Connect with us

Ethereum

Ethereum’s Buterin Says Tether Is Bitcoin’s ‘Ticking Time Bomb Demon’

Published

on

Ethereum (ETH) co-founder Vitalik Buterin argued that, like Ethereum, Bitcoin (BTC) has its own potential bombs waiting to explode.

The ecosystem around Ethereum could see failures and hacks, discussed the participants of The Tim Ferriss Show yesterday. To this, Buterin said: “I think the Bitcoin ecosystem does have its own […] ticking time bomb demons too, like Tether is one example.”

He did not elaborate on this any further.

Advertisement

Tether is the issuer of the most popular stablecoin, tether (USDT) and is being criticized for the lack of transparency. However, as reported, in a recent settlement with the New York Attorney General’s office, Tether was obliged to disclose how its stablecoin is backed in more detail. “These will be published on a quarterly basis. We anticipate that these will be published on Tether’s website,” Stuart Hoegner, General Counsel at Tether, previously told Cryptonews.com, declining to elaborate any further. Also, critics claim that “unbacked tether” is being used to pump up the price of BTC. However, these claims have been largely dismissed.

That said, according to analysts at JPMorgan, if traders were to lose faith in tether, the bitcoin market would likely suffer “a severe liquidity shock.” Around 50%-60% of bitcoin trades for USDT since 2019, it said. (Learn more: Imagine Regulators Shutting Tether Down – What Happens to Bitcoin?)

However, USDT is also being used in the ETH trading. For example, the ETH/USDT trading pair on major crypto exchange Binance is responsible for 5% (USD 1.5bn) of the total ETH trading volume in the past 24 hours. In comparison, BTC/USDT hit 6.7% (USD 3.8bn).

Advertisement

Meanwhile, back to the podcast with Buterin, he described Ethereum as “a general-purpose blockchain.” It expands on the Bitcoin approach, Buterin said, wherein instead of having rules that are designed around supporting one application, Ethereum aimed to make “something more general-purpose where people can just build their own applications and the rules for whatever applications they built can be executed, implemented on the Ethereum platform.”

The value of ETH depends on the Ethereum network being useful, whereas BTC “derives value from bitcoin the currency,” according to Buterin. “Bitcoin the blockchain is this thing off in the side that, ‘Well, okay. Fine. It has to exist’,” he added.

Comparing the regulatory situation of Ethereum and Bitcoin, Buterin stated that both benefit from being highly international, and having strong communities in the US, Europe, and China, among other places. This includes countries that are not geopolitically on the same page with each other, he said, adding: “There’s a lot of resiliency in that sense.”

Advertisement

The regulators have cracked down on crypto “significantly less than they theoretically could,” Buterin said, as “they theoretically could make something like Coinbase illegal overnight.” But they don’t, he concluded, partly because regulators “see a lot of the positive value that’s coming out of these platforms.”

At the time of writing (14:52 UTC), BTC trades at USD 56,168 and is up by 3% in a day and 16% in a week. It rallied by 45% in a month and 610% in a year. At the same time, ETH is almost unchanged in a day, trading at USD 1,843. It jumped by 23% in a week and 14.5% in a month. It also outperformed BTC in the past 12 months, skyrocketing by 817%.

News Source

Advertisement

Ethereum

Ethereum Price On the Brink of Breakout! $11.3k Target Could be Imminent!

Published

on

The global crypto space is making some serious moves over the last week with 10.8% profits reaching a $2.50 trillion market cap. However, Bitcoin’s dominance has risen by 0.66% taking BTC price level to the $62,000 milestone on 15th October 2021. 

Besides, its counterpart Ethereum with top-notch performance surpassed the $3,800 price level with 7.74% gains over the last week. The altcoin on the other hand is showing the potential signs to go hand in hand with Bitcoin.

Analyst Predicts Ethereum to Surge Beyond $11k! 

Popular crypto analyst Micheal Van de Poppe made an exciting prediction for the altcoin. He said ETH/USDT trading pair is retesting at a very crucial resistance between $3.8k to $4k, break out could give a rapid boost to the price action. He added altcoin is partially reflecting the footsteps of Bitcoin as it has previously done in 2017. Hence, according to the analyst, the asset could range between $6k and $8.7k in the upcoming bull run.  

Advertisement

He went on to say if the digital coin closes major Fibonacci levels of 3.618 and 4.618 then the asset could take an upswing varying between $11.3k and $14k. Further, addressing Bitcoin’s recent bull rally, he manifested that if it continues to rally by 20% more, then Ethereum could follow and leg up by 10%. On the contrary, the analyst mentioned a strong support area for the altcoin between $2.9k and $3.3k

Ethereum Breaks Double Top Pattern!

