Kategorie: Crypto News

Daily crypto headlines and news about bitcoin, ether, ripple, solana, altcoins, nft, market, business, analysis, nft, metaverse, minting and mining.
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Crypto to start behaving like tech stocks, says crypto analyst

  • The total cryptocurrency market cap has shed over 3.2% in the past 24 hours as widespread selling in the crypto sector mirrors downsides in the equities market.

Crypto analyst Lark Davis says the cryptocurrency market is maturing and could soon post price moves that show volatility ratios similar to that seen in tech stocks.

According to the analyst, the first phase involves a lot of volatility before a maturing market sees that gradually reduce amid consistent growth.

Commenting on the current price action across major cryptocurrencies, Davis said:

“The #crypto market is going to start behaving like tech stocks. Lots of early volatility, then we start to see basically up only (with turbulence) as the user bases continue to grow.”

He looks at a scenario where an asset like Bitcoin experiences major price corrections today not being different from leading tech stocks like Amazon Inc., (NASDAQ: AMZN).

“For reference Amazon hasn’t seen any drawdowns over 40% since 2011!!!! Crypto is maturing,” he tweeted.

Bitcoin has declined by about 3% on the daily timeframe and there are also losses on the day for most other digital assets. Ethereum, Binance Coin, Cardano and Solana are among the major losers in the top ten cryptocurrencies by market cap, while there are declines for Avalanche, Polkadot, and Dogecoin.

This scenario is largely replicated in the stock market, where the Dow Jones, S&P 500, and Nasdaq closed lower on Friday. Blue-chip stocks such as Apple, Google, and Microsoft have all slipped over the past few days amid broader concerns over Covid-19 and its impact on economic recovery plans.

BTC’s largest price crashes

Bitcoin, which rose to highs of $69,000 in November, has lost over 33% of its value in the past month. The retreat sees BTC trade at lows of $45,000 as of writing. However, this is not the biggest dump for the flagship cryptocurrency. In the past decade, the BTC price has shrunk more than 80% on three occasions and 50%+ on four.

The biggest crashes saw BTC tank 99% in 2011 and 84% in 2013- both corrections linked to the now-defunct Mt.Gox Bitcoin exchange. The latest dump is a 53% crash in May following China’s crackdown on crypto mining.

The post Crypto to start behaving like tech stocks, says crypto analyst appeared first on Coin Journal.

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BIS Exec Benoît Cœuré says global crypto regulation likely in 2022

  • Benoît Cœuré told Financial Times that exponential growth within the decentralised finance (DeFi) space is a ‚wake-up call‘ to regulators

Bank of International Settlements (BIS) innovation hub executive Benoît Cœuré has said the crypto sector is likely to see a global regulatory framework in place in 2022.

Cœuré says that the last year has provided a “wake-up call” to regulators across the world and that action is needed in the coming year. The BIS innovation hub boss notes that the last few months have seen talk among global regulatory agencies focus more on the need for action.

The ex-European Central Bank council member notes that the cryptocurrency sector has seen significant growth over the past few years and that time has come for a framework that’ll provide the needed regulatory guidelines and oversight of the industry.

Now’s the time for crypto principles framework

The exec says allowing the DeFi to grow as it has done doesn’t mean regulators were wrong. Rather, he believes this is what has provided ‘a wake call’ and how regulatory authorities have been able to understand crypto assets and how they work.

According to him, the fast growth and increasing mainstream adoption of crypto across various sectors of the global economy mean that now is the time for “consistent regulation.”

He said that DeFi offers “interconnectedness with traditional finance” and that this could pose a systemic risk. It’s a scenario that makes for a compelling case for a global crypto regulation framework, he added. 

But the problem, according to the French economist, is that countries and jurisdictions have been slow to take action and that puts regulators on different paths.

Regulation pace ‘slow’ and countries acting on different paths

This year, China has banned crypto trading and mining, while India has a bill looking to regulate the crypto space in the country. In the US, lawmakers recently met several crypto executives with the intention of getting insight into how to best regulate the burgeoning industry.

Cœuré believes a united global approach to the matter will prevent bad actors from exploiting loopholes likely to exist if different approaches are adopted.

“The risk in 2022 is that large jurisdictions like Europe, the UK, the US, China, keep moving on but along different tracks and produce a system which is globally inconsistent,” he told the Financial Times.

The post BIS Exec Benoît Cœuré says global crypto regulation likely in 2022 appeared first on Coin Journal.

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Ether (ETH) sees an explosion in buying volume – are all-time highs feasible by new year’s?

November was probably one of the roughest months this year for Ethereum (ETH). Just shortly after hitting all-time highs, the coin followed that rally with a massive nosedive as sentiment waned. Ether (ETH) was dangerously hovering just above $3500 from all-time highs of $4600. But an explosion in buying activity is now suggesting that a rally is coming. Here are some highlights:

  • Sentiment towards ETH is shifting positively, with buying volume set to explode

  • A bullish rally well into Christmas could see ETH crack well above $4000 and push forward

  • Analysts are not ruling out the possibility of all-time highs by Year-end

Data Source: Tradingview.com 

Ethereum (ETH) – price action and analysis

Trading Ethereum in November was really not for the weak-hearted. The wild price swings seen were simply unprecedented. At one time, ETH swung 30% in less than a week, marking the period of sustained market volatility. But the shift in rate hike tone by the US Fed acted as a catalyst for bulls to swing into action. 

