One of our top priorities at Coinbase is to be the most trusted and easy-to-use platform for accessing the broader cryptoeconomy. Coinbase currently offers our institutional clients easy access to the crypto markets through advanced trading and custody technology. But being easy-to-use also means providing a strong set of global fiat payment rails. Starting today institutional customers can access additional trading pairs and payments options through an expansion of supported fiat currencies on Coinbase Exchange.
Until now, many of our global clients have been limited to purchasing crypto in their local currency only. We now offer the fiat rails to enable deposits and withdrawals in USD, EUR, or GBP and access to the related trading pairs. This expansion of supported currencies has been a top request from international clients and has the potential to unlock billions of dollars in trading volume through improved access to major pools of liquidity. Institutional customers will now be able to trade in and out of various currencies regardless of where they are based. This is an important step in Coinbase’s journey towards creating a global trading platform.
“Access to SEN on Coinbase provides us with the flexibility to move USD quickly, keep providing liquidity in fast markets, and take advantage of opportunities” says Morgan Vincent, Head of Trading at Wintermute.
To learn more about Coinbase Prime, Exchange, Custody, our execution services, or Coinbase’s white label brokerage services click here.
Coinbase expands international payments options for institutional customers was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
At times, Bitcoin looks as though it may be moving towards recapturing the $40K support line. But then, only a few hours later, Bitcoin seems to take a turn in the opposite direction. Still, the price of BTC seems to have developed some fairly resilient support around the $30K line. The only time Bitcoin managed to dip below $30K over the past few weeks, and then it quickly snapped back up.
Since that point, Bitcoin continued along the same meandering trajectory, wandering around $32K-$34K, occasionally visiting the neighbourhood of $35K-$39K. In comparison to the astronomical journey of swells and dips that Bitcoin went on earlier this year, it seems as though Bitcoin is taking it easy.
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Mixed Messages from Bitcoin
So, the big question is all about what is going to come next. Will BTC crash through $30K after all? Will it surge past $40K, $50K and reach new heights above $60K? What gives?
(The answer, of course, depends on who you ask.)
Cointelegraph reported this morning that the number of active addresses on the Bitcoin network fell sharply over the course of the past several weeks, from 1.3 million to approximately 500,000, roughly 60%. The drop caused the number of active wallets on Ethereum to take the lead over Bitcoin for the third time in a month. Before this, the last time that the Ethereum network had more active wallet addresses than Bitcoin was in early 2017.
A Twitter analyst known as ‘Mr Whale’ pointed out that based on a weekly moving average, active addresses on the Bitcoin network have fallen to their lowest point since April of 2020, a point at which many analysts tie to BTC’s run to $60K earlier this year.
“Bitcoin’s active addresses on the blockchain network just plunged to its lowest level since April 2020,” Mr Whale wrote on Twitter. “This data is bearish. It shows demand for Bitcoin is drying up very quickly.”
Bitcoin’s active addresses on the blockchain network just plunged to its lowest level since April 2020.
The dip in the number of active Bitcoin addresses could indicate several things. However, it is likely that this change has much to do with the exodus or dormancy of retail investors who entered the market for the first time during BTC’s big rally throughout 2020 and earlier in 2021. If these retail investors fail to actively re-enter the market, it is unclear what the long-term consequences could be.
“Bitcoin Is like a Spring. We Stretch It Too Much and We Put Too Much Leverage.”
Some analysts do not seem to be too concerned about the dip in active wallet activity. Alex Mashinsky, Chief Executive of Celsius and renowned crypto commentator, told CoinTelegraph at the Miami Bitcoin 2021 conference in June that he sees Bitcoin reaching as high as $160,000 this year. “We haven’t seen the highs yet for 2021,” he said.
Mashinsky believes that the Bitcoin market correction that took place in May was just another step along the path to new heights.
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Alex Mashinsky, Founder and CEO of Celsius.
“When you go too high, too fast, you are bound for a correction,” he said, adding that “You can see my tweets in both March and February saying ‘we’re going to have a crash, we’re going to have a correction.’ I predicted $30,000.”
