Connect with us

Blockchain

Crypto Markets See Red: BTC Headed Back to $10,000 While DeFi Bubble Bursts

After weeks of solid gains and strong plateaus, it seems that crypto markets are headed into correction season.

Republished by Plato

Published

on

Bitcoin has steadily been falling since Thursday of this week–last Friday, Bitcoin was sitting comfortably around $11,440, where it largely remained before peaking just over $12,000 on Wednesday.

The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation

However, the reach over $12,000 appeared to trigger a small-scale selloff. By the end of the day on Wednesday, data from CoinMarketCap showed that BTC had fallen around $11,350. At the end of the day on Thursday, Bitcoin had fallen to $10,800. At press time, the price had dipped to $10,450, having dropped below $10,200 at one point earlier in the day.

Some data sources showed that Bitcoin had even briefly dropped just below $10,000–on Binance, the chart tracking the BTC/USDT trading pair showed a dive to $9,990.

Now, though, it’s unclear whether the drop will continue. However, this 48-hour price dive does beg the question: will BTC test $10,000 again?

Bitcoin may be retracing to fill in the latest CME ‘price gap’

For some analysts, the answer is yes. While Bitcoin is currently back over the $10,000 mark, a number of commentators seem to believe that prices could fall as low as $9,700–a figure that would fall in line with the most recent ‘CME gap.’

The ‘CME gap’ phenomenon takes place when Bitcoin markets make a sharp move outside of the trading hours for CME’s Bitcoin futures markets. This results in a literal ‘gap’ in Bitcoin price charts.

Therefore, these gaps become ‘filled’ if the Bitcoin price retraces to retest the price area that is missing in the gap on the CME chart. Because the gap is around the $9700 zone, it’s possible that Bitcoin could fall at least that low.

The most recent CME price gap, via CoinTelegraph/Tradingview

BTC’s dip could be echoing a drop in stock prices

However, the price gap may not be the only reason that Bitcoin seems to be headed back below $10,000. In fact, some analysts believe that the price drop may be related to an increased level of correlation between Bitcoin and traditional asset markets.

Therefore, some analysts believe that the BTC dip is actually an echo of a a major hit to tech sector stocks that resulted in a 4 percent crash in the S&P 500 on Friday, September 4th.

Crypto commentator Lark Davis wrote on Twitter that the correlation between BTC and stock markets will only continue to grow stronger as more institutional investors continue to enter into crypto markets: “S&P 500 dumping, and oh big surprise #bitcoin is too!!! As more and more institutions come this is becoming out reality,” he said.

Interestingly, though, dips in both stock markets and Bitcoin prices were much more severe than a dip in the price of gold, as renowned gold bug and Bitcoin bear Peter Schiff was quick to point out.

“While gold declined, it fell much less than the market,” he wrote on Twitter. “Gold rose in value relative to stocks. #Bitcoin on the other hand fell much more than the market. For #gold owners stocks got cheaper. For Bitcoin owners they got more expensive,” he wrote on Thursday, September 3rd.

And indeed, by press time–as Bitcoin and stock prices were still in the red–gold appeared to have been making a swift comeback. Price per ounce had netted a 0.28 percent gain over the last 24 hours–not insignificant, given the state of markets more generally.

Suggested articles

Elections and Markets: An Unbreakable BondGo to article >>

Bitcoin’s dip rippled into ETH and beyond

Beyond Bitcoin, though, crypto markets in general have also taken a bit of a hit.

For example, the price of Ethereum–which has been riding high for weeks–has finally taken a dive. At press time, the price of ETH was down to $397.73, with a drop of 8.34 percent in the last 24 hours. On Wednesday, ETH reached a yearly high of around $486.

The drop in the price of ETH could be partially happening in correlation to what’s going on in BTC markets. However, there are a few theories unique to ETH that analysts are using to explain the price drop.

For one thing, transaction fees on the Ethereum network went through the roof: according to on-chain analytics firm Glassnode, miners on the network earned over $500,000 in fees in just one hour on September 1st. The rise in fees, coupled with a slowing of transaction speeds, may be contributing to ETH’s price decline.

And indeed, Stuart Popejoy, co-founder and president of blockchain infrastructure firm Kadena, predicted the fall of ETH’s price in an email to Finance Magnates earlier this week.

“ETH 1.0 is clearly on a warpath to bleed millions of dollars in gas fees over the next couple weeks,” Stuart Popejoy said. “Eventually there will be a new equilibrium when enough gas gets emitted to bring prices back to reality.”

And ooh, reality really can hurt.

Stuart Popejoy

DeFi tokens are dropping, too

The drop in ETH’s price also seems to have spread to other assets in the DeFi (decentralized finance) ecosystem.

