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.
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.
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.
— Lark Davis (@TheCryptoLark) September 4, 2020
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.
This is misleading. While gold declined, it fell much less than the market. 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.https://t.co/XTybjujvT6
— Peter Schiff (@PeterSchiff) September 3, 2020
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.
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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.
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.”
“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.
Kraken Daily Market Report for May 14 2021
- Total spot trading volume at $3.17 billion, 5.3% higher than the 30-day average of $3.01 billion.
- Total futures notional at $638.8 million.
- The top five traded coins were, respectively, Ethereum (+2.3%), Bitcoin (-1.4%), Tether (0%), Dogecoin (12%), and Polkadot (-0.6%).
- Strong returns from Dogecoin (+12%) and Synthetix (8.5%).
|May 14, 2021
$3.17B traded across all markets today
Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD
#####################. 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 (May 14 2021)
Figure 2: Mid-size trading assets: (measured in USD) (May 14 2021)
Figure 3: Smallest trading assets: (measured in USD) (May 14 2021)
#####################. 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 (May 14 2021)
#########. Returns and Volume ############################################
Returns and Volume
Figure 5: Returns of the four highest volume pairs (May 14 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 (May 14 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. (May 14 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.
Ternoa Blockchain’s NFT-based data transmission project gets LVT Capital as a partner
Ternoa Blockchain has found a new partner as it introduces its NFT-based data transmission service to the market.
The company received an investment from Australia-based private equity firm LVT Capital to form a strategic partnership aimed at enhancing the sustainability, innovation, competitiveness, and dependability of Ternoa’s services that allow users to build time capsules for safely transmitting their memories and important data to their descendants even after death.
Building on LVT’s Expertise
With its focus on blockchain, crypto, and tech projects, LVT Capital has already proven its expertise in these areas with its numerous collaborations and investments. The company has already made investments in more than 40 top-caliber crypto, real estate, finance, education, and cybersecurity firms with 200 more under evaluation for potential collaborations.
LVT Capital has the market and technology expertise as well as the resources to enhance Ternoa’s unique service and promote it to boost the company’s competitiveness. For instance, LVT Capital has its own media & marketing services and an online publishing arm focused on blockchain, technology, and business, which makes the firm a perfect fit for Ternoa.
Ternoa Blockchain Offers Customizable Time Capsules
Ternoa Blockchain found a new way to use NFT and blockchain technologies to help people handle their data storage and transmission needs, which is one of the reasons for LVT Capital’s decision to invest in its business. With its Polkadot-powered, NFT-based customizable time capsules, people can securely transmit their memories such as photos, videos, and other important data to future generations or simply use the platform as a secure storage solution.
Ternoa’s platform is flexible enough and gives users several options on how they wish their data to be retrieved by their intended recipients. The available transmission protocols are Safe Protocol, Consent Protocol, Death Protocol, D-day Protocol, and Countdown Protocol.
- Safe Protocol – Data owners can retrieve data at any time, which makes use of Ternoa as a secure and portable storage solution.
- Consent Protocol – Recipients can access the time capsule as long as the original owner does not use his veto option.
- Death Protocol – The time capsule will be delivered to the beneficiaries upon the death of the creator based on local death registries APIs.
- Countdown Protocol – Introduces a countdown feature which can be set to1 month, 1 year, or 10 years. The time capsule will be delivered to the recipient if the countdown reaches the limit. The creator can reset the countdown at any time.
- D-day Protocol – Time capsule can only be accessed on a specific date, which is set by the creator.
While the loss of data is always an issue for other data storage solutions, Ternoa eliminated this risk by making copies of the files inside the time capsule, which are stored in other dex storage blockchains. At the moment, Ternoa sends these copies to Aerweave, Sia, and Storj while keeping the original version in its network. To learn more about the project, click here.
IMPORTANT NOTE: This is a paid press release, which BitcoinerX has posted as part of a commercial agreement. BitcoinerX is not responsible for producing this content and does not endorse the products or services mentioned. It is the responsibility of the company posting the press release to ensure the material is credible and accurate. BitcoinerX is not responsible for any damage or loss caused to anyone who chooses to use the company, product or services mentioned in the press release. BitcoinerX does not recommend using the information in the press release to form the sole basis of investment decisions.
Altcoins pop while Bitcoin looks for support near $50,000
Bitcoin (BTC) continues to look for direction but as this occurred, Ether and altcoins bounced higher from the May 13 sell-off. Dogecoin shocked investors with its 47% rally that kicked off after Coinbase announced that it would list (DOGE) in the coming months. Doge price also rallied after Elon Musk tweeted that he was “Working with Doge devs to improve system transaction efficiency. Potentially promising.”
While many altcoins have seen double-digit gains during the recovery the price of Bitcoin (BTC) has continued to languish near the $50,000 level as whale wallets containing at least 1,000 BTC have declined by 4.7% compared to the previous month, indicating possible profit taking or a rotation into different assets.
Data from Cointelegraph Markets and TradingView shows that while the Bitcoin recovery has been muted, demand for Ether (ETH) led to an 18% rally as the altcoin notched an intraday high at $4,173 on May 14.
Gains in the top altcoin come amidst mixed fundamental developments, with data from Glassnode showing that wallets holding at least 32 ETH have been steadily declining in recent months suggesting that fewer people are interested in becoming “full validators” for the network’s upcoming proof-of-stake blockchain.
Altcoins rally higher
While the debate about whether or not the market is officially experiencing an altseason rages on, one of its trademark characteristics is a sideways trading Bitcoin that leads to traders refocusing their attention on the altcoin market and leading to a decline in Bitcoin dominance.
One of the breakout stars of 2021 is Polygon (MATIC), which has seen its price rally 60% over the past 24-hours to reach a new record high at $1.75.
Another project whose price surged 45% from the lows on May 13 is iExec RLC (RLC), a decentralized cloud computing network that got a boost of adrenaline earlier in the week after Coinbase revealed that it would list the token.
Other notable performances include an 80% increase in the price of Ergo (ERG) and a 48% increase in the price of Sora (XOR) which lifted the token’s price back above $800.
The overall cryptocurrency market cap now stands at $2.307 trillion and Bitcoin’s dominance rate is 40.3%.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
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