Mashinsky cited over-leveraged markets as the reason for Bitcoin’s volatility earlier in the year: “Bitcoin is like a spring,” he said. “We stretch it too much, and we put too much leverage. Too many people got greedy.”
Rebuilding without Leverage?
Indeed, a number of analysts agree that leverage seems to have been the primary cause behind Bitcoin’s volatility earlier this year.
Shortly after the crash in May, CNBC reported that: “Traders taking excessive risk in unregulated cryptocurrency markets” were forced to sell when prices started to drop. Therefore, what may have been a minor correction in the price of Bitcoin spiralled into a price drop of roughly 30 percent.
Leverage is not unique to Bitcoin. It can be practised across capital markets. However, the difference between leverage in Bitcoin and leverage in traditional markets is the fact that it is so unregulated. Some cryptocurrency exchanges allow their customers to take extreme risks. For example, BitMEX allows any one of its users, no matter their level of trading experience, as much as 100-to-1 leverage for cryptocurrency trades.
When Bitcoin crashed in May, $12 billion was liquidated across 800,000 leveraged Bitcoin positions. Therefore, rebuilding the price of Bitcoin in a sustainable way cannot include high amounts of leverage, lest history repeats itself.
A More Balanced Future for BTC?
Now that leverage has been rinsed from the markets, Bitcoin may indeed have an opportunity to rebuild in a healthier way.
There is some evidence to show that this growth could come from the developing world.
#Bitcoin has a market cap of $680 billion dollars.
If 1% of it is invested in El Salvador, that would increase our GDP by 25%.
On the other side, #Bitcoin will have 10 million potential new users and the fastest growing way to transfer 6 billion dollars a year in remittances.
In June, El Salvador’s President, Nayib Bukele, said in a national address that bitcoin will officially become legal tender in the country on September 7th. A second bill proposed in Paraguay would make the country the second to embrace Bitcoin as legal tender. Moreover, the American University of Paraguay announced that it will accept bitcoin tuition payments.
Additionally, Tanzanian President Suluhu Hassan told the nation’s financial chiefs to prepare for cryptocurrency: “We have witnessed the emergence of a new journey through the internet,” she declared. “I know that throughout the nation, including Tanzania, they have not accepted or started using these routes. However, my call to the Central Bank is that you should start working on that development.”
Sam Bankman-Fried, CEO and founder of FTX, explains FTX’s sports-centric advertising model and talks about what is on his regulatory wish list going forward. Show highlights:
why Sam is so excited to bring Tom Brady and Gisele Bündchen onto the FTX team
how FTX decides on who to sponsor
why so many of FTX’s sponsorship are targeting US customers
what makes the sports industry such an attractive place to advertise for FTX
how FTX’s tokenized stocks work
what Sam learned from the GameStop/Robinhood situation
what makes FTX’s tokenized stocks different from Binance’s offering
how FTX is dealing with regulatory obstacles
what item is on the top of Sam’s regulatory wishlist
by Pankaj Gupta, VP Engineering and Site Lead, India
I joined Coinbase about two months ago to establish and lead a new tech hub for Coinbase in India. In this blog post, I wanted to share a bit about our plans and ambitions in India and how we are thinking about this hub in general.
There’s never been a more exciting time for builders working in crypto. This is true worldwide, but especially in India which is seeing a boom in crypto-native talent and in creating and growing important crypto projects — Polygon and Instadapp to name just a couple. It is of course well known that India has a vibrant, world class community of software engineers, technology builders and entrepreneurs. To add to this, we have been pleasantly surprised at the growing expertise in crypto and blockchain technologies as well.
Building a high quality tech hub
Coinbase is fully committed to expanding the understanding of crypto and blockchains in the region. It is early days for our India tech hub but it has already taken off with an incredible amount of interest in our open roles from across India. We have ambitious plans for this hub in the near future — we want to hire hundreds of world class engineers in the near term. This team of engineers will be complemented by equally high quality product and design teams, as well as support functions such as recruiting and HR to build out a sustainable, well-rounded tech hub. One of our cherished cultural tenets is top talent in every seat — so even though we wish to hire in large numbers, we are proud to say that each of these new hires is and will be among the topmost talent available anywhere in the world.
