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Bitcoin (BTC) price has started to show strength in its recovery since the black Thursday selloff this past week, but is this something we can expect to continue? Or is this a dead cat bounce on the way down to lower lows?
In today’s analysis I’m looking not only at the charts, but also at the possibility of large Bitcoin miners being the cause of the 50% price drop on March 12, after supporting data emerged last week suggesting that short-term holders sold a whopping 281,000 BTC, which resulted in the crash.
Fear of an impending global recession has prompted a rush to move assets into so-called “safe havens” such as U.S. treasuries and precious metals. Bitcoin now offers an alternative, yet the extent to which it protects wealth reveals its unique nature.
Over the past decade, cryptocurrencies have experimented with a variety of use cases, mainly swinging between a medium of exchange and store of value. In the case of Bitcoin, while it was conceived as a payment system to become the next big currency of the world, over the years, it has found its niche as a long-term asset.
Obi Nwosu, CEO of Coinfloor, during his appearance on the latest episode of Blockchain Insider podcast, spoke about the varying demographics within the Bitcoin community, what that ultimately implies, and Bitcoin’s position as an anti-inflationary asset.
With this, the S&P 500 is now more than 35% lower than its high above 3,300, established literally just a month ago. Bitcoin, on the other hand, has fallen 43% from its February high of $10,500 to $6,000, where it trades at as of the time of this article’s writing.
Bitcoin experienced a severe crash last week alongside the stock market which was responding to the COVID-19 pandemic that has led to record crashes in stock prices. The crash in BTC price suggested its correlation with the stock market although some have argued that this is not the case. The number one cryptocurrency was on recovery and rose above $6,000, but the recovery has stalled lately.
According to the announcement made by S2W Lab, the firm entered a one-year contract with Interpol to analyze and monitor dark web activity, including the use of cryptocurrency.
The report claims the lack of adequate tracking tools has led dark web portals to emerge as a hotbed of cybercrimes, including the illegal trade of credit card and passport information.
The startup, first established in 2018, has been collecting data and analyzing the dark web using a unique, AI-based “multi-domain analytic engine.” S2W Lab is in the process of establishing a database that will find links between multiple domains across multiple timeframes. Suh Sangduk, CEO of S2W lab, said of the new partnership,
With an estimated billion people staying home, remote working or just watching shows online all day, telecom infrastructure is coming under great strain. Experts and companies are mostly saying that the risk is far from critical yet, but the EU has taken the possibility of the internet crashing very seriously. Netflix, Google, Apple, and Amazon have begun to restrict HD video streaming to reduce data usage in Europe.
- Ethereum is down more than 8% and it broke the $128 support against the US Dollar.
- There was a key breakdown noted after the price was rejected near the $140 area.
- There is a connecting bearish trend line forming with resistance near $129 on the hourly chart of ETH/USD (data feed via Kraken).
- Bitcoin price is also down more than 5% and it is now trading well below the $6,000 level.
In fact, with the cryptocurrency trading at $0.15 as of the time of this article’s writing, it is more than 90% below its all-time high of $3.30, established at the peak of 2017’s and 2018’s crypto-mania. Even since the year started, XRP has fallen by 20%, underperforming Bitcoin’s relatively mild -14% performance.
Despite this underperformance, a top analyst, who has been accurate in calling much of BTC’s short-term moves over the past few weeks, is expecting a retracement back to the yearly lows at $0.12. Here’s why.
NYU economics professor Nouriel Roubini attacked federal stimulus legislation Sunday as a light on aid for workers. His remarks echo the response from several prominent Democrats, including Sen. Bernie Sanders, who is running for president in the Democratic primary, and Senate Minority Leader Chuck Schumer. Likewise, House Speaker Nancy Pelosi had objections to the Senate GOP’s fiscal stimulus bill:
But Zhao says he believes CEOs are not directly to blame, placing the spotlight on a system that drives them to maximize shareholder value with bonuses worth millions of dollars. So when a crisis like the coronavirus strikes, many companies find themselves without rainy-day funds and struggle to survive. A much easier game plan for navigating an economic crisis, says CZ, is waiting for the government to print money and bail them out.
- A US politician is pushing a proposal for the Treasury to mint two coins, each worth $1 trillion.
- It would help the US economy deal with the coronavirus pandemic, said Representative Rashida Tlaib.
- Leading voices in crypto have criticized the idea.
To be fair, bitcoin has suffered a bit over the last 48 hours. Despite spiking as high as $6,800 about two days ago, the currency has since taken a bit of a tumble and fallen back to roughly $6,200 at the time of writing. However, it’s still doing miles better than the Dow and the S&P, both of which have fallen heavily since yesterday morning.
The Dow, for example, has once again taken another dip below 20,000 and is inducing its worst trading period since the year 2008, the time of the fiscal crisis. Bitcoin’s ability to better withstand the bearish market conditions we’re currently facing suggests evidence that the world’s number one cryptocurrency by market cap is not correlated with stocks, an idea that many analysts have presented in the past.
Although some people in life do an extremely convincing job of indicating otherwise, all humans have an identity. This identity comes in many forms, and as modern life has progressed, the ways in which people can identify have multiplied. Technology has now made it easier for people to explore and share their identities.
But, at some point in the not-so-distant past, the internet overtook people’s ability to manage their identities online. Companies, notably the big data giants, have become the new gatekeepers. As the world enters a more data-conscious era, innovators in the tech industry believe that blockchain technology could be the solution.