Bitcoin Giving Strong Bullish Signals, Markets to Roar Higher into Next Year

Today, Bitcoin is on the move, aiming for $11,000, currently trading around $10,915.

Adding to this bullishness is all the dry powder. $20 billion worth of fiat is sitting on the sidelines in stablecoins, which has doubled since May.

https://bitcoinexchangeguide.com/bitcoin-re-entering-the-intense-historical-trading-area-following-a-strong-uptrend/
Source: Coinmetrics

Moreover, Bitcoin Difficulty Ribbon Compression is trending up, breaking out of the green buy zone for the first time since the March sell-off.

“Historically, these have been periods characterized by a positive momentum indicating significant BTC price increases,” noted Glassnode.

Not to mention the number of daily active addresses that have been growing strongly this year, with the 180-day average just surpassing its previous ATH.

Meanwhile, in other markets…

While bitcoin started seeing positive moves last week, gold continued down only to make some moves today at 1,871, which is the exact opposite of the US dollar.

The greenback started uptrending right from the beginning of last week, going from 92.75 to today’s 94.74 last seen in late July before it started sliding down. Still, it is holding onto the 94 level.

When it comes to the stock market, it has recorded four straight weeks of declines on the back of a stronger dollar, which is putting pressure on the prices of many assets.

Today, the stock market is also trying to start the week on a green note, opening higher, but it’s to be seen if it will be able to catch up.

Get Ready for the upcoming mania

While Bitcoin (-6.56%), Gold (-4.79%), SPX (-5.77%), USD (-0.62%), and WTI (-7.86%) all are looking to end September on a red note, the next quarter is expected to bring back the greens.

Unlike September and quarter 3, the next quarter has historically been of the green ones. However, for a brief period of time, the US Presidential election will keep the markets uncertain with the major event this week involving the presidential election debate on Tuesday and a vote in the House of Representatives for a second round of pandemic stimulus before the House goes into recess on Friday.

But moving into 2021, things are expected to be even better.

“Impossible to be bearish when we are coming out of the biggest recession in history. The world economy will roar in 2021. Once the uncertainty driven by the US elections is behind us, we are once again off to the races,” said trader and economist Alex Kruger.

According to him, the governments will “overcompensate with ever-increasing fiscal and monetary policy stimulus.”

This means the continuation of a trend that started in April 2020 not only for the stocks but also for crypto, precious metals, the real economy, and others, he said.

The key issue is with the day long term interest rates when they “start rising fast, that’s when we have a major problem.”

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Author: AnTy

Robinhood Raises $460M for A Total of $660M in Series G As Trading App Popularity Grows

The retail trading app, Robinhood, announced an additional $460 million extended fundraising in its Series G round, bringing the total round funding to $660 million. Some of the current investors, including Andreessen Horowitz, Sequoia, and DST Global, participate in the round.

According to a Robinhood spokesperson speaking to Reuters, Robinhood Markets Inc. extended its Series G funding round, adding an additional $460 million from top investment partners. The latest extended Series G funding came barely two months after a $200 million investment from D1 Capital Partners.

The latest extended funding round brings the total valuation of Robinhood to $11.8 billion. The extended investment came from some of the existing partners and new ones, including Ribbit Capital and 9Yards Capital.

The latest funding round follows a successful trading period during the quarantine period on Robinhood, which simplified and popularized trading for amateur and millennial traders. However, the digital mobile retail exchange has faced several shutdowns in the past few months, and customer experience failures, raising concerns for traders.

According to the spokesperson, the new funding round aims to reduce the cases of system crashes and provide a better user experience on their platform. Robinhood spokesperson said,

“We’ve raised an additional $460 million in subsequent closings to our Series G to support our core product and customer experience and new offerings like cash management and recurring investments.”

The surge in users and capital invested in Robinhood over the past nine months have seen the trading app raise over $1.25 billion from investors in 2020 alone. This brings the total investment in Robinhood to $2 billion.