For weeks–months, even–a number of assets associated with various DeFi protocols have been making headlines for their positive price movements. Finance Magnates reported in August that the price of BAND (the asset associated with the Band Protocol) had increased more than 6000% since the beginning of the year. The same month, Chainlink’s LINK had seen a 659.551% increase since January 1st.

As of today, though, both of these assets–and many other DeFi tokens–are down for the count. LINK had shed nearly 13 percent in the last 24 hours and was down 28 percent since a weekly peak on Sunday; BAND was down 17 percent in the last 24 hours, and had fallen 30.4 percent since its weekly peak on Thursday.

On the other hand, TRON and EOS–two protocols that have also been used to build DeFi applications–were in the green at press time. EOS’s upward movement seems to be the result of a buyback that had taken place over the last 24 hours, while TRON had shown fairly consistent gains throughout the week.

Beyond possible correlation with BTC and ETH, price drops in the DeFi token space seem to be the result of price corrections that have been expected for quite some time.

Is the DeFi bubble bursting?

Indeed, in an interview conducted in July, Deniz Omer, head of ecosystem growth at Kyber Network, told Finance Magnates that the price increases in DeFi tokens were somewhat reminiscent of the ICO explosion that took place in late 2017.

“In 2017, if you look at the actual value that existed, I would say that 98 percent of that was speculative value, and only two percent was fundamental value,” Omer said. Then, “over 2018 and 2019, as the market deflated,” the ratio began to reverse course: “fundamental value went higher and higher, and speculative value kind of dropped.”

Deniz said that similarly, the ratio of speculative value in the DeFi ecosystem “is increasing compared to the fundamental value.”

Deniz Omer, head of ecosystem growth at Kyber Network.

“It’s not that these products are not amazing – they are super amazing,” he added. At the same time, though, “when I see a several-thousand-dollar valuation for some kind of governance token, I’m not sure the capture mechanism allows for so much value to go up.”

In other words, Deniz believed that the price explosions in some DeFi tokens were “short-term, basically,” and that “[…] there should be a rebalancing and a correction at some point, especially if more people join in.”

And indeed, it seems that DeFi markets may have reached some kind of an inflection point, though more growth–and more corrections–are certainly expected in the future.

Source: https://www.financemagnates.com/cryptocurrency/news/crypto-markets-see-red-btc-headed-back-to-10000-while-defi-bubble-bursts/

Blockchain

Ripple’s Garlinghouse to File Dismissal Motion Against the SEC Lawsuit Over XRP Sales

Republished by Plato

Published

on

Ripple’s Garlinghouse to File Dismissal Motion Against the SEC Lawsuit Over XRP Sales

Advertisement &  & 

The CEO of Ripple, Brad Garlinghouse is filing for a motion to dismiss the SEC lawsuit against himself and Ripple. This is according to a copy of a letter written by Garlinghouse’s lawyer stating that he intends to file a dismissal motion for the case.

The letter claims that the case was nothing but a regulatory overreach as the company’s sale of XRP did not involve any contract and the proceeds were not pooled with other buyers in a common enterprise. Its price also fluctuates in line with other digital assets such as Bitcoin and Ethereum.

“But Mr. Garlinghouse’s XRP sales involved no contract of any kind with the buyers, as his sales were done anonymously over an exchange. Nor were the proceeds of Mr. Garlinghouse’s sales pooled with other buyers in a common enterprise. And XRP’s value historically has not been correlated with Ripple’s actions, results, or public announcements, but instead with changes in the value of other digital assets, such as bitcoin and ether, that the SEC has publicly declared are not securities”, the letter read.

Ripple and its top executives have been in court since the SEC filed a lawsuit against them alleging that they illegally sold a security (XRP) and made profits of over $1 billion. Garlinghouse has however maintained his position that XRP is not a security.

This could be because other countries such as the UK hold XRP in high regard. Garlinghouse had last year indicated his intention to move Ripple headquarters over to the UK before the SEC lawsuit. In early February of this year, the company filed a defense for the suit which has led to a few more lawsuits.

Advertisement &  & 

In 2015 and 2020, both the Department of Justice and the Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) declared XRP to be a “virtual currency”. The two departments even asked Ripple to implement anti-laundering in place, a requirement that Ripple claims securities are not expected to meet.

The outcome of Ripple’s case with the SEC could be a big determinant of future regulations in the cryptocurrency industry and the entire space awaits the outcome.


Get Daily Crypto News On Facebook | Twitter | Telegram | Instagram


DISCLAIMER Read More

The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://zycrypto.com/ripples-garlinghouse-to-file-dismissal-motion-against-the-sec-lawsuit-over-xrp-sales/

Continue Reading

Blockchain

Crypto fund KR1 makes investment in blockchain data protocol LazyLedger

Republished by Plato

Published

on

KR1, a crypto & blockchain asset investment company, had announced that it has invested a total of USD $75,000 into Strange Loop Labs AG, doing business as LazyLedger Labs.