To support our ambitious growth plans in India, we are also exploring startup acquisitions and acquihires. Founders who might be interested in joining Coinbase’s journey and mission, please contact me.
Coinbase is an ambitious and fast-moving company. As we build our presence in India from scratch, this is an incredible opportunity to work in a start-up-like, fast growing environment. The crypto space — together with its terminology, its protocols, projects, tokens, etc. — is a whole new exciting universe with new stuff to learn about every day. For me, it is frankly like being a kid in a candy store — or a mithai shop if you will — every day 🙂
Independent and autonomous charters in exciting deep tech areas
We have intentionally planned out a continuously learning environment and an org structure to maximise learning, growth and impact. We will have teams in all major areas Coinbase works in today — infrastructure, cloud, platform, payments, crypto, blockchains, data engineering, machine learning, growth, product engineering — to name just a few. These teams in India will be led by local engineering directors, who will have large, independent and autonomous charters. They are being intentionally set up for local decision-making to optimise for impact and velocity. These teams will work on a combination of projects that support both our global products and systems, as well as projects in the greater APAC region. We believe this will increase the speed, empowerment, and local decision making, as well as provide a sustainable and better quality of work life for all our teams worldwide.
In order to be fully functioning, independent and fast-moving, we are also hiring roles — both senior and junior — across product management, user experience, design and program management. In addition, we’re creating a core support team — in areas such as in HR and recruiting — to provide well-rounded support for our India hub.
Flexible and modern work environment, with plenty of perks
Given our remote-first strategy, we offer a truly flexible and modern work environment. That means that we’re hiring from all parts of India in order to find the best talent wherever they are or choose to work from in the country. We plan to complement this with physical offices in key cities as well to have a hybrid, flexible environment. In addition to the challenging and meaningful work, we also provide top tier perks and compensation, which allows us to ensure we have top talent in every seat across the company.
As a product led company, it’s important that our new hires in India truly understand the products and services that they are helping to deliver. That’s why we’re introducing a new program called CIkka — short for “Coinbase India Sikka” — offering each new employee in India a one-time $1000 in crypto when they start. Our expectation is that they’ll leverage this offering to learn about crypto, and will use this knowledge to help us build the next generation of products that will delight our customers around the world.
Want to do challenging work that has worldwide impact?
So, what types of employees are we looking for? We want to hire nimble and innovative people who want to make an impact and contribute to our mission of increasing economic freedom in the world. We’re looking for builders, who want to create products that will drive the global cryptoeconomy forward. We have built a culture of sustained innovation in the company, exemplified by Project 10%, where we dedicate 10% of our resources to supporting big product bets.
To learn more about our innovative culture, please review this recent post from our co-founder and CEO, Brian Armstrong. In it, he outlines our cultural tenets that describe how we treat each other and operate day-to-day at the company. If you’re interested in joining us on our mission, please visit our hiring website and apply for our open positions in India.
Building Crypto Out of India was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
The CEO of Skybridge Capital, Anthony Scaramucci, has announced that the firm will launch an Ethereum fund. The fund is planned to be a private fund. Alongside this, Skybridge Capital has filed for an Ether ETF with the SEC. The fund already has a pending Bitcoin ETF filed with the SEC.
Anthony Scaramucci was on The Scoop podcast to talk about his bitcoin journey and the fund’s crypto game plan going forward. The fund had made the news late last year when it announced that it had invested $182 million in bitcoin.
Related Reading | Robinhood Fined $70M For Causing “Significant Harm” To Customers
This makes it one of the first hedge funds to properly dip its feet into the crypto market. A big bet made in Bitcoin when the coin was still trading for less than $30,000 apiece.
The investment firm partnered with a number of crypto firms to achieve this. Skybridge Capital expected institutional money to flow into the market and they didn’t want to be too late to get in.
Skybridge Capital Going All In
Scaramucci said on the podcast that the fund was fully committed to crypto.
