institutions in the country to make instant payments. Brainard stated that most of the core aspects of the platform have been approved by the Federal Reserve Board.

Brainard’s speech also touched on the future of payment systems in the wake of advanced technology. She stated that stablecoin network projects such as Libra have raised fundamental issues on regulatory standards, financial stability as well as the aim of private money in the world. She stated:

“Efforts by global stablecoin networks such as Facebook’s Libra project to drive the next stage of payment innovation have raised other fundamental questions about legal and regulatory safeguards, financial stability, and the appropriate role of private money.”

The speech seems to explain some of the key projects being undertaken by the Federal Reserve when it comes to payments. Brainard stated that the Fed remains optimistic that technology as well as innovation will be used to deliver payments instantly, safely as well as efficiently. She however cautioned that the right safeguards must be developed for the technology to work swiftly.

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Author: Joseph Kibe

Bitcoin-based Startup Zap Opens Strike for Public Beta And Plans to Release Visa Rewards Card

Jack Mallers, Zap founder, revealed on Thursday that Zap’s Strike product, which enables individuals to receive Bitcoin in US dollar form through direct bank deposits, opens up for the public beta.

Mallers, who is also a lightning network developer, announced that Zap has finally entered Visa’s Fast Track program. In an email with CoinDesk discussing the firm’s 2020 plans, Maller elaborated that joining the program will position the firm to enter the market quickly. He said:

“Visa works with members of the Fast Track program to help them go to market in the most efficient way possible, providing them support and resources every step of the way.”

Mallers also explained that his main focus for 2020 is introducing a Strike card for use by consumers using the app as well as integrating it with Visa Direct, the program which makes Venmo payments so fast. However, he did not give a date when the Strike card will be launched.

Mallers also explained that Visa will be Zap’s partner for consumer issuance offering but will not take part in merchant offering.

Visa has been very aggressive in inking deals with crypto-based firms this year. For instance, with Coinbase, as well as Fold, the shopping reward app, provides corresponding Visa cards. The cards are mostly used by cryptocurrency users who prefer to get crypto rewards as opposed to other forms of kickbacks. Also, there are crypto debit cards that enable individuals to use dollars. Currently, it is not clear the options that Zap will avail to its cardholders this year.

Although Visa confirmed the partnership deal, it declined to offer additional information by the time of publication.

While Cash App by Jack Dorsey, as well as a renowned exchange platform, Coinbase are highly referred to as the mainstream apps when it comes to selling and purchasing Bitcoin, Mallers is set to provide an app with the same capabilities but at low costs.

Currently, the Strike platform is mostly common among small businesses as well as with their customers.

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Author: Joseph Kibe