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5 reasons why Bitcoin price just reclaimed $33,000

Despite this week’s sharp Bitcoin price correction, BTC derivatives data and dip-buying bulls show the current rally remains intact.

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Two weeks ago, few investors would have expected Bitcoin (BTC) price to rally any higher than $20,000. In fact, most had forecast a $30,000 BTC price by mid-2022 or late 2023 at best. 

This means that many holders were likely caught by surprise as BTC price surged to $34,800 just 17 days after crossing the $20,000 mark.

Generally, analysts expect a sharp correction to follow Bitcoin’s 150% gain since November, but currently, there are no fundamental indicators that support this point of view.

BTC/USD 4-hour chart. Source: TradingView

Despite the recent bullish euphoria surrouning Bitcoin’s price action, the digital asset faced a significant drop as the price fell by $5,600 in 3 hours. Over $1.2 billion in liquidations followed that red candle, and typically this sort of move would raise alarm and lead analysts to forecast a potential trend reversal.

Each time Bitcoin makes a new high, investors expect some form of correction. Despite failing to break through the $34,500 resistance, the price quickly bounced from its sub- $28,000 dip on Jan. 4. This event might have monetarily spooked some buyers, but looking under the hood, it is a very bullish sign.

During the past week, Bitcoin’s dominance rallied to its highest level since March 2017, reaching 73%. Significant purchasing activity from institutional investors has been tied to the movement, including Grayscale’s addition of 72,950 BTC in December.

Moreover, investments from MicroStrategy, Ruffer Investment, MassMutual, and SkyBridge Capital are further indisputable evidence of the institutional inflow. Thus, BTC is becoming their preferred and almost exclusive investment option among cryptocurrencies.

Bitcoin’s dominance drop triggered a mini altcoin season

Regardless of the moves of professional traders, retail traders have an enormous impact on altcoins. Therefore, the Bitcoin rally created an opportunity for an alt season and DeFi-related tokens appear to be benifitting most.

Top cryptocurrencies weekly performance. Source: Nomics

In the past week, Bitcoin outperformed the top-15 altcoins, which climbed 9% on average. More importantly, the overall volume has skyrocketed, eliminating any doubts about weekends or holiday pumps with low market participation.

Grayscale’s GBTC premium has normalized

The Grayscale Bitcoin Trust (GBTC) premium peaked at 41% on Dec. 21 but has since adjusted to its 90-day average at 19%. It is worth noting that only qualified institutional clients are allowed to acquire shares directly from Grayscale. The remainder of the traders need to buy it on the secondary market and this is the reason for some of the distortions.

Grayscale Bitcoin Trust premium. Source: TradingView and Grayscale

This extraordinary level can be partially explained by the temporary suspension of new shares being issued. By halting the offer to institutional clients, any additional demand needs to be met by secondary sales, thus creating pressure for a larger premium.

Perpetual futures funding is holding steady

Professional traders tend to dominate longer-term futures contracts with set expiry dates. Thus, by measuring how much more expensive futures are versus the regular spot market, a trader can gauge their bullishness level. The 3-month fixed-calendar futures should usually trade with a 1.5% or higher premium versus regular spot exchanges.

Whenever this indicator fades or turns negative, this is an alarming red flag. Such a situation, also known as backwardation, indicates that the market is turning bearish.

BTC perpetual futures funding rates. Source: Digital Assets Data

The above chart shows that the indicator briefly held levels above 5%, flirting with overbought levels. Nevertheless, it has been holding above 3% despite the recent sub $28,000 dip on Jan. 4.

Therefore, the indicator has held above the minimum 1.5% threshold, indicating optimism from professional traders. This data is a slightly positive reading, as the recent unexpected swing has not shaken buyers.

On the other hand, if cascading liquidations had caused longs to deleverage this would have been worrisome.

Social network activity peaked

BTC Twitter Users Activity vs. USD price. Source: TheTie

Data from TheTie also shows that a recent BTC price increase occurred while tweets related to ‘Bitcoin’ reached the highest level seen since Dec. 2017.

While a significant bump in Twitter activity does not necessarily equal vigorous retail buying, it certainly helps gather more attention as the cryptocurrency continues its uptrend.

Options put-to-call ratio

The best way to gauge overall market sentiment is to measure whether more activity is going through call (buy) options or put (sell) options. Generally speaking, call options are used for bullish strategies, whereas put options are for bearish ones.

