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China’s 3rd largest bank ‘rugs’ BTC: 5 things to watch in Bitcoin this week

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Bitcoin (BTC) is lower going into a new week’s trading — Monday has seen a test of levels below $33,000, and bulls are struggling.

What could be next? With bullish short-term voices few and far between, it seems that cryptocurrency just isn’t of interest to investors right now.

Against a backdrop of macro market uncertainty, low volumes and claims of a bull market top, Bitcoin has a lot to do to convince the market that the good times still lie ahead.

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Cointelegraph offers five things to consider when charting what might happen to BTC/USD in the coming days.

Spotlight on the Fed… again

The main focus for investors throughout the economy this week is the United States Federal Reserve.

After last week’s comments from Chair Jerome Powell, the U.S. dollar made strong gains, while stocks then staged a sell-off as market participants repositioned. The Dow Jones, for example, fell 3.5% in a day — its worst since last October.

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The volatility came because Powell hinted that the Fed might soon begin tapering the extent to which it intervenes in the market. This became standard practice as part of its response to the coronavirus and the economic shutdowns that followed.

Related: 4 reasons why Paul Tudor Jones’ 5% Bitcoin exposure advice is difficult for major funds

A reduction in purchases, which CNBC noted currently comes to around $120 billion per month, therefore presents a noticeable switch-up.

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Powell will speak again on Tuesday, this time before the Senate, and it is thought that he will give more information on the news that he broadly outlined last week.

“I’m most interested certainly in what Powell has to say,” Peter Boockvar, chief investment officer of Bleakley Global Advisors, said on Friday.

“They’re all going to give us now the fine print of what was in the statement and what Powell said.”

Should surprises appear, the volatility that characterized the past few days could continue. Good news for the dollar, as Cointelegraph often notes, tends to be bad for Bitcoin price action.

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“I didn’t get good vibes from BTC chart when I woke up,” popular trader Crypto Ed summarized as the week began.

“One of the reasons is IMO the sudden strength in DXY since last week.”

He added that the dollar could continue to “pressure” Bitcoin until the U.S. dollar currency index (DXY) hits around 94 from its current levels of 92.2.

U.S. dollar currency index (DXY) 1-day candle chart. Source: TradingView

Chinese bank deletes anti-crypto statement in minutes

It’s not a good look for Bitcoin spot price action as the week gets underway — but who’s to blame?

In addition to the Fed, another economy is wielding its influence on crypto markets again, this time more directly: China.

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In a statement, the Agricultural Bank of China, the country’s third-largest lender, explicitly stated that its services must not be used for cryptocurrency-related transactions.

“Agricultural Bank of China issued a notice that they will not participate in virtual currency transactions and related activities,” China-oriented news resource 8btc reported, translating the original document for social media users.

“Customer accounts participating in such activities will be closed and customer relationships will be terminated.”

The result of its publication was instantly recognizable — Bitcoin plummeted by over $1,000 in minutes before rebounding to $33,000.

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Such behavior is far from surprising, but patience is now wearing thin over knee-jerk reactions to China. The latest episode proved to be a case in point — the bank deleted the statement shortly after publishing it, but the damage was done

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Bitcoin’s “Rick Astleys” are back

As $30,000 support lurches ever closer, concern and confusion characterize reactions over BTC/USD performance on Monday.

This is because indicators of a bullish turnaround are there, but price has so far done the opposite.

One of them is funding rates, which firmly favor bulls. At the time of writing, rates are negative across exchanges — a classic sign that a move up is on the way.

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Moves among seasoned hodlers confirm the trend, with coins being ferreted away even at levels before Monday’s dip.

“Oh my, Rick Astley is back,” statistician Willy Woo declared alongside a chart showing Bitcoin’s decreasing liquid supply. “Rick Astley” refers to a popular metaphor for strong hands.

“Coins are moving back to the HODLer who never deserts his BTC.”

Bitcoin liquid supply change chart. Source: Willy Woo/Twitter

Analyst William Clemente III added that this “re-accumulation” echoed what happened in 2013 when Bitcoin had two bullish phases separated by a major retracement.

“HODLers stacking BTC heavily here,” he confirmed, noting net position change data.

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Bitcoin net position change chart. Source: William Clemente III/Twitter

Fundamentals echo uncertainty

China has had a significant impact on Bitcoin network fundamentals.

