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Stocks, Exchanges and COVID-19: 5 Things to Watch in Bitcoin This Week

Worries over a second wave of coronavirus are driving stocks down, with Bitcoin circling three-week price lows.

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Only These Few Altcoins Have Managed to Keep up With Bitcoin

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Bitcoin prices have surged to equal the 2019 high of $13,850 as it leaves its crypto brethren in the digital dust. Only a few altcoins have managed to keep up, and they seem to be related to the PayPal announcement according to one analyst.

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There is one clear driver of crypto market momentum at the moment and that is the big daddy of all digital assets, Bitcoin. Adding 5% on the day, BTC prices surged to match their June 2019 high of $13,850 a few hours ago during Asian trading.

Once this psychological level has been broken, there is very little resistance all the way up to $17k, a price not seen since January 2018. One trader and analyst has been looking at other crypto assets to see if they have also been moving in tandem with their big brother.

Are Altcoins Keeping Up?

According to investor Luke Martin, the only three altcoins that have kept pace with Bitcoin have been Ethereum, Bitcoin Cash, and Litecoin. He also suggests that this is related to the PayPal announcement since these were the only three crypto assets listed aside from Bitcoin.

In truth, Bitcoin has eaten into the market share of all of the altcoins with its dominance increasing by 2.5% since the beginning of this week. BTC market share has reached its highest level for almost four months according to Tradingview.com as it tops 63% today.

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Ethereum has made a marginal gain to top $400 again but has failed to remain there but Bitcoin siblings BCH and LTC have performed well recently.

Since the PayPal news broke on October 21, Bitcoin Cash has gained 10% and Litecoin has made almost 20% which does lend itself to the theory that it has had some influence on these altcoins. Ethereum has only made 5% over the same period which negates the premise for that particular asset, however.

A few other altcoins have made progress over the past seven days and they include Compound, Chainlink, Polkadot, Celcius, and Monero, but many of them are recovering from heavy losses whereas Bitcoin has just kept climbing.

Market Cap Update

The big move today has pushed total crypto market capitalization over $400 billion for the first time since April 2018 according to Tradingview.com.

crypto market cap
Chart – tradingview.com

This area is also proving to be a strong resistance zone for the entire market as it was where they bounced to after the big fall in 2018, and where they peaked in 2019.


To keep track of DeFi updates in real time, check out our DeFi news feed Here.

Author: Martin Young




Martin has been writing on cyber security and infotech for two decades. He has previous forex trading experience and has been covering the blockchain and crypto industry since 2017.

Source: https://coingape.com/only-these-few-altcoins-have-managed-to-keep-up-with-bitcoin/

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ConsenSys: DeFi high yields might affect Ethereum 2.0 staking

ConsenSys suggests in a publication that DeFi high yield opportunities might affect Ethereum 2.0 staking. Eth2 Phase 0 is expected to launch later this year. Many people believe that decentralized finance (DeFi) is actually a good development on the Ethereum, as the boom in the market increased adoption and activities in the network. The Ethereum […]

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  • ConsenSys suggests in a publication that DeFi high yield opportunities might affect Ethereum 2.0 staking.
  • Eth2 Phase 0 is expected to launch later this year.

Many people believe that decentralized finance (DeFi) is actually a good development on the Ethereum, as the boom in the market increased adoption and activities in the network. The Ethereum cryptocurrency, ETH, also gained huge points as a result. However, ConsenSys, a New York-based blockchain company, explained in a recent publication that decentralized finance might be a threat to the upcoming Ethereum 2.0 staking.

ConsenSys sees high yielding protocols as a threat to Eth2 staking

Notably, the development of a high yielding platform in the decentralized finance market provided Ethereum users with another viable option to earn high rewards from their ETH holdings. These protocols flaunted substantial returns, which attracted the attention of most crypto investors and traders. Following the promise of massive returns, the blockchain company says Ethereum investors might prefer to stake their cryptos in DeFi than for the upcoming Ethereum 2.0 staking event.

According to the ConsenSys Q3 DeFi Report, the staking is slated to begin after the Ethereum 2.0 Phase 0 is released. Hopefully, this particular Phase in Eth2 development is expected to be launched later this year. Although it won’t introduce any scaling improvements to the Ethereum network at the time, the blockchain company rather noted that it enabled the staking functionality for the network.

Ethereum 2.0 staking

So, Ether holders will be able to stake their cryptocurrencies (a minimum of 32 ETH) once the Phase 0 is released. Although the staking of ETH comes with a reward, the investors won’t be able to withdraw the staked cryptocurrencies, at least until the next Phase with the transfer function is launched. This Phase is scheduled for launch by next year.

Judging by this, decentralized finance participants might rather prefer to lock their ETH holdings in the high yielding protocols rather than in Eth2. The number one reason can be related to the profitability of both platforms. As DeFi offers high returns, many people would probably flock to it. Besides, the DeFi participants still maintain their ownership of cryptos and can withdraw them anytime. However, staked ETHs on Ethereum 2.0 are locked away for months and can’t be withdrawn until the next Phase (s) is launched.

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Grayscale Study: COVID-19 Made Bitcoin Even More Attractive To US Investors

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The number of US-based investors interested in Bitcoin continues to increase according to Grayscale’s Investment 2020 report on the cryptocurrency.

The leading digital asset manager also noted that the COVID-19 pandemic has exemplified Bitcoin’s merits and made it even more captivating to investors.

US Investors’ Growing Interest In Bitcoin

Titled “Bitcoin Investor Study,” Grayscale’s 2020 research aimed at shedding some light on US investors’ perception of Bitcoin and how it has changed in a year. The expanding interest is among the most notable highlights. Grayscale noted that 36% of all surveyed participants in 2019 expressed an interest in BTC, while the percentage has grown to 55% this year.

83% of those who answered that they have previously bought Bitcoin have made their purchase in the past year. The most significant percentage here was in the past four months – 38%.

Nearly two-thirds of those particular Bitcoin investors reported that “the ramifications of COVID-19 were a factor in their decision to do so.” Furthermore, three times as many investors indicated that the pandemic had increased Bitcoin’s appeal as those reporting that it had decreased their interest in the asset.

US Investors Timeframe of Bitcoin Purchases. Source: Grayscale
US Investors Timeframe of Bitcoin Purchases. Source: Grayscale

The data also suggested that “Bitcoin is moving toward mainstream acceptance,” as 62% of the 1,000 participants said they were familiar with the primary cryptocurrency. For reference, the percentage last year was slightly over 50%.

Bitcoin To The Moon Attracts Investors

Apart from listing the COVID-19 as a motivating factor to purchase Bitcoin, the participants listed two other reasons. Being the best-performing asset of the previous decade, BTC’s potential price growth has become even more alluring to new investors. Nearly 80% named this as their most enticing aspect.

The other reason why most people have become attracted to the asset is the ability to start small. Although many investors outside of the cryptocurrency industry believe that they need to purchase at least one bitcoin to start, that’s far from the trust. As any BTC proponent will assert, people can buy even a small fraction.

65% have answered that having the option to buy less than one bitcoin has made them feel safer towards entering the space. The percentage has grown by 6 points since last year.

US Investors Buying Bitcoin Motivating Factors. Source: Grayscale
US Investors Buying Bitcoin Motivating Factors. Source: Grayscale

Despite all the rising data from above, most people still believe that they need more comprehensive educational materials before investing. They explained that the regular investor couldn’t find trustworthy information on the cryptocurrency space. However, there’s a significant number of reports covering crypto scams.

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Source: https://cryptopotato.com/grayscale-study-covid-19-made-bitcoin-even-more-attractive-to-us-investors/

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