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Ethereum Is Ready To Rally As Options Volume Hit All-Time High

Ethereum is ready to rally after it was closely tracking the Bitcoin price throughout the past several days and weeks which exposed it to a huge downwards pressure yesterday as we are reading further in the Ethereum news. It was also able to post a swift recovery from the daily lows and remained within the […]

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Ethereum is ready to rally after it was closely tracking the Bitcoin price throughout the past several days and weeks which exposed it to a huge downwards pressure yesterday as we are reading further in the Ethereum news.

It was also able to post a swift recovery from the daily lows and remained within the long-held consolidation phase within the $230 and $250 range and it now it seems that Ethereum is ready to rally again. It did outperform Bitcoin slightly at the moment but ETH remains closely correlated with the number one cryptocurrency and where it goes next will depend on how Bitcoin will react to the newly formed resistance around $9,700.

ETH Chart
Image Courtesy of Crypto Michael. (Chart via TradingView)

The analysts explained that ETH was able to defend itself against a sustained dip below the key support level which could bolster how it trades in the hours and days ahead. Another important factor that could play into how the trends will form in the upcoming hours, is the huge rise in options trading volume that Ethereum went through as of late. These options contracts could even bring more volatility in the future. At the time of writing, Ethereum was trading up marginally at a current price of $235.

The cryptocurrency is up from the daily lows of $230 although it still has a long way to go before reaching the multi-day high of $250. The visit to these highs for Ethereum to lose its stability as the rejection faced a huge selloff that caused it to plunge. This price turbulence came about in tandem with BTC’s volatility right when the benchmark cryptocurrency rallied to a new high of $10,050 before facing a strong selloff that sent it down to a new low of $9,000. ETH’s correlation with Bitcoin remains strong as the asset rebounded overnight alongside bitcoin.

ETH chart
Image Courtesy of Arcane Research

Analysts are claiming that Ethereum recaptured a new key support level against Bitcoin and its USD trading pair which led one analyst to note that it doesn’t really look as bad. Whether or not it manages to hold above this level, ETH depends on whether Bitcoin can stabilize within the mid $9,000 region.  Ethereum’s price could also see volatility in the near future because of the heightened options trading activity. Arcane Research explained:

 “The Open Interest is now approx. $150 million, an all-time high. Much higher than the previous high around $90 million from last summer.”

Source: https://www.dcforecasts.com/ethereum-news/ethereum-is-ready-to-rally-as-options-volume-hit-all-time-high/

Blockchain

Is Bitcoin changing hands or being exchanged for altcoins?

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HODLers are known to sell at the top of the market cycle. However, since the price rally in July 2020, dormant coins from 2017 and 2018 are selling at the current price level. Pioneer of on-chain analysis, Willy Woo recently tweeted saying,

Is BTC changing hands or being exchanged for altcoins?

Source: Twitter

In several instances in 2014, 2017, and 2018, HODLers have booked unrealized profits. However, Bitcoin’s price was an ATH in that case. Currently, the price is above $11300 and dormant coins getting sold at this price level may indicate the possibility of an upcoming drop in price. 

On the contrary, since the second week of October 2020, several altcoins have been performing well. Offering double-digit returns in a week or a 24 hour period and this is lucrative to HODLers. Based on CoinMarketCap’s on-chain analysis, 88% of HODLers have unrealized profits in their portfolio. In anticipation of a Bitcoin price rally, HODLers may book a couple of tranches of profits and wait. They may buy altcoins like ADA, XLM, or FIL based on their weekly and 24-hour returns and book profits in the short-run.

Is BTC changing hands or being exchanged for altcoins?

Trade Volume of FIL || Source: Coinmarketcap

This is evident from the sudden and unpredicted increase in the trade volume of FIL, in the past 5 days. From 31 million it increased to 155 million in a single day. Corresponding to this increase in trade volume, the price has increased by nearly 22% in one week. 

Altcoins are a lucrative option for another reason, Bitcoin’s volatility and volume are low. The recovery is taking longer than expected, even with the ushering in of smart money. It may be long before HODLers who purchased above $10000 would see an ROI of 100%. In the meanwhile, the ones who have persevered through $3k-$9k level are selling and turning in.

Is BTC changing hands or being exchanged for altcoins?

Map of spent HODLer BTC || Source: Whalemap

Holding an asset long enough comes with an opportunity cost. HODLers who are aware of Bitcoin’s potential long-term return have paid this cost and may be ready to take by selling Bitcoin and trading in Altcoins, or reducing risk exposure and switching to Bitcoin options. This move by HODLers does not signal towards a price drop. There is an equal possibility that this builds a bullish case for Bitcoin in the longterm and altcoins in the short term.

Source: https://eng.ambcrypto.com/is-bitcoin-changing-hands-or-being-exchanged-for-altcoins

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Founder of DeFi’s Yearn.finance (YFI) just launched another Ethereum experiment

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Yearn.finance (YFI) founder Andre Cronje is full of ideas, even after he managed to roll out one of the most successful crypto projects in history.

The DeFi innovator recently unveiled his latest experiment, a network called the Keep3r Network, whose native token is KPR.

