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Bitcoin (BTC) closed the week up 15.4% at $6,775 and has started the day with a further 6% move to the upside, breaching the $7,000 handle and making highs at $7,300.
Looking at performance relative to its peers, Ether (ETH) and EOS have posted an impressive 16% gain over the last 24 hours. As a result, Bitcoin dominance is down 1.5% at 65%.
Bitcoin’s ROI over the past 25 days is now 100%. Wow. But don’t get too excited.
We might see some retracement here, and maybe a retest of the breakout zone at $7200. However, the bulls might take advantage of the momentum, and thrive Bitcoin to where it all started from before the severe plunge of March 12.
We must mention the positive correlation with the global markets. Even Gold had enjoyed that correlation today, following today’s S&P 500 and NASDAQ surge of over 7%. Bitcoin will likely act according to the Wall Street futures.
Bitcoin has climbed back above $7K for the second time this month. While the first time, Bitcoin was unable to set a higher high, allowing for support above $7,000, this time it looks set to do just that. Since breaking above $7K, Bitcoin has continued upwards to reach the $7,200 resistance. If a correction does not come soon, the bulls are set to look for a higher resistance in around $7,500.
The debate over Bitcoin’s market strength continues, yet one analyst has released data indicating that investment in the flagship cryptocurrency has been considerably more substantial than previously thought. If true, it indicates that Bitcoin’s price could soon rise dramatically.
Over the past couple of weeks, popular stablecoins such as Tether [USDT] have seen strong accumulation. It was the stablecoins that benefitted the most as the market reeled downward.
Following the crypto bloodbath in the second week of March, when expectations of further price decline hit the institutions, they abandoned the Bitcoin ship and resorted to “piling into cash or at least crypto-cash equivalents.” This was evident with the outflows of Bitcoin from exchanges which coincided with the skyrocketing figures for stablecoin trading amidst the market chaos.
Speaking in a discussion with Morgan Creek Digital Partner Anthony Pompliano, the billionaire investor gave his opinion on the global state of the economy in light of the coronavirus outbreak. In particular, Palihapitiya argued that bitcoin could be in place for major gains from the economic fallout over the next decade.
Palihapitiya called bitcoin too volatile in its current state for mass adoption, but has potentitla to succeed as a reserve currency.
Earlier this week, Coinlife broke the news that China-based bucket shop Binance was preparing a launch into the Bitcoin mining pool sector. This news comes at a curious time with less than eight weeks before Bitcoin’s third halving event. After the halving occurs, many digital currency experts expect the transaction processing industry, aka mining, to undergo a contraction once the production price of block mining on the BTC network becomes economically untenable.
In less than a fortnight, developers at Suma have come up with an open-source ‘cross-chain swap system.’ Summa offers private, self-enforcing, and self-settling cross-chain contracts which are trustless and non-custodial.
The San Francisco payments company is now searching for a director of product management at Xpring, Ripple’s XRP-focused fundraising and development arm. The job application indicates Xpring is looking to expand its role in growing the XRP ecosystem.
Whoever fills the position will need to “lead the Xpring vision and identify strategic product opportunities to delight developers and to grow product adoption.”
“The U.S. and Japan had had no plans to issue a CBDC in the near future, but they changed their stance recently to enhance research in the emerging area,” said an official, speaking to The Korea Times. “The BOK also decided to remain proactive in the rapid shift in payment environments here and abroad, so we are going to set up the CBDC pilot system and check technical and legal issues surrounding its introduction here.”
Seychelles-based cryptocurrency exchange Poloniex, which is partly owned by Tron CEO Justin Sun, today announced the release of LaunchBase, a new token issuance platform. The exchange said it “will collaborate closely with projects, community members and industry-wide partners to seed and promote the adoption of quality cryptocurrencies worldwide, including via the sale of tokens to eligible participants on the Poloniex platform.”
Somehow, someway, the price of Bitcoin has continued to show resilience after March 12’s capitulation event, decisively retaking $7,300 just minutes ago after trying an failing to surmount this level multiple times over the past few days.
As of the time of this article’s writing, BTC is trading at $7,295, up 8% from the session open and up over 20% since last week’s lows under $5,900.
Bitcoin hashrate has exploded from 91,290,582 TH/s on April 4 to 121,029,181 TH/s on April 6. Historically, Bitcoin hashrate and price have exhibited a very close relationship, with a 0.77 correlation.
This relationship makes sense considering that the hashrate represents, on the one hand, the production cost of Bitcoin for the miners and, on the other hand, the overall security of the Bitcoin network. In other words, the higher the total hashrate, the more expensive it will be for an adversary to take over the network. This decentralized trust is one of key values that Bitcoin possesses.
Approximately 4-weeks ago global equities markets were in distress as investors finally realized that the coronavirus was not just an illness restricted to China, but rather a global pandemic which could permanently damage economics across the globe.
Crypto markets were not shielded from the mayhem that led the S&P 500 and Dow to post some of the biggest losses since the 2008 global financial crisis and investors will recall that on March 13 Bitcoin (BTC) price dropped more than 50% in the span of 24-hours.