Market

  • Bitcoin Price Tops $5.9K as Fed Cuts Interest Rates to 0%, Restarts QE

    In the past hour Bitcoin (BTC) price perked up and rallied 14.33% to a daily high at $5,940. The strong upside move allowed the price to break out of the tight $5,070-$5,520 range but at the time of writing the price is pulling back below into its previous trading range. BTC USDT 1-hour chart. Source: TradingView The surge in price occurred shortly after the U.S. Federal Reserve announced that it would cut interest rates to 0%, launch a $700 billion quantitative easing program, and the regulator provided additional details about the type of securities it would purchase. The massive stimulus package is designed to combat the market turmoil brought about by the novel Coronavirus but shortly after the announcement, Dow futures dropped 1,000 points, triggering the limit down and signalling that the Monday open could see the Dow, S&P 500 and other major indices give back the gains accrued at the market close on Friday, March, 13. The sharp pullback in futures markets shows that despite strong intervention from the Fed, investors remain extremely concerned about the long term economic impact of numerous countries closing…

    Mar 16, 2020
  • Bitcoin’s Plummet to $4,800 Leads to Another $120m in Liquidated Positions

    Bitcoin’s insane plunge seen early this morning has shown no signs of slowing down as the benchmark cryptocurrency’s bulls seem to disappear. This intense downtrend has now cut as deep as $4,800 and has put BTC at jeopardy of seeing a movement down to its post-2017 crash lows of $3,300. This latest movement to sub-$5,000 has left a trail of destruction in its wake, leading another $120 million in long positions to be liquidated in a mere matter of minutes. Analysts are now noting that there is barely any buying pressure between Bitcoin’s current price and $4,000 – suggesting significantly further downside could be imminent. Bitcoin Crashes as Buying Pressure Disappears  At the time of writing, Bitcoin is trading just below $5,000, which marks a massive decline from daily highs of nearly-$8,000 that were set around this time yesterday. This has led many analysts to note that the cryptocurrency could be poised to see significantly further near-term downside, as the unprecedented nature of this ongoing movement has baffled investors and has led BTC’s buying pressure to dissipate. Hsaka, a popular…

    Mar 13, 2020
  • CME Group Suspends Trading in Response to Coronavirus

    With the coronavirus outbreak officially recognized as a global pandemic, crypto-related companies and organizations are changing the way they do business. According to a CNBC report on Wednesday, Chicago Mercantile Exchange (CME) Group — the second firm to launch Bitcoin Futures in the United States — will suspend trading in Chicago from March 13.  CME cited the need for caution over the spread of the coronavirus for the decision. Financial markets across the U.S. have been severely affected by the outbreak with the Dow Jones Industrial Average down 1500 points in 24 hours at the time of writing. Suspending trading is precautionary CME is the world’s largest financial derivatives exchange, and trades in agricultural products, fiat and cryptocurrencies, interest rates, metals, and stock indexes. The group released a statement citing the precautionary principle: “No coronavirus cases have been reported on the trading floor or in the Chicago Board of Trade building. The reopening of the trading floor will be evaluated as more medical guidance on the coronavirus becomes available.” Coronavirus-related closures To date, the coronavirus outbreak has been responsible for stopping most flights to and from…

    Mar 12, 2020
  • Bitcoin Options Saw Record Volume of $198M Amid Recent Price Drop

    Trading volume records in bitcoin’s options market were smashed on Monday as investors scrambled to hedge their positions amid the sell-off. Major exchanges – Deribit, LedgerX, Bakkt, OKEx, CME – registered total trading volume of $198 million, surpassing the previous record high of $171.3 million reached on Feb. 11, according to crypto derivatives research firm Skew Markets. Bitcoin Options VolumeSource: Skew Deribit, the world’s biggest crypto options exchange by volume, contributed nearly 86 percent, or $170 million, of the total trading volume on Monday. Chicago Mercantile Exchange (CME) traded $2.1 million, while Intercontinental Exchange’s (ICE’s) Bakkt did not trade any contracts. Bakkt last registered activity on Feb. 27 and prior to that on Feb. 12. An option contract is a derivative based on the value of an underlying instrument that gives the right, but not the obligation, to buy or sell the specified amount of an underlying asset on or before the expiration date. A call option gives the holder a right to buy, while the put option gives the holder the right to sell. “Derivatives trading activity tends to…

