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Recent Price Action in Altcoins Beg the Question “Is this Altseason?”

Of all the phenomenal market moves of the last few days, none is more prominent than that of the Chinese stock Index.

The post Recent Price Action in Altcoins Beg the Question “Is this Altseason?” appeared first on Bitcoin Market Journal.

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Short Shorts

Of all the phenomenal market moves of the last few days, none is more prominent than that of the Chinese stock Index, the China A50. Check this one out. …

China index

This is even more accentuated by the fact that most of the other global stock indices have been pretty flat, and the main moves has been restricted to individual tickers.

According to an analysis from ING this morning, the People’s Bank of China is quite likely to put their printing presses on hold when they meet on August 4. …

China more loans point to recovery article.

So less brrrrrr from China. According to the analysis anyway, the Chinese central bank is not interested in creating asset bubbles in the stocks and real estate market … right.

We’ve definitely seen a few asset bubbles recently. I think the one in Tesla stock will be studied for years to come. At the moment, short interest on TSLA is nearing a record $20 billion. Ever the troll, Elon Musk, has now added a pair of red short shorts to the Tesla shop.

Red shorts

Mockery teasing is all fun and games, but you have to imagine that some of those red shorts will likely be liquidated at some point, possibly causing a short squeeze and sending the stock price to even more ridiculous levels.

Of course we know the culprits here are overzealous Robinhood traders, but how could things get this out of whack?

This is something that the ever brilliant Mohamed El-Erian explained in a Bloomberg interview this morning by making a distinction between relative value and absolute value.

Relatively speaking, tech stocks look a lot better than most sectors right now, as they’re less affected by the pandemic and have momentum. This is a dynamic that can last for quite a while until for one reason or other, the market suddenly switches focus to absolute values.

Is this Altseason?

Well, judging by today’s action, I’d say no. A lot of the marvelous gains of the last few days have already been erased. The dogecoin TikTok pump and dump is already well into the dump, so maybe we’ll call this “altweek.”

Of course, there are many projects that still have promise and lots of money available for investments. However, the digital asset space is plagued with a lack of metrics to measure absolute value and instead must defer to relative value, or more often … momentum, which is what got us to the situation this week.

Daily gains of 2% and 3% quickly turned into daily gains of 5% and 7%, which in turn became 25% and more, a move that must be quickly reinforced with new money or reversed.

Last night, I managed to get out of some of the more risky alts before any of the big drops, but looking at things today, I’m feeling pretty optimistic and have now added positions in stellar, cardano, and tezos for the weekend.

We’ll see how it goes. Often times, these large pullbacks can be an excellent opportunity to get in on a massive trend without having to buy the top. Or, it could flop. Time will tell.

Source: https://www.bitcoinmarketjournal.com/is-this-altseason/

Blockchain

Blockchain and crypto will challenge current finance, Nigeria VP says

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Nigeria’s vice president, Yemi Osinbajo, delivered a speech at an economic summit on Friday in which he spoke positively of crypto and blockchain. 

“There is no question that blockchain technology generally, and cryptocurrencies in particular, will in the coming years, challenge traditional banking, including reserve banking, in ways that we cannot yet imagine,” Osinbajo said on Friday during the Central Bank of Nigeria, or CBN, Bankers’ Committee Economic Summit. “We need to be prepared for that seismic shift, and it may come sooner than later,” he said.

The Nigerian vice president also noted the broadness of the crypto industry, mentioning decentralized finance, or DeFi, in the mix. “Decentralized finance, using smart contracts to create financial instruments, in place of central financial intermediaries, such as banks or brokerages, is set to challenge traditional finance,” he said. 

Osinbajo’s speech, which included a number of other points, is posted on his YouTube channel. The Nigerian vice president also tweeted out a video clip highlighting of some of his crypto comments from his talk.

“The point I’m making, is that some of the exciting developments we see call for prudence and care in adopting them and these have been very well-articulated by our regulatory authorities,” he said, adding:

“But we must act with knowledge and not with fear. We must ensure that we are in a position to benefit and in a position to prevent any of the adverse side effects, or any of the possible, even criminal, acts that may arise in consequence of adopting or taking any of these options.”

