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3 Reasons Why Bitcoin Price May Slip Below $10K This Week

A potential catalyst for Bitcoin’s supersonic price rally in 2020 has been the combination of ultra-flexible monetary policies of central banks and massive spending by governments. The prospects of cheaper money have inspired many to seek hedge in what is now the world’s leading cryptocurrency by market capitalization. As a result, BTC/USD jumped from $3,858 to just shy of $10,500 within only five months of trading. Nevertheless, the very same catalysts that pushed the pair exponentially […]

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A potential catalyst for Bitcoin’s supersonic price rally in 2020 has been the combination of ultra-flexible monetary policies of central banks and massive spending by governments.

The prospects of cheaper money have inspired many to seek hedge in what is now the world’s leading cryptocurrency by market capitalization. As a result, BTC/USD jumped from $3,858 to just shy of $10,500 within only five months of trading.

Nevertheless, the very same catalysts that pushed the pair exponentially higher are now giving away the signs of withdrawals. Especially this week, investors have started entertaining the idea of a US economic recovery without additional monetary supports.

The outcome is a corrective BTC/USD trend, now trading about 18 percent lower from its year-to-date high.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy

Bitcoin eyes a breakout above $10,500 to retain its short-term bullish bias. Source: TradingView.com

The prospects of a stronger-than-expected recovery in manufacturing and jobs have left Bitcoin in a short-term bearish bias. There are three reasons now that threatens to take the cryptocurrency’s breakdown below $10,000 this week.

#1 A Bullish Dollar

Not many believed that the US dollar would rebound as it crashed to its two-year low levels. But the greenback marked a comeback despite the Federal Reserve’s stress on keeping the interest rates lower and inflation higher above its ideal targets for a more extended period.

us dollar index, dxy, federal reserve

US Dollar Index (DXY) closed last week higher by 0.21 percent. Source: TradingView.com

The appeal for the US dollar resurfaced as risk-on assets went on a price correction spree from their overbought areas. The US equity market, for instance, logged its most significant one-day decline on Thursday since June.

As a result, the tech-savvy Nasdaq plunged 1.18 percent last week, while the S&P 500 and the Dow Jones fell 2.31 percent and 1.82 percent, respectively. Analysts noted that investors decided to sell-off their profitable positions in the US stocks after the Department of Labor revealed an 8.4 percent dip in the unemployment rate.

And the US dollar rebounded, thus reducing bids for safe-havens like gold and Bitcoin. A stronger sentiment for the greenback is one of the reasons why Bitcoin could eye a close at or below $10,000 this week.

#2 US Stimulus

Investors may end up increasing their exposure in the US dollar also as hopes of a successful US stimulus deal fades after last week’s strong economic figures.

A Financial Times report published on Sunday reveals Republicans’ likelihood of squashing the Democrats’ demand for a $915tn aid. Instead, the Trump administration is likely to go ahead with a much-reduced package of $500 billion – or less.

“In the Cares Act [the March stimulus bill] we got to a deal because there was a crisis mentality on both sides when the market was crashing and the economy was shutting down. The crisis mentality is just not there right now on the Republican side,” acknowledged Ben Koltun, senior research analyst at Beacon Policy Advisors in Washington, in his statement to FT.

As the US Congress returns to discuss the matter by the end of this month, investors would most likely keep the US dollar afloat above its local support levels. That–again–puts cold water on Bitcoin’s bullish expectations.

#3 That CME Bitcoin Futures Gap

Bitcoin traders are, meanwhile, expecting the price to move towards a missing candle that appeared on the CME BTC/USD Futures charts in mid-July.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy

Bitcoin Futures gap at $9,925-9,665. Source: TradingView.com

The so-called “gap” sits at $9,665. Earlier observations show that Bitcoin fills these spaces 9 out of 10 times. So that leaves the cryptocurrency with at least a 90 percent chance of closing above $10,000.

BTC/USD was trading for $10,209 at the time of this writing, down 0.46 percent into the Monday session.

Source: https://bitcoinist.com/3-reasons-why-bitcoin-price-may-slip-below-10k-this-week/?utm_source=rss&utm_medium=rss&utm_campaign=3-reasons-why-bitcoin-price-may-slip-below-10k-this-week

Blockchain

OpenSea Crashes Following BossLogic NFT Drop via Ethernity

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The hype around non-fungible tokens (NFTs) continues to escalate as demand for primary sales is only growing higher.

The last manifestation of this was earlier during the BossLogic NFT drop that took place on the OpenSea marketplace, causing it to essentially crash under the high traffic.

OpenSea Crashes as Traffic Surges

OpenSea, touted as the largest NFT marketplace crashed last night under a serious surge in traffic caused by an NFT drop.

The platform took it to Twitter to explain what happened:

Outage notice: the Bosslogic drop caused a 2X surge in traffic at 19:30 UTC, ultimately causing two spikes of failed requests, at 19:50 and 20:40.

The issue was our servers’ ability to reclaim memory. We will have a fix out shortly, but sincerely apologize to all affected!

Naturally, this caused some users to be upset because they’d lost gas fees as a result of the outage. The team responded that they “will not have to pay gas the next time you bid, for the next auction – that cost is only for the first time you ever bid on anything (converting ETH to wrapped ETH).”

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BossLogic’s NFT Drop

BossLogic is a well-known artist with almost half a million followers on Twitter and a lot more across different social media platforms.

