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Fear, politics and the dollar: 5 things to watch in Bitcoin this week

U.S. dollar strength combines with a decision on monetary policy in Europe as a backdrop to fresh fear among Bitcoin investors.

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Bitcoin (BTC) continues to test $10,000 support after a weekend in which it consolidated after a major drop — what next?

Cointelegraph takes a look at the major factors set to influence BTC price action in the coming week. 

Keiser: U.S. currency index needs to drop below 80

The end of last week saw big changes for BTC/USD, with the pair shedding over 15% from $12,050 to bounce at $9,900.

The weekend failed to trigger a significant bounce, with $9,900 seeing several more tests before Bitcoin drifted back into five figures.

What changed on Friday was one macro factor — the U.S. dollar currency index (DXY), which began rising after hitting two-year lows. 

DXY measures USD against a basket of U.S. trading partner currencies. A week previously, an inflation announcement from the Federal Reserve had a bearish impact on the index, but last week saw a reversal in its fortunes — at the expense of safe havens.

At publication time on Sep. 7, DXY was at 92.95, having risen as high as 93.25 over the weekend. For RT host Max Keiser, fresh losses need to appear for Bitcoin to gain — the inverse correlation between the cryptocurrency and DXY should continue.

“We need the DXY to drop through 80 to get the real fireworks going in #Bitcoin and Gold,” he tweeted. 

Keiser added that developments in the ongoing Brexit saga could also prove a positive influence for BTC next month. Should the European Union adopt a hardline stance with the United Kingdom, the euro could benefit and pressure DXY.

“Hopefully the EU cuts (the U.K.) off in October, freeing the Euro to trade higher. This will help Bitcoin a lot,” he wrote.

U.S. dollar currency index 5-day chart

U.S. dollar currency index 5-day chart. Source: TradingView

Crunch time for policy in Europe

On the topic of geopolitics, multiple events this week may serve to steer markets, with Bitcoin reacting in step. 

In addition to preparations for Brexit talks failing, the EU will eye economic policy as the European Central Bank (ECB) meets to discuss its options.

As Cointelegraph noted, deflation has returned to the ECB’s sphere of influence for the first time since 2016. Now, the focus will turn to whether copying the U.S. approach is suitable for the eurozone.

As Bloomberg reported on Monday, the overall global recovery from the March coronavirus crash, once robust, is now fizzling.

“High-frequency data paints a picture of a rapid rebound in the second quarter, and a stall – with activity still well short of pre-virus levels – in the third,” the publication’s chief economist, Tom Orlik, commented.

To return to “pre-virus normality,” he added, all that would work is a coronavirus vaccine.

CME gap opens at $10,600

This weekend delivered on a classic Bitcoin price trigger which could see short-term upside reenter the picture.

On Friday, CME Group’s Bitcoin futures closed trading at $10,615 but reopened again at $10,430. 

The resulting “gap” in the market provides likely room for an uptick from current levels of $10,100 — if Bitcoin follows historical behavioral patterns, the void should not last long.

The original dip below $10,000 gave rise to hopes that the only gap disobeying the rule — at $9,700 — would get filled. For Cointelegraph Markets analyst Michaël van de Poppe, $10,000 must disintegrate to make that possible.

“Holding $10,000 should warrant a short-term relief bounce towards the $10,800-10,900 area,” he told Twitter followers on Sunday. 

“Breaking $10,000 and the market goes for the CME gap in one-go and we’ll see mid $9K’s.”

CME Bitcoin futures chart showing the latest gap

CME Bitcoin futures chart showing the latest gap. Source: TradingView

Fundamentals see only a modest fall

Bitcoin’s network fundamentals look set to take a break this week as miners take stock of the price declines.

According to data from on-chain monitoring resources BTC.com and Blockchain, difficulty and hash rate are set to come off near all-time highs.

The next automatic difficulty adjustment will occur on Monday and will see a negative move of an estimated 1.7%. The difficulty is currently at its highest ever, underscoring the overall competitiveness of the Bitcoin network.

The hash rate, meanwhile, saw its absolute peak in mid-August but has since dropped only negligibly — currently at around 122 exahashes per second (EH/s).