The comments come in contrast to recent developments in Nigeria. Earlier in February, Nigeria forbade banking interactions with crypto exchanges, as per a ruling from its central bank. The CBN’s governor also called crypto assets illegitimate. Bitcoin recently traded at a significant premium in the region.

Source: https://cointelegraph.com/news/blockchain-and-crypto-will-challenge-current-finance-nigeria-vp-says

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‘Bitcoin could reach $1 million or $1, and may do both of those’

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While many analysts predict that either Bitcoin could increase to a million or fall to a dollar, a popular businessman and investor based in the US thinks that the asset could do both!

In a recent interview with Joe Kernen at CNBC’s Squawk Box, Internet analyst Henry Blodget of the dot com era fame said: 

Bitcoin could go to $1 million… it could also go to $1. And in fact it may do both of those

In addition, Blodget, who also served as the head of the global Internet research team at Merrill Lynch, is unconvinced about the asset’s value proposition. He claimed that Bitcoin as an inflationary hedge and the narrative surrounding its value as ‘digital gold’ were “stories”. He further added: 

But the stories that we tell about why relative to the value of gold or other currencies, they’re ludicrous.

In his opinion, Bitcoin can trade just about anywhere because it does not have any fundamental backing. He said that unlike traditional stocks, “which usually does have some relationship ultimately to a fundamental,” of a company, “Bitcoin doesn’t, so that means it can trade anywhere.”

The entrepreneur thinks that crypto exchange Gemini’s CEO Tyler Winklevoss could eventually be “exactly right,” in his forecast that the asset could surge to a million. However, Blodget said:

If people were to decide that for the next couple of hundred years Bitcoin is where you park your money when you take it out of the fiat system, OK, it’s possible.

Interestingly, while crypto Twitter and Bitcoin enthusiasts, in particular, called out the analyst’s criticism, they commended the interviewer’s counter-argument. CNBC’s Joe Kernen seemed to even “speak the language” of the crypto space as one twitter user named @HodlBells noted:  


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Source: https://ambcrypto.com/bitcoin-could-reach-1-million-or-1-and-may-do-both-of-those

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Crypto platform NetCents to offer users access to DeFi protocols thru Vesto

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NetCents, a cryptocurrency payments company, today announced it has signed an agreement with Vesto.io to pave the way for DeFi access in the NetCents platform.

Vesto, is a San Francisco-based company that has created a platform allowing users to choose from multiple DeFi protocols in a virtual supermarket. NetCents (with regulatory approval) intends on enabling a portal to the Vesto infrastructure from the NetCents wallet in order to facilitate user’s adoption of DeFi investing in an efficient and easy-to-understand interface.

“We have seen the DeFi space explode over the past year, but for it to reach the next level – the tools and the process has to be attainable by the novice crypto investor. We will be adding a layer of simplification to the process so that individuals can have their savings actually working for them without the complexity of the current platforms. Individuals have the right to lend their money at market-based rates instead of getting 1% interest on their savings that the commercial banks are offering.”
– Clayton Moore, NetCents Founder & CEO

LOI

The Letter of Intent  (LOI) contemplates a Joint Venture between parties and an option for NetCents to invest in Vesto and hold a significant ownership stake in the company at a future date.

Management of NetCents also informed investors that many of the concepts embraced by these DeFi platforms have not been vetted by the many authorities that regulate financial products. NetCents intends to work together with regulators to navigate this landscape and resolve it with a compliant product.

For Example: Fintech businesses seeking to bring a novel product or service to the market can seek regulatory relief through regulatory sandboxes such as the Ontario Securities Commission’s LaunchPad or the British Columbia Securities Commission’s SandBox.

Furthermore, businesses that distribute, trade, or advise in crypto assets that are securities are required to comply with securities laws (in particular, registration and prospectus requirements), which can be onerous. There are many exemptions for specific types of distributions, trades, and other activities and NetCents intends to research these exemptions rigorously. These exemptions, at a high level, may limit the types of investors that can participate or the investment amounts, or may require the preparation of disclosures to investors and filing of a disclosure document.

Source: https://www.cryptoninjas.net/2021/02/27/crypto-platform-netcents-to-offer-users-access-to-defi-protocols-thru-vesto/

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