The price of the leading cryptocurrency, bitcoin has been quite volatile over the last few weeks. Bitcoin is currently nearing the $9,000 mark after it reached $10,000 for the first time in 2020 earlier this month. Even in the past, bitcoin has failed to gain any stability within the five-figure price region.
Bitcoin continues to remain volatile
The leading cryptocurrency, bitcoin, has remained highly volatile over the last few weeks as its value continued to fluctuate between $9,000 and $10,000. Sellers have also not been able to catalyze any sustained downward movement throughout BTC’s recent uptrend either. Bitcoin is expected to remain volatile for a while.
Note: At the time of writing bitcoin is changing hands at $ 9,145. If you are in India, you can check BTC to INR here.
Bitcoin is likely to enter a bear market
Bitcoin began the year 2020, with below $7,000, and witnessed some positive rallies in the last one and a half months. The price of bitcoin even crossed above the psychological resistance level of five-figure for the first time this year earlier. Several analysts believe that bitcoin might be entering a bear market after the price of bitcoin slumped down nearly $9,000 this week. If bitcoin drops, any further a bear market is on the horizon. Rush Login is a useful trading platform for bitcoin enthusiasts and traders.
Impact of Coronavirus on the market
The mysterious coronavirus that emerged from the Chinese city of Wuhan has been spreading all around the world as the World Health Organisation declared it as an international health emergency. With the fear of coronavirus slowing down the global economy, several investors are turning towards bitcoin as a safe heaven. The virus has impacted the economy of China as institutions halted their operations to contain the virus.
A drop to $9,000 is not enough to invalidate the current bull run
According to several crypto trend analysts, it is not enough to invalidate the cryptocurrency’s bullish market structure. The shift in the market will only occur once it breaks below the mid $8,000 region. In order for bitcoin to remain bullish, the price will have to reach above the $10,000 mark soon, where it faces the resistance level of $14,000. The leading cryptocurrency is at a crucial point as a drop below $9,000 could lead it to a downward spiral, and bears will gain control of it.
The trading volume of bitcoin drops
Over the past few days, the bitcoin trading volume has dropped quite a lot, which could imply that a big move in the market place is about to take place. If bitcoin fails to hold the $9,400 level for support, it is highly likely that a downward rally is on the corner. The downward rally could take the price of bitcoin to the $8,000 mark or below.
The leading cryptocurrency started the year at 46,900 and moved above $10,000 earlier last week. However, the glory for bitcoin did not last long, as the price slumped down quickly. Currently, Bitcoin is at a very crucial stage. If it fails to hold the current support, the bears will gain control of the market.
Crypto ETP Trading Volumes Plunged 74% Over the Last Month
Cryptocurrency exchange-traded product (ETP) trading volumes have plunged over 74% in the last month, as the prices of these products have also been dropping. According to cryptoasset data aggregator CryptoCompare, in its newly launched The Digital Asset Management Review, exchange-traded products dropped 74% over the last month from $186.5 million in mid-August to an average […]
Cryptocurrency exchange-traded product (ETP) trading volumes have plunged over 74% in the last month, as the prices of these products have also been dropping.
According to cryptoasset data aggregator CryptoCompare, in its newly launched The Digital Asset Management Review, exchange-traded products dropped 74% over the last month from $186.5 million in mid-August to an average of $48 million in mid-September.
An exchange-traded product, it’s worth noting, is a type of security that tracks other underlying securities or an index. The document notes that Grayscale’s Bitcoin Trust product, GBTC, represented the “vast majority” of ETP volume and as such accounts for most of the decrease in trading activity.
The top three ETPs were Grayscale’s Bitcoin product, and its Ethereum Trust (ETHE and Ethereum Classic Trust (ETCG), and traded a combined $180 million per day in mid-August, and just over $40 million per day in mid-September.
Throughout the last 30 days, CryptoCompare adds, crypto ETP trading activity generally declined. If we exclude over-the-counter products – like GBTC, ETHE, and ETCG – the largest product was ETCGroup’s Bitcoin ETP (BTCE), which traded o Deutsche Boerse XETRA. Other large cryptocurrency ETPs include 3IQ’s QBTC product which trades on the Toronto Stock Exchange and BTCW by WisdomTree which trades on Six Swiss Exchange.
Over the last 30 days, Grayscale’s BTC and ETH products represented the largest average daily trading volumes at $49 million and $7.4 million respectively. These experienced significant losses over said period, dropping 20.4% and 43.4% respectively.