A 0.70 put-to-call ratio indicates that put options open interest lag the more bullish calls by 30% and is therefore bullish.

In contrast, a 1.20 indicator favors put options by 20%, which can be deemed bearish. One thing to note is that the metric aggregates the entire BTC options market, including all calendar months.

BTC options put-to-call ratio. Source: Cryptorank.io

Over the past week, investors have been leaning to downside protection strategies. As a result, the put-to-call ratio increased to 0.68, from 0.56 on Dec. 27. Therefore, the indicator has returned to its 3-month average, favoring the more bullish call options by 32%.

This data shows that investors optimism remains relatively steady after the 17% BTC price increase over the last week.

Overall, each of the five indicators discussed has sustained a neutral-to-bullish range. Professional traders have kept their bullish stance despite the Jan. 4 price swing and this is an encouraging outcome for bulls.

As BTC quickly recovered the $31,000 support, bulls showed theri confidence by adding positions after every dip. To conclude, there are no signs of exhaustion or excessive leverage from buyers.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/5-reasons-why-bitcoin-price-just-reclaimed-33-000

Blockchain

Government Blockchain Week Story

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From September 27- October 1 of 2021, the Government Blockchain Association, GBA, will be bringing together blockchain enthusiasts from around the globe for their big event, Government Blockchain Week in Washington DC.

In spite of the ravaging of COVID-19, the GBA is planning to hold this event live in many of the iconic buildings of the Capital City. The September week will be the third time that this event has been moved farther into the future in hopes that when Government Blockchain Week finally happens, attendees will have no fears of contracting the virus.

The week will begin with a Blockchain Foundations class on Monday, along Embassy Row at the British Embassy’s Rotunda building. At the same time, Blockchain Use for State and Local Governance will be held at the Attorney General’s Office downtown.

On Tuesday, a DC government agency building will host the Blockchain, Innovation & Economic Growth with Pitch Competition. Competitors from around the globe will be pitching their blockchain solutions to a panel of investors and government policymakers. Prize money, as well as the chance to advance to the World Business Angels Investment Forum world competition is at stake. The winners will be chosen at the end of the day.

While this is going on, the Department of International Trade UK at the British Embassy will host Blockchain, International Trade and International Aid.

On Tuesday evening, attendees can purchase tickets for Blockchain Ambassadors, held at the historic Whittemore House, for an evening to network under the stars. This cocktail party, the first of 3 Evening Receptions, will feature strolling musicians, parlor talks in the grand rooms of the mansion, catering fit for a President, networking in Eleanor Roosevelt’s library, finishing off with brandy and cigars out on the patio as the evening comes to a close.

Wednesday will be a day full of cryptocurrency and cybersecurity. Beginning with the Legal, Law Enforcement and Cybersecurity Forum happening in tandem with the Money, Banking and Cryptocurrency Forum. Guests will agonize over which one to attend, because they will miss the other.

In the late afternoon, selected guests will be invited to the FinTech Round Table, hosted by the Embassy of Bahrain. This invitation only meeting of the minds will allow banking regulators and finance policymakers a chance to meet and discuss the changes that are happening in their industry.

On Wednesday evening, on the rooftop of the International SPY Museum, the GBA will host CryptoNite, and electric, black tie event filled with intrigue and drama. Words cannot describe what CryptoNite is. You just have to be there. This is the second of the 3 Evening Receptions.

On Thursday and Friday, the big guns of the Speakers’ list will show up at the Congressional Auditorium of the US Capitol where GBA will host their 2-day flagship event, The Future of Money, Governance, & The Law. During these two days, global leaders in blockchain, finance, cryptocurrency, government, and law enforcement will discuss where and how blockchain will dramatically change their industry. During the 2 days at the Capitol, GBA will host their

Annual Achievement Awards,

and a Digital Art Show.

On Thursday night, on the rooftop of Capital View 400, the guests of Government Blockchain Week can purchase tickets to attend the

Inventors and Pioneers Evening Reception.

For centuries, inventors and pioneers have shaped and impacted the whole of humankind. On this night, we celebrate the inventors and pioneers of the 21st Century who will impact the decade and the century to come. This final Evening Reception will be a great celebration of a monumental week, overlooking the dome of the Capitol under a sky full of stars.

