The World Has Gone Full Crypto in 2020; Volatility is Up, Stocks Are trading like A Sh*tcoins

The global markets are on a rollercoaster for the past few weeks, one day they are recording historical one-day gains the next they are tumbling into the abyss.

Just yesterday, Wall Street Journal’s latest heading read, “A new bull market has begun. The Dow has rallied more than 20% since hitting a low three days ago, ending the shortest bear market ever.”

And this has been after the Dow Jones Industrial Jones rallied 6.4% after the $2 trillion stimulus got closer to getting the green light. The blue-chip index has been up 20% from its low, which is the textbook definition of a new bull market.

As per the Investopedia definition, “the most common definition of a bull market is a situation in which stock prices rise by 20%, usually after a drop of 20% and before a second 20% decline,” although it does mention there is no metric to identify a bull market.

This jump reportedly ended the 11-trading day bear market, marking it the “shortest in history for the Dow.”

Besides stocks, crude oil has also been plunging ever since the oil price war was started by Saudi Arabia and Russia. As Bloomberg notes, Canadian heavy crude has become so cheap its shipping cost is more than the value of the oil itself.

Every stock trading like a “sh*tcoin”

While new for the stock market, these kinds of moves aren’t anything new for the crypto market. Recently, on Black Thursday, Bitcoin dropped over 50% in a two-day period.

Now, the global stock market is experiencing such high volatility, which momentarily went past that of bitcoin. And the market is divided into those who believe that from here the market would move on to yet new highs again while the other side believes a lot more pain is to come in the light of lockdowns and possibility of a recession.

All of this has is resembling a crypto market, as economist and trader Alex Kruger said,

“In 2020 the world has gone full crypto. Full crypto you know. In crypto half the people think prices will “moon”, while the other half think it’s all a ponzi.

In the world now half the people think coronavirus is a sham, while the other half think everything will collapse.”

According to him, with volatility “up the roof,” every stock is trading like a “sh*tcoin.”

“Assets can’t be valued any longer because nobody knows anything, (…) sounds very much like crypto to me,” Kruger said.

Fed Balance Sheet Jumps to a New High

On Thursday another big and devastating news came in the form of the number of people seeking jobless benefits.

In an unprecedented surge, a total of 3.28 million has been reported by the US government to have filed for unemployment insurance in the week ended March 21st. These levels exceed those reported since 1967.

“This morning’s data leaves no doubt that the economy is currently in a recession,” said Matthew Luzzetti, chief U.S. economist at Deutsche Bank AG.

In April, this unemployment rate is expected to touch 5.5% but won’t be the peak. The US meanwhile is awaiting a $2 trillion stimulus package for approval to boost the benefits for those who got laid off.

Besides providing for the unemployed, a huge chunk of money is being used to bailout institutions. The Federal Reserve has long been injecting liquidity into the financial markets and recently announced unlimited QE.

This has the Fed balance sheet jumping to a new high of $5.254 trillion, with the largest ever weekly increase of $586 billion made last week.

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Author: AnTy

FDIC Urges People to Not Pull Money Out in a Desperate Attempt to Avoid A Bank Run

In the past weeks, investors have fled out of risky assets that resulted in equities, oil, cryptos to even gold and bonds falling in prices. The risky assets along with traditional safe haven assets were left out in favor of cash.

As usually happens in times of crisis, investors turn to hoard cash by selling everything they can get their hands on. However, people stockpiling indicates a cash crisis might be brewing. Interest rate cuts to zero percent and even in negative territory isn’t helping the case for banks either.

Yesterday, the Federal Deposit Insurance Corporation took to Twitter to advise people against withdrawing money and hoarding, cash emphasizing that “the safest place to keep your money is in the bank.”

In this less than a minute long video, FDIC talks about how in the current unprecedented times of novel coronavirus, people are fearful about what they should be doing with their money when they needn’t be because “your money is safe at the banks.” FDIC said,

“The last thing you should be doing is pulling your money out of the banks now thinking it is going to be safer someplace else. You don’t want to be walking around with large wads of cash and you certainly don’t want to be hoarding cash in your mattress. It didn’t pan out well for so many people.”

The corporation said, “no depositor has lost a penny of their insured deposits since 1933 when the FDIC was created,” as such “if you’re talking about having your money in a safe place, please keep it in an FDIC-insured bank.”

“You nervous about something?” is what Nik Carter of Coin Metrics responded with.

