Infrastructure bill fails to dent crypto market rally.
Bitcoin has jumped 7% over the past week, finishing July with a bullish flourish that could signal the end of a multi-month decline.
Across the market, cryptoassets are flashing double-digit weekly returns. Ethereum has doubled Bitcoin’s gains by adding 14% ahead of the EIP-1559 upgrade en route to Ethereum 2.0, XRP has risen 15% on freshly signed partnerships and the release of a new roadmap has helped so-called ‘Ethereum killer’ NEO soar 36%.
The marketwide resurgence comes despite increased regulatory uncertainty, with developments in Washington D.C. threatening to put a damper on market sentiment by introducing burdensome tax reporting rules.
This week’s highlights
- Ethereum rides higher on wave of NFT interest
- Regulators put crypto in the crosshairs
- Maker, Enjin and Shiba Inu listed on eToro
Ethereum rides higher on wave of NFT interest
In addition to the upcoming EIP-1559 upgrade, Ethereum’s leap higher could be driven by increased trading activity in non-fungible tokens (NFTs).
These unique certificates of authenticity minted on the blockchain have sparked a craze for collectible avatars and artwork. The most coveted collections include Stoner Cats, crafted by the American actress Mila Kunis, and CryptoPunks, of which one example was placed for sale last week at over $90 million.
Ethereum scaling solution Polygon is also benefiting from the NFT boom. Matic, the token powering the network, has jumped 4% this past week – adding to a meteoric rise of over 60% since the launch of NFT-focused Polygon Studio in late July.
Regulators put crypto in the crosshairs
Rising prices appear to have reinvigorated regulators, and last week marked a dramatic turn for lawmakers in Washington D.C.
On Tuesday, the U.S. Senate Banking Committee took the crypto industry to task in a hearing titled, “Cryptocurrencies – What are they good for?” Senator Elizabeth Warren was the most fervent crypto critic, and unwittingly created a new meme by suggesting the market is controlled by “shadowy super-coders.”
Then on Thursday, it was revealed that a last-minute amendment had been made to the $550 billion infrastructure bill. This added new tax reporting obligations for cryptoassets, which some analysts suggest could stall industry growth.
Maker, Enjin and Shiba Inu listed on eToro
In response to overwhelming demand, eToro has listed Maker (MKR), Enjin (ENJ) and Shiba Inu (SHIBxM).
Lending protocol MakerDAO is one of the most popular DeFi applications, Enjin is a blockchain development platform focused on NFTs and Shiba Inu is an Ethereum-based rival to Dogecoin.
Shiba Inu is represented on eToro as Shiba (in millions), with one Shiba (in millions) unit on eToro being equivalent to one million Shiba Inu tokens.
The looming infrastructure bill will be top of mind for traders this week, as according to Senate Democratic leader Chuck Schumer it could be presented to the House of Representatives and the U.S. Senate “in a matter of days.”
On Wednesday, Ethereum’s London hard fork is expected to go live and could spark volatility for the leading smart contact platform or fire up smaller proof-of-stake competitors in the event of delays or mishaps.
New Bitcoin ETF Offers Shorting Bitcoin Futures, Creators Warn of Multiple Risks
Direxion has filed for a Bitcoin ETF that allows traders to short BTC futures contracts
According to an article by Bloomberg, a new Bitcoin ETF, if approved, will enable traders to short Bitcoin futures. The filing was submitted on Tuesday, Oct. 26.
Direxion wants to launch Bitcoin futures ETF for short-sellers
Bloomberg has written that, on Oct. 26, Direxion submitted documentation to launch the Direxion Bitcoin Strategy Bear ETF. Last week, two ETFs that track the performance of Bitcoin futures were launched by ProShares and Valkyrie.
Now, the BTC futures ETF industry in the U.S. may reach a new milestone—if the launch of the ETF for bears is approved by the U.S. Securities and Exchange Commission.
The debut of Bitcoin futures products last week prompted Bitcoin growth to almost $67,000 and a new all-time high.
However, today, the flagship cryptocurrency retreated below the $60,000 level as a mind-blowing half-a-million worth of liquidations were conducted across major exchanges: Binance, Bitfinex, OKEx, Huobi and so on.
Slightly over $500 million worth of those crypto liquidations were long positions.
BITO ETF gains $1 billion in just two days
ProShares Bitcoin ETF last week became the second-most-traded asset on the NYSE on its first day of trading. Buy orders to the tune of 10,100 were placed on BITO (the ticker the ETF goes by), and seven times more orders were placed to sell it.
After trading for two days, BITO reached $1 billion in net asset value. That is the equivalent of the net asset value of several Canadian Bitcoin ETFs that have been trading for a while already.
Direxion fund bears lots of risks
The new Bitcoin ETF filed for by Direxion bears numerous financial risks for short-sellers, the company warns. Trading this ETF may lead to shorters getting wiped out, Bloomberg writes, and Bitcoin’s massive price swings would be a problem here, too.
The SEC filing states that if you are not prepared to lose all your funds by investing in this ETF, you should not bet on it.
This week, some in the crypto community also expect another Bitcoin futures ETF to kick off—the one filed for by the VanEck asset manager.
