Here’s How the U.S. Dollar’s Macro Bearishness Could Send Bitcoin Flying

  • Bitcoin is currently consolidating following its sharp decline seen yesterday
  • The cryptocurrency is lacking momentum as its bulls and bears both seem to reach an impasse, which has struck a blow to its technical outlook
  • One of the main reasons why BTC saw such a harsh rejection at $13,800 was due to a sudden surge in the US Dollar’s value seen yesterday
  • This sent shockwaves throughout the market and stopped BTC from breaking the resistance it was consolidating against
  • One analyst is noting that Bitcoin’s persistent inverse correlation to the USD’s value is a positive thing because it is expressing signs of immense macro weakness

Bitcoin and the aggregated crypto market are struggling to gain any momentum at the moment, with yesterday’s selloff striking a serious blow to the uptrend seen throughout the past few days and weeks.

Buyers have ardently defended against a sustained break below $13,000, with each decline to this level being met with significant buying pressure.

One factor that could help send BTC higher in the near-term is its inverse correlation with the US Dollar.

Although this may have been part of the reason why it saw such a harsh decline from $13,800, the fiat currency’s macro weakness could act as rocket fuel for Bitcoin – according to one analyst.

Bitcoin Consolidates as Bulls Try to Absorb Selling Pressure

At the time of writing, Bitcoin is trading down just over 1% at its current price o $13,130. This is around the price at which it has been trading throughout the past day.

Each attempt by bears to push it below $13,000 has been met with serious buying pressure, showing that bulls are still vying for control over its short-term trend.

Where it trends next may depend somewhat on the US Dollar Currency Index (DXY) – as its mounting volatility is beginning to influence Bitcoin.

Analyst: USD’s Value Could Soon Send BTC Rocketing Higher 

While sharing his thoughts on where the market might trend in the near-term, one analyst offered an optimistic outlook.

He points to a weak technical structure seen by the DXY, noting that this could bolster Bitcoin.

“I think the dxy is still macro bearish and anyone saying otherwise is tripping balls. Imo we go sideways and consolidate before taking out the 91 and making new lows. In the big scheme of things this is good for btc, however we will have dips along the way,” he said.

Bitcoin

Image Courtesy of @SmartContracter. Source: DXY on TradingView.

How Bitcoin trends in the coming few days may depend on whether bulls can gain an edge over bears, but the DXY may largely determine its macro trend.

Featured image from Unsplash.
Charts from TradingView.

Source: Bitcoininst

Microstrategy CEO Personally Owns $240 Million in Bitcoin — Company BTC Profit Outshines Other Earnings

Microstrategy CEO Personally Owns $240 Million in Bitcoin — Company BTC Profit Outshines Earnings

Following a $425 million bitcoin purchase by his billion-dollar company, Microstrategy CEO Michael Saylor reveals that he personally owns about $240 million in bitcoin. Meanwhile, his company’s bitcoin gains have outperformed the company’s other earnings.

Microstrategy and Its CEO Are Both Bitcoin Hodlers

The CEO of the billion-dollar company Microstrategy, Michael Saylor, has revealed his own bitcoin holdings. His company, Microstrategy, recently bought $425 million in bitcoin as its primary Treasury reserve asset.

Saylor, who has been outspoken about bitcoin ever since his company decided to make the cryptocurrency its primary Treasury reserve asset, tweeted Wednesday:

Some have asked how much BTC I own. I personally hodl 17,732 BTC which I bought at $9,882 each on average. I informed Microstrategy of these holdings before the company decided to buy bitcoin for itself.

Microstrategy purchased a total of approximately 38,250 bitcoins for an average purchase price of about $11,111 per BTC, at an aggregate purchase price of $425 million, its 3Q 2020 earnings announcement details.

At the current BTC price of $13,447.85, the company’s bitcoin holding is worth over $514 million. Saylor’s personal BTC stash is worth $238.46 million. In addition, his company’s share price rose almost 38% from $117.81, when it announced the bitcoin capital allocation strategy during the release of its second-quarter financial results on July 28, to $162.15 at the time of this writing.

