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Catching up With Our Old Friends HOSTKEY

Recently we got the chance to catch up with our old friends and neighbors HOSTKEY. HOSTKEY is a global internet service provider that offers colocation and other hosting services, leases top-of-the-line hardware like high-performance GPU servers, and offers 24/7 support from industry experts.

HOSTKEY is also



Catching up With Our Old Friends HOSTKEY

Recently we got the chance to catch up with our old friends and neighbors HOSTKEY. HOSTKEY is a global internet service provider that offers colocation and other hosting services, leases top-of-the-line hardware like high-performance GPU servers, and offers 24/7 support from industry experts.

HOSTKEY is also a BitPay payments partner, allowing customers to pay invoices in Bitcoin, Bitcoin Cash, Ethereum, Ripple and three dollar-pegged stablecoins.

But we knew them way before they were big.

And well… They knew us before we were big too.

As fate would have it, about a decade ago, HOSTKEYand BitPay were fledgling tech startups that happened to lease office space in the same small building.

It was natural then, HOSTKEY cryptocurrency specialist Joël Happé told us when we visited their Amsterdam office, that when customers started asking for a cryptocurrency payment option for HOSTKEY invoices, they knew just who to call.

Joël said BitPay has allowed HOSTKEY to accept cryptocurrency payments from customers around the world, while keeping regulations in mind.

Jeroen de Bie, HOSTKEY’s CFO, reminisced on our visit:

“We were both companies dreaming of making it big, and now we are both global players. We’ve had a connection with BitPay from the start.”

In the ten years or so since we were neighbors, HOSTKEY has built headquarters in Moscow and Amsterdam, partnered with Microsoft, Huawei, Webair and more, and now offers competitively-priced colocation services, equipment leasing and reliable cloud solutions for clients across Europe, Russia and North America.

During the same time, BitPay built headquarters in North America, Europe, and South America and become the global leader in blockchain payments, processing more than a billion dollars in Bitcoin and cryptocurrency payments annually for companies like Microsoft, Apmex, the NBA’s Dallas Mavericks, and many more.

We’ve both come a long way, indeed.

We put together a short video from our visit where you can hear more about what BitPay brings to HOSTKEY as a payments partner, as well as more about each company’s journeys from tech startup to industry leader.

Take a couple minutes and check it out here!



Bitcoin Rising Correlation With Traditional Market Undermines ‘Non-Related Asset’ Narrative




Despite the fact that Bitcoin has been long-touted as a “non-correlated asset”, there have been many instances when the largest cryptocurrency behaved similarly to the mainstream market.



Altcoins undergoing another major pullback was occasioned with occurs not as drop significantly in the traditional markets and additionally in gold’s price which took a massive hit as markets opened. Amid rising fears of the pandemic, the US Stock market fell to a 2-months low with the Dow Jones Industrial Average dropping over 700 points in the afternoon trading sessions.

Santiment’s tweet read,

“As has been the case since Black Thursday, the correlation between the US stock markets & gold, and BTC, ETH, and rest of the crypto markets has been much higher now than any year in crypto’s history.”

Additionally, data from Skew shows that the one-year realized correlation between Bitcoin and S&P 500 reached 52.9%.

Source: Skew

Commenting on the latest price movement, popular Podcaster, Lark Davis tweeted,

“Historically the S&P 500 has done poorly in September, and quite badly in October of election years. Bitcoin’s high correlation to the equity markets could mean that we are in for some big bumps over the next 6 weeks. GOOD NEWS is that November is usually a strong month.”

Besides, the one-year realized correlation between Bitcoin and Gold was also hovering a little below its ATH. Notably, prior to 2018, the Bitcoin-Gold correlation was negative and hence the narrative was mostly dismissed. Similar was the case with other tech stocks or stock indices such as VIX. The recent trend could also potentially signal to the point Bitcoin has slowly evolved into a mainstream asset over the last two years and hence its correlations with non-crypto assets are important to gauge its price movement in the coming days.

The coronavirus crisis has impacted every industry, from tourism to real estate, health care to manufacturing and the cryptocurrency industry is not exempt. While Bitcoin did start with an impressive streak in the first quarter of 2020, it hit a snag as the pandemic’s economic blow quickly affected all markets. Similar to the traditional market, the collective crypto market crashed by more than 50% from its February high.

