Monat: Juli 2023

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Bitcoin price forecast with the help of EUR/USD

  • Bitcoin and EUR/USD have a direct correlation
  • EUR/USD leads
  • Bitcoin’s recent bullish trend has been based solely on the dollar’s weakness

Today is the last trading day of a busy trading week in the traditional currency market. Three central banks (Federal Reserve, European Central Bank, Bank of Japan) have announced their interest rate policy decisions.

For cryptocurrency traders, and especially for Bitcoin investors, the first two central banks directly impact Bitcoin’s price action. As it turns out, after being part of numerous institutional investors’ portfolios, Bitcoin’s price just follows the US dollar movements.

Sure enough, the volatility in the cryptocurrency space is much higher than in the traditional currency market. Nevertheless, one cannot ignore the direct correlation between the EUR/USD exchange rate and Bitcoin in the past several months.

Bitcoin chart by TradingView

Bitcoin and EUR/USD have a direct correlation  

EUR/USD bottomed in October last year and has rallied ever since. Sure enough, corrections appeared, but the overall trend remained in place.

The chart above shows the different cycles that the EUR/USD formed from left to right. Unsurprisingly, Bitcoin followed.

For example, despite making a new lower low at the end of 2022, Bitcoin bounced and rallied at the start of the new year. Basically, it caught up with the EUR/USD bullish trend.

Since then, every correction or rally on the EUR/USD pair was met with a similar response from Bitcoin. Therefore, it is fair to assume that if Bitcoin hodlers hope for the price to break and hold above $30k, it can only do so with a bullish EUR/USD price action.

The post Bitcoin price forecast with the help of EUR/USD appeared first on CoinJournal.

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Kin price soars after proposal to burn 7 trillion KIN passes

  • Kin community adopts proposal to burn 7 trillion of supply.
  • The total supply of Kin is 10 trillion KIN tokens.
  • The price of native token KIN jumps more than 20% as traders react to news.

Kin Foundation has announced that a proposal seeking to burn trillions of KIN tokens has passed. According to an update from the organisation, the community’s vote on the proposal to burn Kin Reserves will see over 7 trillion KIN tokens destroyed.

Kin’s path to decentralisation

About 4.96 trillion KIN held by the foundation and 2.1 trillion KIN planned for burning by Kik should be destroyed by end of day Friday, July 28. That would see roughly 71% of the total KIN supply burned.

“As a next step, the 4.96T Kin Reserves will be sent to a new Solana address and burned. After this the 2.10T Kin that Kik has agreed to burn will follow the same process. Once these burns are complete I will publish a new post that shows the on chain proof of these burns. I am hopeful this will happen by the end of day tomorrow,” the update read.

Ted Livingston, founder and CEO of Code, says the burn will make Kin a fully decentralised cryptocurrency. There will be no inflation, foundation or website.

“The vote to burn the Kin Reserves has passed, with the vast majority of votes in support. Kin is about to become one of the only fully decentralised cryptocurrencies out there, with no inflation, no foundation, and no website. More details to come once the burn is complete,” he noted.

According to data from CoinGecko, the cryptocurrency’s current circulating supply is 2,207,205,857,149. The maximum supply is 10 trillion.

KIN price surges

The price of KIN soared after the vote closed, with the token’s value having reached an intraday high of $0.000022. KIN was up 22% in the past 24 hours and more than 68% in the past week after its price jumped to highs near $0.000030 following the proposal.

KIN’s all-time high of $0.00122572 was reached on January 7, 2018.

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Bitcoin-focused MicroStrategy stock has 22% upside – analyst says

  • TD Cowen analyst sees upside in MicroStrategy to $520.
  • Lance Vitanza explained his bullish view in a research note.
  • MicroStrategy stock has already tripled since the start of 2023.

MicroStrategy Inc has already tripled since the start of this year but a TD Cowen analyst continues to see further upside in this stock.

MicroStrategy stock could climb to $520

Lance Vitanza assumed coverage of the software company today with an “outperform” rating and said its shares could climb to $520 – up another 22% from here.

For institutional investors, he said in his research note, MicroStrategy stock is the best way to gain exposure to Bitcoin.

MSTR uses all its retained earnings and then some to buy and hold BTC [that] reflects a belief that Bitcoin will prove a superior store of value relative to metals and fiat currencies.

The Nasdaq-listed firm is set to report its Q2 earnings next week. Consensus is for it to lose 71 cents a share versus an alarming $92.81 per share a year ago.

MSTR trumps BTC or a Bitcoin ETF

The Virginia-based company currently owns more than 150,000 Bitcoin in total.

Vitanza recommends MicroStrategy stock also because it’s free from some of the fees related to investing directly in Bitcoin or a Bitcoin ETF. He’s convinced that its underlying business serves as downside protection as well.

We see MicroStrategy as an attractive vehicle for investors looking to gain Bitcoin exposure.

MicroStrategy is lobbying for a change in accounting rules related to BTC which may also boost its financials. Bitcoin-specific catalysts, including “halving” and approval of a spot bitcoin exchange-traded fund will also benefit MSTR, the TD Cowen analyst concluded.

The post Bitcoin-focused MicroStrategy stock has 22% upside – analyst says appeared first on CoinJournal.

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Decentralized exchange PancakeSwap taps zkSync Era blockchain

  • PancakeSwap initially launched on BNB Chain but is now available on five blockchains.
  • The zkSync Era blockchain is the most recent blockchain that the DEX will be available on.
  • The move is aimed at expanding PancakeSwap’s user base and increasing protocol revenue.

The decentralized exchange PancakeSwap (CAKE) is now available on the zkSync Era blockchain according to a statement made by the DEX’s creator “Chef Cocoa” on Thursday. While this is a major milestone for the DEX, the news has not caused a significant price movement on the native token CAKE, seeing it has only gained about 1.40% today.

The move is consistent with PancakeSwap’s goals to grow its user base and boost the protocol’s income.

Available Pancakeswap features on Era blockchain

To start with, PancakeSwap’s token swap and liquidity provisioning features will be available with transactional fees of 0.01% of the trading value.

In the coming weeks, the farms feature that allows users to stake their liquidity pool (LP) tokens to earn CAKE while keeping the LP tokens will go live.

As a decentralized exchange, PancakeSwap uses smart contracts instead of middlemen to process trades, lending and lottery services for users. Besides zkSync Era, PancakeSwap is currently available on the BNB Chain, Ethereum, Polygon zkEVM, and Aptos. As of Wednesday, the DEX held more than $1/57 billion worth of tokens according to data from DefiLlama.

On the other hand, zkSync Era, which was launched by Developer Matter Labs as an Ethereum layer 2 blockchain compatible with the Ethereum Virtual Machine (EVM) allows developers to deploy applications between zkSync Era and the Ethereum mainnet using the same code.

The post Decentralized exchange PancakeSwap taps zkSync Era blockchain appeared first on CoinJournal.