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Cryptocurrency in 2020. Bitcoin to Be the Year’s Best Asset

Bitcoin price may be stable, butRead More →

The post Cryptocurrency in 2020. Bitcoin to Be the Year’s Best Asset appeared first on Crypto Core Media.

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Bitcoin price may be stable, but its adoption is surging

If 2020 came with a catchphrase, words like “uncertainty” and “instability” would almost certainly be a part of it. What started with a global pandemic kitchen fire, became a raging inferno of societal instability. The economic downturn and joblessness resultant of the illness laid bare some of the more sinister underpinnings of global infrastructure. Leaving many more concerned with the security of a wildly uncertain future. Luckily, Bitcoin is an expert when it comes to navigating volatility and an uncertain future.

Bitcoin, created in the darkest days of one of the biggest recessions seen to date worldwide, knows how to address some of the major systemic issues of economic structure. Structures that have also led to its rhythmic collapse. Moreover, the cryptocurrency has been actively advocating for ubiquitous adoption since its advent. Thanks largely to the efforts of users, widespread dissemination of inclusive information, and even exchanges and trading platforms like Bitvavo– purpose-built for encouraging new users to gain traction in the market. Bitcoin can be viewed as a better alternative to the systems that seem to routinely fail. And 2020 so far has done nothing but shore that premise. 

Growing Distrust in a System

Discussions regarding the “assured” downfall of bitcoin values following the halving and economic fallout following the coronavirus, being resoundingly rebuffed following bitcoins latest performance. But these sorts of doomsday scenarios regarding bitcoin valuation are nothing new, as many vocal critics of bitcoin have been predicting the end of cryptocurrency since widespread adoption in 2017.

What many of these criticisms have failed to address is the ever-increasing inflation of the US dollar and many other fiat systems. A concept that many crypto users and proponents are acutely aware of. Americans, and surely many other countrymen, face one of the biggest quantitative easing schemes ever seen. Making the few fully informed seriously questioning the future of the dollar, one of the world’s most trusted and reliable currencies.

Quantitative easing, a monetary policy set into motion by governments that causes central banks to buy government bonds or other internal financial assets to stimulate the economy and expand economic activity. However, in instances of high economic distrust, the policy can function more or less effective than planned. Resulting in prohibitive inflation and deflation later on. If banks are hesitant to lend and potential buyers are unwilling to borrow, or when quantitative easing fails to improve economic sentiment, then the result is a too saturated market. Especially in such cases that the amount of easing required is overestimated, or when too much money is created by purchasing liquid assets.

Bitcoin has been seen in other countries, like Venezuela and Argentina, to be a security that is capable of offering much-needed protection against the debilitating inflation and deflation that excessive quantitative easing programs can catalyze. Functioning more as a safe haven asset than a digital currency. This is largely due to how bitcoin created and retains its own value. As a fully decentralized currency with a strict artificial scarcity framework, bitcoin is all but immune to quantitative easing practices. As a borderless currency, bitcoin offers these types of protections to anyone anywhere in the world.

Safe Haven Assets

Despite the term, and it’s inherent viability, being hotly debated, safe-haven assets are those that are considered to be “recession-proof”. Although, this is a bit of a misnomer, as any and all supply is somewhat dependent on demand, and if a recession is bad enough, demand will fall regardless of the asset. Such was seen in the few weeks following the coronavirus settling into global economies. Even gold prices fell. The misconception that these markets continue to thrive during economic duress is widespread, but the truly defining behavior of safe-haven assets is actually how they rebound following a market shakeout.

Bitcoin, much like gold, has bounced back to pre-crisis values and continues to hold strong without regular injections through quantitative easing and other stimulus programs. In short- it hasn’t relied on the government to bail it out. It’s come back entirely on its own. Which may serve to further prop up the idea that it is a safe haven asset, and could very realistically act as a hedge to future economic disruption. Which could provide a genuine answer as to why the coin has been behaving in stark contrast to almost all other cryptocurrencies since the beginning.

Source: https://cryptocoremedia.com/cryptocurrency-in-2020-bitcoin-to-be-the-years-best-asset/

Blockchain

Why Bitcoin Price Could Start Strong Increase Above $50K

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Bitcoin price is showing a few positive signs above $48,000 against the US Dollar. BTC is likely to start a strong increase if it settles above $50,000 and the 100 SMA (H4).

  • Bitcoin remained well bid above $43,000 and $45,000 support levels.
  • The price is now approaching the $50,000 resistance and the 100 simple moving average (4-hours).
  • There is a key contracting triangle forming with resistance near $50,200 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to start a strong increase if it clears the $50,000 and $50,500 resistance levels.

Bitcoin Price is Gaining Momentum

This past week, bitcoin price corrected lower below the $48,000 support zone against the US Dollar. The BTC/USD pair even broke the $47,000 level and settled below the 100 simple moving average (4-hours).

However, the bulls were able to protect a downside break below the $46,000 area. A low was formed near $46,350 before the price started a fresh increase. It cleared the $47,000 and $48,000 resistance levels. There was also a break above the 50% Fib retracement level of the downward move from the $52,640 swing high to $46,350 low.

