Connect with us

Bitcoin

Nvidia, Bitcoin chip-marker’s stock to be stayed away from because of cryptocurrency market

The entire cryptocurrency market has plunged to the bear’s attack since January 2018. The beginning of the month seemed all bright and shiny for the coin, however, the market decided to jump to the darker side mid-way. This not only had an adverse effect on the investors but also on several firms working in the blockchain and cryptocurrency space. Notably, the firms that were hit by the bearish market are the mining firms and the chip-makers.

According to the latest reports, one of the recently fallen firms is noted to be Nvidia Corp, a Bitcoin chip-maker giant. The company has lost around half of its value in the past four months alone. Although the plunge of Bitcoin and other cryptocurrencies is not stated to be one of the key reasons for the fall of Nvidia’s shares, it is noted to be a major contributing reason for the wariness of investors over the firm’s future.

In an interview with CNBC, Gina Sanchez said:“”I think this [Nvidia] is up in line with the S&P but no more. I really don’t see this as an interesting buy at all here because you still have significant slowing in the cloud market [….]”

She further said:“You are seeing this not only in Nvidia but across the chip makers. And also Nvidia was the darling of the crypto-craze, which has now fallen off. And so to expect that that’s not going to have an impact on Nvidia’s earning over time, I think this is a stock to stay away from right now”

To add on, Nvidia witnessed a dramatic drop in the market after it released guidance for Q4 of 2019. The company is now expecting revenue of $2.2 billion for Q4 fiscal 2019, slashing over $500 million from its previous forecast.

The firm clearly stated that the reason for the reduction in numbers is the drop of Bitcoin and other cryptocurrencies in the market, which resulted in less demand for chips from the miners. The firm stated that this drop was anticipated. However, on the contrary, China’s weakening economy caught the company off-guard as it is noted to be the second main reason for the slash in the revenues.

Source. ambcrypto

Bitcoin

Bitcoin News Today – Headlines for February 25

news bitcoin
  • Bitcoin plunged below $9,500 after it was rejected at $9,750
  • Bitcoin is testing a major support level
  • BTC has several hurdle points on the upside

Bitcoin News Today – The bulls have been struggling to push the price of Bitcoin higher over the past few days. Bitcoin has been hovering around the $9,800 mark and it just plunged towards the $9,500 support level against the US dollar. The price of the digital currency could plunge heavily if it settles below the key $9,500 support mark.

Bitcoin Is Down to Its Major Support Level

Recently, the price of Bitcoin (BTC) was rejected close to the $9,880 mark against the US dollar. The digital currency started a downtrend, plunged from the swing high of $9,847, and plunged below the $9,750 support level. Moreover, there was a break over the $9,680 mark and the 100 hourly simple moving average.

That move paved the way for more losses and the price of the digital currency plunged towards the key $9,500 support level, where the bulls showed up. The digital currency formed a swing low close to the $9,481 mark and the price is presently correcting higher. It broke over the 23.6 percent Fibonacci retracement level of the previous swing from the high of $9,841 to the low of $9,481.

Bitcoin (BTC) Price Today – BTC / USD

#NamePrice24H %
1Bitcoin(BTC)$9,366.23-2.26%

Nevertheless, there are several resistances on the upside, starting with the $9,640 and $9,680 marks. More importantly, there is a formation of a key bearish trend line with a hurdle close to the $9,640 mark on the one-hour chart of BTC against the USD. On the downside, the major support of the digital currency is close to the $9,500 mark.

If Bitcoin (BTC) breaks below the $9,500 mark, the bears are likely to take over. If that happens, there are chances that the world’s most dominant digital currency would incur more losses towards the $9,300 and $9,050 support marks. Nevertheless, many analysts believe the digital currency is strongly supported on the downside, and it is more likely to surge higher than to revisit the $9k range.

Bitcoin Faces Many Hurdles on the Upside

On the upside, Bitcoin is facing a series of hurdles. The first hurdle is close to the $9,640 level. Over that level, the next hurdle is close to the 50 percent Fibonacci retracement level of the previous swing from the high of $9,841 to the low of $9,481. However, the major hurdle of the coin is close to the $9,740 mark and the 100 hourly simple moving average.

Hence, the bulls need to break over the trendline hurdle and amass traction over the 100 hourly simple moving average to begin a fresh rally in the near term. If this does not happen, there is a chance of a downtrend towards $9,500.

News Source

Continue Reading

Bitcoin

Bitcoin’s continuing growth may resurrect its narrative as transactional currency

While Bitcoin maximalism or favoritism toward any cryptocurrency generally appears toxic and closed-minded, a significant number of people simply don’t want to interact with a complex crypto-environment beyond the original cryptocurrency.