As Edwards noted above, thanks to a broad miner shutdown, thhash rate has fallen significantly from its peak just months ago.

This is troubling in the short term, particularly for those who adhere to the classic mantra of “price follows hash rate,” but is necessarily short lived.

Related: Forecasting Bitcoin price using quantitative models, Part 4

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Thanks to Bitcoin’s inherent setup, there is always an attractive opportunity to mine somewhere under different circumstances. A miner rout incentivizes participation on the network thanks to the hash rate, and subsequently difficulty, dropping.

The cost of participation thus reduces, and mining becomes a viable proposition for more and more potential entities.

Meanwhile, Adam Back, CEO of Blockstream, is at pains to stress that the impact of China on the hash rate has been at most around 39% from the top. Figures vary widely because the hash rate is an estimate and is ultimately impossible to measure definitively.

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Is it really that bad?

Not everyone thinks that the outlook for Bitcoin is all bad news.

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Some comparisons to previous bull market years place 2021 solidly within the framework of standard price performance.

As popular Twitter analyst Root highlighted on the weekend, on-chain indicators are flashing “oversold” rather than bearish despite current external pressures.

Is it really that bad?

Not everyone thinks that the outlook for Bitcoin is all bad news.

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Some comparisons to previous bull market years place 2021 solidly within the framework of standard price performance.

As popular Twitter analyst Root highlighted on the weekend, on-chain indicators are flashing “oversold” rather than bearish despite current external pressures.

Others, such a stock-to-flow model creator PlanB, are even bullish on practically every timeframe beyond the daily chart.

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As Cointelegraph reported, his “worst case scenario” is now $135,000 for BTC/USD by the end of this year.

Stock-to-flow has accommodated all of 2021’s price surprises and remains valid.

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200 Bitcoin ATMs are installed in Walmart stores, according to a report

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It is now possible for customers of Walmart stores to withdraw Bitcoins at ATMs installed in their US stores.

The American retail multinational will allow its customers to buy bitcoin using ATMs installed in some of its stores in the United States. The initiative was made possible after a collaboration between retail giant Coinstar and Coinme.

Walmart will actually install Bitcoin ATMs

Last month, Walmart’s name became involved in a story, according to which the company had partnered with Litecoin (LTC) to allow its customers to make payments with the cryptocurrency. Although the rumors caused great excitement throughout the market, as soon as the facts were revealed he corrected them.

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Now, however, a more credible Bloomberg report says the company has joined forces with Coinstar – known for its machines that can exchange physical currency for digital money.

The result of this new partnership was the installation of 200 Bitcoin ATMs in Walmart stores. It is now possible for customers to buy and withdraw Bitcoins at ATMs installed in some US stores.

Sam Doctor – director of strategy at cryptocurrency broker BitOoda – said installing bitcoin ATMs in supermarkets is a growing trend in the United States. However, he noted that Walmart is different from its rivals in that its customer niche can reach a more sizable percentage of society:

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“Walmart expands access to Bitcoin to more people, as long as it continues to provide legitimacy among the most skeptical”

The Coinstar deal was previously reported by Coindesk, which tested the service. Customers who buy Bitcoin will need to insert paper bills into the machine to receive a voucher.

They must also set up a Coinme account and undergo a background check before the voucher can be redeemed. The machines charge a 4% fee for the Bitcoin option and a 7% cash exchange rate.

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“It’s an expensive way to buy Bitcoin, but it lowers the barriers to entry for first-time cryptocurrency buyers,” concluded Sam Doctor.

Number of Bitcoin ATMs Grows Worldwide

This is not just a trend in the US. The number of Bitcoin ATMs is growing worldwide.

According to Coin ATM Radar data, they had only 7,756 in May 2020, and we’ve jumped to 29,852 now in October 2021.

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What likely influenced the increase in demand for Bitcoin ATMs (ATMs) between 2020 and 2021 was the growing popularity of digital payments.

A report by Global Trade Magazine suggests that digital payments increased in popularity during the COVID-19 pandemic, with retailers reporting a 69% increase in usage since January, and this likely weighed on the increased demand for bitcoin worldwide.

A month ago, for example, Bitcoin became the official currency of El Salvador and the government launched its own BTC wallet, but, especially because of identity theft, adoption is not going as well as you think.