To get the daily price analysis, Follow us on TradingView

Author: Ketaki Dixit

Experienced writer and editor with a demonstrated history of working in the industry. Skilled in Copywriting, Web Content Writing, Copy Editing, Writing, Cryptocurrency News Writing, and News Editing.


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Ethereum short-term Price Analysis: 22 September



Disclaimer: The following price prediction should not be taken as investment advice as it is the sole opinion of the writer. The prediction should materialize in the next 24-48 hours. 

While Ethereum’s effort to hold fort near $390 is commendable, it would be inaccurate to state that the industry did not see this coming. With Bitcoin over-bought and barely holding a high value a few days back, Ethereum was primed to follow on BTC’s cue, whenever the king coin would collapse. The plot played out as expected with Ethereum depreciation below its support at $360.

Ethereum 1-day chart

Source: ETH/USD on Trading View

Although Ethereum’s 1-hour chart exhibited the formation of a descending channel carrying bullish implications, the breakout has been down south following the collective crash. The bearish pressure put on the price from the Exponential 50-Moving Average was towering and within a 12-hour window, the asset dropped from $375 to below $345.

The selling pressure taking over was also identified on the Relative Strength Index chart, where the token dropped down to an extreme oversold position before attaining recovery. With the market was indicating choppy movements over the past 24-hours, a jump above $350 seems unlikely, while further depreciation cannot be taken out of the picture.

Bitcoin 5-hour chart

Source: ETH/USD on Trading View

Interestingly the 5-hour chart of Ethereum suggested that Ether is possibly at a make or break range at the moment. As observed, the price has followed the bearish breakout from the rising wedge like clockwork and it is currently right above the long-term support at $336. This leads up to two possibilities at the moment. Considering Ethereum hasn’t traded much in the current price point, a move upwards or downwards is likely to take place within the next 24-48 hours.

Awesome Oscillator is suggestive that the bearish pressure is only beginning to increase in the trend and it might carry the price all the way down to $305. On the other hand, the price can jump right up from $336 and attain a position close to $360. The next 24-hour will be critical but the trend is heavily inclined towards another drop.


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First Mover: Bitcoin’s Latest Sell-Off Gets Crypto Traders Mulling Election Chaos



In seeking to explain Monday’s sell-off across traditional markets and cryptocurrencies, the digital-asset firm QCP Capital rattled off a list of seven major market events that occurred in Septembers past, from the 1929 stock-market crash to the Lehman Brothers bankruptcy in 2008. 

There might be some deep human connection with the fall equinox — when the days turn shorter than nights in the northern hemisphere and summer turns to fall, according to the firm. “The human nervous system typically undergoes major measurable perturbations” during this period, QCP wrote Monday in its daily market update. 

The outlook is cloudy but there’s a risk of a steep plunge similar to the sell-off in March that took bitcoin prices to their 2020 lows just below $4,000. One catalyst could be the upcoming U.S. presidential election, which has become more contentious in recent days following the death of Supreme Court Justice Ruth Bader Ginsburg. 

Bitcoin (BTC) on Monday posted its biggest drop in three weeks, retreating from the psychological $11,000 hurdle that the cryptocurrency until just recently had seemed poised to eclipse. There was also an apparent unwind of the recent frenzy in decentralized finance, or DeFi, with associated digital assets from ether (ETH) to Aave (LEND ) and Curve (CRV) falling even harder.    

“It got to a point where the market demand just kind of got exhausted, and there wasn’t enough new capital flowing to sustain the push higher,” said John Todaro, an analyst for the digital-asset firm TradeBlock. 

Despite recent bets in foreign-exchange markets that massive money printing by the Federal Reserve and other central banks might drive down the value of the dollar, investors apparently sought refuge in the U.S. currency. The U.S. Dollar Index charted its biggest gain in a month. 

“The dollar’s not dead, the dollar’s a survivor,” Denis Vinokourov, head of research for the cryptocurrency prime broker Bequant, said in a WhatsApp audio interview. “It’s a real flight to quality, and cash is king, and cash is the dollar, nothing else. The dollar rules.”

Monday’s sell-off nearly wiped out 2020 gains for the Standard & Poor’s 500 Index of large U.S. stocks, though ether, bitcoin and gold are still sitting on substantial 2020 gains. 

