Three of Cathie Wood’s ARK exchange-traded funds bought nearly $246 million worth of Coinbase Global Inc. (COIN) shares on its listing day. Another fund, Amplify Transformational Data Sharing ETF (BLOK) also purchased COIN stock. These purchases show that ETFs are eager to buy into the crypto growth story.
However, Blackrock CEO Larry Fink has a different point of view. Fink said that institutional investors were fascinated by crypto but that did not translate into demand from institutions worldwide.
One of the reasons for the fascination not turning into demand could be the sharp rally in Bitcoin and other cryptocurrencies. A new survey of professional investors by Bank of America shows that 74% of the respondents believe Bitcoin (BTC) is in a bubble.
Such criticisms are not new to cryptocurrencies. Traders who ignore the noise and purchase fundamentally strong coins generally tend to make huge returns in the long term.
Let’s retouch on three tokens which Cointelegraph analyzed earlier this year to see if they have continued their upward trajectory.
Horizen (ZEN) was featured on Cointelegraph on Jan. 12 when the price of the token was at $28. The token sustained its momentum and has hit an intraday high at $108.77 today, a gain of 288% in just three months. Let’s look at some of the important developments that have taken place with Horizen in the past few weeks.
Recently Horizen said that development on the Zendoo mainnet release, which is due in the third quarter, is on track. The team claims Zendoo will offer improved scalability and flexibility suitable for commercial applications.
Decentralized finance has also opened a plethora of opportunities to investors. Horizen’s partnership with liquid staking platform StakeHound allows ZEN investors to participate and benefit from the Ethereum-based DeFi ecosystem.
Additionally, a string of partnerships with APIS, IOTA, DIA and Copper were announced in the past few weeks to expand the Horizen sidechain ecosystem. These developments seem to have attracted users as the company said its community had grown 13.2% in Q1 2021.
ZEN rallied from $52.54 on April 4 to an intraday high at $108.77 on April 15, a 107% rally in 12 days. Although the bears offered a stiff resistance at $86, the bulls have cleared the hurdle with force today. The first target objective on the upside is $119.45 and then $162.
The sharp rally of the past few days has pushed the relative strength index (RSI) above 83, indicating the ZEN/USDT pair is overbought in the near term. This could result in a minor correction or consolidation within the next few days.
If the bulls can flip the $86 level into support during the next correction, it will suggest that sentiment remains positive and traders are accumulating on dips. The bulls will then make another attempt to resume the uptrend.
This positive view will invalidate if the bears sink the price below $86. In such a case, the pair could drop to the 20-day exponential moving average ($71). A break below this support will signal the start of a deeper correction.
Hedget (HGET) was at $3.20 when it was highlighted by Cointelegraph on Jan. 14. Since then, the token rallied to an intraday high at $11.25 on March 31, a 251% return in about two and a half months.
The protocol has been forging partnerships to increase its user base. Hedget announced a tie-up with Fire Protocol on March 8 to issue HGET tokens on the HECO chain and integrate Hedget options within the Fire Protocol ecosystem. This will open the possibility for Hedget to provide options-based insurance mechanisms for the lending protocols on the HECO chain.
On March 9, Hedget announced a partnership with Clover Finance to build and test a two-way bridge between Binance Smart Chain and the Polkadot blockchain. Hedget said it will deploy its platform on the Clover Ecosystem, which will make it the first options trading platform in the Polkadot ecosystem.
On March 17, Hedget partnered with APYSwap to offer Vault token holders an opportunity to use options to reduce their impermanent loss.
These partnerships by Hedget show that the protocol is widening its user base, which is a long-term fundamental positive.
HGET has been in a corrective phase for the past few days. The token slipped from an all-time high at $10.95 on March 31 to $8.51 on April 11, a 22.28% correction in 12 days. In an uptrend, corrections to strong support levels offer a low-risk buying opportunity to traders.
The HGET/USDT pair has twice taken support on the 50-day simple moving average ($8.17) in the past few weeks. This suggests that the bulls are buying the dips to the 50-day SMA aggressively.
The pair has been trading just below the 20-day EMA ($8.93) for the past few days. However, the bears have not been able to capitalize on this weakness and challenge the 50-day SMA. This suggests that selling dries up at lower levels.
Both moving averages have flattened out and the RSI is just below the midpoint, indicating a balance between supply and demand.
This equilibrium is unlikely to remain for long. If the bulls can drive the price above the 20-day EMA with force, the pair could retest the all-time high. A breakout of this resistance could start the next leg of the uptrend that could reach $12.39 and then $15.