The trading app announced in July that it would be pausing its expansion into the U.K as the exchange focuses on its operations in the U.S. The company blamed the tough COVID 19 pressure on business as the cause to shelve its expansion plans.

Moreover, there have been complaints across the U.S that Robinhood is offering amateur traders very complex financial instruments to trade. In a sad case, a 20-year old committed suicide after checking their account and wrongly misinterpreted the data output.

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Author: Lujan Odera

UNI on the Move, Is Uniswap’s Governance Token Outside the Realm of US Securities Law?

Last week, the largest decentralized exchange (DEX) by trading volume, Uniswap, launched UNI as part of Uniswap V3. 400 UNI tokens were airdropped to every customer who used the platform before Sept.1st, 2020.

While some called this a “groundbreaking” token launch where customers were made the investors, some accused the project of catering to whales. Currently, UNI tokens are being held by more than 50,000 Ethereum addresses/wallets.

The token hit the peak above $8 last week only to lose more than 50% of its value during this week’s retracement. Today, UNI is back on the move, up about 25% at $4.81.

The liquidity on the popular DEX has also hit a new record this past weekend and continues to trade around $2 billion, since crashing following its copycat SushiSwap, sucking the liquidity. The volume on the exchange also sees growth, keeping above $400 million for the most part.

The community is now waiting for Uniswap V3, which will improve capital efficiency and tackle slippage. Project creator Hayden Adams has already raised the expectations of the community saying, it will be “sooo much better than all the things people are hoping it will be” and that Uniswap V3 “destroys every other AMM I’ve seen to date and it’s not even close.”

“We’re full steam ahead on V3, which is going to eat V2’s lunch,” said Haydens a few months back.

Meanwhile, what’s the legal nature?

Right at the genesis, 1 billion UNI tokens were minted, 60% of which will go to community members, 15% is already distributed through the airdrop. 21.51% will go to team members with a four-year vesting period the same as 0.69% to advisors, and the 17.80% share that goes to equity investors — Uniswap raised $11 million in June this year.

Being a governance token means, holders have control over company decisions. But with the launch also came the question if it is a security.

“There was no public solicitation for investment; it was a private offering to a few people,” is what Ethereum co-founder Vitalik Buterin has to say about this.

“If one were to also consider that the Uniswap team is well funded, backed by seasoned VCs who have most likely lent their legal, regulatory, technical and other expertise, one might also take a more careful consideration of the facts and circumstances of this particular offering and why Uni tokens may very well be outside the enforcement framework of U.S. securities laws,” wrote Phil Liu, the Chief Legal Officer at Arca.

Liu, who believes UNI tokens isn’t a security, in his argument that UNI tokens fall outside the US Securities Enforcement Framework, said the team didn’t raise money through a token offering and neither it is controlled by a central entity.

As a matter of fact, Uniswap is an open-source and fork-able network that puts the power directly into the holders’ hands.

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Author: AnTy

DeFi’s Speculative Frenzy Subduing Ethereum; Users Approaching 500k

During the bloody red Monday, Ether lost about 10.6% of its value; currently, it is trading around $340.

These levels were last seen earlier this month, but another small lower and Ether will get back to July level.

“Weekly time frame still looking like a bearish retest of the previous range ($390s). Bitcoin looking better on the weekly, but also pulling back from daily resistance,” noted trader Cred.

With a lull in price came the opportunity to make cheaper transactions on the second-largest network. Not that the sky-high fees prevented users from doing that, as evident from the drastic congestion seen last week.

DEX Extravaganza

Currently, the average transaction fees on Ethereum is around $3.56, down from $11.6 on Sept. 17, the day popular DEX Uniswap airdropped its governance token UNI.

Uniswap is the project that accounts for the highest gas spent. In the past 30 days, Uniswap V2 was responsible for spending $12.7 million in gas.

It is also the largest decentralized exchange by trading volume that generates nearly $1.5 million in fees per day, less than Ethereum’s $5.2 million but more than Bitcoin’s just over $500k, as per TradeBlock.

