Bitcoin Climbs Past $40k, Analyst Expects Another Jump in BTC Value, ETH Taps New Highs – Market Updates Bitcoin News

Bitcoin Climbs Past $40k, Analyst Expects Another Jump in BTC Value, ETH Taps New Highs – Market Updates Bitcoin News

Bitcoin Climbs Past $40k, Analyst Expects Another Jump in BTC Value, ETH Taps New Highs

The price of bitcoin is nearing the crypto asset’s all-time price high on Saturday, as the digital currency has gained over 6% during the last 24 hours. The last time BTC was this high in value was during the first week of January when bitcoin touched a high of $42k that week.

Crypto Prices Begin to Rise, Bitcoin Crosses the Psychological $40k Threshold

Bitcoin (BTC) is up 6% today and hovering over the $40k price handle during Saturday morning’s trading sessions. For the last seven days, BTC has gained 17.6%, but during the last month, BTC is only up 2.3% today. Three month stats show bitcoin has also gained 160% and 311% against the U.S. dollar for the last 12 months.

Today, BTC has a dominance index of around 62% even during the price high. That’s because coins like ethereum (ETH) and bitcoin cash (BCH) and others have seen some significant gains. At press time, with a 1.16 trillion dollar overall market valuation, BTC’s entire market cap is hovering around $750 billion this Saturday.

Meanwhile, as ethereum (ETH) touched new price highs on Friday jumping over $1,750 per unit, the price has dipped since then. At the moment, ETH is exchanging hands for $1,680 per coin with a market valuation of around $193 billion.

The biggest gainers in the top ten crypto-list on Saturday include binance coin (BNB) and bitcoin cash (BCH). BNB has gained a whopping 24% today and is trading for $73 per unit. Bitcoin cash (BCH) is up 8.6% on Saturday morning and swapping for $474 per BCH.

Today’s biggest gainers include ultrain (UGAS), stakenet (XSN), airswap (AST), linkeye (LET), and district0x (DNT). Saturday’s biggest losers include akropolis (AKRO), reddcoin (RDD), nexo (NEXO), mossland (MOC), and swissborg (CHSB).

A Rising Tide of Institutional Investors and Global Adoption

On Wednesday, the senior commodity strategist Mike McGlone said that he believes BTC may touch the $50k handle soon. “About $30,000 is the threshold supported by a rising tide of institutional investors and global adoption as a store-of-value,” McGlone stressed. “Our graphic depicts the milestone of the 20-week moving average crossing above $20,000, which we view as an extreme downside level in the event of a risk-off swoon akin to 1Q20.”

McGlone further added:

Bitcoin 260-day volatility is in early bottoming days from an all-time low vs. the same gold measure, akin to the start of 2017. Our [findings] depict accelerating flows into Grayscale Bitcoin Trust (GBTC) as they decline in total known ETF holdings of gold. At almost 700,000 Bitcoins, GBTC is reaching record highs, while gold ETFs have dropped to about 107 million ounces from the October peak, just above 111 million.

Upcoming CME Futures Launch Boosts Ethereum Price

Additionally, crypto proponents and industry execs also believe ethereum (ETH) is headed for higher numbers. Paolo Ardoino, the CTO of Bitfinex recently discussed the rising ETH value in an investor’s note sent to news.Bitcoin.com. “Ethereum is seemingly ‘going to the moon as it reaches another all-time high above $US1,700,” Ardoino wrote.

“There are lots of moving parts to the second-biggest cryptocurrency by market capitalization. Skeptics may focus on the challenges that it faces. But hackers and coders love to solve problems. Ethereum was designed to be a currency to fuel an ecosystem of applications and we are still at the very beginning of this journey. Meanwhile, the coming CME Futures launch represents another milestone towards crypto becoming an established asset class,” the Bitfinex CTO concluded.

What do you think about the recent price movements within the crypto economy? Let us know what you think about this subject in the comments section below.

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Bitcoin’s Volatile Week Rattles Faith in Crypto Resurgence

(Bloomberg) – The sharp selloff in Bitcoin this week is stoking fresh questions about the sustainability of the cryptocurrency boom.

Prices for the digital asset have tumbled about 12% this week, marking the steepest decline since September. Bitcoin was higher on Friday, pushed back above $32,000 after a series of wild swings the past two days. Commentators have cautioned that a sustained drop below $30,000 could presage further losses.

“Being Bitcoin, a 10% range intraday is a mere flesh wound to the digital asset, in a world where tradable versus investible is seriously blurred,” said Jeffrey Halley, senior market analyst at Oanda Asia Pacific Pte. The digital coin could “easily be $35,000 again tomorrow or could drop through $30,000 and test notional support at $27,000.”

Bitcoin’s surge to a record of almost $42,000 on Jan. 8 embodied the embrace of risk in financial markets awash with stimulus. Some argue Bitcoin is also becoming a more mainstream investment with a role to play in hedging risks such as dollar weakness and faster inflation. Others see little more than speculative mania since the digital coin has more than tripled in the past year.

Pinpointing who is mainly responsible for the Bitcoin rally is one of the many crypto mysteries – Bitcoin funds, momentum chasers, billionaires, day traders, companies and even institutional investors have been cited.

For instance, Grayscale Investments, which is behind a popular Bitcoin trust, saw total inflows of more than $3 billion across its products in the fourth quarter. This week, BlackRock Inc. dipped its toe into the crypto universe for the first time, saying cash-settled Bitcoin futures are among assets that two funds were permitted to buy.

Recent comments by Janet Yellen may be among the reasons for this week’s Bitcoin swoon, said Jehan Chu, managing partner with blockchain advisory firm Kenetic Capital in Hong Kong. In her Senate confirmation hearing, Yellen noted cryptocurrency as an area of concern for terrorist and criminal financing.