Bitcoin Price

Source: BTCUSD on TradingView.com

It is now approaching the $50,000 resistance and the 100 simple moving average (4-hours). There is also a key contracting triangle forming with resistance near $50,200 on the 4-hours chart of the BTC/USD pair.

The triangle resistance is close to the 61.8% Fib retracement level of the downward move from the $52,640 swing high to $46,350 low. A clear break above the triangle resistance could open the doors for a fresh increase towards the $52,000 and $53,000 resistance levels. The next major hurdle for bitcoin could be near $55,000.

Limited Downsides in BTC?

If bitcoin fails toc clear the $50,000 and $50,500 resistance levels, it could correct lower. The first key support is near the $48,800 level.

The main support is near the triangle lower trend line and $48,000. A clear break below the triangle support zone could clear the path for a move towards the $45,00 support zone in the near term.

Technical indicators

4 hours MACD – The MACD for BTC/USD is showing positive signs in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well above the 50 level.

Major Support Level – $48,000

Major Resistance Level – $50,000

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Source: https://www.newsbtc.com/analysis/btc/bitcoin-price-could-start-strong-increase-50k/

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Kraken Daily Market Report for March 06 2021

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Overview


  • Total spot trading volume at $885.1 million, down from the 30-day average of $2.04 billion.
  • Total futures notional at $352.3 million.
  • The top five traded coins were, respectively, Bitcoin, Ethereum, Tether, Cardano, and Polkadot.
  • Strong returns from Ocean (+27%), Balancer (+17%), and Keep (+13%).

March 06, 2021 
 $885.1M traded across all markets today
 Crypto, EUR, USD, JPY, CAD, GBP, CHF, AUD 
XBT 
$48929. 
↑0.17% 
$357.9M
ETH 
$1653.5 
↑8.0% 
$248.8M
USDT 
$1.0005 
↑0.01% 
$104.0M
ADA 
$1.1311 
↓2.9% 
$83.0M
DOT 
$33.443 
↓0.7% 
$34.3M
FLOW 
$34.701 
↓0.8% 
$17.4M
LTC 
$182.90 
↑1.3% 
$15.6M
LINK 
$28.164 
↑1.0% 
$14.6M
XRP 
$0.4631 
↑1.7% 
$13.6M
USDC 
$1.0 
↓0.01% 
$12.4M
XDG 
$0.0509 
↑2.7% 
$8.74M
OCEAN 
$1.3938 
↑27% 
$6.68M
XTZ 
$3.8729 
↑2.6% 
$5.43M
ATOM 
$18.951 
↑1.3% 
$5.04M
UNI 
$28.5 
↑0.6% 
$4.91M
BCH 
$500.79 
↑0.5% 
$4.36M
XMR 
$204.72 
↓0.6% 
$4.23M
AAVE 
$388.58 
↑5.6% 
$3.43M
XLM 
$0.4021 
↓0.9% 
$3.38M
GRT 
$1.7973 
↓1.8% 
$3.14M
OMG 
$5.0654 
↑9.7% 
$2.63M
KSM 
$229.84 
↑0.7% 
$2.62M
FIL 
$40.438 
↓0.04% 
$2.58M
QTUM 
$6.3372 
↓3.9% 
$2.58M
ALGO 
$1.0552 
↓0.12% 
$2.39M
YFI 
$34015. 
↑6.3% 
$1.73M
MANA 
$0.3594 
↓4.2% 
$1.6M
DAI 
$1.0008 
↓0.03% 
$1.59M
TRX 
$0.0502 
↓0.05% 
$1.57M
EOS 
$3.7264 
↑0.7% 
$1.46M
SC 
$0.0106 
↑1.1% 
$1.39M
COMP 
$491.98 
↑3.2% 
$1.33M
BAT 
$0.6642 
↓2.5% 
$1.3M
ICX 
$1.8370 
↓2.0% 
$1.27M
CRV 
$2.0505 
↓0.29% 
$1.16M
ZEC 
$125.28 
↑3.2% 
$1.03M
KEEP 
$0.3903 
↑13% 
$924K
EWT 
$15.400 
↓3.0% 
$876K
WAVES 
$9.9996 
↑0.7% 
$874K
KNC 
$2.0564 
↓3.0% 
$869K
NANO 
$5.1355 
↓0.11% 
$856K
DASH 
$208.81 
↑1.4% 
$849K
SNX 
$21.255 
↑2.3% 
$842K
KAVA 
$3.8348 
↓0.6% 
$773K
MLN 
$41.894 
↑7.9% 
$650K
LSK 
$3.2082 
↑3.8% 
$604K
ETC 
$11.114 
↑1.2% 
$516K
BAL 
$42.655 
↑17% 
$497K
GNO 
$136.55 
↑7.6% 
$477K
OXT 
$0.4715 
↑0.4% 
$382K
PAXG 
$1717.1 
↑0.5% 
$351K
REP 
$31.072 
↑1.9% 
$301K
ANT 
$5.0315 
↓0.7% 
$250K
STORJ 
$0.6829 
↑4.3% 
$206K
TBTC 
$50639. 
↑2.3% 
$112K
REPV2 
$30.746 
↑2.5% 
$80.2K


#####################. 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 (March 06 2021)

Figure 2: Mid-size trading assets: (measured in USD) (March 06 2021)

Figure 3: Smallest trading assets: (measured in USD) (March 06 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 (March 06 2021)



.


