On December 20, 2018, the U.S. Federal Government authorized the removal of hemp from the Schedule I controlled substances list, converting it into an ordinary agricultural commodity overnight. As such, the country’s already seeing evidence of the range of hemp-derived CBD products that are set to take the industry by storm in 2019.
BTC Price Analysis: Is Bitcoin Ready To Break $11,000 As Crypto Market Cap Reclaims $350B?
Bitcoin price has finally broken bullish out of a 3-day channel (orange) and making good progress towards the psychological $11,000 level above.
The return of $9 billion to the global crypto market today has allowed BTC to return above $10,900 for the first time in 7 days and caused over $9 million worth of short liquidations on BitMEX – according to Datamish figures.
Avast majority of altcoins are also enjoying positive returns as Bitcoin lifts the rest of the market.
Despite the breakout, bearish traders are still putting up a strong fight right now. The $10,900 price point is seeing a lot of selling pressure bear down on the uptrend and is hindering Bitcoin’s current throwback rally attempt.
Price Levels to Watch in the Short-term
On the weekly BTC/USD, we can see that bulls are battling to break above the previous weekly open at $10,920. This is the first major resistance standing in the way of bitcoin’s progress towards $11K. Above this price point, we also have the $10,970 level which should create some friction in the uptrend.
Looking at the price action more closely on the 4-hour timeframe, we can see that bulls are trying to launch off from the 0.382 Fibonacci level at $10,832, which recently flipped from resistance to support. This is our first major support as BTC tries to reclaim $11K. If bears succeed in overcoming this key level, then we should expect to see prices fall back on the former channel resistance at around $10,810, and potentially dip back inside on to the 200 EMA (red) at $10,780.
Beneath that, we have the channel median line (dashed line) at $10,730 and the 50 EMA (blue) at $10,695 as additional supports.
Should bulls manage to break the $11,000 mark and maintain momentum, then the next test will be to conquer the 0.5 Fibonacci level at $11,150. With BTC already at 63 on the 4-hour RSI indicator, it’s possible that reaching this area will push the leading crypto into the overbought region and cause a sharp correction – be aware.
Total market capital: $353 billion
Bitcoin market capital: $201 billion
Bitcoin dominance: 57.0%
*Data by Coingecko
Bitstamp BTC/USD Weekly Chart
Bitstamp BTC/USD 4-Hour Chart
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Everything you need to know about these DeFi projects with superior returns
DeFi protocols have seen rapid adoption, growth, and an exponential rise in TVL in 2020. The latter is an especially good metric since while a high number of daily/monthly active users is not a direct indicator of a project’s growth, Total Value Locked is, when gauging how well a DeFi project is doing.
The DeFi space has created value for the ecosystem with projects like Maker and Aave and with activities like Yield Farming. In fact, DeFi’s lending or collateralized projects have outperformed the top 25 altcoins based on market capitalization.
Does this warrant DeFi projects having a classification of their own? Altcoins are popular for their high volatility, trade volume, and returns. Since most of the popular DeFi projects have all these attributes already, and are in fact innovating with practices such as yield farming that have produced RoIs of over 9000%, is such an argument justified? At the very least, these DeFi projects should be Altcoins 2.0, right?
Altcoins have been around as alternatives for payment for the longest time. However, for the first time in a decade, projects powered by the world’s top altcoin, Ethereum, are outperforming by such an extent that there’s practically a hysteria around it.
Consider this – Here are the best-perming altcoins in the market over the past 24-hours.
Now, typically, a 37% return for an altcoin in 24 hours is great. However, for DeFi projects, the same may go up to 147%. In fact, returns in DeFi are nearly 5 times that of altcoins over a 24-hour period. And, these comparisons get even more skewed when checking returns for over a week or a month.
While the RoI is the primary motivator for the trading community, over the past 6 months, the dominance of Bitcoins and altcoins has dropped as well. Bitcoin’s dominance, at the time of writing, stood at 57.8%, and it may continue to drop as the dominance of stablecoins and DeFi projects rises. This is another top reason why DeFi projects may offer better insights to new buyers or traders, when categorized as DeFi Projects, and not Altcoins.
On-chain analysts have argued that the SushiSwap incident and unsustainable returns of 9000% through practices like Yield Farming are akin to the ICO bubble and craze; thus implying that the bubble may burst soon. In that case, it may not be ideal to say that DeFi projects are Altcoins 2.0 since many of the original altcoins continue to survive, even if a majority haven’t.
Before 2020, the TVL in DeFi projects was below $600M, and it took the market 8 months to hit this mark. The growth was slow and there wasn’t much interest or trading activity from traders. The Bitcoin rally of 2020 and launch timeline of ETH 2.0, however, motivated traders to lend/lock value in DeFi projects, pushing the TVL to $11B.
DeFi projects may offer better returns to traders, at least in 2020. Whether that is sustainable and whether it deserves to be called as a different asset class, however, is a conversation to be had later.
CFTC charges crypto futures trader for failure to register in the US
On Monday, the Commodity Futures Trading Commission filed charges against Laino Group for soliciting U.S. investors to trade in futures on commodities including Ether, Litecoin and Bitcoin without registering with the commission.
Per the CFTC’s complaint the St. Vincent-registered Laino Group, doing business as PaxForex, used a network of U.S.-based affiliates to solicit American retail investors. In doing so, Laino Group violated the Commodity Exchange Act.
The CFTC did not specify the extent of Laino Group’s activities. The commission’s request for relief indeed suggest that they themselves don’t know how much the trading platform took in without registering. In addition to calling for full return of all funds accumulated, the CFTC’s complaint asks for:
An order directing that Defendant, and any successor thereof, make an accounting to the Court of all of its assets and liabilities, together with all funds it received from and paid to customers.
Particularly noteworthy here is the jurisdictional boundary being established. The CFTC has consistently called Bitcoin a commodity in recent years. The appearance of Ether and Litecoin in a list with Bitcoin as well as traditional commodities like gold and silver within an action from the CFTC suggests that the Commission is treating these others as commodities as well, which CFTC Chairman Heath Tarbert suggested last year.
The question of which cryptocurrencies should be under CFTC jurisdiction came up in a pair of bills introduced to the House of Representatives last week.
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