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Analysts Say Bitcoin Is A Bubble That?s Already Bursting

Bitcoin Is A Bubble

Towards the end of last year the upward movement of the price of bitcoin (BTC) seemed unstoppable and it would not have been crazy to assume that record highs would keep on being broken. Some investors who piled on were able to make a profit. The same was replicated with other digital currencies as investors […]

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Bitcoin Is A Bubble

Towards the end of last year the upward movement of the price of bitcoin (BTC) seemed unstoppable and it would not have been crazy to assume that record highs would keep on being broken. Some investors who piled on were able to make a profit. The same was replicated with other digital currencies as investors tried to take advantage of arbitrage opportunities. There were also those investors who bought other digital coins with the aim of diversifying their virtual assets portfolio.

Due to the heavy demand experienced at the time some crypto exchanges ended up crashing. Those who had been holding virtual currencies for some time were rewarded with a record high just before Christmas. As a result of the excitement amateur traders and professional investors predicted that the price of bitcoin would see new record highs come the New Year. According to these traders this would be because investors would buy every dip just like is the case in every high-yield market that experiences a lot of volatility.

Universal adoption

There were also those traders who expressed optimism that bitcoin would see universal adoption and this would only raise demand for the virtual currency thereby raising prices even higher. Even as the price of bitcoin crashed to below half its record high, which had been hit just a month prior, enthusiasts of cryptocurrencies were still optimistic about the prospects of the virtual currency in January this year. Some even said the price of the virtual currency would increase to a high of $100,000 per coin by the end of 2018.

However it is now May and the price of the largest digital currency by market capitalization is hovering around the $8,500 mark. According to bitcoin bears this is a classic case of a bubble that has burst.

This is reinforced by the fact that the price of the virtual currency is exhibiting similar behavior to that of the 1929 Wall Street crash. With regards to the 1929 crash a sizeable rally was experienced following the initial crash and then there were smaller ones that followed. Basically though the underlying trend was that the movement was downwards with stocks eventually losing all the gains that they had made the prior decade. In the event that Bitcoin follows a similar pattern then it is possible for the price to fall to zero.

Inherent flaws

Less than a month ago the Allianz Global Investors? global economics and Strategy head, Stefan Hofrichter, said that the prices of bitcoin were in a bubble and in the near future it was likely to burst due to inherent flaws in its design. According to Hofrichter the digital currency ticked all the boxes that are essential criteria with regards to asset bubbles.

Some of the criteria includes a fivefold increase in trading volumes in the course of half a decade, the lack of any financial regulation as well as the unveiling of related financial instruments that include bitcoin futures. Additionally Hofrichter said other factors making bitcoin a likely bubble were the fact that it lacked intrinsic value as it possessed no assets nor generated income.

Dippli is an independent media outlet that covers the current events in the crypto space. Got breaking news or a story to share? Then feel free to contact us at news@dippli.com.

The post Analysts Say Bitcoin Is A Bubble That?s Already Bursting appeared first on dippli.

Source: https://dippli.com/2018/05/13/analysts-say-bitcoin-is-a-bubble-thats-already-bursting/

Blockchain

Kraken Daily Market Report for January 26 2021

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Overview


  • Total spot trading volume at $1.33 billion, near the 30-day average of $1.65 billion.
  • Total futures notional at $542.6 million.
  • The top 5 traded coins were, respectively, Bitcoin, Ethereum, Tether, Polkadot, and Chainlink.
  • Although Chainlink (-1.0%), Litecoin (-1.7%) and others were down; Bitcoin(+1.2%), Ethereum (+3.3%), and Uniswap (+23%) were up.