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

Returns and Volume


Figure 5: Returns of the four highest volume pairs (March 06 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 (March 06 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. (March 06 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.

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Source: https://blog.kraken.com/post/8159/kraken-daily-market-report-for-march-06-2021/

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DeFi summer 2.0? ‘Gen 2’ tokens on a tear amid wider market slump

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As some brand-name decentralized finance (DeFi) tokens sputter, a crop of new projects have emerged that are catching strong bids on the back of aggressive yield farming programs, generous airdrops, and significant technical advances. 

It’s a set of outlier projects pushing forward on both price and fundamentals that has led one crypto analyst, eGirl Capital’s mewny, to brand them as DeFi’s “Gen 2.”

Mewny, who in an interview with Cointelegraph pitched eGirl Capital as “an org that takes itself as a very serious joke,” says that Gen 2 tokens have garnered attention due to their well-cultivated communities and clever token distribution models — both of which lead to a “recursive” price-and-sentiment loop. 

“I think in terms of market interest it’s more about seeking novelty and narrative at this stage in the cycle. Fundamental analysis will be more important when the market cools off and utility is the only backstop to valuations. Hot narratives tend to trend around grassroots projects that have carved out a category for themselves in the market,” they said.

While investors might be eager to ape into these fast-rising new tokens, it’s worth asking what the projects are doing, whether they’re sustainable, and if not how much farther they have to run.

Pumpamentals or fundamentals?

The Gen 2 phenomena echoes the “DeFi summer” of last year, filled with “DeFi stimulus check” airdrops, fat farming APYs, and soaring token prices — as well as a harrowing spate of hacks, heists, and rugpulls

However, mewny says that there’s a population of investors that emerged from that period continuously looking for technical progress as opposed to shooting stars. 

“There are less quick “me too” projects in defi. An investor may think that those projects never attracted much liquidity in the first place but they overestimate the wisdom of the market if that’s the case. They did and do pull liquidity, especially from participants who felt priced out or late to the first movers.This has given the floor to legitimate projects that have not stopped building despite the market’s shift in focus. ”

One such Gen 2 riser pulling liquidity is Inverse Finance. After the launch of a yield farming program for a forthcoming synthetic stablecoin protocol, the Inverse Finance DAO narrowly voted to make the INV governance token tradable. As a result, the formerly valueless token airdrop of 80 INV is now priced at over $100,000, likely the most lucrative airdrop in Defi history. 

Another Gen 2 star is Alchemix — one of eGirl Capital’s first announced investments. Alchemix’s protocol also centers on a synthetic stablecoin, alUSD, but generates the stablecoin via collateral deposited into Yearn.Finance’s yield-bearing vaults. The result is a token-based stablecoin loan that pays for itself — a new model that eGirl thinks could become a standard.

“eGirl thinks trading yield-bearing interest will be an important primitive in DeFi. Quantifying and valuing future yield unlocks a lot of usable value that can be reinvested in the market,” they said.

The wider markets appears to agree with eGirl’s thesis, as Alchemix recently announced that the protocol has eclipsed half a billion in total value locked:

Staying power?

By contrast, governance tokens for many of the top names in DeFi, such as Aave and Yearn.Finance, are in the red on a 30-day basis. But even with flagship names stalling out, DeFi’s closely-watched aggregate TVL figure is up on the month, rising over $8.4 billion to $56.8 billion per DeFi Llama — progress carried in part on the back of Gen 2 projects. 

The comparatively wrinkled, desiccated dinosaurs of DeFi may have some signs of life left in them, however. Multiple major projects have significant updates in the works, including Uniswap’s version 3, Sushiswap’s Bentobox lending platform, a liquidity mining proposal working through Aave’s governance process, and Balancer’s version 2.

These developments could mean that DeFi’s “Gen 2” phenomena is simply a temporary, intra-sector rotation, and that the “majors” are soon to roar back. It would be a predictable move in mewny’s view, who says “every defi protocol needs at least 1 bear market to prove technical soundness.”

What’s more, according to mewny some of the signs of market irrationality around both Gen 2 tokens as well as the wider DeFi space — such as triple and even quadruple-digit farming yields — may be gone sooner rather than later.

“I don’t think it’s sustainable for any project in regular market conditions. We are not in regular conditions at the moment. Speculators have propped up potentially unsustainable DeFi protocols for a while now.”

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Source: https://cointelegraph.com/news/defi-summer-2-0-gen-2-tokens-on-a-tear-amid-wider-market-slump

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