Microstrategy CEO Personally Owns $240 Million in Bitcoin — Company BTC Profit Outshines Other Earnings

Independent analyst Kevin Rooke pointed out in a tweet on Tuesday that “Microstrategy has earned $78 million in the last 3.5 years from their business operations,” while it earned “$100 million in the last 2 months from their bitcoin purchases.” The gains are unrealized, however, and Saylor has indicated that Microstrategy plans to keep its BTC for 100 years.

Saylor has not always been a bitcoin bull. A former bitcoin skeptic, he tweeted on Dec. 18, 2013: “Bitcoin days are numbered. It seems like just a matter of time before it suffers the same fate as online gambling.”

However, since his big bitcoin purchase, the CEO has been a strong proponent of bitcoin, calling the cryptocurrency the best store of value, much better than gold or tech stocks. He recently made a strong long-term bull case for bitcoin.

What do you think about Saylor and Microstrategy’s bitcoin holdings? Let us know in the comments section below.

The post Microstrategy CEO Personally Owns $240 Million in Bitcoin — Company BTC Profit Outshines Other Earnings appeared first on Bitcoin News.

Source: Bitcoinnews.com

Ripple Price Analysis: XRP Sees 3-Year Lows Against Bitcoin, More Downside Ahead?

XRP/USD – Bulls Battling To Defend 100-days EMA

Key Support Levels: $0.24, $0.23, $0.228.
Key Resistance Levels: $0.251, $0.261, $0.271.

XRP struggled to break a falling resistance trend line at the start of the week – close to $0.26. As a result, the coin started to decline in the past few days. Although it has spiked lower, the buyers have defended the 100-days EMA at the closing price every day this week.

The previous triangle has been re-adjusted for the continued sideways movement and XRP is still trading within the boundaries. A break beneath this triangle is likely to send XRP back toward the September lows at $0.22.

xrpusd-oct29
XRP/USD Daily Chart. Source: TradingView

XRP-USD Short Term Price Prediction

Looking ahead, if the sellers push beneath the 100-days EMA and the lower boundary of the triangle, the first level of support lies at $0.24 (200-days EMA). Beneath this, support lies at $0.23, $0.228 (.618 Fib), and $0.22 (September lows).

On the other side, the first level of resistance lies at $0.251 (bearish .382 Fib). Above this, resistance lies at the upper boundary of the triangle, $0.261 (bearish .5 Fib), and $0.271 (bearish .618 Fib).

The RSI has now dipped beneath the mid-line to indicate that the sellers have taken charge of the market momentum. If it continues to fall, the selling momentum will increase and push XRP beneath the 100-days EMA.

XRP/BTC – XRP Hits 34-Month Low Against Bitcoin

Key Support Levels: 1800 SAT, 1780 SAT, 1755 SAT.
Key Resistance Levels: 1865 SAT, 1900 SAT, 1950 SAT.

The situation for XRP against BTC is in a totally different scenario. The coin dropped beneath the support at 1950 SAT a couple of days ago and headed toward the 1810 SAT level today. In doing so, XRP has now reached lows that have not been seen since December 2017.

With the coin looking so bearish, it is unlikely that the downtrend will stop here, and we are likely to see it heading toward 1700 SAT over the coming days.

xrpbtc-oct29
XRP/BTC Daily Chart. Source: TradingView

XRP-BTC Short Term Price Prediction

Looking ahead, once the sellers push past 1810 SAT and break beneath 1800 SAT, the first level of support lies at 1780 SAT. Beneath this, added support lies at 1755 SAT, 1730 SAT, and 1700 SAT.

On the other side, the first level of resistance lies at 1865 SAT. This is followed by resistance at 1900 SAT (July 20’ Low), 1950 SAT, and 2000 SAT.

Both the RSI and Stochastic RSI are incredibly oversold. A bullish crossover on the Stochastic RSI would be the first signal that the coin is ready to rebound.

Source: Crypto Potato

Renowned Indian-American Author Deepak Chopra May Buy Bitcoin

Deepak Chopra’s name is synonymous with meditation, mindfulness, and healing through healthy living. And according to the latest update, the world-renowned author and thought-leader is considering buying bitcoin. Mr. Chopra is also about to launch ‘Love in Action,’ his own blockchain-based token.

