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Bitcoin Recovers, Moves Above $38,000

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It certainly worked during the crypto bull run of 2017. Just about anybody who remembers the market at that time will have a story about a neighbor or a waiter who started talking crypto out of nowhere.

By the time we got to Dec. 18 of that same year, the echo chamber had reached maximum capacity, the last retail dollar had found its way into the market and the tide suddenly turned.

So it’s no surprise that during this cycle, crypto insiders have been raising alarm bells whenever they happen across someone talking to them about bitcoin or crypto in their daily lives.

However, as we figured out recently, the shoeshine indicator actually isn’t relevant at all in this current cycle!

The logic is simple. The same cab driver, who played the role of the retail bag holder during the last pump, didn’t forget everything and turn into a new cab driver.

He’s the same guy who learned about bitcoin, now knows about it, and has probably been hodling since. So the fact that price is up and he’s happy about it is good news.

Hundreds of millions of people have been initiated into the broader network we call Bitcoin. Some may have turned into short-term speculators, but the data shows that most of them are probably not ready to take their cash out of the market.

The orange line in this graph shows the percentage of the market that has been hodling for more than one year.

Sure, there’s been some movement of coins and profit taking up near $40,000, but we’re nowhere near the level of old coin movement that occurred in the second half of 2017.

HODL

What indicator should we look for then?

Well, working on the assumption that the new money coming in is institutional, a theory that several very large financial and crypto firms have already officially corroborated, the question is at what point will the last suit put in their last dollar?

Well, the answer to that would of course require us to first determine just how many more dollars are available in the market for allocation, and how many more will soon be created and need to find a home.

Certainly our new friends are starting with small allocations, mere fractions of a percent of their respective portfolio sizes.

Yet, should they keep experiencing the kinds of outstanding returns that they’ve been seeing these last few weeks, there’s no doubt that in this lopsided economy of unbalanced risk due to artificial market manipulation by the Federal Reserve, these fractions will gradually yet very steadily increase over time.

How do you measure more of more?

A perfect example of how adrift we are right now in uncharted waters can be found by watching the famous Crypto Fear & Greed Index, which has been riding at its highest levels of 85+ for the last few weeks and has now plunged down to 78 today, a reading which still indicates “extreme greed.”

Crypto fear

Hats off to writer and podcast host Mark Hunter for pointing out more than a month ago that this would likely happen.

The fact is that this indicator was set up just at the beginning of crypto winter, and it’s worked pretty well since then, but just as Bitcoin’s RSI indicators read overbought for months at a time in previous bull runs, it is likely that as long as we’re in a bull market, the above should remain firmly green, which I guess is the point of a good indicator.

Wrong question

So, as we’ve been alluding to for a while, the perception of where this market is headed is crucial.

Many people seem to have rather preconceived notions about how things work, that assets travel upwards or downwards in value given any number of factors that are constantly changing.

While this is largely true, it vastly discounts the notion that the only way we can measure the value of an asset is based on another asset.

For example, the fact that bitcoin has gone from $10,000 to $35,000 is merely a reflection of the increase in the value per bitcoin.

The bitcoin in your digital wallet hasn’t changed, it’s stayed the exact same amount. The blockchain hasn’t changed either, it keeps doing what it’s doing no matter how people perceive its worth.

Some part of that perception might be based on the confidence and value of the U.S. dollar, against which bitcoin is constantly measured, and some part based on pure speculation of how the entire industry may evolve in the future.

But when it comes down to the bare bones of it, the only things that really influence price are buyers and sellers, as well as the direction that money is traveling.

Money could have many meanings though. If we come at it from the perspective that bitcoin in and of itself is money, the foundation of an entirely new ecosystem that is currently being built on, then we understand that the question is not the right one.

We shouldn’t be asking at what point the dollar value tops out, but how long until bitcoin’s maximum potential is reached?

How long until the entire legacy financial system migrates over to a digital internet on the web 3.0 based on distributed ledger technology?