The second-largest crypto-asset experienced a phenomenal increase in the weekly trade volume of 7.03%. At present, the altcoin is in a strong consolidation phase around $3,863. There seems to be a lack of FOMO as the selling pressure is pretty dominant. In a one-hour chart, there are a considerable number of red candles.

Advertisement

If the buyers come forward showing interest in the asset then the asset is anticipated to surpass a major resistance level of $4,042. On the flip side, the asset could fall well below $4,000. A comfortable support zone for the asset could be between $3,500 and $4,000.

On the other hand, the total value in the ETH 2.0 deposit contract recorded an ATH of over $30 trillion. As the upgrade is programmed to launch any time soon. This could act as a major catalyst in the coming days. Hence, the altcoin has the strong potential to reach new highs.

News Source

Advertisement
Continue Reading

Ethereum

Top Analyst Predicts 200% Boom for Ethereum Over Bitcoin – But Issues Warning to Crypto Traders Considering Altcoin Markets

Published

on

A widely followed crypto analyst sees a volatile Q4 ahead for altcoins but thinks Ethereum will end the cycle with a massive run against Bitcoin.

Crypto strategist Michaël van de Poppe tells his 443,3000 Twitter followers that it is within the realm of possibilities for Ethereum to rally 200% against Bitcoin (ETH/BTC) in the coming months.

However, he warns that BTC may take over the markets at the expense of altcoins until December. According to the trader, December is historically is the month to buy digital assets other than Bitcoin.

Advertisement

“December is often the best period to buy altcoins.

If history repeats, we might be getting a run of 200% on ETH/BTC towards the ATH (all-time high) region from there, but first, a heavier correction while Bitcoin does well.”

Image
Source: Van de Poppe/Twitter

Although Van de Poppe is short-term bearish on altcoins, he believes the digital assets will eventually follow Bitcoin’s lead.

Taking a closer look at Bitcoin, Van de Poppe plots the price action of the top crypto asset for the coming weeks.

Advertisement

“We still are not seeing too much strength on the altcoin market. So, it’s still not the right time to be in them, and I’m assuming we’re still going to see strength on Bitcoin for the coming weeks in the scenario that I’ve made here in which a test of $70,000 is most likely going to take place within a month from now before we get a final corrective move, retest of the range [$59,405-$61,213] that we’ve been cracking through before we’re going to test a new all-time high region and going to finalize this entire bull cycle.”

News Source

Advertisement
Continue Reading

Ethereum

Massive drop in Ethereum exchange reserves signals imminent supply shock, ETH eyes $8,000

Published

on

  • Over 400,000 ETH was pulled out of Coinbase, dropping exchange reserves and driving a supply crisis.
  • Average Ethereum gas fees stay above $20 due to an increase in pressure from smart contracts on the network’s blockchain. 
  • Analysts who are bullish on Ethereum expect ETH price to cross $5000 in an upward climb. 

Institutional investors are bullish on Ethereum with rising capital inflow. Ethereum reserves across exchanges have dropped as outflow increases. 

Coinbase notes massive Ethereum exchange outflow

Coinbase noted a withdrawal of 400,000 Ethereum tokens, and according to community-driven crypto platform CryptoQuant, it is likely that the outflow was institutional activity. Analysts expect a bullish impact on ETH prices. 

400,000 Ethereum tokens are the equivalent of $1.5 billion, withdrawn from the second-largest cryptocurrency exchange. The exchange outflow indicator is considered a sign of increased outflow and a supply shortage in Ethereum. 

Ethereum Exchange Outflow

Ethereum Exchange Outflow.

Ethereum has posted over nearly 20% gains in the past two weeks. 

Advertisement

Interestingly, there is a spike in whale activity on the Ethereum network. Over $188 million worth of Ethereum was moved between two anonymous cryptocurrency wallets in a single transaction. 

A mysterious whale initiated the transaction, and it was sent to an unknown recipient. The details of the transaction are as follows:

Whale activity on the Ethereum Network

Whale activity on the Ethereum Network.

With news of Bitcoin ETF getting approval by the Securities & Exchange Commission next week, experts are awaiting Ethereum’s turn. Analysts are of the opinion that following Bitcoin ETF approval, capital inflow to Ethereum and altcoins will increase. 

Advertisement

Pseudonymous cryptocurreny trader and analyst @jroberts3334 has set a target of $8000 for Ethereum for February 2022. 

Simon Dedick, Managing Partner of Moonrock Capital, is bullish on Ethereum; he tweeted:

Advertisement

FXStreet analysts have evaluated the ETH price trend to analyze where altcoin is headed next. Analysts have set a target of $5200 for ETH price. 

News Source

Advertisement
Continue Reading