At the time of the FOMC announcement, ETH was trading at around $3687. But a buying bonanza rallied the price, eventually taking ETH to above $4000. This is however still a bit further away from the highs of $4600. Besides, there is a real risk RSI could overheat in the coming days. But analysts still see a steady and slow uptick in value, with projections putting ETH well above $4600.

Should you buy Ethereum today?

It’s always a good time to buy Ethereum. It is, after all one of the main mega-cap coins in the market. Also, sentiment around the coin has improved significantly off late. Whether this will hold into the new year remains to be seen. But for long-term bets, it’s still a good time to get into Ether if you haven’t already.

The post Ether (ETH) sees an explosion in buying volume – are all-time highs feasible by new year’s? appeared first on Coin Journal.

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2021 Promises A Choppy End for Bitcoin Bulls – Here Is Why

The volatility in the crypto market in recent weeks has been quite concerning for Bitcoin (BTC) bulls. Although the recent FOMC meeting by the US Fed led to a decent bump in BTC prices, overall, the trend has been quite bearish. We don’t expect this to change; in fact, 2021 could end on a choppy note, backing a bear trend that we have seen for nearly the whole of Q4. Here is why this will happen:

  • Pandemic fears are still ripe with the massive spread of Omicron

  • The supply chain crisis and inflation in the US and Europe remains high, which could threaten global economic recovery

  • There is talk of potential regulation in many countries

Data Source: Tradingview.com

Bitcoin Price Analysis and Prediction

BTC saw a massive pullback this week. At the time of writing this post, the mega-cap coin was trading slightly above $45 000. It is nearly 30% down from its all-time high of slightly above $ 70 000. Also, the technical charts don’t offer a lot of promise, at least not until the year is out. 

First, the price has already fallen below the 200-day exponential moving average. It is also very likely that in the coming days, BTC prices will test the 200-day simple moving average. We saw this type of trend in May 2021, and it took nearly 2 months for BTC to have some semblance of recovery. At this rate, it could be a very anxious time for BTC bulls out there.

Should You Buy Bitcoin

Bitcoin is the go-to crypto for any investor. Although it may seem like the recent pullback offers a nice dip to buy and ride the upward trend, it’s still early days. BTC could fall further before 2021 is out and some experts feel that the trend will continue into early 2022. So, it is best to wait for now.

The post 2021 Promises A Choppy End for Bitcoin Bulls – Here Is Why appeared first on Coin Journal.

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Hedge fund billionaire Ray Dalio reveals he now holds ether, slams cash

Ray Dalio told Yahoo Finance that cryptocurrencies have become an impressive asset class, but he thinks cash could become a “problematic asset”

Bridgewater Associates founder and co-chief investment officer Ray Dalio has revealed that other than Bitcoin, he also now holds a small amount of Ether (ETH), the native cryptocurrency on the world’s largest smart contract platform Ethereum.

The billionaire investor, who’s been at the global hedge fund giant for over three decades, also expressed his admiration of the crypto space terming its growth as “impressive.” But the hedge fund manager did not spare cash, slamming it as possibly the “worst investment.”

Dalio expressed these sentiments during an interview with Yahoo Finance, published Thursday.

First Bitcoin, and now Ethereum

As with many other big-money individuals, hedge fund billionaires, and family offices, Ray Dalio took a negative view of cryptocurrency even as the emerging technology saw massive growth in the last decade.

But in May his stance flipped as he bought Bitcoin (BTC) amid a broader institutional adoption of the flagship cryptocurrency and other digital assets. An explosion of interest in decentralised finance (DeFi), non-fungible tokens (NFTs), and most recently the metaverse only served to increase inflows in this new asset class. 

So, a few months down the line, the American investor has revealed he recently added Ethereum (ETH) to his crypto portfolio.

„I don’t own a lot of it,” he told Yahoo Finance, referring to his ETH holdings. He also pointed out that he could not reveal just how much BTC he holds at the moment.

Talking about Bitcoin, the investor said he thought of it as a very impressive technology that has managed to remain safe for so long and continues to get adopted across the world.

„I think it’s very impressive that for the last 10, 11 years, its programming has still held up,” he noted.

Investors might need to diversify out of cash

Dalio also expressed his views on cryptocurrencies as an investment vehicle, noting that he views these as alternative money and good investments.

But he slammed cash saying that although most investors see it as a safe investment, his opinion is that it’s “the worst investment.“ 

According to him, the dollar’s debasement, for instance, means inflation-adjustment puts losses on dollar-based investments at 4% to 5%. He urges diversification, noting that its likely cash will become “a problematic asset.”

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