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Is the Crypto Crash Over or Just Beginning?

Volatility is nothing new to the crypto market and investors have learned to adapt to a bumpy ride.

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The crypto market has had a forgettable past month, with Bitcoin falling nearly 50% in May alone.

Overall, this highlights for many the concerns that have always defined the asset class, i.e., volatility and so many unforeseen variables.

Of course, such moves in the crypto market are nothing new, especially for investors who have braved the elements of the 2017 run up and subsequent crash.

A more pressing question in the immediate future is whether last month’s crash is a temporary construct or signs of a deeper malaise.

Bitcoin Setting the Pace

Investors should look no further than the paramount crypto, Bitcoin, which appears to have achieved some stability over $35,000 in recent days. That being said, BTC’s next moves will be crucial.

Since the price of BTC dropped below $40K in mid-May, the price of the asset has oscillated between the $32,000-$38,000 range.

In doing so, BTC has never quite managed to build enough support to recapture the $40,000.

Analysts are pointing to a key level of support at $35,000, which if it continues to build, could result in a meaningful and sustained movement toward $40K and above.

Of note, this move would not be so pumped on leverage. However, price action in recent days has been very choppy. On the flip side, BTC could enter a new period of price discovery on the lower end.

Is the Crash Overblown or Signs of a Chief Concern?

What caused the price drop in May? Ultimately a drop in demand and an over-hyped push from the outside market caused the decline in May, much as was seen in several drops during 2017 and 2018.

Put another way, there are more advanced solutions and better serving coins out there, compared to BTC as of late as well with Ethereum being a perfect example.

Ultimately, nobody really knows what the next move with BTC with the current price action having to play out with risk sentiment continuing to be a factor.

Volatility is always expected in crypto or for any new emerging technology or asset class. It is important to also pay attention to the adoption rate of the networks. For example, if the participants in the network keep growing over time, the value of the network rises.

This could be a key factor for many other cryptos moving forward in the short- and long-term.

By this metric, BTC and cryptos have the fastest growing adoption rate of any technology in recent years. BTC’s adoption has been comparatively higher than the rate of adoption of the internet.

From a monetary perspective, BTC or other cryptos are also a natural hedge against a never-before-seen expansion of US dollar money supply.

Many have seen BTC replace gold in terms of inflation hedges with institutions buying BTC at rates never higher than ever before. This could represent a tailwind that speaks to a long-term bullishness on BTC, though is too early to tell.

Obviously, a continued course or status quo by the US Federal Reserve would also need to hold steady for this trend to continue.

Buckle Up for More Volatility

Crypto’s price volatility is something most investors have just come to accept. If there are no periods of sharp drops of 20-50 percent over several days, there can be no periods of rapid growth of 100-200 percent over a short time as well.

There are commonly sharp movements that make crypto-assets attractive for retail investors, who tend to take high risks in pursuit of high profits.

However, if you remove the risk, crypto will become comparable to other assets such as metals or other traditional assets trading on the world’s largest exchanges.

It is up for debate whether BTC will not always be capable of such extreme volatility. For example, large drops will no longer be possible when the capitalization of BTC is so large that retail sales will not affect the exchange rate.

Looking ahead, it is anyone’s guess where crypto prices are headed. However, given its past performance, we could easily see BTC or other cryptos reach escape velocity at some point in the near future if risk appetite holds.

In the last 60-90 days alone there has not been a lot of positive action in the market, which could point to higher prices. With the summer months historically representing a lull for markets, it will be interesting to see how crypto behaves during this period.

Role of Ethereum

The focus lately has continued to shift toward Ethereum and there is quite a bit of attention on the decentralized finance (DeFi) ecosystem that sits on top of it.

Still, both ETH and DeFi assets across the board are heavily dependent on the price of BTC. Presently, there is an inescapable correlation to BTC price and the wider altcoin and DeFi market though this is one that could weaken over time.

For now, investors will have to stay the course and enjoy the ride.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://www.financemagnates.com/thought-leadership/is-the-crypto-crash-over-or-just-beginning/

Blockchain

Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange

The post Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight appeared first on Coingape.

Published

on

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange outflow. The Bitcoin exchange flow balance turning negative on Monday was certainly a bullish indicator for the world’s largest cryptocurrency.

Bitcoin has been showing bullish momentum over the last few days making investors and analysts hopeful of its journey to the north. Besides, El Salvador making Bitcoin a legal tender has caused a major buzz with more Latin American countries showing interest in joining the bandwagon.

