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Bitcoin [BTC] Exchange Inflow Surges As Price Plummets

The price of Bitcoin has been experiencing immense fluctuations. Earlier today, the king coin was seen dropping deep below $9,500. While Bitcoin slumps, exchange inflows have been significantly increasing.  Will BTC Drop To 8K? Along with other assets, Bitcoin also witnessed a series of highs and lows during this pandemic. Back in March, when COVID-19

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The price of Bitcoin has been experiencing immense fluctuations. Earlier today, the king coin was seen dropping deep below $9,500. While Bitcoin slumps, exchange inflows have been significantly increasing. 

Will BTC Drop To 8K?

Along with other assets, Bitcoin also witnessed a series of highs and lows during this pandemic. Back in March, when COVID-19 was at its peak, the price of Bitcoin fell into the 4K zone. However, the king coin was lauded for its quick recovery as recently the coin breached 10K. While this price movement of the coin instilled hope in the crypto community that Bitcoin could be on its way to meet its previous ATH, the price of Bitcoin fell back into the 9K zone. While several probed the dip, it was found that Bitcoin miners were possibly behind the slump.

On 11 May 2020, Bitcoin underwent its third halving which pushed the block rewards for miners from 12.5 BTC down to 6.5 BTC. Even before the halving took place, several from the community prophesied that the latest halving could make miners the biggest sellers of the king coin. Willy Woo, a crypto investor tweeted about the same,

In more recent updates, the price of Bitcoin has been witnessing a huge slump as it fell down to a low of $9,153, at press time. Many have been speculating that the price may even plummet to 8K. Bitcoin’s latest price movement, however, has been linked to the crash in the US stock.

Gemini And Coinbase Record Massive Inflow

Additionally, cryptocurrency exchanges witnessed an increase in Bitcoin inflows. As seen in the below chart by CryptoQuant, the inflow of Bitcoin surged to 1,527.568 BTC earlier today. Further depositing a total of 1.39 million USD worth of Bitcoin into exchanges.

BTC
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Furthermore, as per Mason Jang from CryptoQuant, whales from prominent cryptocurrency exchanges, Gemini and Coinbase were seen moving BTC even before the latest slump.

BTC
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San Franciso based-exchange, Coinbase received a total of 600.899 BTC worth about $54, 82,674, right before the dip. Gemini, on the other hand, welcomed 563.726 BTC worth $51,43,503.67 into its platform.

BTC
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While many believe that the US stocks could have fueled the latest dip. Other factors are also being examined by the crypto community.

Source: https://coingape.com/bitcoin-btc-exchange-inflow-surges-as-price-plummets/

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Uniswap could be a stumbling block for DeFi decentralization

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Unsiwap’s governance vote has been a hot and controversial topic, with questions raised surrounding its centralisation

There are concerns that an Ethereum flash crash may happen when UNI mining is concluded in November. Industry experts have embarked on finding more flaws in addition to the centralisation concerns resulting from Uniswap’s first governance vote.

The last whale account took the proposing side of Dharma. The conclusion of the vote, therefore, means only a handful of addresses with the majority of UNI tokens will have governance power.

It is worth noting that three addresses accounted for nearly all 39.5 million votes in support of the proposal, with only about 700,000 in opposition. The Dharma and Gauntlet proposals’ approval gives them a majority if they agree on any upcoming decision. However, this isn’t the only thing to worry about.

According to Ryan Berckmans from Predictions Global, the governance could be a hindrance to the DeFi sector. Berckmans also predicts that the central control could impact volatility on Uniswap.

Another concern is the conclusion of UNI liquidity mining on November 17. Berckmans points out that about $800 million in Ethereum will be pulled out from the pools when they ultimately expire. This, in turn, could result in a flash crash and even disrupt the whole decentralised finance sector.

In his opinion, the feasible way of keeping the sector stabilised is by perpetuating the UNI farming incentive. He also recommended designating executives to act as governance officers similar to what Ethereum has adopted with Tim Beiko and the new EIP 1559 fee proposal.

Source: https://coinjournal.net/news/uniswap-could-be-a-stumbling-block-for-defi-decentralization/

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Ethereum 2.0 could be two months away or less

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Based on updates from the developers involved in the project, Ethereum 2.0 could be six to eight weeks away from completion

It has been a week since the second testnet (Zinken) was successfully deployed for Ethereum 2.0. The success of the second trial watered down any doubts and concerns from the first Spadina testnet that it was to be a failure.