“We have a full commitment to crypto,” Anthony Scaramucci, CEO, Skybridge Capital
The CEO explained that they planned to launch the Ethereum fund on July 1st. And then they would file for an ETF. A path that a lot of firms have been taking but have had no success so far.
This is due to the fact that while the SEC has received numerous filings for Bitcoin and Ethereum ETFs, it is yet to approve a single one.
Ethereum back in the red | Source: ETHUSD on TradingView.com
With the bull market, the number of Bitcoin and Ether ETFs filed with the SEC has grown significantly. Skybridge Capital now joins in a long line of investment funds waiting on the decision of the SEC.
Firms wait with bated breaths as the SEC takes its sweet time in deciding if it will approve the ETFs or not. Countries like Canada have approved Bitcoin and Ether ETFs and have recorded much success with the ETFs. But the U.S. SEC is yet to approve a single one.
Although approvals are not forthcoming, it says a lot about the current state of the market when so many firms are filing for crypto-related ETFs.
More Institutional Money In The Market
Scaramucci took the time to talk about the adoption of digital assets in the financial world. The CEO believes that while everyone might not jump in, there will be enough people coming into the market, enough to drive the price of the assets up.
“I just think it’s one of those weird assets where the higher the prices go, the more people are going to be drawn into the pool,” said Scaramucci.
Anthony Scaramucci sees the buy-in from Morgan Stanley into its Bitcoin fund as a sign that institutions are ready to get into the crypto market. Hence, he is very bullish that more institutional money is going to flow into the market.
Related Reading | How Ethereum Can Reach $2 Trillion In Market Cap, Matthew Sigel
Skybridge Capital is not the only firm with vested interests in the crypto market. MicroStrategy has been ramping up its Bitcoin portfolio over the last year. With a $500 million buy recently pushing the portfolio over 100,000 bitcoins.
Goldman Sachs had also taken the plunge and had started offering customers Bitcoin and Ether options and futures. It had also filed a Bitcoin ETF with the SEC but like others, it has not gotten approval.
Skybridge Capital currently has a $500 million Bitcoin fund. And it plans to keep investing and growing the fund and other digital assets funds.
Featured image from Crytpoknowmics, chart from TradingView.com
The soccer world continues to seek out new revenue models amid the coronavirus pandemic, which saw the suspension of league matches in some countries, and new partnerships form to find sustainable answers in the digital space.
Representing soccer clubs playing in the Süper Lig, Turkey’s primary soccer league, the Turkish Union of Clubs has partnered with fan engagement platform Socios.com to promote innovation in the country’s soccer landscape, according to a July 1 announcement.
“Few countries in the world match the unique passion that Turks feel for the game of football,” Socios and Chiliz CEO Alex Dreyfus told Cointelegraph:
“This partnership will benefit the entire Turkish football ecosystem in a critical moment for the industry, in which it is crucial for sports properties to shift their fans’ role from passive to active.”
Socios already launched fan tokens for six Turkish soccer teams playing across different leagues. Along with over 40 global sports organizations, Turkey’s Alanyaspor, Bursaspor, Galatasaray, Göztepe, İstanbul Başakşehir and Trabzonspor are using fan tokens and Socios’ voting and reward app to engage and monetize their fans.
Related: Crypto fan tokens a mixed bag for game-deprived soccer fans
The new partnership makes the sports-focused blockchain company the fan engagement partner of the Union of Clubs. Socios will help the union to apply new technologies to Turkish professional clubs to improve fan engagement, generate new revenue models and increase financial sustainability.
As part of the deal, the Union of Clubs and Socios.com will co-host a number of workshops and seminars to engage the industry’s main players in conversations around the latest trends affecting the business of football, the announcement reads.
Ticket sales and streaming deals account for a big part of revenue for the soccer industry. Since the games are either suspended for a period of time or played without a full audience in most leagues during the pandemic, clubs are in need of fresh business models. Clubs see fan tokens as a strategic move to enhance their digital presence and stay closer to fans.
This week, we’re rolling out dark mode in the Coinbase app to customers around the world to make it easier and more delightful to trade and HODL at any time. Plus, we’re giving you more privacy options with the ability to hide your account balances from view.
