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Bitcoin at 10-Day High After Powell and Despite China FUD: The Weekly Recap

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Bitcoin’s price tapped $48K, hitting a 10-day high after the US Fed Chair Jerome Powell said they have no intentions of banning it.

It’s been a very productive week in the cryptocurrency market, but it’s safe to say that most of it was due to the volatile price action during just one of the days – Friday, October 1st.

Going back, last Friday, the BTC price was hovering around $43,500, and, in fact, it stayed there for quite some time. This wasn’t so bad, given the overall regulatory scrutiny towards the market and yet another wave of FUD coming from China.

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The country said that it’s banning the trading of cryptocurrencies (again), though some reports claimed that this time it’s different, and perhaps it’s true. As an argument in favor of it, Huobi – one o the world’s leading cryptocurrency exchanges with a large portion of its trader’s base coming from China – stopped accepting new users from the region.

In any case, after the initial negative impact on Bitcoin’s price, the cryptocurrency was consolidating for most of the week. Today, however, BTC surged and poked $48K. Today, however, BTC surged and poked $48K. This happened as the SEC Chair, Jerome Powell, said yesterday that they have no intentions of banning Bitcoin and other cryptocurrencies.

The result was immediate – Bitcoin surged, pushing the entire market with it, adding $170 billion to the total capitalization. Ethereum is up around 1.5% in the past seven days, keeping in mind that today alone, the price surged by over 7%. BNB is up 7% on the week, Uniswap is up 15.6%, and so forth.

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Some of the cryptocurrencies that were performing particularly well in the past few weeks are slowing down. Solana is only up about 0.3% in the past seven days, while Avalnche’s AVAX is down 13%. Polkadot is also down 8.5%.

It remains very interesting to see how the market will shape up in the next days stepping into October and the last quarter of 2021.

Market Data

This Week’s Crypto Headlines You Can’t Miss

The US Has No Intentions to Ban Bitcoin, Said Fed Chair Powell. The Chairman of the United States Federal Reserve, Jerome Powell said that the country has no intentions of banning cryptocurrencies, including Bitcoin. This comes amid times of regulatory uncertainty and global legislative scrutiny towards the field in general.

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China’s Long History of Bitcoin FUD: Timeline. In this piece, we track the long history of Bitcoin FUD stemming from China. It’s in response to the most recent reiteration of a cryptocurrency trading clampdown coming from the country.

Visa Announces Layer 2 Payments Channel for CBDCs and Stablecoins. The leading payment processing company, Visa, announced that its research and product teams are working on a new blockchain initiative called Universal Payment Channel. It will connect various DLT networks, intending to facilitate transfers of digital assets.

SEC Chair Reiterates Support for Bitcoin Futures ETFs, But Concerned About Investors’ Protection. The Chairman of the United States Securities and Exchange Commission, Gary Gensler, once again reiterated his support for the approval of a Bitcoin Futures Exchange Trade Fund (ETF). He revealed his thoughts in a recent interview.

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Chamath Palihapitiya: Bitcoin Has Effectively Replaced Gold. The popular investor, Chamath Palihapitiya, said that Bitcoin has already effectively replaced gold. This comes amid a growing debate on whether the cryptocurrency is a suitable alternative to the traditional store of value that is the yellow precious metal.

Elon Musk Urged The US Government to Do Nothing with Crypto Regulations. Elon Musk urged the Government of the United States to do nothing when it comes to cryptocurrency regulations. The innovator seems to believe that this passive approach is the best one when it comes to the relatively nascent industry.

Charts

This week we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Uniswap – click here for the full price analysis and overview.

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Peter Schiff Names Real Reason Behind Bitcoin Drop

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Popular digital assets critic believes that measures against inflation are the real reason behind the most recent market correction

The famous Bitcoin and crypto critic, Peter Schiff, provided his Twitter subscribers with a potential reason behind one of the largest corrections on the cryptocurrency market this year.

According to Schiff, Bitcoin’s correction was tied directly to the Fed’s action toward risk assets like cryptocurrencies and some stocks. Previously, Jerome Powell hinted that tapering might happen sooner than the market expects.