    Mar 11, 2020
  • US House Committee to Hold Hearing on Blockchain Benefits for Small Businesses

    The U.S. House of Representatives Committee on Small Business is set to discuss the benefits blockchain technology can bring to entrepreneurs. Slated for March 4 at 16:30 UTC, the “Building Blocks of Change: The Benefits of Blockchain Technology for Small Businesses” hearing will explore the ways in which some startups are utilizing blockchain technology to boost productivity and increase security. “Blockchain has many other uses, including tracking goods in global supply chains or enabling peer-to-peer transactions between connected devices,” said committee chairwoman Nydia M. Velazquez in a recent notice. Several witnesses will testify before the committee including Ownum CEO Shane McRann Bigelow, Popcom CEO Dawn Dickson, general counsel for Protocol Labs Marvin Ammori and Jim Harper, visiting fellow for the American Enterprise Institute. The hearing comes at a time when more businesses and governments around the world are ramping up efforts to explore blockchain technology for a variety of different use cases, including tracking goods and services across supply chains, as well as increasing transparency and trust among stakeholders. Bigelow said via email that he hopes the hearing will demonstrate U.S. leadership on blockchain technology,…

    Feb 28, 2020
  • Coronavirus Hits US Stocks, Bitcoin Climbs, Haven Status Unclear

    The spreading coronavirus sowed a new bout of fear among investors, triggering a stock market sell-off and flight to safe-haven assets like gold and U.S. Treasury bonds, with 47 countries now reporting infections amid widespread reports of travel cancellations, shipment delays and business interruptions. U.S. stocks fell for the sixth straight day, Treasury yields slid to a record low and gold prices were little changed close to a seven-year high. Bitcoin’s price climbed 1.4 percent to $8,902, rising along with popular cryptocurrencies including ether. Analysts for the Wall Street firm Goldman Sachs warned Thursday in a report that the virus could disrupt factories’ supply chains, damp demand for exports and ultimately stunt economic output in China, the U.S. and elsewhere. The firm warned the impact of the contagion could wipe out any growth in the combined profits of companies in the Standard & Poor’s 500 Index. “We have updated our earnings model to incorporate the likelihood that the virus becomes widespread,” the Goldman analysts led by Chief U.S. equity strategist David Kostin wrote.  Bank of America analysts wrote Thursday the coronavirus had “gripped global…

    Feb 28, 2020
  • Here’s Why Analysts Expect Price to Explode Further

    Over the past two hours, Bitcoin (BTC) has started to break out of a consolidation pattern that has trapped the price of the cryptocurrency in the high-$8,000s for some two days. In fact, just minutes ago as of the time of writing this article, the leading crypto asset tapped $9,120, surging higher as the weekly candle’s close approaches, boding well for bulls. While Bitcoin has retraced slightly since then, returning to settle around $9,000, analysts say that this breakout, which has allowed BTC’s price to reach a multi-month high, is a precursor to even more gains in the coming days. Bullish On Bitcoin: Analysts Expect Further Upside Firstly, CryptoDude earlier Saturday noted that $9,080 is a “critical level” from a high time frame perspective for Bitcoin. If BTC manages to hold above this key resistance on a weekly basis when the candle closes on Sunday night, it will indicate that there is a macro reversal on the horizon, one that will bring BTC back to the $14,000 high seen last year and potentially beyond, especially with the upcoming halving. $BTC…

    Jan 19, 2020
  • Will Bitcoin and Crypto Markets do a 2017 in 2020?