Bitcoin percentage year-to-date returns versus ether, gold and the S&P 500.
Source: TradingView

There’s a lot of major factors buffeting the global economy and geopolitical landscape, as the coronavirus continues to spread and the U.S. elections approach. President Donald Trump is pushing to nominate and confirm a pick to the high court prior to the election, even though Republican leadership had previously suggested such a step would be inappropriate

Gavin Smith, CEO of the cryptocurrency firm Panxora, says that if the election leads to political turmoil in the U.S., he could see the largest cryptocurrency trading as low as $7,000. 

“The danger to the crypto market is much the same as we saw in March,” Smith said. “If you get that big sell-off in risk assets, there will be that liquidation of bitcoin.”

He says central-bank money printing should eventually push up inflation, which could be a catalyst for higher bitcoin prices, though “that’s very much a 2021 story.” 

“When we’ve seen the election past, all of a sudden it’s going to become clear just how much money has been pumped into the system,” Smith said. 

A battle over confirmation of Ginsburg’s successor could derail any last-ditch efforts to revive any effort to provide new U.S. fiscal stimulus, even amid growing signs that the economic recovery is stalling. 

The Federal Reserve could step in to increase its pace of money printing, but any such decision would have to be made on an emergency basis, since the next regular meeting isn’t scheduled until Nov. 5, in the days after the election.

The Fed has already cut interest rates close to zero and is buying U.S. Treasury bonds and government-backed mortgage securities at a pace of $120 billion a month. Chair Jerome Powell reiterated in prepared testimony for a scheduled Congressional appearance Tuesday that officials “remain committed to using our tools to do what we can, for as long as it takes, to ensure that the recovery will be as strong as possible.”

But Mati Greenspan, founder of the foreign-exchange and cryptocurrency analysis firm, Quantum Economics, told subscribers in a daily newsletter, said that the bar will be high for further action. 

“The Federal Reserve and other central banks have already injected quite a lot of stimulus and are already committed to keeping rates suppressed for a long time to come,” Greenspan wrote. “There doesn’t seem to be much in the way of action from them for markets to look forward to.”

Bitcoin’s price correlations have increased recently with both U.S. stocks and gold.
Source: CoinDesk Research

Bitcoin Watch

Bitcoin daily chart. (TradingView)
Source: TradingView

Bitcoin fell by more than 4% on Monday, confirming a bear flag breakdown on the daily chart. 

The bearish technical pattern indicates the bounce from the recent low of $9,869 has ended, and the pullback from the August high of $12,476 has resumed. 

Analysts foresee a more significant decline in the cryptocurrency if the global stock markets extend Monday’s sell-off. 

“Sustained risk-off in broader equity markets will lead to heavy offers across major cryptocurrencies,” Matthew Dibb, Stack Funds’ co-founder and COO, told CoinDesk. “Bitcoin may revisit September lows” around $9,870.

Monday’s drop has boosted demand for put options or bearish bets. According to data source Skew, the one-month put-call skew has increased to over 4% from -3% on Sunday. The positive figure indicates that put options are drawing higher prices than calls. 

However, three- and six-month skews remain negative, meaning the long-term bias remains bullish. 

– Omkar Godbole

Read More: Equity Markets Turmoil Could Push Bitcoin Below $10K, Say Analysts

Token Watch

Uniswap (UNI): Arca Funds chief legal officer argues that tokens  probably aren’t securities under the SEC’s test

Swerve (SWRV): Liquidity in this three-week-old automated market maker for stablecoins has dried up following the conclusion of a “boosted reward period,” according to Messari.  

What’s Hot

U.S. regulator OCC says banks can provide services to stablecoin issuers (CoinDesk)

Chinese e-commerce giant is reportedly to help the nation’s central bank develop infrastructure for its cash-equivalent digital currency (CoinDesk) 

ECB President Christine Lagarde says digital euro might provide alternative to “private digital currencies” (CoinDesk)

Bitcoin miner Bitfarms leases 2K rigs from BlockFills, has options for 7K more (CoinDesk)


The latest on the economy and traditional finance

Bank shares plunge on reports Deutsche Bank, JPMorgan moved suspicious funds (CNBC)

Key Republican senators propose $28B in airline assistance to avoid job cuts (Reuters)

U.S. government debt seen hitting 195% of GDP 2050, up from 98% this year and 79% in 2019 (Bloomberg)

Fed Chair Powell says small businesses might need “direct fiscal support” (FT) 

Commercial mortgage bonds lag behind broad credit-market recovery (WSJ)

Unemployed cutting back on consumer spending as extra benefits expire (WSJ)

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