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In addition to the end of the quantitative easing monetary policy, Powell has stated that the point rate may be increased sooner than was expected due to the inflation’s change of nature, which has become a real threat to the country’s economic safety and stability.

All of the actions that the Fed is currently taking are designed to control inflation, which is currently hitting highs previously observed back in the Depression era.

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High-risk assets like Bitcoin and other digital assets were allegedly considered a store of value for those who wished to protect their funds from increased inflation. Schiff is a widely known critic of cryptocurrencies, and he believes they should not be considered an inflation hedge.

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Whales Suddenly Move $320,000,000 in Bitcoin to a Single Destination – Here’s Where the Crypto Is Headed

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Crypto whales just moved over 5,800 Bitcoin (BTC) worth more than $327 million into a single destination, according to a whale-surveilling platform.

Whale Alert tells its 1.8 million followers in a series of tweets that in the last 24 hours crypto whales are relocating thousands of BTC amid a correction that saw Bitcoin tumble to a new 30-day low of $52,416.

Five of the transactions involved shifted BTC from wallets of unknown origins to popular US-based crypto exchange Coinbase. Meanwhile, one transaction moved a large sum of Bitcoin from global crypto exchange Binance to Coinbase.

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Here’s a summary of the BTC transactions:

While crypto investors tend to be concerned that a massive influx of Bitcoin into the crypto exchanges might indicate downward selling pressure, insights firm Into the Block reports that centralized exchanges recorded more outflows than inflows during the past week.

The crypto intelligence platform says,

“Bitcoin recorded nearly $2 billion in net outflows from centralized exchanges, the highest level in five weeks.”

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At time of writing, BTC is down nearly 7.14% on the day to $52,557.

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Ethereum Price Analysis: ETH drops 25 percent from previous swing high, ready to recover?

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  • Ethereum price analysis is bullish today.
  • ETH/USD rejected further downside at $3,600.
  • Previous support at $3,950 is currently tested as resistance.

Ethereum price analysis is bullish today as we expect further recovery to follow after a strong reaction higher from the $3,600 was seen this morning. Likely ETH/USD is set to break above the current resistance, moving to regain even more over the weekend.

Ethereum Price Analysis: ETH drops 25 percent from previous swing high, ready to recover? 1
Cryptocurrency heat map. Source: Coin360

The market has seen strong bearish momentum over the last 24 hours. The market leader, Bitcoin, has lost 17.23 percent, while Ethereum 14.83 percent. Meanwhile, the rest of the market has seen even more substantial losses.

Ethereum price movement in the last 24 hours: Ethereum breaks below $3,950 previous support, rejects more downside at $3,600

ETH/USD traded in a range of $3,739.39 – $4,647.29, indicating extreme volatility in the market. Trading volume has spiked by 113 percent, totaling $41.2 billion, while the total market cap trades around $465 billion, resulting in the market dominance of 21.16 percent.

ETH/USD 4-hour chart: ETH reacts back to previous lows

On the 4-hour chart, we can see the Ethereum price swiftly rejecting further downside after touching the $3,600 mark this morning.

Ethereum Price Analysis: ETH drops 25 percent from previous swing high, ready to recover?
ETH/USD 4-hour chart. Source: TradingView

Ethereum price action saw strong bullish momentum during the first half of the week. After establishing and retesting the new low at $3,950 last weekend, ETH/USD started to move higher on Monday quickly.

Ethereum reached $4,750 resistance by Wednesday, as bulls were eager to move towards the previous all-time high. However, more upside did not follow, leading to a reversal over the next days.

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Another attempt to test upside was seen Yesterday, with the following rejection leading to a strong spike lower. Overnight, the Ethereum price broke past the previous swing low at $3,950, leading to more downside this morning. Strong reaction, preventing further downside, was seen at $3,600, with ETH/USD since moving back towards the previous low.

Ethereum Price Analysis: Conclusion 

Ethereum price analysis is bullish today as we saw a swift drop to $3,600 met with a strong reaction higher this morning. Therefore, we assume ETH/USD has set a new swing low, and further recovery should follow over the weekend.

While waiting for Ethereum to move further, see our articles on the Best Crypto Wallet 2021, Decred Wallet, and Ripple vs SEC.

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