The trading volume on DEXs overall has also been hitting a new all-time high. More than $17 billion in notional volume has already been transacted so far in September, double the August’s volume and an increase of 400% since July.

DEXs have seen explosive growth in recent months on the back of increased capital flows in DeFi tokens, which don’t need a formal listing process. All this speculative frenzy of activity results in driving up ETH gas fees.

With traders desperate to get ahead of their peers and willing to pay outrageous prices for a confirmation, the Ethereum fees proved to be inelastic, which has some projects even abandoning the network as it makes their project economically unviable.

Can even ETH 2.0 handle it?

The overwhelming demand for Ether has been going on for the past three months, which saw the daily transactions on the network hitting a new peak at 1.4 million, up from 1.34 million set at the height of last bull run, in early Jan. 2018, as per Etherscan.

This is why ETH continues to flow out of centralized exchanges and into smart contracts. Since August 15th, the balance of ETH has decreased by 11.6%, with 2.2 million ETH withdrawn from exchanges while the amount of Ether in smart contracts increased by 3.4 million.

DeFi currently has nearly 8 million ETH locked compared to 16.6 million on centralized exchanges, as per Glassnode.

The innovation in DeFi space is also drawing users in like crazy, currently just under 500k, up from 98k at the beginning of 2020 and a mere 8,325 on January 1st, 2019.

This raises the question of whether ETH 2.0 will really be able to handle this growth.

“(ETH 2.0) starts with 64 shards at first, so it should be able to handle at least 64x more usage (potentially even more if we get some L2 adoption as well),” said David Lach.

Although the first step towards ETH 2.0 has been taken, the path to launch is long and arduous, as such layer-2 applications present another solution with Ethereum co-founder Vitalik Buterin himself endorsing the likes of OMG, Loopring, and Zk-sync.

With high gas fees also burning the profits of exchanges, with Coinbase now passing this directly onto users, an increasing push towards these solutions has been seen. Tether is already implementing Zk-roll ups; many apps are also turning to side chains such as xDai.

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Author: AnTy

Bitcoin Must Outperform Altcoins To Kick Off A Long-Term Bull Market

For the past four days now, bitcoin has been hovering around $11,000. Trading in the green, the digital asset today went as high as $11,185 but with the ‘real’ volume only about a billion dollars.

Much like the spot trading volume, futures had a lackluster performance as well. From $28 billion on Sept. 3rd, it has come down to just $7.2 billion. On CME, the volume kept between $262 million and $445 million since the mid of last week.

Open interest also followed the same path, going down from $5.1 billion to $3.7 billion in the first few days of September. But unlike futures volume, OI has been slowly trending upwards, making it to $4 billion. On CME as well, OI jumped back to $500 million.

However, during this whole ordeal, Bakkt came out the winner, making new records. On Monday this week, the total volume (physically-settled + cash-settled) was $183 million. Then on Wednesday, this record was broken with $191 million. But the OI on Bakkt had no such fun as it remains near $10 million.

What’s Looking Good?

While bitcoin looked good this week, with the price around $11,000, analyst DonAlt is all about the $10,600 area, which according to him, “is still one of the most important areas on the chart.”

“This week closes below it? I’ll assume the top is in, and we’ll trade towards $8k. We close above it? I’ll close shorts and see what happens next,” he said.

Amidst this, European Central Bank will disburse its latest rounds of loans with interest as low as -1% that has led the funding costs to fall. ECB’s liquidity injections may raise excess cash in the euro area above 3 trillion euros ($3.6 trillion) for the first time.

Today, while BTC is looking green, altcoins are not having that great of a time which includes SAFE (-25%), BAL (-16%), KNC (-10%), CRV (-9%), Tezos (-8%), YFI (-7%), and LINK (-4%), with the top ones down between 1% to 3%.

Still, the likes of CREAM (43%), SASHIMI (42%), UNI (40%), YAMV2 (16%), BASED (8%), and Aave (5%) are making gains.

