Bitcoin broke a four-day loss record, it appears to have stabilized at around $ 34,000 after a recent market correction.The cryptocurrency’s price is still up 18% year over year versus a 1.2% gain. For the Standard & Poor’s 500 index of large US stocks.
“Right now is not the time to panic,” wrote Matt Blom, head of sales and trading at cryptocurrency exchange Diginex, in a daily newsletter.
In traditional markets, European stocks are volatile and U.S. futures are little changed as the U.S. House of Representatives on Wednesday prepares to vote on a second impeachment of President Donald Trump. Gold rose 0.1% to $ 1,855 an ounce.
As bitcoin and ether retreat from recent peaks, its strong performance Other cryptocurrencies have shown that traders and investors may now turn to alternative tokens, often referred to as “altcoins”, for returns.
Bitcoin prices as of January 11 were around 87% of last week’s all-time high and Ether was about 78% of the all-time high over the past few years, according to data compiled by CoinDesk. Research.
But cryptocurrencies and other digital assets such as Stellar (XLM) and litecoin (LTC) are far from setting new records. One interesting thing might be that they may have to keep running, Muyao Shen of CoinDesk reported Tuesday.
Altcoins are skyrocketing “in ways that we’ve never seen since 2017,” Efficient Frontier executive Andrew Tu told Shen.
Of course, it’s possible some entry-level investors looking at bitcoin’s $ 34,000-ish price – the price of a small utility vehicle – without realizing the largest cryptocurrency could buy it for a fraction of a minute. It is similar to the method that can be purchased for either 100 or 1,000 gold.
Such confusion in the past has led some novice investors to use altcoins as their prices tend to be lower and sometimes counted in cents.
David Derhy, an analyst with the eToro trading platform, wrote earlier this week that some traders may switch to ether, the base digital currency for the Ethereum blockchain.
“Investors in bitcoin may want to profit and redistribute, and ether may be a target,” he said. “The $ 2,500 target is reasonable based on the profits we’ve seen and the current price momentum,” said the level. Up to almost 150% profit from the current price.
Simplex, a digital asset platform, has seen “growing demand for cryptos across the board,” although “retail investors seem to be looking for the next BTC,” CEO Nimrod Lehavi wrote in a Google document passed by a spokesperson. Zoom chat function
“We’ve seen BTC dominate 90% of all trading volume,” said Jonathan Leong, CEO of BTSE, another crypto platform. Our institution has increased by almost 50/50 balance over time. “
Austrian digital currency platform Bitpanda has seen Bitcoin drop to between 30% and 40% of customer purchases this year from 40% to 50% last year.
“We have a lot of users and they trade both bitcoin and altcoins,” spokeswoman Sara Moric said in an email.
– Muyao Shen and Bradley Keoun
Read more: Multiple tokens watch a rally amid the upcoming ‘Alt Season’
Bitcoin’s short-term outlook is down, analysts said, with some seeing the price drop as much as possible on Monday.
“It may be thrown again, as the outflow from cryptocurrency exchange Coinbase Pro has plummeted alongside increased transfers of coins to the exchange,” said David Lifchitz, chief investment officer at ExoAlpha, a quantitative trading company in the United States. Paris told CoinDesk.
The outflow from Coinbase Pro, which is considered a proxy for cryptocurrency purchases by large institutional investors, is often seen as transfers to cold storage for long-term holdings, which are rapidly declining. From a three-year high of 55,000 BTC in January 2.
The decline could signal weaker institutional demand that played a key role in last week’s push of bitcoin to a new all-time high of over $ 41,000 from about $ 10,000 a few months ago.
At the same time, exchange deposits have increased, a sign that some investors may want to liquidate their operations and make a profit.
The number of coins held on the exchange rose to more than 57,000 BTC on Tuesday, the largest single-day change since March 2020, according to blockchain analytics firm Chainalysis. The exchange has had an average inflow of 103,000 BTC per day over the past seven days, well above the 180-day average of 83,700 BTC.
Some analysts looking for clues in price chart patterns were also calling for an expansion of Monday’s decline, the Ichimoku cloud, a technical analysis tool created by Japanese journalist Goichi Hosoda in the late 1960s. There are several lines that help identify support and resistance, and other essential information such as direction, trend and momentum.
“I still see downside pressure in the short term,” said Patrick Heusser, head of trade at Swiss firm Crypto Finance AG, adding that $ 29,000 could be a build-or-break level. “Things could be ugly if that support was. It was violated, ”Heusser said. The $ 36,000 price was a must for the bulls.
Chris Thomas, head of digital assets at Swissquote Bank, saw a period of consolidation for the remainder of the week, in the $ 33,000- $ 36,000 range.
Read more: Analysts are mourning over Bitcoin’s short-term price trend right now
The European Central Bank’s Lagarde calls bitcoin a “speculative asset”, hoping to get the digital euro in five years (CoinDesk).
“Can OCC grant a national bank charter to open-source software that manages deposits, loans or payments without officials or directors?” Wrote acting U.S. currency regulator Brian Brooks on the op. -ed “Still. Under current law, drafted on the premise of the early 20th century, charter can only be issued to humans” (Financial Times).
When Goldman Sachs’ head of commodity research tried to estimate the value of cryptocurrencies, he started by imagining a doubling of the manufacturing sector (CoinDesk).
Bitcoin options volume on Deribit already 25% of total in 2020 (CoinDesk)
Bitcoin whales still accumulate during the crash on Monday (CoinDesk).
Coinbase apologizes for “recent customer experience issues” in the United Kingdom and the European Union (Coinbase).
Tron is out, Dai is back in the latest change for CoinDesk 20 (CoinDesk Research).
“For the billions that we have in the challenge now, if you cut your subsidies, you will be able to do so. (Pay to user) This amount will break down, ”Andre Cronje, creator of YearnFinance, wrote in a Medium post (Medium).
CEX, lies and videotapes: Binance accuses competitors of fighting dirt (CoinDesk).
The Winklevoss twins Gemini cryptocurrency exchange has seen significant increases over the past year in Bitcoin (Coin Metrics) balances:
The latest on traditional economy and finance
Switzerland’s UBS charges clients at a negative interest rate of 0.75% on cash balances above 250K Swiss francs ($ 280K) (Reuters).
Former US CFTC Chair Gary Gensler said Biden would choose the SEC (CoinDesk) chair.
Brian Brooks, who serves as the US currency regulator and former Coinbase general advisor, plans to step down in the coming days, Politico (CoinDesk) reports (see also: Brooks op-ed featured. Above in What’s Hot)
Zombie or inefficient companies that are still living with cheap debt could swell as a generous government shutdown advocacy program represents a huge risk for banks (WSJ).
Carmen Reinhart, Chief Economist at the World Bank, warned that household and business balance sheets could be overwhelmed by epidemic-related debt that could lead to a financial crisis (Bloomberg).
A revolution in remote operations that fundamentally transforms the way managers work (Reuters)
Traders are looking at bitcoin for clues on the direction of the stock market (CNBC).
Dallas Federal Reserve Robert Kaplan hopes the economy will be ready for conversation about a $ 120 billion-per-month reduction in purchases of Fed assets later this year (Bloomberg).
ICYMI: “Central banks do not show a tendency to moderate their large stimuli,” Allianz’s Mohamed El-Erian wrote in an op-ed (Bloomberg Opinion).
The Federal Reserve is focusing on positive mid-term opportunities for jobs from the coronavirus vaccine success (Reuters).