Deepak Chopra Officially Enters The Blockchain Space

It is important to note that Mr.Chopra had already stoked the ire of Ethereum bigwigs more than 2 years ago for being announced as a speaker at the Ethereal conference in New York in 2018. Vitalik Buterin himself blasted him as a ‘fraud’ publicly on Twitter. Nonetheless, the talk went well, as per Mr. Chopra.

Fast forward to 2020, the globally revered public speaker has announced his plans to officially launch his own token. Termed ‘Love in Action,’ its launch will coincide with Suicide Prevention Week. In the words of the Chopra Foundation, the token is a “worldwide campaign to heal the world.”

deepak_chopra_cover
Deepak Chopra. Image: CNBC

When the ex-United States (FDIC) regulator turned blockchain regulation commentator Jason Bretts tapped Chopra for technical details about the token, the latter said:

We are currently working on our strategic roadmap for the ‘Love In Action’ token. Our goal is to leverage the ‘proof of state/work’ on the Hedera platform to incentivize healthy behaviors and promote wellbeing via the token. We will initially leverage hbar as the currency and convert to our own coin in the latter part of 2021.

Mr.Chopra Also Considers Buying Bitcoin

Taking cues from Mr.Chopra’s famous interview with Oprah Winfrey, Jason marveled at the idea of Deepak sending some bitcoin to the popular celebrity talk show host. He contemplated mass adoption being sparked by that one event alone, recalling his prime goal to convince the meditation guru to buy BTC.

When the Value Technology Foundation President finally asked Mr. Chopra about his bitcoin holdings, the latter replied:

I have not bought any Bitcoin to date, but have been keen on cryptocurrency and how it can be used.

The mind-body healing practitioner also said that he doesn’t own any hbars, the native token of the blockchain protocol, which will power his own DLT project.

Brett, in his article, notes that it is not necessarily for everyone to buy bitcoin or any other cryptocurrency for that matter. It can also be just about leveraging the underlying technology for social good, which in Mr. Chopra’s case, involves improving people’s mental well-being.

Lastly, the ex-ConsenSys Policy Ambassador appreciated Mr. Chopra’s efforts at utilizing blockchain to help people live better. He said:

To the degree blockchain can be used by mental health professionals – or any professional – to help validate the truth of a person’s certification or to validate a person’s well-being seems like an excellent use of it.

Featured image courtesy of CNBC

Source: Crypto Potato

Ten Telltale Signs Of Stocks Topping Resemble DeFi And Crypto

The stock market bubble is popping, according to most top economists and financial analysts. In a new note to investors, a well-known capital manager has revealed the ten telltale signs that the stock market has indeed topped. But it is the fact that these signs also match the recent DeFi trend that took over crypto in the last several months that should have cryptocurrency investors spooked.

If DeFi and crypto are also in a bubble that’s popping alongside stocks, could things get dangerous across the crypto market once again especially surrounding DeFi coins?

As Stocks Stumble, Analysts Claim Telltale Tech Bubble Is Finally Popping

Greenlight Capital founder David Einhorn sent a letter to investors this week claiming that the top is in for the stock market, and now that sentiment is shifting, to brace for impact.

“The decline starts and the psychology shifts from greed to complacency to worry to panic,” Einhorn revealed. When panic finally kicks in, a second-leg down similar to the stock market in 1929 is possible that makes this year’s Black Thursday look like a walk in the park.

RELATED READING | DOLLAR INDEX FRACTAL SUGGESTS AN INCREDIBLE ALTCOIN SEASON IS ON THE HORIZON

With company valuations likely to decline for the foreseeable future, stock market gains have been tapped, and the air is about to come out. Einhorn says that the current markets show all the telltale signs of a stock market bubble. These signs include the recent IPO mania, a large concentration in a single sector, and “increased participation of retail investors, who appear focused on the best-performing names.”

Sound familiar? Because if it does, these signs and the rest of the list of warnings very closely match the exuberance during the peak DeFi phase.

