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The equity markets sold off sharply on Feb. 24 and 25. Even gold, a traditional safe-haven has stalled its rally. On similar lines, cryptocurrencies are also witnessing a period of correction.
The total crypto market capitalization has dropped from about $308 billion on Feb. 15 to $248 billion at press time, which is a fall of about 19.50%. For an investor, this is a normal and healthy correction, which can provide an opportunity to buy or add to existing positions.
It now appears to be increasingly likely that Bitcoin will see some further downside in the near-term, with multiple analysts noting that this retrace may cut deeper before BTC finds enough support to start climbing higher.
There are a few simple factors, however, that seem to point to the possibility that BTC is about to see significantly further losses, which could send it reeling to fresh year-to-date lows.
The analyst says he’s looking for a spike in BTC buyers to signal that the bottom is in. Until then, he’s cautioning anyone trying to buy the dip.
“This volume on the buy back is pathetic. Funding still high. Hit a key support level at the 200 daily EMA, but this still feels weak. Just be patient with your knife catching…
How do we drop 7% and funding spikes for longs. This shit is not bullish at all. This means that price dropped and longs are paying MORE to hold their positions open. So people that are under water in their trade are paying a lot (up to .13% on Deribit and .05% on Bitmex). It’s the worst feeling, lol.”
While it’s tempting to assume that BTC might have already reached the bottom of the ongoing correction, market analyst Edward Moya believes that this carnage is far from over. He says that Bitcoin’s true value has been called into question by investors.
“Despite Wednesday’s broad relief rally, the entire crypto space is selling off. The market carnage of the past few days has investors questioning Bitcoin’s true value,” Moya told Bloomberg.
PlanB’s latest tweet is a reiteration of predictions offered earlier in February, stating that the Bitcoin price would stay above $8,200 and that the post halving BTC price will be above $10,000.
Over the last three days, Bitcoin has lost over $1,000 and is down close to 18% since been unable to overcome resistance at the $10,600 price level. Despite the current slide, the Bitcoin price is still up by more than 20% since the start of the year.
As per the data provided by the analytics firm, Skew, the $10 million daily average bid-ask spread on cryptocurrency exchanges like Binance and BitMEX has been noting a gradual rise. The “difference between the highest price that a buyer is willing to pay for an asset and the lowest price that a seller is willing to accept,” is the bid-ask spread, where the spread is the transaction cost.
In particular, the Dow Jones tanked by an eye-popping 900 points yesterday, on the heels of another devastating crash that was witnessed on Monday. In the midst of all this Coronavirus chaos, gold skyrocketed to a seven-year high just two days ago.
Bitcoin, which is often referred to as digital gold, has not behaved like the yellow metal. The top crypto has instead succumbed to selling pressure and dumped alongside risk-on assets like the aforementioned US stocks. At the time of writing, bitcoin has lost 6.14 percent over the last 24 hours and is hovering around $8,748.49.
Samsung, the largest electronics manufacturer in the world, has announced the introduction of a new security solution designed to protect data stored in on its smartphones.
The company introduced a new chip and optimized software that guards private data by isolating it from other parts of the phone, explained Samsung.
Smartphones have been rapidly evolving, making it hard for adequate security measures to keep up, said Dongho Shin, a senior executive.
Jack Dorsey’s payments company reported on bitcoin (BTC) profits as part of its fourth-quarter 2020 revenue results, in a shareholder letter released Wednesday. It reported bitcoin revenue of $178 million between Nov. 1 and Dec. 31, with profits of $3 million, up 50 percent over the prior two quarters.
Non-bitcoin revenue on Cash App in the fourth quarter was $183 million.
The company reported a year-end profit of $8 million on $516 million in yearly bitcoin revenue.
On Wednesday’s investor call, Dorsey said a Cash App redesign made it easier for new users to discover other services.
Gambling is becoming really popular today: more and more people want to get real income from sports betting. Actual online bitcoin sports betting on http://www.1xbit.com is a great chance for risk takers and real winners. The main advantage of this service is that the participants can place their bets in a modern electronic currency – bitcoins.
The US Securities and Exchange Commision has rejected New York based firm Wilshire Phoenix’s Bitcoin Exchange Traded Fund (ETF) application, citing ongoing concerns over market manipulation and a lack of surveillance-sharing agreements.
Commissioner Hester ‘Crypto Mom’ Peirce has publicly disagreed with the rejection.
During the crypto hype bubble in 2017, much of the fever was driven not just by Bitcoin, but by Ethereum and the inital coin offering boom.
New investors flocked to the emerging asset class hoping to make an early investment in a crypto project, hoping to strike it rich by discovering the next Bitcoin before it became widely adopted.
MedtoMarket (M2M), a disruptive medical innovation center, announce they will host the Blockchain and Digital Transformation in Health 2020 Symposium on February 26th. This event, created jointly by the Austin Blockchain Collective and Dell Medical School, fuses industry and academic perspectives to explore digital and blockchain applications for the improvement of healthcare technologies.
Bitcoin is known for its high-volatile nature and its price goes and up abruptly. The case is the same for other cryptocurrencies such as Ether, Ripple, BCH, and others. However, stablecoin is a less-volatile digital asset. Due to its non-volatile essence, stablecoin is acting as a trusted asset for investors.
The US presidential candidate Michael Bloomberg proposed a financial reform plan. Per the plan, there will be clear-cut rules and regulations for crypto-related firms and aims for ‘’ providing a clear regulatory framework for cryptocurrencies.’’ The Trump administration is also planning to implement better laws for crypto regulation.