More delightful trading at any time
The crypto market is open 24/7 and millions of customers trade around the clock. Staring at a bright digital screen can be overwhelming during low-light hours or at any point in the day. Dark mode makes it easier for you to use the Coinbase app at any time, in your preferred lighting. Crypto markets don’t rest but now your eyes can.
Flexible display settings
You can easily manage dark mode in the Coinbase app:
Open the app and tap Settings
Scroll down to the Display section
Select a setting under Appearance
Dark mode automatically matches your phone’s system settings, so if you already use it on your phone then there’s no need to turn it on.
More privacy options
As crypto becomes a bigger part of your life, you open the Coinbase app in an increasing number of situations. We understand that you don’t always want your balance information prominently displayed, so we’re now allowing you to hide your balance information.
Simple set up
To hide your balance:
Open the Coinbase app and tap Settings
Toggle on Privacy Mode
Tap and hold your Portfolio balance at any time to hide your balance
As you interact with the cryptoeconomy in more ways at more times, we want to make your experience easier and more delightful. We’ll continue to listen to you and adjust the Coinbase app to better suit your lifestyle.
More ways to trade: now use dark mode and privacy mode was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
Securing smart contracts from risks remains hard. Unaddressed security vulnerabilities readily turn into existential threats to your token’s viability. So how can asset issuers prevent smart contract vulnerabilities from leading to real financial losses on token networks?
Keep users’ tokens and token networks safe from attackers by teaching developers to write smart contracts and design robust testing based on this list of ERC-20 implementation risks.
In Introducing Solidify, we shared how the Coinbase blockchain security team performs smart contract vulnerability review at scale. A meta analysis across a few hundred token Solidify security reports resulted in a list of most frequent and severe risks based on potential impact to token network security.
The top ten Smart Contract Risks (SCR) fall into three categories:
Operational Risks — Authorization features that are exploited when token network governance is insufficient or flawed
Implementation Risks — Intrinsic errors that result in unintended smart contract behavior
Design Risks — Accepted system features that are exploited to alter intended smart contract behavior
OPERATIONAL RISKS
SCR-1: Super User Account or Privilege Management
The smart contract implements functions that allow a privileged role to unilaterally and arbitrarily alter the functionality of the asset.
SCR-2: Blacklisting and Burning Functions
The smart contract implements functions that allow a privileged role to prohibit a specific address from exercising an essential functionality.
SCR-3: Contract Logic or Asset Configuration can be arbitrarily changed
The smart contract implements functions that allow the holder of a privileged role to unilaterally and arbitrarily alter the functionality of the asset.
SCR-4: Self-Destruct Functions
The smart contract implements a function that allows a privileged role to remove the token contract from the blockchain and destroy all tokens created by the contract.
SCR-5: Minting Functions
The smart contract implements a function that allows a privileged role to increase a token’s circulating supply and/or the balance of an arbitrary account.
IMPLEMENTATION RISKS
SCR-6: Rolling Your Own Crypto and Unique Contract Logic
The smart contract implements functions that allow the holder of a privileged role to unilaterally and arbitrarily alter the functionality of the asset.
SCR-7: Unauthorized Transfers
The smart contract contains functions that circumvent standard authorization patterns for sending tokens from an account.
SCR-8: Incorrect Signature Implementation or Arithmetic
The smart contract contains operations that can result in unexpected contract states or account balances.
DESIGN RISKS
SCR-9: Untrusted Control Flow
The smart contract invokes functions on different smart contracts in order to trigger functionality not defined within the contract itself.
SCR-10: Transaction Order Dependence
The smart contract allows asynchronous transaction processing that can be exploited for profit or protocol correctness through mempool transaction reordering.
For Coinbase customer funds’ safety, the Coinbase blockchain security team assesses all tokens being considered for listing for proper risk mitigations according to the above vulnerabilities. If you’re looking to get a token listed on Coinbase, we encourage you to check your token’s security by reviewing and testing for the aforementioned risks.
Future posts will help you review your token’s security by examining the top Smart Contract Risks in detail and will also provide countermeasure recommendations.