His latest NFT drop was through a partnership with Ethernity chain to offer 2501 pieces of art to the very first lucky community members.

The tokens were sold for 0.299 ETH and each one of them represented digital artwork that’s featured in the collection.

This latest NFT drop is the latest to create massive hype around it. As CryptoPotato reported yesterday, the interest surrounding non-fungible tokens have surpassed that of ICOs from back during their peak in early 2018. This has caused many people to believe that they are in a state of a bubble.

Featured image courtesy of Inverse

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Source: https://cryptopotato.com/opensea-crashes-following-bosslogic-nft-drop-via-ethernity/

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Norwegian Oil Mogul Sets Up $58 Million Entity to Buy Bitcoin

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The institutional bitcoin frenzy continues to spread like an epidemic. After several United States mega corporations added the digital currency to their balance sheet, the floodgates have been opened to major institutions across the world. Norwegian holding company Aker ASA said today that it will establish a new unit dedicated to bitcoin investment and the digital asset’s underlying technology.

Miss Out? “No Way”!

Asian smartphone giants, Meitu yesterday joined the league of institutional bitcoin adopters, as reported by CryptoPotato. With the future of modern-day finance hanging in the balance, companies investing reserve cash in bitcoin is widely becoming a norm rather than an exception. The latest to embrace bitcoin is Norwegian holdings, Aker ASA. It made the announcement in a press release this morning.

Aker ASA is going a step beyond investing in the leading digital currency. It will set up a company devoted to investing in bitcoin and blockchain technology. The new company called “Setee AS” will actively participate in the cryptocurrency space by collaborating with other industry players. It will also invest in other companies with healthy prospects in the blockchain and cryptocurrency industry.

The company which majors in offshore fishing, construction, and engineering said it would convert all its liquid assets to bitcoin. The new dedicated bitcoin unit will have a capital of around 500 million Norwegian crowns (approximately $58.6 million).

.. With Great Power Comes Great Responsibility

According to Aker, the operation of the new entity will span beyond bitcoin investment. The unit is expected to leverage the capabilities of its parent organization to pursue innovations in cybersecurity, financial transactions, and emissions-free verification operations. As part of the latter, the company will research and work on alternative ways to verify bitcoin transactions in a more environmentally friendly manner.

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To set the ball rolling, Setee is collaborating with a Canadian global leader in Bitcoin and blockchain technologies, Blockstream. President and CEO of Aker ASA, Øyvind Eriksen, spoke on the launch of Setee and its first partnership.

“With the launch of Seetee, the Aker Group makes another move into software and fintech. We are very excited about the industrial opportunities that will be unlocked by Bitcoin and blockchain technology, and want to contribute forcefully to that effort. These technologies have the potential to reduce frictions in our day to day lives, enhance the security of our digitally driven economies, and unlock new business models for innovation. We look forward to addressing these and other applications together with Blockstream and other partners”

Aker AS is owned by Norwegian billionaire businessman Kjell Inge Rokke. Rokke shared a letter concerning the latest development to the company’s stakeholders. In the letter, he wrote:

First, we will use bit­coin as our trea­sury as­set and join the com­mu­ni­ty. In Bit­coin speak, we will be hodlers. We will be dif­fer­ent, but ad­di­tive.

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Source: https://cryptopotato.com/norwegian-oil-mogul-sets-up-58-million-entity-to-buy-bitcoin/

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ETC Group adds Ethereum ETP on Deutsche Borse

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Exchange-Traded Products [ETPs] are gaining prominence and crypto investment firm ETC Group announced the launch of an Ethereum ETP on Deutsche Borse’s Xetra on 9 March. This ETP will go live with the ZET ticker and will be its second crypto investment product after Bitcoin ETP, as per reports.

The firm launched Bitcoin ETP in June 2020 and its assets under management have surged to $1 billion since. Since ETP’s value depended on the underlying security, this growth was a given for Bitcoin. Now that Ethereum has also joined the bandwagon, the results of its growth will also reflect positively for the investment firm.

Xetra, operated by the Frankfurt stock exchange, noted that more than 90% of trading in German shares goes through the marketplace, along with 30% of trading in exchange-traded funds [ETFs]. As per its website, more than 30 new ETFs and 4 ETCs are tradeable on Xetra since January.

However, ETC Group was not the only one listing ETPs on Deutsche Borse. 21Shares AG also announced the launch of the world’s first centrally cleared Ethereum [ETH] and Bitcoin Cash [BCH] ETPs a few days back.

According to reports, this was done to further push the institutionalization of crypto assets. Subject to approval by the Frankfurt Stock Exchange, the 21Shares Ethereum ETP [21XE] and 21Shares Bitcoin Cash ETP [21XC] will list on Deutsche Boerse on 9 March, with annual management fees of 1.49% and 2.50%, respectively.

The institutional interest has been increasing for Ethereum ever since the market has been rallying. The second-largest crypto and the most popular altcoin, Ethereum has managed to carve a niche for itself with the addition of decentralized finance [DeFi] and dApps.

Source: CoinStats

At the time of writing, ETH was going strong at $1,713, despite the high volatility in the market. It is returning 142% year-to-date to its investors as more people flock into the Ethereum ecosystem.


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Source: https://ambcrypto.com/etc-group-adds-ethereum-etp-on-deutsche-borse

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