Unfortunately, like his other recent experiment, some participants got burned as they bought the token of the project without thinking, then got dumped on by bots and power users that managed to accumulate large swaths of this asset.

Here’s a recap of Cronje’s latest project, including what it is and what went down after he released it.

What is the Keep3r Network?

According to Cronje’s Github, which published for this new system on Oct. 19, Keep3r Network is a decentralized marketplace where projects can post jobs and where users can take jobs.

Jobs can be anything as “simplistic as calling a transaction, or as complex as requiring extensive off-chain logic.” A sample job Cronje mentioned was calling the “harvest” function in a Yearn.finance Vault, which collects and liquidates the coins farmed by the invested capital.

The idea with Keep3r is to allow projects strapped for manpower, such as Yearn.finance perhaps, to offload some of the work or maintenance to a group of freelancers.

To ensure that the user is right for a job, job posters can “specify a minimum bond, minimum jobs completed, and minimum Keeper age required to execute this function.”

In this system, the reward for each job being completed is meant to be paid in KPR tokens.

Job posters can pay out KPR by providing KPR-ETH liquidity on Uniswap.

There is no formal user interface for this network, with Cronje using the term “beta” in the project’s readme document.

A stealth launch

Like with Eminence and Liquidity Basic Income — Cronje’s two prior experiments released in the past month — Cronje directly interacted with the Keep3r Network contracts, signaling to Ethereum users that it is him behind this project.

Unlike with Eminence and Liquidity Basic Income, though, this project flew under the radar.

Cronje did not tweet about it, nor did he publish a Medium blog on the matter.

This meant that the only ones who know of Keep3r Network existence for a long time were those that followed Cronje’s GitHub, or those that tracked his Ethereum address. Twitter, which catalyzed the hype around Eminence and Liquidity Basic Income, did not pick up on this stealth launch.

As a result, little capital flowed into the KPR token itself.

However, there was some money that found its way into KPR.

By the evening of Oct. 19, KPR traded for $2,000 — 200,000 percent than its starting price just shy of $1.

But as quickly as it rallied, the original KPR dumped back under $100.

The reason: Cronje redeployed the Keep3r contracts a number of times, seemingly to iron out bugs in the network.

He continues to test KPR’s functionality with new contracts. But for some reason, bots or users experiencing FOMO continue to buy the coin anyway as they seek to capture the next coin that rallies 1,000,000 percent.

Posted In: , DeFi

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Source: https://cryptoslate.com/founder-of-defis-yearn-finance-yfi-just-launched-another-ethereum-experiment/

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Bitcoin Decoupling Nearing $12K As Wall Street Tumbled: Crypto Market Watch

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Bitcoin finally made a move in the past 24 hours and surged to a new 7-week high of over $11,800. Interestingly, BTC’s price increase contrasted with the US stock markets as the three most prominent indexes closed yesterday’s trading session with serious losses.

Bitcoin Spikes To $11,820

CryptoPotato reported yesterday that Bitcoin had remained relatively calm in the past several days, despite recent negative news. The popular digital asset exchange OKEx suspended withdrawals after reports that its founder was taken away by the police, and the CME gap left open at $11,100 suggested a possible short-term price drop.

However, the primary cryptocurrency tends to prove people wrong, and that precisely what transpired yesterday. BTC traded around $11,400 but initiated an impressive leg up that resulted in a 3.7% increase to $11,820 (on Binance). This was the highest price level Bitcoin had seen since early September.

The asset has retraced slightly since then and currently hovers around $11,750. Nevertheless, this is still a 2.8% increase on a 24-hour scale.

The technical aspects indicate that the $12,000 – $12,100 area is the next major resistance in BTC’s way up.

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BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

With the price jump mentioned above, Bitcoin displayed early signs of decoupling from Wall Street. After weeks of resembling the US stock indexes, BTC surged in value, while the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite all dropped by over 1.5% in a single day.

Bitcoin Extends Its Market Dominance

Although some alternative coins mimicked Bitcoin’s gains, most have remained relatively still. Consequently, the metric comparing BTC’s market cap with all altcoins, namely the Bitcoin dominance, has increased by nearly 1% to 59.7% in 24 hours. On a weekly scale, it has expanded by almost 2%.

Ethereum’s 1.4% price spike has taken ETH near $380. Ripple (3.1%) is the most impressive gainer in the top 10, and XRP trades close to $0.25.

Bitcoin Cash (0.8%), Chainlink (0.5%), Cardano (1%), and Litecoin (2%) are also in the green from the top ten. In contrast, Binance Coin (-0.2%) and Polkadot (-1%) have decreased slightly.

Cryptocurrency Market Overview. Source: quantifycrypto
Cryptocurrency Market Overview. Source: quantifycrypto

Dash has surged the most on a 24-hour scale (11.6%) to $74. Nano follows with a 10% pump to $0.9.

On the other hand, Aave (-12%) and ABBC Coin (-10.5%) have lost the most value. AAVE trades below $35, while ABBC hovers around $0.57.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


Source: https://cryptopotato.com/bitcoin-decoupling-nearing-12k-as-wall-street-tumbled-crypto-market-watch/

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