My feeling is that we’re still early. What do you think?

As always, many thanks for reading and engaging. On this topic, we wanted to highlight an interview with Charles Bovaird, QE’s VP of content and editor of all the company’s research and analysis, including the organization’s daily newsletter.

The topic of course is crypto in the mainstream media, and I think Bovaird, as a senior contributor at Forbes, does an excellent job defending his profession and dispelling a lot of preconceived notions about how the press functions that to us just seem rather preposterous.

Watch here now. This is a good one!!

Source: https://www.bitcoinmarketjournal.com/bitcoin-recovers-moves-above-38000/

Blockchain

Facebook’s Diem Unveils Its Latest Stablecoin Plans and Strategic Move to the United States

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Diem, the cryptocurrency project headed by Facebook originally known as Libra, recently announced its plans to launch a stablecoin with its focus scaled back to the United States. 

The company stated earlier this year that it would be relocating its primary operations from Switzerland back to the United States, and would withdraw its payment system license application from Switzerland’s financial regulators. “Diem is simplifying its plans for [its] USD stablecoin issuance by shifting its main operations from Switzerland to the United States,” they said.

This decision was later confirmed by the Swiss Financial Market Supervisory Authority. 

Stablecoins are digital currencies pegged to a fiat currency, with Tether (USDT) and USD Coin (USDC) being two prominent examples. California-based Silvergate Bank will become the sole issuer of the Diem USD, while also managing its dollar reserves. 

Diem to Launch Wholly New Subsidiary Diem Networks US Alongside Crypto Bank Silvergate

In a strategic partnership, the two firms have created a new subsidiary called Diem Networks US — which will run the Diem Payment Network (DPN) to facilitate transactions of Diem stablecoins within its network. 

“Silvergate is a leader in financial innovation and an ideal partner for Diem as we move forward with a blockchain-based payment system that protects consumers and enhances the integrity of the financial system,” said Stuart Levey, chief executive officer of Diem.

“We are committed to a payment system that is safe for consumers and businesses, makes payments faster and cheaper, and takes advantage of blockchain technology to bring the benefits of the financial system to more people around the world. We look forward to working with Silvergate to realize this shared vision.” 

Diem’s strategic shift to the United States comes at a time of a rapidly evolving regulatory environment for cryptocurrencies and blockchain technology. 

Some municipalities and states such as Miami and Wisconsin have embraced the recent innovation, whereas regulators such as the newly-appointed SEC Chair Gary Gensler have critiqued the autonomy of the crypto industry. 

With crypto ETFs and related financial products under intense scrutiny by the SEC, it remains to be seen whether Diem’s decision to relocate back to the United States will bear any fruit.

Featured image from ShutterStock

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinist.com/facebooks-diem-unveils-its-latest-stablecoin-plans-and-strategic-move-to-the-united-states/?utm_source=rss&utm_medium=rss&utm_campaign=facebooks-diem-unveils-its-latest-stablecoin-plans-and-strategic-move-to-the-united-states

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Blockchain

Crypto Research Firm Delphi Digital Launches Latest NFT Fund

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Delphi Digital, a New York-based crypto research and venture firm, recently launched its latest on-chain fund to invest in non-fungible token (NFT) projects. 

The fund, referred to as Delphi InfiNFT, is based on decentralized finance (DeFi) investing protocol Syndicate. “It will enable automation of deposits, cap table, distributions, fund management, reporting, etc.” said Anil Lulla, co-founder of Delphi Digital. 

“NFT’s are changing digital ownership rights, as well as how creators are interacting with their communities. Along with the growth of the NFT space, there is supporting infrastructure that needs to be built alongside it. The goal of this fund is to find the protocols that are moving the NFT space forward and building the infrastructure that is needed.”

Delphi Digital has partnered with NFT investor Gmoney for its NFT fund, who famously purchased a CryptoPunk NFT for a record price of 140 Ethereum worth approximately $180,000 at the time. Gmoney and Delphi will co-manage the fund together. 