Bitcoin started it all in 2009 and it has facilitated the creation of thousands of altcoins in the years since. On an episode of Messari’s Unqualified Opinions podcast, River Financial CEO Alex Leishman spoke about how Bitcoin is “the one cryptocurrency that has the best chance of becoming global money and a worldwide, agreed-upon store of value.”

“The others just don’t really have the network effect and the technology that the Bitcoin network has,” Leishman said, explaining how River Financial primarily caters to ultra-high net worth investors that mostly don’t know anything about cryptocurrencies beyond Bitcoin.

However, according to Leishman, this isn’t about favoring one cryptocurrency over another. It’s about making things easier for large-scale investors. He added,

“Simplicity is key for attracting this demographic.”

As institutional investors begin trusting the decentralized technology behind cryptocurrencies, it is increasingly important that the crypto-space does not scare off individuals that are ready to invest large amounts of capital.

The financial system has, for aeons, functioned in a certain way and while there is a reason for that to change, institutional investors need to have access to the tools that have always been available to them in the traditional system, if they’re to dip their toes into this asset class.

Further, with most individual wealth in the United States held by family structures, being able to provide the tools to manage that wealth could be growingly important for crypto-adoption.

He added, “For anyone with real amount of money, these things are just par for the course,” he said, adding that the vision here is to bring Bitcoin to the world and to legitimize Bitcoin as money. Leishman also claimed that if people are going to use Bitcoin as money, people need Bitcoin banks.

The River Financial CEO also spoke about how even though the vast majority of people today just want to buy and hold BTC, a solid number of people also want to transact with it — especially institutions.

“As Bitcoin continues to grow, the reasons to use Bitcoin will move more and more from a speculative longterm investment to a transactional currency.”

And, it isn’t just institutions. Regulators also need to be steered through the right narrative and educated about how crypto and blockchain can actually work wonders. Leishman subsequently touched upon how turning every exchange into being part of the surveillance dragnet is “a huge mistake” which would not end well for the United States.

People view cryptocurrencies as a combination of complex finance and computer science, both of which are hard things to understand for the average user. Though a maximalist approach probably isn’t the best way to on-board new users, a simpler introduction to the space could facilitate an influx of users that are ready to invest, but aren’t entirely sure about where to start.

News Source

Continue Reading

Bitcoin

Bitcoin’s collateral position in DeFi is not a threat to Ethereum’s throne

bitcoin, ethereum,

After recently locking down over a billion-dollars worth of digital assets in DeFi, it is safe to say that Ethereum’s decentralized finance applications are making a name for themselves in the lending market of digital assets. Ethereum is currently the largest form of collateral in the DeFi medium, but with growing interest, other assets are now being taken into consideration for collateral.

Source: Skew

According to skew.com, the amount of WBTC or Wrapped Bitcoins has been increasing and at press time, it was closing in on Lightning’s capacity. WBTC is an ERC20 token which is based on Ethereum 1:1 pegged with Bitcoin. The main objective behind developing WBTC is to bring Bitcoin’s liquidity into the ETH blockchain, with the attached chart indicating that BTC collateralized for loans is steadily increasing in DeFi.

At the moment, 1.8K BTC was locked in DeFi through WBTC and Lightning, increasing from 1.45K in January.

MakerDao’s ‘multi-collateral’ or MCD system was also developed to increase the number of collateral assets, while reducing sole dependence on ETH. Such a scenario appeared relatively important as an increasing number of assets would allow the tokens of all measures to be used to generate loans.

However, according to Nick Cannon of ethereumprice.org, in spite of the integration of other collateral assets, Ethereum‘s dominance on the DeFi network will remain unrivaled. In a recent newsletter, Cannon explained that ETH’s stronghold on DeFi would not be competed against because Ether is Ethereum’s native asset which is directly ingrained into the protocol. All the other underlying assets need a form of smart contract between the protocol and blockchain, something that may lead to more potentially exploitable bugs, like the one which caused the bZx hack last week. He said,

“While many are excited for the introduction of Bitcoin on Ethereum, the same criticism will apply. Nothing can beat ETH’s monopoly on trust, making it the most desirable form of collateral on Ethereum.”

It can be argued that there is some truth to the statement as other collateral assets that are part of MCD haven’t made striking changes. MCD added Basic Attention Token and after 4 months in circulation, it only accounted for 1.36 percent of the loans created, while the rest were all generated by ETH.

Continue Reading
Open

Close