Signs of New Money Moving into Crypto

The leading cryptocurrency is taking its sweet time moving upwards. Up 50.5% YTD, in Q3 bitcoin, has made gains of only 20%, about half of Q2’s 42% returns. But it is still better than gold’s 10.15%, SPX 7%, dollar’s -3.69%, and WTI’s -6.5%.

Quarter third, however, hasn’t really been good for the cryptocurrency, except for in 2017, or stocks for that matter. The next quarter, on the other hand, historically has been dominated by greens — 82.8% in 2015, 62.60% in 2016, and 210% in 2017. In 2014, 2018, and 2019, however, Bitcoin recorded losses of 18%, 42.5%, and 13.60% respectively.

Also, as Juan Villaverde of Weiss Crypto Ratings notes, underneath the surface, we are seeing “crypto-assets establishing a solid base for a potentially explosive rally as we head into the final quarter of 2020.”

His takeaway from the current market action, where bitcoin is moving higher while altcoins are struggling in sharp contrast to the past couple of months,

“Bitcoin remains the benchmark for outside investor interest in the asset class.”

“I’ve often noted on these reports how no crypto bull market is sustainable without Bitcoin leading the way, at least in the early stages,” said Villaverde adding:

“it’s only when we see Bitcoin outperform the rest of the markets to the upside that we can say that new money is moving into the crypto space — a necessary prerequisite for a long-term bull market.”

But it also remains to be seen if bitcoin will continue to outperform over the next few weeks.

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Author: AnTy

Overstock’s Crypto Trading Subsidiary, tZERO, Hits Record High Volumes in August

  • tZERO, the crypto trading app backed by retail giant Overstock, has announced new record volumes in August.
  • This digital securities platform noted that both their crypto trading app and blockchain-built alternative trading system (ATS) experienced the highest activity since they were launched back in June 2019.

The month of August saw tZERO’s user base grow by 11% compared to July, marking an increase of more than 1,000 new users on the digital asset app. Notably, this year has been relatively bullish for tZERO with a total of 143% growth in user base since it began. The platform is now looking to give traditional brokers a run for their money when it comes to offering digital securities trading services to Wall Street.

Going by last month’s stats, tZERO’s digital asset app grew by around threefold in traded dollar volumes. The reported figure, which is $22 million, is a jump from July’s $7.6 million, while the year-over-year growth stood at 684%. Saum Noursalehi, the CEO of tZERO, further highlighted significant milestones by the project,

“In addition to delivering record trading volume on the tZERO ATS in August, the St. Regis Aspen (ASPD) digital security began trading … These wins, coupled with FINRA’s approval of tZERO Markets, are exciting, and we look forward to offering our crypto customers the opportunity to open brokerage accounts at zero Markets.”

The platform is now incentivizing activity with its recently rolled out zero-fee structure for publicly-traded digital securities; private ones, however, retained the previous fee structure. Nonetheless, the project is not yet out of the words when it comes to product scaling and attracting heavyweight investors to compete favorably against traditional brokerages.

Apart from the crypto trading app, tZERO has been actively involved in the tokenization of assets, not limited to real estate and film productions. It is also quite noteworthy that Overstock began accepting BTC payments as early as 2014, giving the retailer a head start in the space.

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Author: Edwin Munyui

SushiSwap Creator Pulls a Charlie Lee, Sells 2.55M SUSHI Tokens Because He ‘Deserves’ The ETH

SushiSwap got Sushi dumped.

Today, the token was trading at $4.91 when it started slumping and didn’t stop until it lost about 60% of its value.

At the time of writing, SUSHI was trading at $2.27, as per CoinGecko.

The losses came after Chef Nomi, anonymous creator of SushiSwap, the clone of DEX Uniswap, sold part of the SUSHI tokens allocated for the development of the ecosystem.

Approximately 2.56 million SUSHI, for 17,970 Ether (worth over $6 million), has been sold by him within ten days of the launch of the project. The new dev shares are now under the SushiSwap multisig contract for which the signers are being chosen.