This bullish view will invalidate if the bears sink and sustain the price below the 50-day SMA. Such a move could pull the price down to $7 and then to $5.18.
Zcash (ZEC) was one of the tokens that was covered by Cointelegraph on Jan. 14 when it was trading at $109.93. Since then, the token has continued its northward march and hit an intraday high at $252.89 today, a 130% return in about three months.
Electric Coin Co., the company behind Zcash, announced the next set of upgrades dubbed Harlo Arc, set to release on Oct. 1 of this year, in conjunction with the activation of Network Upgrade 5 (NU5) and unified addresses.
Halo Arc will include updates to Zcashd, the ECC Reference Wallet apps and the ECC wallet SDKs. NU5 will move Zcash from zk-SNARKs to the Halo proving system and unified addresses will improve usability, increase the ease of interoperability and support shielding Zcash by default.
ZEC price has been in a strong uptrend. It has risen from $162.52 on April 7 to an intraday high at $252.89 today, a rise of 55% in nine days. The sharp rally of the past few days has pushed the RSI into the overbought zone, indicating the possibility of a minor correction or consolidation.
The first major support on the downside is the 20-day EMA ($194). The bulls are defending this support in the current leg of the rally as seen from the strong bounce on April 8.
If the ZEC/USDT pair again rebounds off the 20-day EMA, the bulls will try to resume the uptrend. If they succeed, the pair could start its journey toward $350.
Contrary to this assumption, if the bears sink the price below the 20-day EMA and the $190 support, it will suggest the start of a deeper correction to the 50-day SMA ($155) and then $120.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.
DOGE is Young People’s Middle Finger to the System, Says Mike Novogratz
Mike Novogratz, in a research report, stated that Dogecoin is “the most honest shitcoin”, calling it a “store of value” for young people wishing to express a “little bit of a middle finger to the system”.
Dogecoin’s Recent Price Action
DOGE has entered a steep and stunning climb during the past few months, going from mere pennies to over $0.65. Young people betting on the speculative and volatile crypto asset have made staggering amounts of money thanks to the recent insane rate of return.
Many theorize that this rise has been fueled by Tesla founder and business mogul Elon Musk, who often refers to Dogecoin on his infamous Twitter profile, tweeting in a (usually) positive manner. Oftentimes when an “Elon tweet” comes out regarding Dogecoin, it gives a nice little boost to the price.
Most recently, Elon Musk revealed that he would be hosting SNL, dropping a single hint: Dogefather. This enigmatic message has spurred thousands of young people worldwide to invest in DOGE, which, although extremely risky, has been facing undeniably bullish price action as of late. Will Elon Musk’s SNL special provide the fuel needed for DOGE to power through to over a dollar, or will it be a ‘sell the news’ event?
Novogratz Draws Parallels to GME
Novogratz, in his interview, urged people to “listen to what Dogecoin is saying”, as he sees it as very comparable to the GameStop fiasco (where a group of young retail traders pushed GME to new heights, partially in an attempt to liquidate hedge funds that were shorting the stock).
“There is nihilism and excitement to it,” Novogratz stated, adding, “there’s something really pure about it.”
Indeed, Dogecoin is not a successful ‘company’ in the traditional sense, and there is little to no innovative development work going on behind the scenes, but we’ve seen (in the stock market, for example) that the power of the masses if placed behind a single unifying idea, can work wonders.
It’s a massive game of tug of war — whether or not Dogecoin can sustain this dizzying momentum remains to be seen. One thing is for sure: millions of people will be tuning in to watch SNL this week.
Latin America’s Biggest Online Marketplace, MercadoLibre, Disclosed Bitcoin Holdings
On a financial results report dated May 5th, e-commerce giant MercadoLibre dropped the bomb. The company is the latest institution to add Bitcoin to its balance sheet. It follows MicroStrategy, Square, and Tesla’s highly covered buys. Bitcoin’s institutional adoption is in its infancy, but advancing non-stop.
In the financial highlights for 2021’s First Quarter, the company wrote a succinct:
As part of our treasury strategy this quarter we purchased $7.8 million in bitcoin, a digital asset that we are disclosing within our indefinite-lived intangible assets.
A modest allocation, considering MercadoLibre has almost $4B in assets, a cash reserve of $1.1B. It also has a market capitalization of approximately $76B. However, the move might be part of a bigger plan. The company recently opened a section on their website dedicated to real state commerce in Bitcoin and Bitcoin only. The pilot program includes 75 properties and 7 real state agencies willing to accept the cryptocurrency.