January 26, 2021 
 $1326.2M traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$32529. 
↑1.2% 
$552.5M
ETH 
$1358.7 
↑3.3% 
$442.4M
USDT 
$1.0011 
↑0.1% 
$149.3M
DOT 
$17.117 
↓0.4% 
$40.4M
LINK 
$23.059 
↓1.0% 
$25.0M
USDC 
$0.9999 
↑0.0% 
$20.2M
BCH 
$427.28 
↓0.9% 
$19.6M
UNI 
$13.853 
↑23% 
$18.5M
ADA 
$0.3441 
↑0.7% 
$16.7M
LTC 
$134.74 
↓1.7% 
$14.6M
XRP 
$0.2681 
↑0.3% 
$13.2M
AAVE 
$277.08 
↑13% 
$8.43M
XLM 
$0.2614 
↑0.3% 
$5.41M
XTZ 
$2.9084 
↓0.26% 
$4.2M
FIL 
$22.180 
↓1.0% 
$3.61M
CRV 
$2.1399 
↑7.2% 
$3.43M
ALGO 
$0.6021 
↑8.6% 
$3.36M
SNX 
$16.771 
↑8.6% 
$3.2M
XMR 
$137.92 
↑0.6% 
$2.92M
DAI 
$1.0005 
↑0.02% 
$2.64M
GRT 
$0.5361 
↑1.5% 
$2.22M
EOS 
$2.6297 
↓0.6% 
$2.18M
ICX 
$0.8948 
↑11% 
$2.08M
COMP 
$236.97 
↑12% 
$1.95M
ATOM 
$7.7332 
↑0.29% 
$1.82M
YFI 
$30280. 
↑3.6% 
$1.69M
KEEP 
$0.3131 
↓4.2% 
$1.5M
KSM 
$102.03 
↑3.4% 
$1.33M
BAT 
$0.2989 
↓3.0% 
$1.28M
OMG 
$3.4422 
↓2.7% 
$1.19M
DASH 
$104.90 
↑0.4% 
$1.19M
TRX 
$0.0295 
↑0.2% 
$1.11M
XDG 
$0.0082 
↓0.7% 
$1.09M
QTUM 
$3.4386 
↑4.6% 
$1.04M
MLN 
$36.117 
↓5.6% 
$1.01M
NANO 
$3.2120 
↑1.2% 
$1.0M
MANA 
$0.1665 
↑1.0% 
$916K
ZEC 
$89.189 
↑1.6% 
$914K
WAVES 
$6.8173 
↑2.5% 
$905K
KAVA 
$2.3313 
↓1.5% 
$643K
ETC 
$7.4335 
↓0.7% 
$520K
STORJ 
$0.4256 
↑9.9% 
$393K
KNC 
$1.3156 
↓0.04% 
$355K
OXT 
$0.2995 
↑1.7% 
$288K
ANT 
$4.0750 
↑5.1% 
$270K
SC 
$0.0044 
↓1.2% 
$266K
PAXG 
$1869.4 
↑0.3% 
$246K
REP 
$21.454 
↑4.4% 
$221K
LSK 
$1.3000 
↓1.6% 
$187K
GNO 
$115.59 
↑0.8% 
$177K
BAL 
$21.730 
↑3.7% 
$127K
REPV2 
$19.177 
↓0.6% 
$59.7K
TBTC 
$33172. 
↓2.6% 
$56.2K



#####################. Trading Volume by Asset. ##########################################

Trading Volume by Asset


The figures below break down the trading volume of the largest, mid-size, and smallest assets. Cryptos are in purple, fiats are in blue. For each asset, the chart contains the daily trading volume in USD, and the percentage of the total trading volume. The percentages for fiats and cryptos are treated separately, so that they both add up to 100%.

Figure 1: Largest trading assets: trading volume (measured in USD) and its percentage of the total trading volume (January 26 2021)



Figure 2: Mid-size trading assets: (measured in USD) (January 26 2021)



Figure 3: Smallest trading assets: (measured in USD) (January 26 2021)



#####################. Spread %. ##########################################

Spread %


Spread percentage is the width of the bid/ask spread divided by the bid/ask midpoint. The values are generated by taking the median spread percentage over each minute, then the average of the medians over the day.

Figure 4: Average spread % by pair (January 26 2021)



.


#########. Returns and Volume ############################################

Returns and Volume


Figure 5: Returns of the four highest volume pairs (January 26 2021)


Figure 6: Volume of the major currencies and an average line that fits the data to a sinusoidal curve to show the daily volume highs and lows (January 26 2021)



###########. Daily Returns. #################################################

Daily Returns %


Figure 7: Returns over USD and XBT. Relative volume and return size is indicated by the size of the font. (January 26 2021)



###########. Disclaimer #################################################

The values generated in this report are from public market data distributed from Kraken WebSockets api. The total volumes and returns are calculated over the reporting day using UTC time.