Hash rate gives a rough estimate of the computing power dedicated to validating the Bitcoin blockchain, with downward price pressure tending to disrupt some less profitable miners.

On Thursday, a day before the $9,900 dip, Cointelegraph reported on outflows from some major mining pools spiking — BTC was heading to exchanges while the spot price was around $11,500 after a rejection of $12,000 support.

Bitcoin 7-day average hash rate 1-month chart

Bitcoin 7-day average hash rate 1-month chart. Source: Blockchain

Sentiment turns from greed to fear

In a telling consequence of price action, cryptocurrency market sentiment has dropped to its most “fearful” in almost two months.

According to the latest data from the Crypto Fear & Greed Index, investors have completely changed their outlook versus just one week ago.

The Index takes multiple factors into account to compile a normalized reading of how much fear or greed is circulating from market participants at a given time. The higher the reading, the more likely the market is due for a correction.

As Cointelegraph reported, much of August saw the index linger near its all-time highs of 85/100, known as “extreme greed.” Before the run to $12,000, however, the number was closer to 40, or “fear.”

Friday saw another shake-up, with “greed” abruptly disappearing to be replaced once again by “fear” with the index measuring 41/100, the lowest levels since July.

Crypto Fear & Greed Index 3-month chart

Crypto Fear & Greed Index 3-month chart. Source: Alternative.me

Source: https://cointelegraph.com/news/fear-politics-and-the-dollar-5-things-to-watch-in-bitcoin-this-week

Blockchain

Dogecoin is Everywhere: from Elon Musk to Mark Cuban to John McAfee

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Dogecoin has become the center of attention of famous individuals once again. Mark Cuban said that his NBA team had become the largest DOGE merchant, Elon Musk made an electronic-god reference, while John McAfee used its growing popularity to defend his alleged pump and dump schemes.

McAfee Touted DOGE Before Musk

The love story between the CEO of Tesla and SpaceX and the popular meme coin is well-known within the cryptocurrency space. Musk has outlined his support for the asset on multiple occasions.

While some believed that the positive engagements with DOGE came from his trolling nature on social media platforms, Musk has repeatedly found different ways to promote the token. The latest one came on Saturday, as he said that “Doge spelled backwards is Egod.”

His support brought more famous individuals to the scene as well – names such as Snoop Dogg and Gene Simmons. Despite the long-term relationship between Musk and Doge, though, John McAfee recently highlighted that he touted the asset long before Tesla’s CEO.

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McAfee was indicted days ago from the US DOJ for multiple criminal offenses, including his alleged involvement in pump and dump schemes with his “Coin of the Day” campaign. Several years ago, the former antivirus tycoon promoted small-cap altcoins that he supposedly believed were undervalued, but US authorities claimed that he made more than $13 million from illicit schemes.

McAfee argued that the allegations are “overblown” and that he indeed considered those coins to have immense potential. One of them was Dogecoin, which, in his words, “has increased well over 1,000% since I chose it.” Ultimately, he concluded that this was “not a pump and dump.”

Mavs Are the Biggest DOGE Merchant

Another Doge-related engagement from high-net-worth individuals came from the owner of the Dallas Mavericks – Mark Cuban. The billionaire and his NBA team recently announced that they had started accepting Dogecoin payments for game tickets and merchandise on the online store.

A few days later, Cuban updated the community on the performance of this new initiative. He said that the Mavs had received more than 20,000 DOGE in transactions, making them “the largest Dogecoin merchant in the world.”

Furthermore, the start of the reality TV series Shark Tank predicted that DOGE will “definitely” reach $1. With a current price of $0.056, the asset would need a 1,700% increase to reach that milestone.

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Source: https://cryptopotato.com/dogecoin-is-everywhere-from-elon-musk-to-mark-cuban-to-john-mcafee/

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Blockchain

Brad Garlinghouse: XRP Will Continue Trading Even if Ripple Goes Away

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With the impending legal battle between the SEC and Ripple, the CEO of the payment processor said that XRP will endure even if the company doesn’t.

Simultaneously, Jesse Powell, the CEO of the veteran US exchange, Kraken, believes that offering XRP trading carries “huge asymmetrical risk.”