Developer Ben Edgington shared an update on the Ethereum 2.0 project yesterday, detailing news from the Beacon Chain testing. The update revolved around the publishing of the first release candidate for Phase 0.

The post read, “Your newest news in #Ethereum 2.0 is here! https://t.co/97X85jdCzM. Sorry it’s a bit late, and a bit rushed. I took some time off; it was nice 😎 Back now, refreshed and raring to go 🚀”

Edgington asserted that the deposit contract was now ‘good to go’ and hinted that the Beacon Chain genesis would be available in about six to eight weeks. Of course, this is only an estimate, and there’s no guarantee that things will turn out that way. So far, there hasn’t been an announcement regarding the official launch date.

He also talked about depositing to fake contracts — a possible likelihood in the subsequent stages.

“Many fake deposit contracts and Launchpad front-ends will erupt in the coming days. Look out for the official announcements: do not send Eth to random contracts; this is not DeFi.”

The developer emphasised the need for more client diversity around the network, saying that the collective effort would be crucial in the success of the project. He went on to add that Prysm was still the leading player after the firm developed its own ETH 2.0 client.

Source: https://coinjournal.net/news/ethereum-2-0-could-be-two-months-away-or-less/

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Black Monday Anniversary: Why Bitcoin Investors Should Be Concerned

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Today marks the 33rd anniversary of the Black Monday on Wall Street that sent stocks setting historic records for intraday declines. Although this year already had a similar day of its own, there’s reason to believe that another collapse could happen in Bitcoin.

Here are the primary factors behind what could cause the crypto market to drop on the ominous anniversary.

Will Bitcoin Bow To Black Monday Anniversary?

Black Thursday is a day that crypto investors won’t soon forget. In a flash, Bitcoin price plummeted from over $7,000 to under $4,000, after just a few weeks prior trading well above $10,000. The more than 60% fall came to a climax on March 12, 2020.

All markets felt the sting of the panic and mad dash into the safe haven of cash. However, after that day, markets rebounded into a V-shaped recovery. Bitcoin and the S&P 500 set a new high in 2020, but the Dow Jones failed to put in a higher high which could be more foretelling about the overall state of the US economy.

RELATED READING | WHY A “BLUE WAVE” BIDEN WIN COULD BE THE BEST SCENARIO FOR BITCOIN

Although asset valuations across major stock indices and crypto assets are back at, or close to 2020 highs, the uncertainty around the election has investors taking a pause. Analysts and economists claim upside is limited in stocks, and various technical indicators point to a long-term top potentially being put in on the stock market.

spx sp500 btcusd bitcoin

Bitcoin following Black Monday price pattern from 1987 | Source: BTCUSD on TradingView.com

Weakness in stocks and the tech bubble finally popping could cause an anniversary selloff on the 33rd year since the Black Monday collapse in 1987. That day the S&P 500 saw a historic collapse, and it could happen again. According to a chart shared on Reddit, the S&P 500 is closely following the same pattern and price action that led up to that day.

And due to the ongoing correlation between crypto and stocks, even Bitcoin is following this pattern.

Crypto’s Continued Correlation With Stocks Could Spell Disaster

Since Black Thursday, the correlation between the top crypto asset and the most popular stock index in the United States, have traded lock and step. Bitcoin spent its entire life up until this year being positioned as an uncorrelated asset, but overall market sentiment matching across stocks and crypto has the two assets classes matching eerily closely.

RELATED READING | EXPERT EXPECTS BITCOIN “DECOUPLING” FROM STOCKS BUT NOT FOR THE REASON YOU THINK

Because Bitcoin remains so tightly correlated to the S&P 500, any steep selloff in stocks, either today on the dark day’s anniversary or in the near future, the cryptocurrency could also be in trouble again.

btcusd spx bitcoin sp 500

Cryptocurrency's sudden correlation with the S&P 500 stock market index | Source: SPX on TradingView.com

Top crypto fundamental experts claim that Bitcoin will soon decouple from stocks due to the growth of the underlying network. Fundamentally, Bitcoin has never been stronger than before, while stocks are fundamentally at their weakest in years due to the current economic conditions.

If stocks do collapse and Bitcoin withstands, the decoupling could lead to stock market capital flowing into crypto, and further push the asset to never before believed heights.

Featured image from Deposit Photos, charts from TradingView.com

Source: https://bitcoinist.com/black-monday-anniversary-why-bitcoin-investors-should-be-concerned/?utm_source=rss&utm_medium=rss&utm_campaign=black-monday-anniversary-why-bitcoin-investors-should-be-concerned

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