The reason for this, “I stop caring about price and I will focus on the technicality of the migration,” shared Chef Nomi on Twitter while clarifying about his recent move for which he has received “blaming and FUDing” when he is “taking IL for you.”

The anonymous creator says he did not exit scam as he will “continue to participate in the discussion. I will help with the technical part.”

Does this remind you of someone, maybe Litecoin creator Charlie Lee? This is because Chef Nomi did pull a Charlie Lee. “I am still here…@SatoshiLite did that and Litecoin had no problem surviving,” he said.

Lee is infamous for selling all his LTC at the top of the market. And if the community thinks he didn’t deserve the ETH, you better think again and think hard because

“I think my contributions justified that. I wrote the migration code. I did all the audits. I coordinated the largest LP pools ever. I created a large community. I sprung up 100s of LP scam projects. All in 1 week.”

That’s right, he created the idea and the community when the price wasn’t under pressure. And given that it’s an open experiment if you don’t believe in the idea or community, “you are free to leave,” there are “no strings attached.”

“All I can say is if this experimentation goes on to success, you guys know the upside. But if people don’t believe in the project, it will fail and we return everything back to the original creator @UniswapProtocol. I am happy with either result,” concludes Chef Nomi.

The project has been going strong, it even surpassed lending platform Aave in terms of TVL, which has now dropped from $1.6 million to $1.1 million.

The community is divided on whether it is a good move or bad. “Sushi exit scam. Incredible. And trying to pretend to be nice. When dealing with magic internet money, the good projects have strong founders or strong early adopters. May sell some at the top, never cash out,” said trader and economist Alex Kruger.

Some even called out exchanges for listing these tokens while others argue that Binance-like exchanges actually give the opportunity to long or short.

Amidst this DeFi mania, from FTX, Binance, Gate.io, to Coinbase, Huobi, and OKEx, everyone has been listing the latest hot DeFi token within days of their launch.

“I don’t know what is worse…An ICO company taking 20,000 Ether and not making anything for 3 years and watching their token go down -99%…Or SUSHI founder selling all his holdings for 20,000 Ether to crash the price -99% only two weeks after it was created,” said trader Jacon Canfield.

Also Read: FTX CEO Proposes Deploying SushiSwap to Solana, Votes in Favor

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Author: AnTy

Synthetix Becomes The Latest DeFi Project To Fully Integrate Chainlink’s Decentralized Oracles

  • Decentralized finance protocol, Synthetix, an exchange for trading synthetic assets on the Ethereum blockchain, is moving towards full decentralization.
  • In a blog post published on Sept. 1, the platform will integrate Chainlink’s decentralized oracles as a step towards its planned decentralized governance.

The DeFi protocol had previously integrated Chainlink oracles to connect off-chain data, relying on their internal oracles for on-chain data. However, Chainlink will now be fully used to remove any dependence on centralized parties as oracles providing data on the price of commodity crypto and forex synthetic assets (Synths) traded. The statement reads,

“We are excited to announce that after an eight-month successful implementation of Chainlink’s decentralized price oracles for our commodity and FX Synths, we have now switched the rest of our price oracles over to Chainlink as per SIP-36.”

Chainlink’s oracles provide a wide range of nodes that provide greater security while allowing scaling up of the assets (Synths) minted on the platform. Furthermore, Chainlink’s Data Price Reference allows multiple DeFi projects to finance the shared pools and price feeds, building a shared economic model that lowers the cost of data referencing across all projects.

Synthetix decentralization efforts follow a similar path being established by DeFi protocol such as Compound (COMP) –which switched from centralized governance to a decentralized system with its governance token.

The integration comes barely a month following the decommissioning of the Synthetix Foundation as the governing council, replacing it with three community-led autonomous organizations (DAOs) – synthetixDAO, grantsDAO, and protocolDAO.

Synthetix suffered a massive attack in July 2019 after hackers breached the oracles making away with over $37 million. Investigations showed the oracle attack arose from faulty bots and a centralized point of attack. The full integration of Chainlink oracles marks a significant improvement in Synthetix, with such cases expected to reduce to a minimum as decentralization improves.