Bank Runs

In times of economic hardship, everyone makes a dash for cash and this time as it is happening, banks are struggling to provide liquidity.

According to reports, the likes of Bank of America, JPMorgan, and Chase are limiting the withdrawals. These banks have capped the limit between $3,000 to $10,000 in some of the areas.

“We don’t keep large amounts of cash in big bills in the branches because it’s dangerous for our employees and there is low demand,” said BoA.

However, there are no such limits on withdrawing crypto, as long as you are the one that owns your keys. But during the recent market carnage, the fact that cryptos also crashed hard has some in doubt.

However, it must be noted that so did gold just like it fell in 2008 during the financial crisis but only to emerge as the winner. And the same is expected of the deflationary Bitcoin with a hard cap of 21 million, unlike the US Dollar, that the Federal Reserve keeps on printing more and more.

As BitMEX in its recent report noted, “Where the Bitcoin price may shine is in the volatile inflationary aftermath of the response to the crash.”

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Author: AnTy

Demand for Internet Dollars: Crypto Investors Pile into Stablecoins for Safety

Over the past few weeks, stocks markets, crypto markets, everything took a brutal beating amidst the fear of coronavirus pushing the market into recession. Investors have been selling everything they can get their hands on, even safe haven assets like gold and bonds got sold off in a rush to the safety of cash.

From bankers, companies to individual investors, everyone has been dashing to stock up on cash to ride out the chaos. This flight to cash is causing havoc in a market that hasn’t been seen since the financial crisis over a decade ago.

The key concern now is liquidity, the ready availability of cash and other easily traded financial instruments for which the central banks have been pumping trillions of dollars in the market.

The lack of liquidity also saw non-US borrowers paying a premium to access dollars. The forex markets have been extremely volatile this week as small currencies depreciated dramatically against the US dollar as the investors seek a safe haven.

The three-month euro-dollar and dollar-yen swap spread rose to their widest levels since 2017 only to drop after central banks pumped in cash.

Central banks all over the world have also lowered their interest rates and introduced stimulus packages to dampen the negative effects of the coronavirus crisis.

Cryptos’ “Flight to Safety”

The same way there is a flight to the US Dollar amidst the global instability, in the crypto market, money is pouring into stablecoins.

While during the past few weeks, bitcoin and altcoins got hammered, the market cap of most of the stablecoins increased, reinforcing that investors are piling into crypto cash equivalents.

From March 10th through March 15th, Ethereum-issued Tether (USDT_ETH) market cap increased by about $300M. Coinbase and Circle’s joint effort, USD Coin (USDC) also had a huge gain, growing close to $150M in market cap since March 10th, reported Coin Metrics.

Recently, Circle CEO Jeremy Allaire tweeted about USDC’s market capitalization reaching ATH, “Fascinating to see “flight to safety” within the crypto macro market, but also demand for high quality USD liquidity for markets.”

In his series of tweets, Allaire shared his excitement, “It’s still rewarding to see that this entirely new, entirely digital, blockchain based monetary infrastructure is working.”

“Demand for internet dollars — digital, fast, global, secure, cheap to use — should increase significantly. People and businesses will want an architecture where they can make and receive payments with less counter-party risk and more security,” added Allaire.

Fiat is Winning

Stabelcoins provide ease of access to investors and traders along with enhanced liquidity. This led popular stablecoin Tether (USDT) to surpass the market capitalization of $5 billion “amid a surge in interest in crypto’s most liquid, stable and trusted currency,” and take over XRP’s second position, as per Messari.

Binance’s stablecoin also jumped into the race, the US-dollar pegged Binance USD (BUSD), which surpassed $100 million in mark cap in just six months. Ethereum-based BUSD trades almost exclusively on the Binance exchange and is backed by US dollars in an FDIC-insured US bank and audited on a monthly basis.

Cash is king and as evident from the increase in the stablecoins’ market cap, even in the crypto space, fiat is winning.

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Author: AnTy

Trump Wants To Cut A Check Of At Least $1,000 To Every American, How Will You Spend It?

Americans could get a check for $1,000 or more in the company weeks as the government works on a plan to prevent a recession and protect people from going bankrupt.

On Monday, Sen. Mitt Romney (R-Utah) called for every American adult to receive a $1,000 check “immediately” to help people until another government aid can arrive. By Tuesday, the proposal got bipartisan support, including from President Trump.

