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Is the current Bitcoin price level a buying opportunity?

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Bitcoin’s price has risen exponentially over the past quarter. While the bull run began towards the end of 2020, considerable gains were noted in the first quarter of 2021. When compared to the coin’s past price history, Q1 of 2021 has been a very significant time period with respect to the gains BTC was able to rake in.

A key moment in Bitcoin’s price action took place on 19 February when the crypto first breached the $55k-resistance. This was also followed by the eventual breach of the $60k-price level. However, since the breach on 19 February and despite the overwhelming bullish outlook for the coin, Bitcoin is now victim to the push and pull syndrome – a phenomenon where an asset endures successive periods of slight price corrections.

Source: Santiment

While the overall outlook for Bitcoin is bullish and it may well be on its way to hit $80k in the coming months and even $100k before the close of the year, what signal is it giving traders who are more interested in short-term trades?

Interestingly, data provided by Santiment shows that the market sentiment has changed drastically for the king coin and the market’s largest altcoin – Ethereum. The aforementioned data highlighted that the weighted sentiment for both assets fell to the extremely negative territory after BTC retraced and fell back under $60k and ETH flipped the $2k support back into a resistance level over the week.

However, does this also imply that there is a bright side for traders in their bid to accumulate more of each of these two coins? In the past, as per the data, during times of such “negative” sentiments, accumulation has continued and has fueled a trend reversal, one enabling the price to surge. The FUD in such market circumstances for Bitcoin invariably proves to be a good buying opportunity, as demonstrated by previous phases wherein the coin has been subject to price corrections.

Source: Glassnode

Additionally, it is not difficult to see why there has been a price correction in the short term. Data provided by Glassnode suggested that BTC moving into exchanges recently hit a 1-month high. This is normally a sign of changing hodling patterns from short-term hodlers. As the price climbs, many traders cash in on the short-term gains and this could be one of the reasons why Bitcoin has struggled to breach the $60k level for a long period without seeing a reversal.

However, this has been true for even the range close to $40k and it could just be a matter of time before the current resistance also gives in.

For new traders entering the present BTC market, these minor corrections are the only “low points” that could justify the “buy low sell high” mantra. While the price is likely to appreciate in the coming months, just as how it did over the past 3 months, the price corrections are likely to get smaller in margins.

Over the past week, despite price corrections, the biggest drops have amounted to less than 7 percent. As the bull run transitions into its next phase, these corrections may continue happening with frequency, but may also end up becoming smaller. Hence, recent price corrections don’t necessarily imply the end of the bull run, but a relatively good entry point and a buying opportunity.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://ambcrypto.com/is-the-current-bitcoin-price-level-a-buying-opportunity

Blockchain

Grayscale Total Assets Value Soars Above $50 Billion Following the Recent Bitcoin ATH

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Top-tier digital assets manager Grayscale has seen an increase in the value of its total AUM (Assets Under Management) to above $50 billion as bitcoin’s price marked a new all-time high recently.

The Grayscale Bitcoin Trust (GBTC) is now worth over $41 billion, while the Ethereum Trust (ETHE) holds over $7.4 billion.

The Road to $50B

As reported, Grayscale added five new tokens to its list of trust offerings, including Chainlink (LINK), Basic Attention Token (BAT), Decentraland (MANA), Filecoin (FIL), and Livepeer (LPT).

According to the firm, this integration came shortly after seeing a large inflow of clients demanding exposure to other cryptos, while most dominant assets consolidated at the beginning of March.


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Now, the company reports that its total assets under management (AUM) have grown in value to more than $50 billion for the first time ever. It’s a major milestone for Grayscale.

At the time of writing, BTC is trading at around $63,000 while Ethereum’s ETH eyes $2.5K and a lot of other altcoins looking very well across the board.

AUM Growing Fast 

As the interest for crypto assets increases, the firm’s total AUM is growing rapidly. On April 9, Grayscale’s total AUM grew by more than $1 billion in less than 24 hours. Michael Sonnenshein, the CEO, has stated that the firm amplified its suite of investment trusts as accredited investors and clients were demanding exposure to more cryptocurrencies.

Institutional investors have also intensified their demand, while Bitcoin mining companies are making big purchases of Antminers. As reported, Riot Blockchain bought 42,000 S19 Antminers from crypto-mining company Bitmain, totalling a purchase worth 138.5 million.

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/grayscale-total-assets-value-soars-above-50-billion-following-the-recent-bitcoin-ath/

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Finance officials pour cold water on cryptocurrency amid Coinbase celebrations

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Finance officials from both sides of the globe are taking the opportunity to criticize the value and utility of cryptocurrencies, as media focus intensifies on the space following Coinbase’s direct listing on the Nasdaq.