Government Blockchain Week, September 27 through October 1, 2021, will be packed with forums, presentations, competition, awards, art, parties, and most of all, powerful and impactful networking. Anyone who hopes to make a stand in blockchain technology will benefit by attending this monumental event.

Author Bio

Kathy Dache’ is the Events Director of the Government Blockchain Association (GBA). She has over 30 years of training and events experience. She co-founded a blockchain professional networking group in 2016 and helped launch the Government Blockchain Association in 2017. She has conducted extensive research on blockchain and cryptocurrency topics including economic analysis, financial systems, and the impact of cryptocurrency adoption on governments. She has developed presentation and training materials on blockchain use in healthcare, identity management, supply chain management and many others. She has also been the GBA liaison for GBA speakers and dignitaries. Her passion is graphics and art.

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Blockchain

Wall Street Bets ‘Chairman’ Tweet Sends Dogecoin (DOGE) Soaring 85% in Hours

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The price for the popular meme coin, Dogecoin (DOGE), went flying today. The cryptocurrency skyrocketed by almost 90% in just a couple of hours after the ‘Chairman’ of the now popular Wall Street Bets group tweeted about it.

  • About a couple of hours ago, the ‘Chairman’ of the popular Wall Street Bets group asked whether or not DOGE has ever been trading at $1.
  •  After the Tweet went live, DOGE’s price went for the skies. The cryptocurrency soared by about 85% in a matter of hours and reached an intraday high at around $0.0145. The price has since corrected, but it appears that there’s still momentum in the market.
  • The reason for this excitement is what recently happened with the stock price of GameStop.
  • The Wall Street Bets group on Reddit saw more than 2 million people joining it with the common cause of buying GME stock against the trades of Wall Street hedge funds, who have been shorting it.
  • Not long after that, the price soared by up to 600%, causing mayhem on Wall Street and even getting one large hedge fund out of its position for what was reported as a massive loss.
  • The entire ordeal even saw the CEO of NASDAQ say that they would potentially halt trading in case of increased social media chatter.

“When we evaluate how we would manage through a situation where you see a significant run-up with a stock that is not based on news or fundamentals, we have technology that evaluates social media chatter, and if we see a significant rise in the chatter on social media channels and we also match that up against unusual trading activity – we will potentially halt that stock.”

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Source: https://cryptopotato.com/wall-street-bets-chairman-tweet-sends-dogecoin-doge-soaring-85-in-hours/

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Reddit Doubles-Down on Blockchain: Partners With The Ethereum Foundation

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The giant social media platform Reddit has doubled-down on its blockchain and cryptocurrency involvement with a new partnership with the Ethereum Foundation. As a result, Reddit plans to utilize the Ethereum network to create larger-scale applications like the Community Points introduced last year.

Reddit Doubles-Down On Blockchain

CryptoPotato reported last year that the San Francisco, US-headquartered platform launched Community Points as tokens built on the Ethereum blockchain. Users from two subreddits, namely r/CryptoCurrency and r/FortNiteBR, were able to receive the ERC-20 coins and spend them on various services, such as membership purchases or voting on polls.

Reddit asserted that the points will be a measure of reputation and contribution within each of the communities. Earlier, a platform administrator going by the handle u/jarins reaffirmed the relationship between Reddit and the blockchain space with a fresh partnership with the Ethereum Foundation.

“In this new stage of our partnership, immediate efforts will be focused on bringing Ethereum to Reddit-scale production. Our intention is to help accelerate the progress being made on scaling and develop the technology needed to launch large-scale applications like Community Points on Ethereum.”

Furthermore, the post explained that the Ethereum choice was rather apparent as Reddit was looking into exploring an open-source and publicly available scaling technology.

An Increasing Commitment To Blockchain

The post highlighted that the most recent initiative with Ethereum is a step to increase the platform’s “commitment to blockchain,” which should help bring “the value and independence of blockchain technology to millions of Redditors.”

Consequently, Reddit has established a designated Crypto Team and is looking for “engineers who want to build the decentralized Internet.”

Aya Miyaguchi, the executive director at the Ethereum Foundation, also commented on the new partnership. She noted that the team behind the second-largest cryptocurrency by market cap continues to “be impressed with Reddit’s vision, and by how it maintains its culture and philosophies, which were key in forming this relationship.”

Additionally, representatives of both parties plan to host an online session to answer users’ questions.

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Source: https://cryptopotato.com/reddit-doubles-down-on-blockchain-partners-with-the-ethereum-foundation/

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