The White House suggested that the amount could be even over $1,000, an acknowledgment of how big the current situation and economic crisis are becoming.

“We’re looking at sending checks to Americans immediately,” Treasury Secretary Steven Mnuchin said, adding that Trump wants them to go out as soon as “in the next two weeks.”

“We’re going to do something that gets money to them as quickly as possible,” Trump added.

But still won’t avoid recession?

Giving of money isn’t unprecedented as the US has done this before twice. During the Great Recession, the fed sent every adult a $300 to $600 check plus $300 per child. Then in 2001, the same thing happened when the majority of Americans received a $300 check.

During the last recession, checks went out to about everyone who wasn’t a millionaire and filed a US tax return. Those with less than $75,000 income, for the full amount, while the wealthier people got less.

A good first step according to many as it is simple and relatively fast, however, Andrew Levin, a former special adviser to the Federal Reserve said, “I don’t see how we’re going to avoid having a recession.”

This time, the coronavirus check proposal would be a direct cash payment. Mnuchin said Tuesday that millionaires would not be getting the checks.

Multiple rounds of money needed

As per the Democratic proposal from Rep. Tim Ryan (D-Ohio) and Ro Khanna (D. Calif.), those making $65,000 would receive at least $1,000, for which 75 percent of Americans would qualify.

Another Democratic plan from Sherrod Brown of Ohio, Cory Booker of New Jersey, and Sens. Michael F. Bennet of Colorado goes further with $2,000 for every American adult plus $1,500 per child in the summer and a $1,000 check in the fall if the emergency continues.

“We will need multiple rounds of money for everyone,” said Claudia Sahm, a former Federal Reserve economist. One of the leading experts on recessions, Sahms forecast a deeper recession than that of 2007-2009 but might not last long if policymakers act boldly. “This recession is going to be more severe than the Great Recession,” she said.

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Author: AnTy

As ETH Market Sentiment Changes, Top 100 Ethereum Holders Are Increasing Their Stake

Since the Ethereum (ETH) price has been consolidating in the last 2 weeks, the top 100 ETH holders have had their accumulation of ETH coins increasing, says the on-chain metric provider Santiment.

Per a Santiment’s report, the first 100 Ether wallet addresses has accumulated higher percentages of the entire ETH supply in spite of the market’s current conditions. Such accumulations indicate the token has an undervalued price at the moment.

17% of the Entire ETH Supply Held by 10 Exchanges

More data discovered by TokenAnalyst indicates that 10 of the largest crypto exchanges are at the moment holding a percentage of 16.8 of the ETH total supply, which is 18.5 million ETH valued at about $4.2 billion. These exchanges are Binance, Huobi, Gemini, Poloniex, Kucoin, OKEx, Kraken, Bitstamp, Bitfinex and Bittrex, with Huobi dominating, as it holds 4.75 million ETH. After Huobi, Binance, Bitfinex and Kraken hold 2.78 million ETH, 2.58 million ETH, and respectively 2.5 million ETH.

Ethereum 2.0 to Be Launched

Ethereum enthusiasts are waiting for the Ethereum 2.0 implementation so that very important issues like scalability, security and speed of the Ethereum network get to be addressed. While it’s still uncertain if the new updates are going to have a positive impact on the ETH price, the coin was valued 50% more, following the live testnet from last year.

When it comes to the current price of the coin, it can be said ETH doesn’t get to be left behind, since other crypto markets are also gathering momentum for a positive trend. For now, ETH trades safely at over $230, on the green side of the market and at a 3% price gain per day. The most recent price analysis of the coin shows ETH grown steadily from $220. In spite of this, it can’t be expected a short-term bullish trend until the price goes over $240. On March 5, the valuation of ETH had a rise from $224.49 to $233.68.

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Author: Oana Ularu

Bitcoin Price Drops to $6,820, Trader says “We’re Just Getting Started”

And it has started…

In a sudden move, Bitcoin price after just over two weeks of trading above $7,000 today break down below this level, going to as low as $6,820 on Bitstamp.

With this move, trading volume saw a jump as well, going from $175 million earlier in the day to the current $321.4 million. During the weekend, the trading volume fell to $150 million.

But this move, though on the downside is bringing some volume back in the market.

Interestingly, just a few hours before this move, CME introduced additional bitcoin futures maturities to “manage bitcoin-related risk.” From now on, the listing cycle also includes six consecutive monthly contracts that involves the nearest two December contracts as well.

