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Today Bitcoin bulls found their resolve and are attempting to reverse the digital asset’s course even as equities markets across the globe continue to drop on the realization that Coronavirus is a real threat that will stay with us for some time.
The Dow Jones Industrial Average closed with a decline of 1,100 points (4.4%) and is down more than 10% for the week. The Nasdaq Composite also fell 4.6% to 8,566.48 and the S&P 500 endured a similar blow, dropping 4.4% to close at 2,987.76. According to market analysts, today’s drop represents the largest daily decline in recent history.
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.
Bitcoin (BTC) has found some stability in the time followings its capitulatory selloff seen over the past few days, with bulls stepping up and ardently defending against a drop below $8,800 – which appears to have become a near-term support level for the cryptocurrency.
Analysts are now noting that the ongoing pullback has led BTC’s price right to where it is “supposed to be,” with it still maintaining above a key growth curve that has been guiding its decade long uptrend.
On Feb. 27, the Bitcoin price plunged to $8,520 before bouncing back to $8,973 due to mounting buying pressure.
In his new video, Martin explains that the 20-week MA that BTC briefly touched earlier today has been acting as a very important level for Bitcoin over the past two years. After taking a look at this chart, one can see that this line clearly shows whether or not the orange coin in a bull market.
The Coronavirus continues to be a hot topic of discussion around the world. Particularly in China and the US, there has been an emphasis on its effect on the economies. The two largest economies have been shaken and the effects are being felt in investor’s wallets. The U.S stock is currently having one of its worst runs. The drop and the continued fear has prompted many to look unto the FED to cut interest rates. Such a move in the near future could see Bitcoin come out soaring.
Recent fall aside, Bitcoin reported returns of 27% in January, which is why traders now are itching to capture the lost bullish momentum. That being said, in the month of January, many traders were waiting on the sidelines to enter the long positions on BTCUSDT at retracements, as per Binance’s latest research report. This was visible while comparing BTCUSDT Long/Short ratio against the daily net change in Bitcoin’s price.
As US regulators deny yet another crypto investment vehicle, Germany’s second-largest stock exchange, Boerse Stuttgart, has listed a new exchange-traded product (ETP) that keeps track of the inverse Bitcoin value in euro. 21Shares, the company that created the ETP, says the tracker is unprecedented in both the cryptocurrency and ETP worlds. When Bitcoin’s price falls, the ETP rises.
However, there are those who feel that Bitcoin isn’t quite a thing to invest in. One bigwig against Bitcoin is Warren Buffett, a billionaire investor. On the other hand, a lot of other billionaires like Virgin Galactic’s chairman Chamath Palihapitiya are all for Bitcoin. During a recent interview with CNBC, Chamath didn’t mince his words in proclaiming his support for the top coin.
Customers can now integrate smart contracts on Amazon Web Services’ Quantum Ledger Database, or QLDB, thanks to tech company Blockchain Technology Partners.
Blockchain Technology Partners, or BTP, unveiled general availability for its DAML incorporation, accessible through its Sextant for DAML platform, allowing those working with Amazon’s QLDB to harness smart contracts on the platform, according to a Feb. 25 statement provided to Cointelegraph.
Hong Kong-based crypto derivatives exchange FTX saw record volumes in ether (ETH) futures on Wednesday amid a sell-off in the cryptocurrency’s price.
An unidentified Bitcoin Cash miner has been actively collecting lost BCH. Instead of giving the funds back to their rightful owners, the miner chose to keep the funds to themselves.
According to Coin Metrics, the anonymous miner was able to steal about 4,000 BCH, which was worth US$1.6 million [AU$2.4 million] in May 2019.
This amount was an accumulation of anyone-can-spend money following the Bitcoin Cash hard fork.
Users in the European Union, the United Kingdom, and Australia will now be able to buy cryptocurrencies on Binance’s platform with their national currencies.
Banxa, Binance’s fiat payment solution provider, has offered to permanently reduce fees to 0% for most of its popular payment methods. This will make it more affordable for Binance users to deposit cryptocurrencies, the exchange said.
Binance established a partnership with Australian-based Banxa earlier this year to expand its fiat on-ramp services.
The aggregated cryptocurrency market has been closely following Bitcoin over the past couple of weeks, with altcoins slightly underperforming BTC during bearish trends, and outperforming the benchmark crypto during uptrends.
Over the past few days, the market-wide trend has been overwhelmingly bearish, with Bitcoin’s break below its key support at $9,500 yesterday sparking a selloff that led many altcoins to plummet 10% or more.
To estimate the price of Bitcoin well into the future we need to take a look at growth models for the cryptocurrency. The two most well-known are Parabolic Trav’s Parabolic super trend price growth model, and Plan B’s Stock to Flow price model (S2F).
We’ll also have to take into account that if hyperbitcoinization does occur, and Bitcoin becomes global money used by everyone, and no other kind of currency exists at all, there are still limits to Bitcoin’s price growth.