XRP Will Endure, Says Ripple CEO

Ever since the US Securities and Exchange Commission brought charges against Ripple for conducting an unregistered security offering, the company’s executives have tried to defend their position multiple times.

During the latest such attempt, the CEO, Brad Garlinghouse, called the lawsuit “misguided” and noted that XRP had traded in the US for eight years before the allegations emerged.

Furthermore, he laid his case on why Ripple’s native token is not a security and promised that the asset will survive even if Ripple ceases to exist.

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“If you own a security, it gives you ownership of a company. If Ripple goes away, XRP will continue trading.”

Garlinghouse explained that numerous other countries, such as Singapore, Switzerland, and Japan, all have “clarity and certainty” that XRP is not a security. In contrast, the US is “the only country on the planet that has suggested that XRP is a security.”

Consequently, the executive doubled-down on a previous narrative stating that the lawsuit against Ripple is “bad” for the entire cryptocurrency industry, not just the payment processor. This is pushing entrepreneurs to seek other options as they plan to leave the US.

It’s worth noting that Ripple is one of those companies that contemplated moving outside the US even before the SEC’s charges became official.

Trading XRP Carries Asymmetrical Risk

While Garlinghouse believes that XRP will continue trading even if Ripple is no more, Kraken’s CEO recently highlighted the potential “asymmetrical” risks for exchanges during these uncertain times for the token.

He assumed that the Commission has acted in “good faith” when bringing the charges and believes that judges ultimately “tend to side with agencies.”

As such, Powell asserted that if the SEC wins, then the watchdog would “say that exchanges should have known.”

Although Kraken took its time before making it official, the veteran US exchange joined the list of trading venues that removed XRP in January this year.

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Source: https://cryptopotato.com/brad-garlinghouse-xrp-will-continue-trading-even-if-ripple-goes-away/

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Ultra (UOS) hits a new all-time high as blockchain gaming and NFTs boom

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Video games and online gaming have become some of the largest industries on the planet over the past thirty years as digital technology and the internet have interconnected people from around the world and transformed us into a global society. 

Decentralization and blockchain technology are gathering steam as a transformative new way to operate and build an ecosystem, and Ultra (UOS) is one gaming-focused project that has been gaining momentum in recent months.

Ultra, a blockchain-based PC game distribution platform, is created for gamers and game developers and it allows users to develop multiple revenue streams, including the ability to resell games and in-game items.

Developers for the project have created a customized version of the EOSIO blockchain designed to offer free user account creation and higher transaction throughput through better resource allocation.

Data from Cointelegraph Markets and TradingView shows that UOS surged 225% over the past month as the price rallied from $0.132 on Feb. 1 to an all-time high of $0.42 on Feb. 22.

UOS/USDT 4-hour chart. Source: TradingView

As seen on the chart above, UOS trading volume hit a record $31 million on Feb. 21 and Feb. 22 following its listing on Bithumb.

NFT popularity provides a boost to Ultra

Non-fungible tokens are one of the fastest-growing trends in cryptocurrency currently and UOS has benefited from their growth. The developers at Ultra have been focused on the technology underlying NFTs as they can enable unique in-game items to be resold in multiple marketplaces and eventually on decentralized exchanges. 

Interoperability between blockchain platforms is also a major topic in the crypto ecosystem, and the team at Ultra is developing and beta testing a new mainnet that will retain the ability to operate on Ethereum.

While UOS is interoperable with the EOSIO blockchain, Ultra developers are also exploring NFT interoperability with several other blockchains including The Sandbox (SAND) and Elrond (EGLD). The project also has an evolving partnership withTheta that will enable live streaming gameplay and cross-chain NFT transfers.

Aside from its main association with the gaming giant Ubisoft, recent partnerships with globally recognized companies like semiconductor manufacturer AMD and Atari have also helped propel UOS price higher in 2021.

Big-name partnerships, cross-chain interoperability and the growth of the NFT sector have Ultra well-positioned to benefit from the bullish momentum in the cryptocurrency market.

The games sector is expected to continue its exponential growth for the foreseeable future and as blockchain gaming becomes more popular, UOS could benefit from having the first-mover advantage. 

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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Source: https://cointelegraph.com/news/ultra-uos-hits-a-new-all-time-high-as-blockchain-gaming-and-nfts-boom

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