Blockstream is sponsoring this tech for scaling Bitcoin [BTC]
Major blockchain technology company, Blockstream has announced its sponsorship of work on Federated E-Cash. For the uninitiated, David Chaum was the man behind the concept of E-Cash that predates Bitcoin.
E-Cash Federation, on the other hand, is an entity that comprises of independent members assembled to develop a multi-sig wallet for the purpose of being a “blind, distributed custodian by acting as an e-cash mint.”
One of the main factors that have impeded Bitcoin’s adoption is scalability. On that note, Adam Back-led Blockstream has made significant strides. Even as scaling solutions like the Lightning network and federated sidechains have paved the way for large-scale adoption of the crypto-asset, they are yet to see substantial growth. Here come Federated blind mints, which the tech firm believes are a “natural complement to the existing scaling solutions.”
Blockstream’s tryst about Bitcoin scaling
Blockstream stated that Federated E-Cash can help scale Bitcoin. It cited an innovative exciting possibility of integrating LN into federated mints. This, in turn, would make them interoperable with each other and the broader space. It further stated,
“One could imagine the emergence of community-run federations, where users have a natural trust in the federation members, which isn’t the case with traditional custodians. For the larger number of Bitcoin users who rely on custodial wallets to store their bitcoin, switching to an E-Cash Federation, reduces the trust profile and increases the privacy guarantee for these users.”
Blockstream is looking at an experimental project of a Federated E-Cash scheme dubbed MiniMint that is currently under development.
$16M Funds for Bitcoin mining STO
The latest news comes a week after Blockstream announced raising $16 million funds in the sixth tranche of its BTC mining-focused security token [STO], called the ‘Blockstream Mining Note [BMN].’ This marked the rapidly rising interest from individual and institutional investors.
It was in March 2021 when Blockstream formally unveiled its BMN security token. Its offering essentially facilitated non-United States investors with an alternative to mine Bitcoin or invest in BTC mining stocks mining BTC with the help of BMN’s associated hash rate. Additionally, it was issued on Bitcoin’s Liquid sidechain with each BMN Series 1 granting market players up to 2k Tera hashes per second of BTC mined at the Canadian blockchain technology company’s enterprise-grade mining facilities.
Besides, Blockstream is also gearing up to list its BMN security token on Bitfinex Securities, which happens to be a relatively new STO platform by Bitfinex.
Blockstream’s tryst about Bitcoin scaling
Bitcoin price analysis: Bitcoin crashes south of $60k. Has the reversal started?
- Bitcoin price analysis is bearish today.
- BTC flash crashed below the psychological mark of $60,000.
- Bitcoin continues to look for its supports.
The Bitcoin price analysis reveals a sudden drop in price as BTC went south of $60,000 in a matter of minutes. After hitting the all-time high at $65,984 on 20th October, Bitcoin is on a downward pattern, and yesterday it came down from $63,000 to $60,400. At the start of today’s session, bulls tried to elevate the price, but soon their efforts went in vain as bears started to take over the price function, and Bitcoin crashed spectacularly below the psychological mark of $60,000.
As the speculation goes around, that BTC usually crashes majorly to 50 percent after the ATH, before hitting another ATH almost double of its previous value, which will be in the region of $138,000, but the idea seems far fetched as of now.
BTC/USD 1-day price chart: BTC to find support
Bitcoin continues to find support as it is falling down at a faster pace. The nearest support is present at $57300. The Bitcoin is trading hands at $58,726 at press time, reporting a loss of 6.22 percent in value over the last 24 hours and a loss of eight percent over the past week. The market cap has suffered by 5.9 percent during this time. However, the trading volume has increased by 32 percent.
The volatility is mild as the volatility indicator, the Bollinger bands showing slow convergence, and the Bitcoin has stepped below the support of the mean average of the Bollinger bands, which is present at $59,776, turning it into resistance.
The relative strength index (RSI) shows a steep downwards slope from yesterday as Bitcoin’s south journey continues. The RSI indicates an intense selling activity going on in the market.
Bitcoin price analysis: Recent developments and further technical indications
The 4-hour Bitcoin price analysis shows that the price breakup was upwards at the start of today’s session, as the price recovered during the first four hours, but then selling pressure started again, and BTC price started falling.
The volatility is again increasing on the 4-hour chart as the price function is oscillating down at a high pace, with the price even going below the lower Bollinger band, which was the lowest technical support level in the current situation. The RSI is near the under-sold region at index 32 after taking a dip, as selling pressure is overwhelming.
Due to the recent bullish behavior of Bitcoin, the technical indicators are mostly neutral, as some short-term indicators just gave the call for a selloff, including the MA10 and the momentum oscillator. On the other hand, the mid-term indicators still support the buying decisions, as some of them are lagging indicators based on historical data.
Bitcoin price analysis: Conclusion
A situation like a flash crash was observed just a few minutes back when the Bitcoin sunk below $60,000, as today’s Bitcoin price analysis suggests. Currently, Bitcoin is testing the 8th May 2021 support and if it falters, then next in line is the recent support of $57300. Chances are there for a retest of the later support as well, as the price may continue to descend in the coming hours.