CME is also launching options on Bitcoin futures on January 13, 2020 on the back of “strong demand” and growing interest in cryptocurrencies.

“We’re Just Getting Started”

This time Ethereum led Bitcoin with a few minutes headstart.

But according to popular trader Majin, Bitcoin is just getting started with $6,900 being tested on the cryptocurrency exchange Bitfinex. However, “this 6.9 wall will get munched.”

“We’re not done. We’re just getting started,” said Majin.

BTC longs on Bitfinex meanwhile going Parabolic

As we reported, Bitcoin longs on Bitfinex have been hitting an all-time high while shorts are nearing their all-time low.

If these longs get squeezed, we can drop to low $5,000s however, trader Josh Rager sees it highly unlikely that price will nosedive straight to mid to low $5ks right now. According to him, there would be a lot of bounces on this journey to the fall.

A Buy the Dip Opportunity like never before?

Trader and analyst Tone Vays meanwhile already stated that Bitcoin would be breaking down below $7,000. This “low” he said would be the best time to buy the dip that won’t be coming for years to come.

However, this former Wall Street has been bearish on Bitcoin price throughout 2019 when BTC was rallying. He even bet 100 BTC that Bitcoin will drop below $2,000 before 2024.

Then last month, he said in order for this to be a bull market, we need to see a “very clear pullback of 30% and a sustained higher low.” This would put BTC somewhere between $4,000 and $5,000.

Just like Vays, another analyst is bearish on BTC and expects a new low for the world’s leading cryptocurrency.

Magic Poop Cannon expects BTC to drop to $3,000 level which he says would have the crypto market experience the exodus that the Internet did in 2000.

Mati Greenspan, founder of investment firm Quantum Economics newsletter and former eToro analyst, however, has just this to say, the current drop puts the BTC price where it was less than a month ago and “Any movement within this range is irrelevant in the long run.”

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Author: AnTy

Mysterious Crash Arises on the Bitcoin Network as the Hash Rate Drops Down 40%

The Bitcoin network hash rate, which was reaching all-time highs a few weeks ago, has recently dropped around 40% yesterday. The news comes as a shock for the network as the numbers were pretty good so far. According to information from Coin.dance, the hash rate plummeted from 98 million to 57,7 million TH/s.

Just five days ago, Bitcoin reached an all-time high speed, so it was considered very weird that such a low hash rate was discovered yesterday. Several traders and analysts are still trying to understand the flash crash.

A hash rate, in case you have been wondering, is the rate that shows how much power the network is using to mine tokens. The more miners there are out there, the higher the hash rate will tend to be. Such large drops can mean several different issues, so it is hard to explain why this happened.

Many mining rigs could have been shut down for some reason or maybe another smaller event made the network to be considerably slower than it normally is. In any case, a high hash rate is important because it means that there is more protection against 51% attacks that could disrupt the network.

A high hash rate also means that the prices of Bitcoin will tend to go up. The Bitcoin maximalist Max Keiser has recently affirmed that price always follows the hash rate so if the hash rate continues to go down, this could mean that prices would be affected in a negative way.

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Author: Hank Klinger

Bitcoin’s Roller Coaster Week: Ebbing and Flowing With Futures Expiry

Bitcoin's Roller Coaster Week: Ebbing and Flowing With Futures Expiry

Bitcoin has been on an interesting and energetic journey over the last couple of weeks. Having seen values soar by more than $2,000 as of Wednesday, pushing it beyond $11,500 to a staggering $14,000 with a record breaking volume of more than $44 billion dollars

While it enjoyed a brilliant rally, it also endured a similar kind of reversal in as many days starting off last night by European time, receding back to around $11,800 on Thursday.

What we can see from some of the above candlestick charts, especially from the large green candle alongside the equally substantial red candle, with Bitcoin managing to scrape at the incredibly rare $14,000 marker.

While this was more than a welcome surprise for  investors, this price point was an unfortunately shaky one, with a range of fast movements and a general ‘feeling’ of great heights from the market. As a result, a price correction was expected to be around the corner.

The moment that it manages to reach the $14,000 marker is also the time when we would all expect there to be a steady retreat away from it as BTC adjusts to newer heights. As it all looks pretty standard for the most part.

While this is the way the cookie crumbled for the Bitcoin market of 2017, the past is no clear indication of what the future holds for crypto. We have a pretty extensive lesson to take from the meteoric surge that Bitcoin underwent during 2017.