Bank of Korea Governor Lee Ju-yeol said cryptocurrencies had “considerable limitations” as a method of payment, following a monetary policy meeting on Thursday, reports local outlet KBS World.

While asserting that it was difficult to accurately value cryptocurrencies due to their volatile price fluctuations, Lee said the BOK had not shifted on its stance that they had no intrinsic value.

Lee also referenced United States Federal Reserve Chairman Jerome Powell, noting that the head of the Fed shared his sentiments on the crypto space.

Hours earlier, Powell stated in a virtual interview with The Economic Club of New York that cryptocurrencies were purely speculative, adding that they had not been readily adopted as a means of payment.

“They’re really vehicles for speculation. They’re not really being actively used as payments,” Powell said, according to CNBC.

Flying in the face of Powell and Lee’s comments is the recent adoption of cryptocurrency by major global payment processors. Visa, Mastercard and PayPal all began to implement crypto payment options in the past few months, while Tesla introduced Bitcoin (BTC) as a payment option for its electric car business.

That’s not to say Bitcoin and other cryptocurrencies are a sure thing as far as payment methods go. Bitcoin’s average transaction fee is currently around $30 due to its limited block size and resultant network congestion. For this reason, payment processors are often forced to eat such transaction fees as a cost of doing business. Until they can no longer afford to, as was the case with gaming platform Steam in 2017.

One point of agreement shared by Powell and the crypto community is the suggestion that cryptocurrency could be compared to gold — but for completely different reasons. Cryptocurrency (particularly Bitcoin) proponents argue that the technology can be used as a long-term store of value in the same manner as a precious metal.

Powell, however, intended the comparison to be derisory. The Fed chairman’s opinion of gold seems to be no better than that of cryptocurrency.

“For thousands of years, human beings have given gold a special value that it doesn’t have,” said the chairman of the fiat-printing center of the United States.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/finance-officials-pour-cold-water-on-cryptocurrency-amid-coinbase-celebrations

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As XRP Skyrockets, Ripple CTO David Schwartz Wants You To Consider Selling Some Crypto Holdings

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As XRP Skyrockets, Ripple CTO David Schwartz Wants You To Consider Selling Some Crypto Holdings

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David Schwartz, the Chief Technical Officer at Ripple Labs, has been giving some pretty positive investment advice, but it comes at an interesting time.

Simply put, the CTO believes that if someone has life-changing amounts of different cryptocurrencies, that person should definitely consider selling some of the said cryptos in order to reduce the risk of failure and over-exposure. This was communicated to Schwartz’s followers in a tweet, and he later clarified that this investment advice is not representative of some prophecy or projection about the future of any cryptocurrency market, and is mostly just general advice.

Sound advice? 

Schwartz said in the tweet that it was likely to be his “least famous tweet” ever, but he nonetheless advised his followers that selling a considerable portion of their respective cryptocurrency assets isn’t a bad idea, particularly given the industry’s unpredictable nature. This is definitely real, as there have been countless examples of people keeping their investments for far too long, only to see the valuation of those assets plummet by the time the owners attempt to cash them out.

Furthermore, with the present state of the cryptocurrency industry, XRP has risen by 850 percent this year while Bitcoin has simultaneously risen by 790 percent to a new all-time peak of $64k.

Schwartz has, in the past, taking his own advice. In 2019, he admitted to selling $40,000 in ETH prior to the late-2017 bull run in order to buy solar panels. In the most recent thread, he mentioned that, in retrospect, he could not have sold the majority of it. “I guess I was hoping it would come back down so I could buy back in,” he tweeted. “However, it did not succeed. Of course, you may come to regret taking smaller risk,” he said. 

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Ripple V. SEC

The legal battle between Ripple and the SEC is still ongoing. Despite recent wins for Ripple, the matter is still far from settled. Furthermore, during a legal proceeding, executives normally maintain a low profile so that their comments do not become weapons to be used against them.

Schwartz, on the other hand, was thinking of cryptocurrencies in general, not XRP directly, and he also suggested that cryptocurrency prices can and so often do deteriorate.

As XRP Skyrockets, Ripple CTO David Schwartz Wants You To Consider Selling Some Crypto Holdings
XRPUSD Chart By TradingView

However, XRP seems to be an exception to this rule, as its particular price has been slowly stretching, hitting its highest level in three years at just over $1.8.


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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/as-xrp-skyrockets-ripple-cto-david-schwartz-wants-you-to-consider-selling-some-crypto-holdings/

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