How The DeFi Mini-Bubble Could Cause A Crypto Collapse Alongside Stocks

Crypto analysts claim that Bitcoin is slowly but surely decoupling from the recent stock market correlation. But if the stock market bubble bursts and the selloff again turns violent, crypto could come crashing down again along with it.

And while it is very well Bitcoin continues to do well and decouple, altcoins and DeFi could be in for a dangerous future.

Einhorn says that the stock bubble includes an IPO mania where new companies go public wish shares. This doesn’t exist in crypto, but the newly launched DeFi tokens on platforms like Uniswap and others are the closest thing to it.

Next, he calls out “extraordinary valuations and new metrics for valuations” such a DeFi’s total value locked.  Third, he points to a single sector soaking up most of the interest, which is exactly what decentralized finance has done.

RELATED READING | DECOUPLED: ANALYZING BITCOIN DIVERGING AWAY FROM THE STOCK MARKET

“Second-tier” stocks suddenly will have S&P 500 style valuations, similar to what Aave and Chainlink have done by rising the ranks to the top of CoinMarketCap. “The more fanciful and distant the narrative, it seems the better the stock performs,” also matches the bizarre trend toward food-named coins with oddball use cases or no reason to exist at all.

Einhorn even calls out companies accused of fraud outperforming others, which isn’t uncommon in the crypto space, and “an outsized reaction to stock splits.” Tokens rarely split up their supplies, but a comparable event could be the creation of new UNI tokens, which caused a frenzy of FOMO across the crypto market.

Moving along, the next sign is increased retail participation “who appear focused on the best-performing names.” The several YFI knock-offs prove this theory correct.

defi parabola aaveusd lendusd aaveusd

Aave is a prime example of a DeFi token gone parabolic during the irrational exuberance of a bubble | Source: AAVEUSD on TradingView.com

Finally, Einhorn points to a parabolic ascent supported by trading volume in speculative instruments. The launch of DeFi related contracts where traders can long and short a basket of tokens helped turn the tides on the trend and kick off losses.

There are also few more prominent examples of parabola, than the DeFi token Aave, which grew over 23,000% from bottom to peak during the climb. That parabolic curve has been broken, but losses have not yet picked up suggesting that the bubble hasn’t yet burst, and capitulation volume will soon arrive.

Featured image from Deposit Photos, Charts from TradingView.com

Source: Bitcoininst

Hacked? Crypto Lending Platform Cred Suspends Deposits And Withdrawals While Cooperating With Authorities

The popular cryptocurrency lending service Cred has announced that it has temporarily suspended all funds inflows and outflows. Without disclosing many details, the platform said it’s cooperating with law enforcement authorities to investigate an incident.

Cred Suspends Deposits And Withdrawals

The United States-based crypto lending platform, which recently announced joining Visa’s fast track program, updated its customers on Twitter regarding the latest troubling developments with a brief message.

“Unfortunately, we are unable to comment further at this time, but we will undertake to provide an update within the next two weeks. During this period, all inflows and outflows of funds will be suspended.” – read the statement.

Staying true to its fashion, the cryptocurrency community lashed out at Cred and its lack of details about what’s going on. This reaction prompted the lending protocol to comment once again. Firstly, Cred apologized for the concerns and inconveniences it has caused while it’s assessing the “business impact connected with a recent fraudulent incident.”

Furthermore, the post explained that Cred is currently cooperating with law enforcement authorities. However, it provided some reassurances claiming that “no client personal data or account information was compromised.”

It’s worth noting that Cred’s website reads that the platform works with “trusted security and insurance providers Fireblocks and Lockton to ensure that our customers’ digital assets have enterprise-grade security.” Nevertheless, several community members have questioned the state of their holdings on the platform, as they weren’t satisfied with Cred’s brief updates.

A Dissolved Partnership Saw This Coming?

Although it’s still unconfirmed if the so-called “incident” is indeed a hack, it seems that the issues have been transpiring for a while now. Days before Cred suspended deposits and withdrawals, one of its partners ended its relationship with the lending protocol.

The cryptocurrency wallet and trading platform, Uphold, announced on Sunday that users could no longer link their Uphold wallets to the third-party crypto lending provider Cred.