According to their website, the fund will look to create an investment portfolio consisting of 20 protocols through InfiNFT. “We plan to deploy at least 80% of the fund’s capital in the first 6 – 9 months as we find protocols that fit with our thesis,” the team report read. 

“We will identify and select leading NFT networks through our networks and communities. We’ll be working directly with the teams we invest in to help them become a core piece of the NFT ecosystem long-term.

Delphi’s InfiNFT is backed by IDEO CoLab Ventures, Divergence Ventures, Axie Infinity, Compound Finance, and Fractional, among others. 

The recent steep Ethereum selloff led to massive losses in market cap across the NFT markets. According to NFT Valuations, Cryptopunks’ total market valuation dropped $600 million this past week — representing over a 66% loss. In spite of the recent volatility, investors like Delphi Digital appear to be confident in the long-term prospects of the non-fungible token space.

Ethereum (ETH/USD), alongside the broader crypto market, suffered week-long losses following the news of Tesla cutting its Bitcoin payments. At press time, Ethereum is down 9.3% in the past week. Source: Tradingview.com
Featured image from UnSplash 

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinist.com/crypto-research-firm-delphi-digital-launches-latest-nft-fund/?utm_source=rss&utm_medium=rss&utm_campaign=crypto-research-firm-delphi-digital-launches-latest-nft-fund

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Blockchain

Cardano, Uniswap, Chainlink Price Analysis: 16 May

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Cardano introduced some target levels at $2.53 and $2.69 via the Fibonacci Extension tool. Uniswap needed to garner bullish strength for a break above $43-$45 resistance. Lastly, a descending triangle breakdown on Chainlink could see a 7.5% retracement towards its 50-SMA

Cardano [ADA]

Source: ADA/USD, TradingView

If buyers were looking to make profits on large-cap alts during the recent turbulent broader market, Cardano was a must inclusion in every portfolio. Weekly gains of 36% were the highest among the top 10 coins by market cap and underlined ADA’s independence from broader market sentiment. Fibonacci Extension tool was used to identify potential target points for the current rally. The 372.2% and $361.8% extension levels stood at  $2.53 and $2.69, respectively. With buying pressure still on the rise according to Awesome Oscillator, ADA made a strong case for an extended rally.

In case of pullbacks, these extension levels can also act as support lines. RSI’s overbought territory indicated the need for stabilization and a dip in volumes could mean some southbound action. Nevertheless, key factors could allow ADA to sustain higher levels moving forward.

Uniswap [UNI]

Source: UNI/USD, TradingView

A descending triangle breakdown showed losses of 8% from the bottom trendline, but buyers stepped in at $35.6-support. In fact, this support has been under the spotlight during recent dips and only reinforced the area as a buffer against extended losses. On the 4-hour timeframe, OBV’s sharp fall was an interesting development which explained why bulls have failed to topple $43-$45 resistance. Considering the dearth of constant buying pressure, Uniswap could trade between $44.4 and $35.6 over the coming days.

A breakout above $44.4 on high volumes would result in a bullish trend but the market was not yet ready for such a swing. Awesome Oscillator’s wavy trajectory suggested that neither side had been fully able to assert dominance.

Chainlink [LINK]

Source: LINK/USD, TradingView

While Chainlink did see losses over the last 24 hours, the bulls held on to $41.2-support – an important development. A descending triangle was prominent on the daily timeframe and a breakdown could see a sell-off between $35.7-39.1. Those hoping to trade on a breakdown can observe the 4-hour timeframe for more sensitive price action.

Awesome Oscillator registered a series of red bars as selling momentum dragged  LINK from a high of $61.9 to a low of $39.7 during the present downtrend. MACD also confirmed a bearish presence in the market. To negate LINK’s pattern, buyers would need to target a rise above $45.6-resistance.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/cardano-uniswap-chainlink-price-analysis-16-may

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