    Since the massive bitcoin and crypto surge in late 2017 and resultant crash in 2018 everyone has been waiting for a return to those giddy heights. In reality, it may just take a little longer as it did after the dotcom bubble burst. Bitcoin’s Slow Build Looking at previous years may give us an indication of what 2020 will hold for bitcoin prices. Granted, the scene is very different now with futures products available which allow deep-pocketed investors to short the asset. Booms and busts from previous years could be used for future predictions if history is to rhyme for BTC. Full-time trader ‘Crypto Michaël’ has been comparing the years; $BTC #BITCOIN The year 2013 was similar to 2017.The year 2014 was similar to 2018.The year 2015 was similar to 2019 with the parabolic move.The years 2019-onwards will normally be similar to 2016-2017. Let’s rock & roll together. — Crypto Michaël (@CryptoMichNL) January 3, 2020 The year 2016 was very similar to 2019 with a slow start, then a mid-year high followed by a correction towards the end. It is…

    Jan 7, 2020
  • Bitcoin (BTC) Bulls Targeting Key Resistance At $7,800 USD. Time For Entry?

    Bitcoin is on a sharp rise in 2020 with price breaching $7,500 USD. Bulls are regaining strength in the market with a third straight green candle on the daily charts setting bullish indicators that signal a possible test of the $7,800 resistance level. A call for entry? Bitcoin (BTC) is finally taking shape as price shortly spiked above $7,500 USD in the past 24 hours. Following the $400 spike on Jan. 2, from $6,900 to over $7,300 USD (a spike heavily associated with the Iran-US tensions), BTC is showing prospects  of a possible bullish momentum as price set higher lows. After starting the year on a bearish trend that saw the price dip to $6,800s key support levels, BTC/USD hiked to over $7,300 USD in the past 48 hours signaling a possible bottom of the pair. Currently trading at $7,457 USD, a slight retraction from the $7,500 level, BTC bulls are pushing the top cryptocurrency to higher lows with the key resistance level at $7,800 USD, firmly on sight. $BTC Waiting to see the reaction at ~$7,700 area. If we…

    Jan 6, 2020
  • Bitcoin saw a 330% surge in 2019, what about 2020?

    Bitcoin, undeniably the most popular cryptocurrency out there has had a somewhat volatile year.

    Dec 27, 2019
  • Cryptocurrency Is Still the World’s Best Performing Asset Class This Year

    As the year and decade come to an end, cryptocurrencies once again outperform other major asset classes. Despite trading significantly down from their record highs of late December 2017, large-cap cryptocurrencies had a phenomenal year and remain one of the greatest investment success stories of the decade. Cementing themselves as the world’s leading asset class for yearly performance, cryptocurrencies have risen well above annualized returns of the U.S. equities, commodities and bond markets for 2019. Ryan Alfred, President and co-founder of Digital Assets Data said large-cap crypto assets possess significantly higher returns versus traditional markets for this year. Alfred said: “Looking back at the performance of the top ten large-caps (Bitwise 10) in comparison to other major asset classes, we can see their special signature.” Crypto versus traditional assets As seen in the chart above, research provided by Digital Assets Data shows how this year’s performance of the top 10 cryptos by market capitalization fared against other major asset classes such as gold, oil and equities. Of course, 2019 didn’t start out that way. Back in February, the top 10…

    Dec 13, 2019
  • Gold and Bitcoin (BTC) prices register highest annual correlation ever!

    Bitcoin (BTC) and gold enthusiasts have been at it against each other on which is the better long term store of value for the past decade or so. Since the emergence of the ‘digital gold’, debates across investors, fund managers and other specialist has arisen on which asset offers investors better store of value with BTC seeing its price spike to $19,800 USD in a matter of years. The constant wrangles between gold’s low volatility and BTC appreciation in price is a never ending debate but as per data collected through the year the prices of the two assets are starting to gel as BTC recorded its highest correlation with gold prices in a year. Gold-BTC correlation at its highest point ever! While the correlation of Bitcoin and gold has been on the rise for the better part of the year in 2019, Dec. 2 marks the highest point in positive correlation the two asset have reached at 0.3. Since June 2018, the price of an ounce of gold spiked from 0.15 BTC to over 0.39 BTC in Feb 2019…