If you are interested in listing your token with Coinbase, visit the Coinbase Asset Hub. If you are interested in securing the future of finance, Coinbase is hiring.
Top ten smart contract security risks was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.
As the month of June draws to a close, Bitcoin is continuing to trade within the $30K – $40K range for the fourth week in a row.
Justin Hartzman, Chief Executive of Canadian cryptocurrency trading platform, CoinSmart.
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Justin Hartzman, Chief Executive of Canadian cryptocurrency trading platform, CoinSmart, told Finance Magnates that: “It’s no secret that the crypto market has more or less been moving along sluggishly.”
Indeed, BTC still does not seem to have enough momentum to make strong moves one way or the other. While BTC briefly dropped below $30K earlier this month, a move that many feared would lead to further drops, it quickly recovered to levels just over $30K.
“During this recent surge, the Bitcoin price managed to flip the 20-day simple moving average from resistance to support,” Hartzman explained. “This is crucial as the bulls have gained a strong support wall which could prevent a further fall.”
On the other hand, BTC does not seem to have enough support to break through the other side of the $30K – $30K range, either. “The Bitcoin price faces a major resistance wall between $36,500 – $38,500.”
Was Bitcoin Oversold in May?
According to IntoTheBlock’s IOMAP metric, “around 1.65 million addresses had purchased ~850,000 BTC tokens at this level,” Hartzman explained. IOMAP, which stands for “Out of the Money Around Current Price,” identifies the ten most relevant clusters of investor positions at a range of +-15% of Bitcoin’s price at any given moment.
Doug Schwenk, Chairman and Chief Executive of Digital Assets Research (DAR).
“It’s likely true that BTC’s price was overly-impacted by some negative news events in the past weeks.”
“If the buyers somehow flip this wall from resistance to support, $40,000 is definitely within reach,” he continued. “It depends on the appetite for long-term investors in further accumulation of BTC during this market phase.”
Doug Schwenk, Chairman of Digital Asset Research (DAR), added that Bitcoin’s price movement has “been very positive over the past couple of days, and could continue upward.”
“BTC trades largely on sentiment, and if that continues to be positive in the coming hours and days, we could easily see BTC trade above $40k. It’s likely true that BTC’s price was overly-impacted by some negative news events in the past weeks which has seen it trade lower than anticipated.” Indeed, the government of China has been cracking down on cryptocurrency mining, leading to some uncertainty in Bitcoin markets. However, some analysts believe that this crackdown will not hinder BTC’s growth in the long term.
Banning Bitcoin mining makes the network more resilient.
Future generations will look at this time and it’ll be obvious that a decentralised monetary network at scale is more resilient than a nation state acting against it. https://t.co/8pTe4snjpZ
Exchanging Gift Cards to Crypto, Bitcoin’s Adoption Going MainstreamGo to article >>
Of course, “It’s always at risk of falling further, especially as an asset that trades on sentiment and doesn’t yet have a strong economic use case.” However, BTC’s recent sell-off “has been perceived as over done, which likely brings buyers back into the market. Only time will tell if that view will turn into action.”
Leverage Has Been Purged from Bitcoin, Possibly Promoting Healthier BTC Growth
This prolonged period of relative stagnancy in the price of Bitcoin seems to reflect the possibility that much of the leverage that propped the Bitcoin price up earlier this year has been purged from the market.
Indeed, the elimination of leverage from Bitcoin was cited as the reason for BTC’s price crash in May. Over the course of the month, the price of BTC dropped from $58,000 to $34,000; at its lowest point, the price of Bitcoin was nearly $32K.
Tom Howard, Head of Business Development & Growth at PowerTrade, told Finance Magnates that: “Funding rates appear to have stabilized near zero or slightly negative, which indicates the overexposed bulls have rinsed out and bears are being cautious.”
“Realized volatility has fallen, indicating that over-leveraged positions have been closed out, and that market strength is building.”
Tom Howard, Head of Business Development & Growth at PowerTrade.