Story continues

Describing such fears as “unfounded,” Chu said a “natural correction” is underway and that profit taking won’t “reverse the unprecedented assimilation of Bitcoin into Wall Street’s DNA, leading to $100,000 levels this year.”

Some strategists are more skeptical. For instance, UBS Global Wealth Management recently warned that there’s nothing stopping a wipeout in big-name digital currencies eventually amid regulatory threats and central bank-issued competitors.

“Over the past few days, Bitcoin has been trading approximately 30% lower than the most recent all-time highs, and we’ve seen Asia take profits in Bitcoin in the lead-up to Chinese New Year,” said Fernando Martinez, head of Americas with crypto brokerage OSL. The next key level is $27,750 – if Bitcoin falls through that it could retest $25,800, he said.

Bitcoin was trading at $32,499 as of 10:55 a.m. in New York on Friday. The wider Bloomberg Galaxy Crypto Index rose 1.5%. Shares of cryptocurrency stocks, such as Japan’s Monex Group Inc., slid earlier.

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Here is how the so-called “Coinbase effect” will pump any new cryptocurrency listed

Coinbase listing stole the show in 2020, with some of the assets added to the exchange recording massive double-digit gains.

Investors must separate listing announcements and actual listing on Coinbase.

Assets that are listed after an announcement has been made tend to rally before the actual trading date.

Assets listed by surprise attract a positive tweet sentiment, leading to massive gains on the initial trading day.

Cryptocurrency listings on exchanges and particularly on large platforms like Coinbase and Binance are a big deal. The crypto market is accustomed to a new terminology referred to as the “Coinbase effect.” This new term defines what occurs to any cryptoasset listed on the San Francisco-based cryptocurrency exchange, Coinbase.

How new listings on Coinbase go ballistic

Coinbase is the most prominent cryptocurrency exchange platform in the United States and many regions worldwide. However, it stands out for its relatively limited asset offerings, which adds credibility to new listings. You can think of it as affirmative action, which brings out the hype.

The listings on Coinbase in 2020 give an insight into the impact of the exchange on cryptocurrencies. Therefore, it is essential to look at some of the assets listed in 2020 30 days before and on the actual trading day. The chart below shows the performance of some of the digital assets listed on Coinbase platforms last year.

Coinbase listings in 2020

These assets stood out in 2020 and why

According to research done by The TIE in collaboration with eToroUS, Civic (CVC) and district0x DNT) saw their values more than triple after listing on Coinbase. Keep in mind that most returns often fall in the range between 100% and -100%. These two assets are likely to give insight into the ‘Coinbase effect.”

Civic goes ballistic pre and post-listing on Coinbase

Civic was listed on Coinbase simultaneously with tokens such as Decentraland (MANA) and district0x (DNT). Following the announcement of the intended listing, Civic rallied by nearly 190%. Intriguingly, the rally continued following the commencement of the actual trading (which occurs when an asset has attracted the liquidity threshold set by Coinbase).

The daily chart illustrates a total increase of 650% from the announcement to the days following the actual trading. In other words, CVC grew by roughly 460% after it was listed on Coinbase. At the time of writing, Civic is trading at $0.08, down from the 2020 peak ($0.17) (Coinbase effect) and $0.234 (the crypto bull cycle).

CVC/USD daily chart

district0x (DNT) swings 900% after listing on Coinbase

After Coinbase announced to the community that district0x would be available as an instrument of trading, the token shot up 431%, as illustrated on the chart. Like Civic, the rally continued after the listing, leading to a total growth of $905% to exchange hands at $0.084 (2020).

Although there was a correction several days after the listing, support was embraced at $0.04 before the bull cycle of 2020/2021 kicked in, sending it to $0.225 in January. Meanwhile, DNT is trading at $0.115 in the wake of a correction from the all-time high.

DNT/USD daily chart

As seen with CVC and DNT, some assets continued to rally for 30-day after the actual trading. Other tokens that have shown similar growth patterns are OMG Network (OMG), Algorand (ALGO), and Decentralized Mana (MANA).

Coinbase listings in 2020 and their performance

A post-listing rally is not a guarantee

A keen look at the assets listed on Coinbase in 2020 shows that some cryptoassets tend to rally after the announcement but drop following the actual trading has started. Some may think that this is insider trading, but this is not the case.

Of all the 18 assets that had the privilege to be listed, ten had announcements done an average of six days before the actual trading. The announcement period gives traders a window of opportunity to beat the herd, leading to what is known as pre-listing gains. This means that by the time these assets are available for trading, the effect is almost non-existent, leading to either minimal price increase or even selloffs.

Coinbase listings with announcements

However, the remaining eight assets got listed without announcements, thus attracting double-digit gains on the actual trading day. These assets shot up by an average of 33%, and they include district0x, Uniswap (UNI), and CELO. The assets listed by surprise have no pre-listing gains but tend to rally four times their values before listing. These same assets have minor pullbacks the day after their listings.

Coinbase listings without announcements

The impact of Coinbase listing on price

For assets listed following an announcement, data shows that they give investors an excellent opportunity to buy low and sell high—an average of 43% in gains within the average six-day window. The pre-listing announcement also increases social volume, with related tweet volumes spiking by as much as 5,000%. DNT emerged as the best performer, with tweet mentions going up by 5,939%.

Tweet volume

Generally, tweet volumes have an impact on the assets listed on Coinbase. However, it is essential to realize that tweet sentiment matters a lot. When an asset is announced before it is listed, its tweet sentiment tends to be negative on the actual listing day. On the other hand, assets that are listed by surprise have a positive tweet sentiment on the actual trading day.