The Bitcoin-on-the-balance-sheet club
The investment puts MercadoLibre in a pretty exclusive club. The institutional adoption pioneer was MicroStrategy, a company that then issued bonds to buy even more Bitcoin. Twice. At the time, Bitcoinist reported:
Microstrategy announced today that it purchased $15 million worth of Bitcoin. The company’s CEO, Michael Saylor, tweeted this morning that his company had bought approximately 253 BTC, bringing its total holdings to about 91,579 BTC.
After that, Square announced a moderate buy of $50M worth of Bitcoin, and months later another one of $170M. It’s worth noting that the company buys and sells BTC through their flagship product CashApp. And that it keeps buying more. Six months ago, Bitcoinist reported:
Ikigai Asset Management’s Hans Hague recently noted that per his analysis, Square and Grayscale alone have accumulated $2.3 billion worth of Bitcoin in the past quarter.
The biggest player of all, of course, is Elon Musk’s Tesla. Reports that the company made more money from that investment than for selling cars are all over the Internet. In any case, Tesla made a big splash when it entered the space. Bitcoinist reported:
Traders flocked into the cryptocurrency market a day after American carmaker Tesla announced that it had purchased $1.5bn worth of Bitcoin as “alternative reserve assets” to their cash holdings.
In its filing with the Securities and Exchange Commission, Tesla said it plans to buy more Bitcoin in the future and—maybe—even enable its use as a medium of payment for its products and services.
MercadoLibre stock chart | Source: MELI on TradingView.com
More about MercadoLibre
It may not be a big name in the European and North American markets, but MercadoLibre is ubiquitous in Latin America. The company operates in:
- Costa Rica
- Dominican Republic
In the quoted financial results report, they describe themselves as:
Founded in 1999, MercadoLibre is the largest online commerce ecosystem in Latin America, serving as an integrated regional platform and as a provider of the necessary digital and technology-based tools that allow businesses and individuals to trade products and services in the region. The Company enables commerce through its marketplace platform which allows users to buy and sell in most of Latin America.
A question remains, will Bitcoin holdings make MercadoLibre’s stock rise?
Featured Image by Mark König on Unsplash - Charts: TradingView
Coinsmart. Beste Bitcoin-Börse in Europa
Novogratz’s Galaxy Digital set to acquire BitGo for $1.2B
Galaxy Digital is in the process of acquiring BitGo for $1.2 billion, which would be settled in stock and cash
Galaxy Digital, the firm owned by popular investor Mike Novogratz, is set to acquire BitGo, a leading independent digital assets infrastructure provider. The deal is worth roughly $1.2 billion and will be paid in both stock and cash.
In a press release yesterday Galaxy Digital said, “The acquisition will position Galaxy Digital as a leading global full-service platform for institutions seeking access to the crypto economy, offering an unparalleled breadth of industry-leading products and services at scale.”
Several reports surfaced last month, suggesting that the two companies are in advanced talks regarding an acquisition. Mike Novogratz, CEO and Founder of Galaxy Digital, said the acquisition of BitGo would turn his company into a one-stop-shop for institutions, boosting their efforts to institutionalise digital asset ecosystems and blockchain technology. Novogratz added, “The power of the technology, solutions, and people we will have as a result of this acquisition will unlock unique value for our clients and drive long-term growth for our combined business. We are excited to welcome Mike Belshe and the talented BitGo team to Galaxy Digital.”
Per the terms of the agreement, BitGo shareholders are set to receive 33.8 million newly issued shares of Galaxy Digital common stock. Furthermore, they will be paid $265 million in cash, which brings the total value of the deal to approximately $1.2 billion.
BitGo is one of the leading regulated custodians in the cryptocurrency sector. It currently provides services to over 150 exchanges and 400 institutional clients. BitGo controls over $40 billion in assets under management by supporting the custody of over 400 coins and tokens. BitGo CEO and Founder Mike Belshe said joining Galaxy Digital is an exciting new chapter for the company, allowing their clients to access a wide set of financial solutions.
Galaxy Digital planning to go public in the US
Galaxy Digital is a publicly-listed company in Canada. However, the firm is planning to officially list on a US stock exchange this year. In that regard, the company’s board of directors approved a proposed reorganisation and domestication designed to help the company achieve its goal of going public in the United States.
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