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Author: Lujan Odera

Binance Lists Wrapped-BItcoin (WBTC) Amid the Rapidly Growing DeFi Hype

Binance, one of the most recognizable crypto exchanges, with the highest share of the trading volume, is chasing the ongoing DeFi hype. Binance has recently announced the listing of another Defi token, used for collateral, called Wrapped-Bitcoin (WBTC). This listing is seen as Binance capitalizing on the rising demand for the token as well as for DeFi tokens.

Wrapped-Bitcoin is an ERC-20 based token device to be used as a form of collateral in the defi ecosystem. As per the announcement made by the exchange, the WBTC token would be available for treading on the exchange from August 31st. The value of WBTC is pegged against the value of one bitcoin.

The WBTC token was a collaborative effort by major defi players in the space, including the likes of BitGo, Ren, Dharma, Kyber Network, Compound, MakerDAO, and the Set Protocol. The aim behind creating the WBTC token was to offer more liquidity in the defi ecosystem.

The WBTC token has been listed against Ethereum and Bitcoin for trade, and users on the platform can start investing and trading immediately.

How Will the WBTC Function?

Decentralized Finance (Defi) has become the talk of the crypto world in 2020 as the market grew exponentially over the first half of 2020. Defi protocols use Collateral Debt Position (CDP), where users can put Ether or ERC-20 based tokens as collateral and withdraw loan in a stablecoin.

When the popularity of the defi ecosystem grew, and more number of investors started venturing into the ecosystem, liquidity became an issue. As a result, the major players began looking for different ways to offer liquidity, and the ERC-20 token arose as the best bet.

WBTC soon became quite popular among investors, and at one point, the amount of wrapped bitcoin locked in defi protocols was significantly more than the amount of bitcoin in the lightning network.

Binance has been known to conquer all aspects of the crypto ecosystem and has proven its mettle in both the spot trading market and futures trading market. Given the growing interest of exchange in the defi, it would not be a big surprise if Binance emerges as one of the key players in the near future for the defi ecosystem.

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Author: James W

BitMEX Launches Its Full-Control Mobile App to Crypto Traders In Over 140 Countries

BitMEX launches mobile-based trading app allowing users to enjoy the crypto exchange’s features on the go. According to an announcement on Sept 1, BitMEX Mobile is available on both iOS App Store and Google Play Store.

The mobile trading app aims at improving the user experience on the exchange even when off your work desk. Additionally, its will enable swift crypto futures trading with access to all account features available on the desktop site.

Speaking on the launch of the new mobile trading app, Ben Radclyffe, commercial director of 100x, the parent company of the crypto derivatives exchange, confirmed BitMEX mobile is now available in over 140 companies after a successful test period across 28 countries earlier in the year. He further said,

“Our global audience, many of them are mobile first, so having an innate mobile application that allows them to access our product and our services should help increase our user base.”

The application offers users a host of features including direct deposits and withdrawals on their wallets and trading features including market orders, limit orders, take profits and stop losses. The BitMEX Mobile app provides an easy to configure and clear user interface allowing quick buy options by swiping the page.

The app also provides push notifications, price alerts, biometric logins and authentication as well as better security protocols. The on-the-go app however will not be as complex as the desktop version, Radclyffe said in a statement obtained by BEG. “It’s a slightly degraded experience as you can imagine,” Radclyffe on the differences between the desktop and new BitMEX Mobile app.

BitMEX currently is the fourth largest Bitcoin derivatives exchange in daily trading volume recording $1.80 billion in Bitcoin futures on Sept 1, Skew Market reports. This represents a slight $0.4 billion increase in trading volumes in BTC Futures in the past 24 hours.

BitMEX’s extended efforts to launch the Mobile app follows an announcement that new and existing users are subject to KYC requirements by February 2021 in a bid to be more compliant.

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Author: Lujan Odera