At the time of this writing, neither Uphold nor Cred have disclosed why their partnership agreement ended.

Source: Crypto Potato

Iran’s New Crypto Law Requires Miners to Sell Bitcoin Directly to Central Bank

Iran's New Crypto Law Requires Miners to Sell Bitcoin Directly to Central Bank

Iran has reportedly revised the country’s cryptocurrency regulation to require licensed bitcoin miners to sell their coins directly to the central bank for use to fund imports.

Iran’s Revised Crypto Law

The Iranian government has amended its cryptocurrency regulation to enable the country’s central bank to fund imports with bitcoin legally mined in the country, the government-controlled IRNA news agency reported on Saturday. Iranian publication Financial Tribune conveyed:

The measure proposed by the Central Bank of Iran [CBI] and the Ministry of Energy requires licensed cryptominers to sell the coins they mine directly to the CBI.

“The Ministry of Energy is tasked with defining a ceiling for output of authorized crypto units subject to the energy consumed by each unit. Miners’ output should not exceed the ceiling,” the publication added, noting that the central bank will soon announce details of the new law.

Mostafa Rajabi Mashhadi, deputy head of Iran’s Power Generation, Distribution, and Transmission Company (Tavanir) and the spokesperson for the power industry, confirmed that “These cryptocurrencies can be exchanged according to the regulations set by the central bank,” Mehr news agency quoted him as saying.

Presstv, an Iranian state-owned news and documentary network affiliated with the Islamic Republic of Iran Broadcasting (IRIB), explained: “The miners are supposed to supply the original cryptocurrency directly and within the authorized limit to the channels introduced by the CBI … The legal cap for the amount of cryptocurrency for each miner would be determined by the level of the subsidized energy used for mining and based on instructions published by the Ministry of the Energy.”

Cryptocurrency analyst Alireza Shamkhi told ISNA news agency that the new law is vague and ambiguous. For example, it does not state how the central bank will price cryptocurrencies or the exchange rate between dollars and rials. Previously, miners could exchange their cryptocurrencies for dollars, rials, or other currencies at market prices. He added that the requirement for miners to report their output to the central bank is not seen in other industries, concluding that the new law will likely reduce the industry’s attractiveness and significantly lower miners’ profit margin.

Iran has issued over 1,000 licenses to crypto miners, including one to the Turkish bitcoin mining giant Iminer. Power plants in Iran are allowed to mine cryptocurrencies and bitcoin miners have been granted exclusive access to electricity generated from three of them. Meanwhile, over a thousand illegal bitcoin miners have been shut down.

What do you think about Iran’s new cryptocurrency mining law? Let us know in the comments section below.

The post Iran’s New Crypto Law Requires Miners to Sell Bitcoin Directly to Central Bank appeared first on Bitcoin News.

Source: Bitcoinnews.com

Fidelity’s Crypto Subsidiary Targets Asian Investors To Buy Bitcoin

  • Fidelity Digital Asset Services (FDAS) has partnered with Stack Funds to enable Asian investors to purchase and store cryptocurrency assets more freely and securely. 
  • Based in Singapore, Stack Funds is a regulated fund manager focusing on Bitcoin and other digital assets.
  • According to the Bloomberg report, Stack Funds will make Fidelity’s secure custody services available to its clients, primarily based in Asia. The company outlined that the Asian market has been continuously growing in demand towards the cryptocurrency industry, especially from high-net-worth investors and family offices.
  • Stack further explained that all assets under its management will be audited monthly. The firm will provide insurance coverage, weekly contributions, and redemptions to enhance capital security.  
  • Stack’s co-founder, Michael Collett, said that Fidelity’s involvement will enable its company to attract even more investors from the region. 
  • On the other hand, Christopher Tyrer, head of Fidelity Digital Assets Europe, believes that “there’s a critical need for platforms which have a deep understanding of what local and regional investors are looking for.” However, he admitted that the digital asset space has “historically lacked” such platforms. 
  • After its success in the US, Fidelity Digital Assets expanded its cryptocurrency services to Europe last year. The company aims at entering the Asian market as well now with the Stack Funds partnership. 

