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Recently, the chairman of Virgin Galactic Chamath Palihapitiya said that “everybody should probably have 1% of their assets in Bitcoin,” as it is “an uncorrelated hedge” to the excesses in the financial industry. He did not approve of the strategy to buy Bitcoin only when the equity markets are down. Instead, he said that investors should keep a long-term view on Bitcoin and consider it as “insurance”.
Bitcoin futures providers have been seeing a lot of action during the last two weeks as cryptocurrency markets have been extremely volatile. Data shows there’s been significant open interest on both retail and institutional bitcoin derivatives exchanges and Skew research noted bitcoin options open interest was just shy of $1 billion on Monday. Two days later, CME Group reported that open interest in CME Bitcoin Futures touched a record high of over 6,600 contracts and there’s nearly 300 new trading accounts that have been added this year.
Bitcoin has dropped below the $9,000 mark recently, and things are slow in returning to their original bullish form. While the world’s number one cryptocurrency appears to be on a steady rise (BTC is currently trading at a little over $8,900, a jump from the $8,700 it was experiencing yesterday), the currency is nowhere near the $10,400 it was at roughly two weeks ago.
While few attribute the king coin’s intense volatility to Bitcoin’s fixed supply, many have highlighted the speculative demand from investors as a reason. However, since the start of 2020, Bitcoin’s price has recorded too many fluctuations. From breaching the $10,000 mark, twice, to falling below $9,000, Bitcoin has had a wild run in the last two months. Inevitably, the coin’s volatility is also on the rise and will continue to be, owing to its never-predictable price movement.
What’s the larger trend?
The chart above is showing one of the longest and possibly the strongest bull market in known history. In addition, as we pointed out last week, stocks are not trading at the current value of the companies they represent, but rather on their forward looking profits, which may be years in the future.
Such action by the Fed could, in theory, help bitcoin prices since lower rates would likely reduce the appeal of income-yielding assets such as U.S. Treasury bonds, according to analysts tracking the 11-year-old cryptocurrency. So far, the Fed has not said whether it would cut rates, with Chair Jerome Powell taking a “wait and watch” attitude.
Yields on 10-year U.S. Treasury notes slid by 0.15 percentage point to a new record low of 1.14 percent, indicating heightened demand; bond prices move in the opposite direction of yields. Rates also fell on government bonds from the U.K. Those from Germany and Japan fell further into negative territory.
The notion that Bitcoin and the market will drop further before finding some significant uptrend-catalyzing support isn’t unique to Michaël, as Murad – another highly respected analyst – recently offered a very interesting chart showing the total crypto market capitalization.
A number of changes on the XRP ledger could be looming, including one that could allow the creation of tokens backed by some assets.
Ripple’s Chief Technology Officer, David Schwartz, recently revealed that they are working on “very exciting” features to improve the XRP ledger in terms of functionality, subsequently expanding XRP’s use cases.
Bitcoin lost a serious chunk of its Dollar value this week. Down about 12% over the past seven days, the cryptocurrency is currently trading at around $8,700. It’s essential to see where it goes from here. From above, there’s the 200-days moving average at $8,800, which has now turned to resistance. Bitcoin hasn’t closed a day below the 200MA since January 27th this year, and it’s entirely possible for today to be the first day. This would probably spell trouble for the bulls.
For the first time ever, Paolo Ardoino, the CTO of both Tether and the Bitfinex crypto exchange which spawned Tether’s creation, will speak publicly about Tether’s story. Tether is the 5th largest cryptocurrency by market cap, with a volume of $4.6 billion, as of writing.
CryptoCompare will be sponsoring the Digital Asset Summit, during London’s Blockchain Week, at which Ardoino will be speaking at, on March 10th. The event will be featuring 100 other speakers, giving talks on a wide range of blockchain related subjects from industry leaders.
Former Microsoft software engineer Volodymyr Kvashuk was convicted Tuesday in the United States District Court in Seattle for stealing more than $10 million in “currency stored value”, such as digital gift cards, from his employer. Part of his strategy was to launder the stolen funds by using Bitcoin (BTC) mixing services.
Brave, a major privacy-oriented rival of popular browsers like Google Chrome and Firefox, now automatically redirects users to check out archived versions of pages that were removed from the web.
Starting from Feb. 25, Brave browser users can instantly access archived content of “missing” pages on the Internet via Wayback Machine integration on the Brave desktop browser.
Bitfinex, however, affected badly as it was also targeted by DDoS attack. The exchange’s operation was closed down for an hour as users reported the issue with the site. Bitfinex tweeted on Friday morning revealing, ‘’ we are investigating what seems like a distributed denial-of-service (DDoS) attack.’’ After sometime, Bitfinex went back to the normal condition.
The crypto markets have dropped more than $38 billion since Monday, Bitcoin and Altcoins have been in freefall. All of the top ten coins are in the red, leaving us asking when bull run?
Today’s close will determine if we have ended the crypto bull run or not
The crypto markets have had a rough week, dropping $38 Billion as capital fled the markets. Bitcoin has broken through two critical support levels, of $9500, and $8800, and is currently at $8722 at time of writing.