Indeed, while leverage seems to have been the driving force that drove the price of Bitcoin to unprecedented heights earlier this year, the market structure was practically wiped away in an instant. A Bitcoin that is overly pumped by leverage has a house built on the sand. Now that leverage has been expelled, BTC may have a shot at building its house on the rock.
In the Short-Term, “De-Levered Markets Get Crushed”
American entrepreneur-turned-crypto enthusiast, Mark Cuban Tweeted about the effects of leveraged trading in the midst of the price drop: “De-Levered Markets get crushed,” he said.
“Doesn’t matter what the asset is. Stocks. Crypto. Debt. Houses. They bring forced liquidations and lower prices. But, crypto has the same problem that HFTs (high-frequency traders) bring to stocks, front-running is legal, as gas fees introduce latency that can be gamed That makes drops drop faster, and gains go up faster,” he said.
While the price drop seemed to foster negative opinions about Bitcoin related to short term price volatility, some analysts believe that the expulsion of leverage from the market is a positive thing for BTC over the long term. Hartzman said that: “this is a good thing, as some semblance of normalcy can now return to the market.”
“There was way too much leverage for market dynamics to remain sustainable over the long-term.”
“Altcoins Are Seeing a Surge That’s Not Necessarily Reflected in Bitcoin Dynamics.”
While Bitcoin may be moving sluggishly, altcoins are seeing much stronger price movements. “Bitcoin is the market leader so it definitely has a major impact on the price movement of altcoins,” Hartzman told Finance Magnates.
“Even so, altcoins are seeing a surge that’s not necessarily reflected in the bitcoin dynamics. There’s been renewed interest in DeFi and many investors are taking the low volatility in BTC prices to revisit the fundamentals of other promising crypto projects.”
Additionally, Schwenk told Finance Magnates that: “We see continued interest in a rotation from BTC into so-called altcoins.”
“Some buyers have been quicker to act on that interest and some are waiting. There is a strong narrative to altcoins as an alternative on several metrics including, ESG and fundamentals. We think, based on client feedback, that this trend will continue over the next year as Ethereum transitions to proof-of-stake and changes happen in the altcoin ecosystem.”
What are your thoughts on Bitcoin’s price movements and their effects on the altcoin market? Let us know in the comments below.
Bitcoin price extended its recovery above the $36,000 zone against the US Dollar. BTC topped near $36,700 and it is now correcting gains.
Bitcoin started a fresh increase above the $35,000 and $36,000 resistance levels.
The price is now trading nicely above $35,000 and the 100 hourly simple moving average.
There is a major bullish trend line forming with support near $35,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to start a downside correction below $35,700 and $35,500 in the near term.
Bitcoin Price is Correcting Gains
Bitcoin started a steady increase after it settle above the $34,000 level. BTC broke the key $35,000 barrier and the 100 hourly simple moving average to move further into a positive zone.
The price even spiked above the $36,500 resistance. It traded as high as $36,698 and it is now correcting gains. There was a break below the $36,500 and $36,000 levels. It even traded below the 23.6% Fib retracement level of the upward move from the $33,939 swing low to $36,698 high.
Bitcoin is still trading nicely above $35,000 and the 100 hourly simple moving average. There is also a major bullish trend line forming with support near $35,700 on the hourly chart of the BTC/USD pair.
Source: BTCUSD on TradingView.com
If the pair fails to stay above the trend line support, it could start a downside correction below $35,500. The next key support is near the $35,200 level. It is near the 50% Fib retracement level of the upward move from the $33,939 swing low to $36,698 high. Any more losses might call for an extended decline towards the $34,000 support zone in the coming sessions.
Fresh Increase in BTC?
If bitcoin remains stable above the trend line support, it could rise further above the $36,000 resistance. An immediate resistance on the upside is near the $36,500 level.
The next key resistance is near $36,700, above which the bulls are likely to aim a fresh high above $37,000. Any more gain could lift the price towards the $38,000 resistance. The next major barrier is near the $40,000 zone.
Technical indicators:
Hourly MACD – The MACD is slowly losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still well above the 50 level.
Major Support Levels – $35,700, followed by $35,200.
Major Resistance Levels – $36,000, $36,500 and $38,000.
