Crypto market stabilises as Fantom keeps pumping

Crypto market stabilises as Fantom keeps pumping

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Phew! It looks like the crypto bull market is intact.

Bitcoin and Ethereum had been edging higher over the past 24 hours, as of 1.49pm AEDT, and most altcoins were posting gains.

BTC was trading for $US50,733 ($64,120), up 0.7 per cent from the same time yesterday, while ETH was changing hands for $1,637 ($2,073), up 0.4 per cent.

A two-day correction at the start of the week that saw Bitcoin’s value drop from over $US58,000 to under $US46,000 prompted some jitters that the crypto bull market would be short-lived, but positive sentiment seems to have returned.

Of the top 100 crypto assets by market capitalisation, 45 had posted gains in the past 24 hours and 50 had notched losses, according to Coingecko. (Another five were flat).

But just one coin had declined by double-digits: ZKSWap (ZKS), a decentralised exchange built on Ethereum. It was down 35 per cent after hitting an all-time high of $11.24 around noon.

Ten coins were up by over 10 per cent, with data storage blockchain protocol Arweave (AR) the top performer, up 60.6 per cent in the past 24 hours to $US12.55. A few hours ago it had also hit an all-time high, of $US14.02.

Top 100 coins Stacks (STX), Fantom (FTM), Bitmax Token (BTMX) and Thor Chain (RUNE) had all also hit all-times in the past 24 hours, according to Coingecko.

Fantom has exploded from just under US3c in late January to US67c on Thursday – up nearly 13-fold in the past 30 days and by a mind-boggling 74-fold in the past year.

The token is now ranked as No. 48 on Coinmarketcap, with a market capitalisation of $US1.7 billion.

Recent enthusiasm seems driven by creating a “bridge” to the Ethereum platform for token swaps.

Cross-chain bridge between Ethereum and Fantom (and other chains) launching soon. Finally Ethereum users will be able to enjoy fast and cheap transactions. On Fantom transactions:

– are confirmed in 1-2 seconds

– cost a fraction of a cent A whole new UX for DeFi is coming. https://t.co/lmihE5rJHd — Fantom Foundation (@FantomFDN) February 21, 2021

I have a feeling once we break $0.20 it won’t be long until we see $0.50, then $1 $FTM #Fantom 🚀🚀 — Mel 🅕 (@mdaxcrypto) February 18, 2021

#Fantom $FTM 100x done ✅ and more is coming… Thank you team and community, life-changing really 😊💰🙏🏻🔥🚀!!! — Marko (@Marko_orca) February 21, 2021

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Crypto: Despite the risks, is Bitcoin becoming mainstream? - CityAM

2020 was a record-breaking year for Bitcoin, and this year may not be any different. Despite its spectacular drop last week, the crypto frenzy is far from over. Banks, well-known business leaders and investors all seem to jump on the digital currency bandwagon.

Bitcoin has come a long way since it first launched in 2009, when – in its first year alone – individual coins jumped in value from USD 0.0008 to USD 0.08.

In recent months, Bitcoin hit an all-time record high helped by PayPal, Mastercard, Elon Musk, BNY Mellon’s adoption and the influx of institutional funds, which has given Bitcoin some credibility and legitimacy.

Interest among retail investors is also on the rise and, last month, the currency was given a major boost when the US Office of the Comptroller of the Currency stated that national banks can use blockchain networks and Stablecoins for payments, further legitimising digital currencies.

Read more: Crypto selloff sends Bitcoin tumbling below $50,000

‘Mother of all bubbles’

However, meteoric rises and falls in value still seem to be the norm with Bank of America to speculate recently that the current bitcoin run is “the mother of all bubbles.”

Morever, the UK’s financial regulator, the FCA, issued an unusual warning on crypto investments, saying that “if consumers invest in these types of product, they should be prepared to lose all of their money.”

“The news is not all bad,” commented John Hunter, business development director at Zedra Guernsey, a wealth and fund solution provider.

“Last month J.P. Morgan’s prediction proved to point he right way ahead based on last days developments,” Hunter told City A.M. this evening.

The banking giant projected the price of bitcoin could hit $146,000 as more big firms embrace it as an alternative to gold.

The regulatory interest and bank analyses show Bitcoin is increasingly drifting into the mainstream domain, with more and more non-crypto focused traders zooming in on the currency.

“For long-term investors who went in early or when bitcoin had a low valuation, bitcoin can be a lucrative investment. Experienced investors who have significant capital available to invest and who can afford to take big risks in the hope of big rewards are all enjoying the Bitcoin ride,” Hunter noted.

Read more: Bitcoin price crashed! Here is what comes next

Risk

While the risks surrounding Bitcoin are widely accepted, investor concern often centres around the fact that fiat money is exchanged for a virtual asset and vice versa.

Bitcoin ownership is recorded in ledgers but the relatively new nature of cryptocurrencies, the fact that all transactions are digital, and the lack of regulatory oversight all play a part, Hunter pointed out.

“In essence, those investing in Bitcoin or cashing out their investment into fiat money want to protect their interests. The point at which fiat cash and a cryptocurrency meet can feel like a natural weak point,” he said.

Therefore, so-called escrow agreements are increasingly popular for bitcoin transactions as they present a win-win for all parties.

“Traditional escrow agreements are used to protect the interests of the seller and the vendor and it’s the same for Bitcoin transactions,” Hunter explained.

Escrow becomes especially relevant when the value of Bitcoin increases significantly and more cash needs to be deposited to purchase Bitcoin, he concluded, “or when there is a liquidation that translates to a significant amount of fiat money.”

Read more: Elon’s Bitcoin bet hands Jeff Bezos back title of world’s richest person

Crypto stocks rally as Cathie Wood backing sends bitcoin back above $51,000

Bitcoin has risen by more than 30% this year so far Dado Ruvic/Reuters

Cryptocurrency exposed companies including MicroStrategy and Riot Blockchain gained on Wednesday.

The jump coincided with bitcoin’s rally back above $51,000 after Ark Boss Cathie Wood praised the token.

Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of cryptocurrency-exposed companies rose in premarket trading on Wednesday as bitcoin climbed back above $51,000.

The token tumbled as low as 18% on Tuesday to $45,000 but has rallied back above $51,000 after Ark Investment boss Cathie Wood told Bloomberg Tuesday evening she remains “very positive on bitcoin,” and is “very happy to see a healthy correction here.” Payments company Square’s announcement of an additional $170 million of bitcoin also helped push the price back up.

MicroStrategy gained almost 9% early Wednesday, after closing down 21% Tuesday.

Wednesday morning the business intelligence firm run by bitcoin bull Michael Saylor announced it purchased an additional $1 billion worth of bitcoin, bringing its total bitcoin holdings to about $4.78 billion.

The $6.6 billion company run by bitcoin bull Michael Saylor now holds approximately 90,531 bitcoins.

Bitcoin mining companies Riot Blockchain and Bit Digital gained 12% and 8%, respectively. Marathon Patent rose 15%, and Ault Global rose 5%.

Meanwhile Blockchain-based e-commerce company Future Fintech gained 5%, and crypto mining hardware developer EBang was up 11%.