After Grayscale’s products, which often trade at a premium compared to their underlying assets, BTCE saw average trading volumes of $864,000 and experienced a near 9% drop over the last month.
It’s worth noting that the price of most top cryptocurrencies, including bitcoin and ether, dropped significantly over the last 30 days after BTC saw a breakout above $12,000 get rejected.
Featured image via Pixabay.
ConsenSys-Incubated Startup Releases In-Browser Atomic Swap Wallet for DeFi
On Thursday, ConsenSys-incubated startup Liquality released a new wallet that lets you atomically swap digital assets directly from your browser.
The Liquality Atomic Swap Wallet can act as a trustless alternative to current methods of porting cryptocurrencies into the decentralized finance (DeFi) space due to the peer-to-peer (P2P) nature of atomic swaps, Liquality co-founder Thessy Mehrain told CoinDesk in a phone interview.
The wallet interacts similarly to cryptocurrency wallet MetaMask, but with an entirely different end-game: swapping assets trustlessly.
“It’s called a chain abstraction layer, which basically is a way of making different blockchains talk the same language and interact,” Liquality co-founder Simon Lapscher said.
Liquality’s wallet leans on atomic swaps and hashed time locked contracts (HTLC), a cryptographic escrow scheme that allows two parties to swap assets without trusting the other party. HTLCs are also the foundation of Bitcoin’s second-layer payment scheme, the Lighting Network.
Notably, atomic swaps let investors hold onto their private keys throughout the entire exchanging process.
Mehrain and Lapscher believe these swaps can act as a trustless alternative for DeFi investors looking to bring value from one blockchain to another. To date, over $1.1 billion worth of bitcoin has been tokenized on Ethereum.
Yet, investors have increasingly relied on private firms to bring value from other blockchains to Ethereum’s DeFi markets.
Current methods of transferring value from Bitcoin to Ethereum, such as BitGo’s wrapped bitcoin (WBTC), require third-party custodianship. P2P atomic swaps, on the other hand, do not.
Liquality itself currently acts as the counterparty to all wallet swaps, with advanced users having the ability to choose other counterparties. The startup makes revenue acting as market maker for swaps, Lapscher said.
Enough adoption should create sufficient network liquidity within the wallet to allow Liquality to disinvolve itself entirely from the process, he added.
Binance Chief CZ Talks DeFi, Ethereum 2.0, And More
The Binance chief CZ is in the latest cryptocurrency news for remaining skeptical about Ethereum 2.0’s features. As he said, the decentralized finance space is in full swing, and one of its biggest supporters appears to be exactly the exchange Binance. The platform and its United States branch recently joined the Chicago DeFi Alliance, with a main aim to further develop the US DeFi industry.
Additionally, the Binance news show that support for new DeFi projects continues to grow. Most recently, the exchange has demonstrated its close ties with BurgerSwap, which is a new decentralized exchange that aims to improve upon the Uniswap project.
The Binance chief CZ has been bullish on DeFi for a while. In a recent interview, he expanded on his opinion and said more about why this sector has started taking off, as well as what we can expect from it moving forward. When asked about why DeFi is hot right now, the Binance chief CZ said:
“The automated market makers use a pricing mechanism that follows a curve. So, they hold a constant ratio of different assets in the liquidity pool. This type of curve with automated market making has a strong advantage, being that is very transparent. If I lose money, I know why. So, there is potential for users to lose money, but they know exactly why. There’s not a lot of cheating going on.”
Zhao also attributed Binance’s involvement with DeFi and said that the exchange lists DeFi tokens fairly aggressively. He also said that right now on Binance.com, there is a liquidity swap product and the target users are more so the novice users who don’t want to hold their own keys because they are afraid of losing them.
When it comes to the decentralized side of things, the Binance chief CZ mentioned that they have been working on Binance Smart Chain for over a year, describing it as “an Ethereum-compatible smart contract.”
“Feature-wise, it’s 100% compatible with Ethereum. But speedwise, it is actually much faster, which helps reduce the high gas fees and traffic congestion problem on Ethereum, given the increased traffic that DeFi has brought. Binance Smart Chain is another offering we were putting out there to allow developers to launch their DeFi projects very easily.”
When asked about Ethereum 2.0, CZ said:
“I think Ethereum 2.0 is really hard to deliver. It’s just one of those things that need full features and very high flexibility. Also, this has to run on a laptop with high speed, and you want it to be decentralized. Those problems are hard to solve.”
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