Back during that time in 2017, when Bitcoin successfully managed to push upwards from around $9,000 to around $12,000 all before staggering back down to about $9,000, with it managing to climb further up from thereafter.

In contrast, Bitcoin, while managing to do the same here, but at higher points of $14,000 and higher still before it reaches resistance levels at around $17,000.

Were it to have climbed up even further without any kind of correction then perhaps there may have been a more substantial reason for investors to feel concerned about the ongoing reversal, but the current dip that Bitcoin is experiencing is actually pretty healthy all things considered.

This is substantiated by the fact that CME Bitcoin futures officially close tomorrow, not before clocking in a truly amazing 132,455 Bitcoin representative contracts being exchanged over the course of yesterday along – totaling an incredible 1.5 billion dollars.

CME’s Bitcoin Futures contracts have been at a pretty strong premium and continue to operate at the same level during the time this is published, with a longer premium rate placed on contracts for September as well, some of which are being priced at more than $600.

So what does this mean for Wall Street overall? Ultimately, its overall performance is basically in the green, but there is to be some loss expected with this as yet healthy performance.

While this is the case, there has been some noticeable one off market selling over the course of Wednesday evening. As a result of this news, it may be the case that Wall Street was responsible for the dip, while the June contract comes to a close on Friday.

This isn’t so much of a surprise for more experienced investors, however, the dipping pattern ahead of the expiry of futures contracts has been happening with a degree of regularity over the past 3 months, almost like clockwork, with CME’s futures design facilitating this trend.

While this may not essentially be something that is wholly unique to Wall Street, but with what we have previously seen with the likes of OKCoin, which had been regarded as one of the popular settled futures related to Bitcoin – this too had created a similar kind of ebb and flow pattern.

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Author: James Fox

Bitcoin Sees Record Hash Rate, Will the Price in USD Follow to All Time Highs?

Bitcoin-Sees-Record-Hash-Rate

Bitcoin Sees Record Hash Rate

For the last few weeks, Bitcoin has been on a road to recovery following an extended bear market which endured for almost six months and has finally broken the crypto winter that led to the closing down of several companies and an atmosphere of pessimism within the general crypto industry. This progress is not limited only to the price of Bitcoin itself but also to the prices of other cryptocurrencies and of course with Bitcoin hash rate. The hash rate is currently at its highest points ever in recent times with reported figured being 62,246,627 TH/s which mirrors the increase of the price of Bitcoin has seen.

Now according to blockchain.com, on June 14, 2019, the hash rate of Bitcoin finally broke its all-time high after previously reading 61,866,256 TH/s on August 28, 2019. Since that time, the price of Bitcoin has grown 5.55% in its price growing from $7,750 to $8,180.08.

Bitcoin is also recording transactions 346,000 each day with the highest daily figure recorded topping 452,000 in May. While the price of Bitcoin has come out of a bear market and maintaining above $8000, it is seeing competition from litecoin which has seen 300% growth in 2019 and is also approaching its next halvening.

The Future Of Bitcoin

There are thousands of cryptos in existence and bitcoin is certainly not alone in the complex crypto market but has seen certain advantages that will enable it to succeed in the future. The first of these is the fact that bitcoin is currently the most popular currency in the world and according to Jack Dorsey, the co-founder of Twitter and Square Inc, bitcoin is still the strongest contender for becoming the go-to currency of the Internet.

However, with the upcoming Libra coin that is to be launched by Facebook, there is debate over whether or not bitcoin can withstand the competition and maintain its dominant position. While Facebook has an inbuilt audience that is in the billions of people, there is some uncertainty within the crypto community as to whether or not the company can be trusted to provide a truly decentralized token considering their previous history of exploiting user data. For some, that only represents an attempt by large corporation to get in on the crypto market while not staying true to the ideals that have been in the market since Inception.

While Bitcoin is a truly decentralized effort and does not necessarily have a big company behind it, it is still seeing adoption throughout the world and appears to be entering its next phase of maturity. If the current figures are anything to go by, bitcoin is increasing growth in popularity due to the increase in transactions orders and is also seeing an increase in its hash rate which can be seen as an indicator of steady progress that could remain into the next decade of its existence. While the market is unpredictable and there are many competitors entering every day, it seems Bitcoin is here to stay.

All of Today’s Bitcoin Price Analysis, Chart Forecasts and Industry News

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Author: Tokoni Uti