Source: https://blog.kraken.com/post/7623/kraken-daily-market-report-for-january-26-2021/

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Blockchain

Solana targets growth in Southeast Asia with a $5M grants scheme

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Solana has turned its focus towards decentralized finance in Southeast Asia with a new $5 million development fund.

The Solana Foundation created the fund in partnership with Vietnam-based investment firm Coin98 Ventures, enabling regional startups building on Solana to receive technical, marketing, and community support, as well as up to $100,000 in funding. The fund will run for the next three years with a specific focus on projects within the DeFi and Web3 spaces, including marketplaces, exchanges, and other DApps or tooling.

This is one of the first grants specifying a core region of interest, with a particular focus on Vietnam. Solana Foundation Executive Director Eric Williams:

“Our goal is to create the optimal conditions for developers in Southeast Asia to build amazing things on Solana.”

According to the announcement, “project teams may be distributed, but must have a physical presence in Southeast Asia.” The announcement makes it clear that if they do not have a presence there, they will not qualify for the fund.

Williams explained that the foundation partnered with Coin98 Ventures because of the technical and community support they can provide, adding that the key to this fund being successful is the combination of financial and technical support:

“Sometimes hurdles can be solved with extra money, other times they cannot.”

DeFi is gaining traction within the Solana ecosystem, driving trading volume to all-time highs earlier this month.

Using treasuries and fund campaigns to boost developer ecosystems within blockchains is common with programs already available for a range of blockchain networks including Bitcoin, Ethereum, OkCoin, and Polkadot.

In September last year, Polkadot received one of the largest fund boosts to date with Digital asset development company RockX investing $20 million to support the Polkadot ecosystem over the next five years.

Source: https://cointelegraph.com/news/solana-targets-growth-in-southeast-asia-with-a-5m-grants-scheme

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Blockchain

TA: Bitcoin Holds Strong At $31K, Why The Bulls Are Facing Uphill Task

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Bitcoin price is stuck in a range below the $33,500 and $33,800 resistance levels against the US Dollar. BTC is likely to continue lower unless it clears the $33,800 resistance.

  • Bitcoin retested the $31,000 zone and managed to stay in a range.
  • The price is currently facing resistance near $32,800 and the 100 hourly simple moving average.
  • There is a short-term ascending channel or a » Read more

” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear flag forming with support near $31,900 on the hourly chart of the BTC/USD pair (data feed from Kraken).

  • The pair could trade in a range, with a strong resistance near $33,500 and $33,800.
  • Bitcoin Price Is Facing Strong Resistance

    After a failed attempt to clear the $35,000 resistance, bitcoin price trimmed gains and traded below $33,800. BTC even broke the $32,500 level and settled below the 100 hourly simple moving average.

    There was a spike below the $31,000 level, but it remained stable above $30,800. A low is formed near $30,823 and the price is currently recovering higher. It surpassed the 23.6% Fib retracement level of the downward move from the $34,915 high to $30,823 low.

    Bitcoin price is currently facing resistance near $32,800 and the 100 hourly simple moving average. The 50% Fib retracement level of the downward move from the $34,915 high to $30,823 low is also near $32,800.

    Bitcoin Price

    Source: BTCUSD on TradingView.com

    At the outset, it seems like there is a short-term ascending channel or a » Read more

    ” href=”https://www.newsbtc.com/dictionary/bear/” data-wpel-link=”internal”>bear flag forming with support near $31,900 on the hourly chart of the BTC/USD pair.  To continue higher, the bulls need to gain strength above $32,500, $32,800 and the 100 hourly SMA.

    The next strong resistance is near the $33,500 and $33,800 levels. A close above $33,800 could increase the chances of a steady rise in the coming sessions.

    Fresh Dip in BTC?

    If bitcoin fails to clear the $32,800 resistance or $33,500, it could start a fresh decline. An initial support is near the channel support at $31,900.

    A clear break below the channel support could open the doors for a larger decline towards the $30,800 support. Any more losses may possibly call for a downside break below the $30,000 support zone.

    Technical indicators:

    Hourly MACD – The MACD is struggling to gain momentum in the bullish zone.

    Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now close to the 50 level.

    Major Support Levels – $31,800, followed by $30,800.

    Major Resistance Levels – $32,800, $33,500 and $33,800.

    Source: https://www.newsbtc.com/analysis/btc/bitcoin-holds-strong-at-31k/

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