    Dec 4, 2019
  • European Investment Fund (EIF) 400 million EURO for Blockchain and AI

    The European Commission and the European Investment Fund (EIF) have set up a new Blockchain and Artificial Intelligence (AI) Innovation Fund, the EIF announced. According to the announcement, the new fund was created to prevent the EU from falling behind countries like the US and China. He also wants to strengthen Europe’s position as a site for the development of Blockchain and AI. Under the new investment plan, EUR 100 million will be made available to venture capital funds or other investors who support “AI and Blockchain-based products and services”. The EIF also stated that this is only “laying the cornerstone” and is expected to generate an additional € 300 million from private investors. As the scheme also offers national promotional banks, from next year, the opportunity to co-invest, the estimated total amount of the Fund could continue to increase. The EIF said in the blog post:     “Investing in a portfolio of innovative AI and blockchain companies will help build a dynamic EU-wide investment community for AI and Blockchain. By involving national promotional banks, we can increase the investment volume at…

    Nov 25, 2019
  • The Cryptocurrency Market Suffers from Shockingly Low Levels of Liquidity

    CoinMarketCap’s new metric shows low levels of liquidity in the crypto market. A renowned analyst explains that less than 1% of all cryptos are liquid. Prominent figures in the industry agree that 99% of all cryptos will not prevail. CoinMarketCap, the leading cryptocurrency data tracking services platform, recently rolled out a new metric, dubbed Liquidity. Its primary purpose is to provide the “real trading activity” of most of the cryptocurrencies and crypto exchanges in the industry. An early glimpse shows a lack of institutional investment, adding credibility to the belief that 99% of all cryptos are worthless. CoinMarketCap’s Liquidity According to the chief strategy officer at CoinMarketCap, Carylyne Chan, the methodology to rank cryptocurrencies and crypto exchanges by daily volume lost its value and is now an obsolete metric in the industry. The firm is now moving into a new system that “highlights what matters most to investors and traders, [which is] liquidity.” With the lack of transparency in the crypto market, it is easy for people to inflate trading volumes. According to Chan, individuals can insert orders into order book where…

    Nov 14, 2019
  • Ethereum (ETH) Could Break Higher After Long Consolidation

    Ethereum price seems to be consolidating for quite some time above $180 against the US Dollar. The price could start a strong upward move above $190 as long as it is above $180. There is a short term ascending channel forming with support near $186 on the hourly chart of ETH/USD (data feed via Kraken). Bitcoin is still capped by the $8,880 and $8,960 resistance levels. Ethereum price is trading in a broad range versus the US Dollar and bitcoin. ETH price remains well bid above the $178 support and it could soon make an upward move. Ethereum Price Analysis In the past few days, Ethereum consolidated in a broad range above the $180 support against the US Dollar. ETH bears made a few attempts to push the price below the $180 and $178 support levels, but they failed. Similarly, there was no upside break above the $188 and $190 resistance. Recently, the price revisited the $182 support area and started a fresh increase. It broke the $185 resistance and the 100 hourly simple moving average. Moreover, there was a…

    Nov 14, 2019
  • How to read a Bitcoin price prediction in 2020?

    Cryptocurrency trading, in its essence, is not much different than conventional stock trading, and that’s Bitcoin basics. Most Bitcoin price prediction is based on market movements, serving a necessary purpose, to provide information, and live. On the other hand, Bitcoin price predictions also contribute to the overall market sentiment. These sentiments allow the analysts and traders to examine the pattern based on the real-world information and use it to their advantage. Recently, Bitcoin traders have had enough of Bitcoin price predictions, and cries were heard in different corners of the cryptosphere. Most people were sick of different predictions that would enable them to cover their losses, taken as a utopian cry for hope since the Bitcoin price line was dodging most predicted patterns. Bitcoin price predictions and basic trading psychology Traders were feeling insecure; therefore, the market kept going into a head and shoulder pattern loop one after another. The loop started on the 6th of October and lasted almost 20 days ending on the 23rd of October. Bitcoin price chart by Trading View The trend started with a short…

    Nov 8, 2019