The investment company took part in LazyLedger’s seed funding round alongside Cosmos’ Interchain Foundation, Binance, Dokia Capital,  Maven 11, and other investors.

LazyLedger is a pluggable consensus and data availability layer to enable anyone to quickly deploy a decentralized blockchain; without the overhead of bootstrapping a new consensus network.

“LazyLedger is a great project and an opportunity to bring better data availability to blockchains; which reduces bloat and increases performance. We believe that LazyLedger is going to play a big role in the next generation of scalable blockchain architectures.”
– Keld van Schreven, Managing Director and Co-Founder of KR1

LazyLedger’s founding team are highly respected decentralized systems engineers and researchers; who were part of the founding team of Chainspace, a blockchain project acquired by Facebook, as well as contributors to Ethereum 2.0 and Cosmos’ Tendermint.

“I’m excited about KR1 supporting LazyLedger as they have been around from day one and the experience they bring is invaluable as one of the oldest funds in the crypto space.”
– Mustafa Al-Bassam, Co-Founder of LazyLedger

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.cryptoninjas.net/2021/03/04/crypto-fund-kr1-makes-investment-in-blockchain-data-protocol-lazyledger/

Continue Reading

Blockchain

DeFi yield optimization protocol ETHA Lend closes $1.6M funding round

Republished by Plato

Published

on

ETHA Lend, a yield optimizer protocol for DeFi, today announced it has closed a $1.6 million initial funding round from lead investors Digital Finance Group (DFG), AU21 Capital, and Privcode Capital.

Other investors include: Vector Capital, Chain Capital, PNYX Venture, Lancer Capital, Oasis Capital, TRG Capital, Candaq Capital, Dealean Capital, Inclusion Capital, Origin Capital, ZB Capital, YBB Foundation, AC Capital, Hotbit.

Designed to provide automated yield allocation across Ethereum and Polkadot DeFi ecosystems; ETHA Lend will be governed by ETHA token holders. The protocol’s algorithm is constructed to understand the precise circumstances of a liquidity provider and supply events; protecting users from high transaction costs, market limitations, and asset volatility.

 “We are excited to have some of the most reputable names in the crypto investment and DeFi funding market on board. Our protocol hosts unique integrations of the DeFi space that shall let users dabble with yield farming with unseen simplicity, cross-chain independence, and progressive yield optimization opportunities. You can look forward to a time when the sector shall be free of the haunting tribalism and intimidations both for new and expert users.”
– Chester Bella, Founder of ETHA LEND

The close of this funding round will enable ETHA Lend to accelerate development towards its mainnet launch, currently scheduled for Q2 2021. ETHA Lend’s smart contracts are being inspected by Certik; one of the most highly reputed blockchain security auditors.

Source: ethalend.org

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://www.cryptoninjas.net/2021/03/04/defi-yield-optimization-protocol-etha-lend-closes-1-6m-funding-round/

Continue Reading
Blockchain4 days ago

Google Finance adds dedicated ‘crypto’ tab featuring Bitcoin, Ether, Litecoin

Blockchain3 days ago

Why Mark Cuban is looking forward to Ethereum’s use cases

Blockchain2 days ago

Amplifying Her Voice

Blockchain5 days ago

Inverse Finance seizes tokens, ships code: Launches stablecoin lending protocol

Blockchain4 days ago

NBA Top Shot leads NFT explosion with $230M in sales

Blockchain4 days ago

Litecoin, Monero, Dash Price Analysis: 28 February

Blockchain2 days ago

Libra Coin – A New Digital Currency Developed by FACEBOOK

Blockchain4 days ago

Korean Government To Levy Taxes On Bitcoin Capital Gains Starting 2022

Blockchain4 days ago

How KuCoin Shares (KCS) Can Create a Stream of Passive Income

Blockchain4 days ago

Top 5 cryptocurrencies to watch this week: BTC, BNB, DOT, XEM, MIOTA

Blockchain2 days ago

Blockchain in Sports Betting

Blockchain4 days ago

Polkadot, Cosmos, Algorand Price Analysis: 28 February

Blockchain1 day ago

Will Netflix soon buy bitcoin?

Blockchain3 days ago

The Sony PlayStation 5 Game Console Mining Ethereum with almost 100 MH/s is Not True!

Blockchain2 days ago

DEX aggregator 1inch integrates Bitquery’s API-powered crypto trading data

Blockchain2 days ago

Bitcoin Halving: Definitive Guide (In Just 5 Minutes)

Blockchain4 days ago

Rewardiqa platform takes DeFi to the next level

Blockchain4 days ago

How did Bitcoin lending become so popular?

Blockchain1 day ago

3 key Ethereum price metrics show pro traders are aiming for $2K ETH

Blockchain5 days ago

Kraken Daily Market Report for February 27 2021

Trending