Source: Crypto Potato

Yearn Finance Founder Andre Cronje’s New Defi Token KP3R Soars 3,600% 24 Hours After Launch

Yearn Finance founder Andre Cronje’s new defi token called KP3R has soared more than 3,600% in just over 24 hours after official launch, as yield farmers pour in millions of dollars into the project.

The token opened at just $10 on Uniswap on Oct. 28, but is currently trading at $373.58, as of press time.

According to Coingecko data, over $402 million in volume has been traded in the past 24 hours, with investors providing a total $7.6 million in liquidity.

The digital asset’s market capitalization exploded similarly, reaching $73.6 million – a level equalling number 109 in global market cap rankings.

KP3R is the token for Cronje’s newest project called Keep3r Network, a decentralised smart contract for technical jobs. The concept involves what it calls “keepers” – outside persons or teams responsible for the upkeep of crypto projects on the network. It says:

Projects wishing Keepers to perform duties simply need to submit their contract to Keep3r Network, once reviewed and approved by a bonded Keeper, Keepers can begin fulfilling the required work.

The KP3R token is used to reward “keepers”. Only keepers that meet certain minimum financial requirements can undertake tasks considered to carry higher financial risks. Governance over the protocol also happens directly through KP3R holders.

Andre Cronje is well known for his work on Yearn Finance, a major decentralized finance (defi) protocol with more than $365 million of value locked in. Investors may also like to forget him for the disaster that was Eminence, which lost $15 million to hackers while waiting to be tested.

What do you think about KP3R’s skyrockecting price? Let us know in the comments section below.

The post Yearn Finance Founder Andre Cronje’s New Defi Token KP3R Soars 3,600% 24 Hours After Launch appeared first on Bitcoin News.

Source: Bitcoinnews.com

Binance Might Delist Many Low-Volume Coins Soon, CZ Hints

Binance is the world’s largest cryptocurrency exchange by means of daily trading volumes. In the few short years since its launch, the venue went on to become a leading company in the industry.

In fact, launching coins up for trade on the exchange has created the so-called “Binance Effect.” In short, when a cryptocurrency is selected and launched for trading on the platform, its price usually undergoes a substantial surge.

Now, the CEO of Binance, Changpeng Zhao, has hinted that it may start delisting low-volume coins.

Low-Volume Coins May Kiss Binance Goodbye

In an interesting Twitter thread, a popular cryptocurrency analyst and trader RookieXBT suggested delisting all coins on Binance that “do less than 10 BTC of daily volume.”

Expectedly or not, the CEO of the exchange engaged in the thread, providing a hint that they might consider doing so.

“I think it is a good idea. If you are on Binance and still have no volume, then…” – Said CZ, perhaps hinting that there’s something inherently wrong with coins listed on Binance and failing to generate big daily volume.

Naturally, there are two sides to this debate. Some users think that the merits of a coin shouldn’t be valued based on the volumes it generates on cryptocurrency exchanges. People argue that they hold a coin for the long-term and don’t really care about the daily volume.

This is most definitely true. The inherent merits of a cryptocurrency are most definitely not associated with it being listed on a certain exchange, be it Binance. So, a logical question pops – why would someone care if the coin is listed or not, presuming they are “in it for the technology”? And this is where things take a twist.

The Other Side of the Story

At this point, it becomes rather clear that this particular narrative doesn’t stand on solid ground because people are obviously concerned about the price, perhaps even more so than the technology itself.

If an investor is holding a cryptocurrency for the long run, it being listed on Binance shouldn’t make a difference. But that’s usually not the case – people are rarely “in it for the technology” despite what they might claim.

The main concern is that if Binance decides to delist low-volume cryptocurrencies en-masse, this might cause a larger upset in the market because of the “Binance Effect.”

As we mentioned before, when a cryptocurrency is listed on Binance, it usually goes through a substantial increase. However, the opposite is also true. Last year, the exchange delisted Bitcoin SV, and it tanked more than 10% on the news. That’s just one example.

In any case, there’s no formal confirmation, and it remains interesting to see whether the exchange will really start delisting coins based on low volumes.

Featured image courtesy of Medium

Source: Crypto Potato