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When there was a distribution of US$ 30 in bitcoin for each citizen in the country, criminals went after other people’s bonuses, similar to what happened in Brazil with the coronavoucher.

Other problems were also reported by two Brazilians who were in the country.

“For example, one of the things that happened is that they announced that the 200 ATMs were going to be [fruto de] a public-private partnership, but in the end, I don’t know if there was any problem in the bidding or any commercial problem in this project, [mas] it ended up being done with public resources”, they told Cointimes.

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Bitcoin Forecast and Analysis October 25 — 29, 2021

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Bitcoin BTC/USD ends the trading week at 63433, continues to move within the growth and bullish channel. However, while above the local maximum, the quotes are in no hurry to go further up. Moving averages indicate a bullish trend. Prices went up from the area between the signal lines, which indicates pressure from the buyers of the asset and the potential continued growth of the asset’s quotes. At the moment, we should expect an attempt to develop a correction and a test of the support area near the level of 53665. Where can we again expect a rebound and a continuation of the rise in the Bitcoin rate with a potential target above the level of 76505.

Bitcoin Forecast and Analysis October 25 — 29, 2021

An additional signal in favor of the growth of BTC/USD quotes in the current trading week October 25 — 29, 2021 will be a rebound from the lower border of the bullish channel. The second signal will be a rebound from the support line on the relative strength index (RSI). Now the values ​​of the RSI indicator are testing resistance, so it is too early to expect the cryptocurrency to grow directly from the current levels. Cancellation of the Bitcoin growth option will be a fall and a breakdown of the 47055 area. This will indicate a breakdown of the support area and a continued fall in BTC/USD quotes with a potential target below the level of 36605. Confirmation of the development of the bullish movement will be the breakdown of the resistance area and closing of quotes above the level of 67055.

Bitcoin Forecast and Analysis October 25 — 29, 2021

Bitcoin Forecast and Analysis October 25 — 29, 2021 suggests an attempt to support area near the level of 53665. Then, the cryptocurrency will continue to rise to the area above the level of 76505. An additional signal in favor of the growth of the Bitcoin rate in the current trading week will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise Bitcoin cryptocurrency quotes will be a fall and a breakdown of the 47055 area. In this case, we should expect a continued decline with a target at 36605.

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China Banning Bitcoin Is a Big Mistake, Says Dan Held

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  • Bitcoin OG, Dan Held, tweeted, “China banning Bitcoin may be the biggest geopolitical mistake of the century.”
  • His tweet sparked interesting conversations on the Twitter space, showing that people have varied opinions on the matter.

Dan Held, one of the OG supporters of the major digital asset, Bitcoin (BTC), initiated an interesting topic on Twitter yesterday. He says that China’s decision in banning BTC might be the ‘biggest geopolitical mistake of the century.’

China surprised the crypto space when it suddenly decided to ban BTC in the country. As this ensues, more crypto platforms are exiting the country and continuing their business elsewhere.

Of course, this decision created a massive butterfly effect in the market. There was some period this year that the market saw a drastic change from China’s move.

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With that said, as Dan Held said, China’s decision may be a big mistake, indeed.

The Twitter crypto space, moreover, had different opinions on the matter. One account, @CurrencyWar1, said that “China’s CBDC will be the no. 1 digital currency in 2 years.” Another one, @theswampgirlUSA, said that “They [China] want the Chinese digital yuan to be a global reserve currency, not $BTC. Their #cbdc will incorporate #AI and social credit tracking so they can know everything about everyone.”

On the other hand, some are being speculative on the matter. For example, @Nuno_CFerreia said, “China is currently the number 2 holder of BTC… it doesn’t look like they banned it, they just want us to think they did.. the question is, why?”

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Meanwhile, some took this as a positive thing. @jdubya said,

For China, yes. But it was the next positive step in the evolution of Bitcoin. It was not meant for one country to control so much of the mining resources. Better world distribution means a stronger network.

In any case, we will see if Dan Held’s opinion is true in the coming months or perhaps years. For now, the public is yet to see how China banning BTC will affect the country and the entire market.

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At the time of writing, BTC’s price increased by 0.56% in the last 7 days and trade at around $61,000, according to CoinMarketCap.

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