As per market analysts, if Bloomberg manages to move past the 200-DMA above $40,500, it will be setting up itself for its next move to $50,000.

At the same time, Bitcoin (BTC) continues to receive praise and backing from global billionaires. On Monday, June 14, American billionaire and hedge fund manager Paul Tudor Jones showered praised for Bitcoin saying that it serves as a great portfolio diversifier. He also announced a 5% portfolio allocation to Bitcoin.

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MicroStrategy to Sell $1 Billion In Common Stock to Buy Bitcoin

On Monday, June 14, business intelligence firm MicroStrategy made two big announcements. First that it successfully completed the conversion of $500 million worth of corporate bonds due 2028 and the company is mulling to invest this amount in Bitcoin. As of now, MicroStrategy holds more than 92,000 Bitcoins in its treasury with its total investment going past $2.2 billion.

The second news is that the company is now considering the public sale of Class A Common Stock through an open market agreement.

In this filing, the firm wrote: “We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin”.

The firm further noted: “The concentration of our bitcoin holdings enhances the risks inherent in our bitcoin acquisition strategy. Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our indebtedness.”

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://coingape.com/bitcoin-btc-surges-past-40000-resistance-high-exchange-outflow-50000-next-sight/

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Blockchain

Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange

The post Bitcoin (BTC) Surges Past $40,000 Resistance With High Exchange Outflow, $50,000 Next In Sight appeared first on Coingape.

Published

on

Earlier today, Bitcoin (BTC) finally moved past its crucial resistance of $40,000 levels and is currently trading 2.39% up at a price of $40,350 with a market cap of over $750 billion. As per the on-chain data provider, the Bitcoin price hit its 3-week high and a recent push above $40,000 with a massive exchange outflow. The Bitcoin exchange flow balance turning negative on Monday was certainly a bullish indicator for the world’s largest cryptocurrency.

Bitcoin has been showing bullish momentum over the last few days making investors and analysts hopeful of its journey to the north. Besides, El Salvador making Bitcoin a legal tender has caused a major buzz with more Latin American countries showing interest in joining the bandwagon.

As per market analysts, if Bloomberg manages to move past the 200-DMA above $40,500, it will be setting up itself for its next move to $50,000.

At the same time, Bitcoin (BTC) continues to receive praise and backing from global billionaires. On Monday, June 14, American billionaire and hedge fund manager Paul Tudor Jones showered praised for Bitcoin saying that it serves as a great portfolio diversifier. He also announced a 5% portfolio allocation to Bitcoin.

advertisement

MicroStrategy to Sell $1 Billion In Common Stock to Buy Bitcoin

On Monday, June 14, business intelligence firm MicroStrategy made two big announcements. First that it successfully completed the conversion of $500 million worth of corporate bonds due 2028 and the company is mulling to invest this amount in Bitcoin. As of now, MicroStrategy holds more than 92,000 Bitcoins in its treasury with its total investment going past $2.2 billion.

The second news is that the company is now considering the public sale of Class A Common Stock through an open market agreement.

In this filing, the firm wrote: “We intend to use the net proceeds from the sale of any class A common stock offered under this prospectus for general corporate purposes, including the acquisition of bitcoin”.

The firm further noted: “The concentration of our bitcoin holdings enhances the risks inherent in our bitcoin acquisition strategy. Servicing our debt will require a significant amount of cash, and we may not have sufficient cash flow from our business to pay our indebtedness.”

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Handpicked Stories

Checkout PrimeXBT
Trade with the Official CFD Partners of AC Milan
Source: https://coingape.com/bitcoin-btc-surges-past-40000-resistance-high-exchange-outflow-50000-next-sight/

Continue Reading

Blockchain

$1.3M worth of BTC donated to Bitcoin-hodling charity in less than 3 weeks

The Bitcoin Water Trust has already received more than $1.3 million worth of BTC donations despite launching just three weeks ago.

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New York-based non-profit, Charity: water, has received more than $1 million in BTC donations to its Bitcoin Water Trust within three weeks of the trust’s launch.

The Bitcoin Water Trust was announced during the 2021 Bitcoin conference in Miami. The initiative attracted attention for its “HODL MODL” treasury management strategy — with the non-profit accepting donations in Bitcoin that it will not touch until 2025.

According to the charity’s website, a total of 32.5949 BTC has been donated so far, which equates to more than $1.3 million at current prices.

The charity is hoping to leverage the hypothetical gains Bitcoin could make over the coming years. A June 14 blog post from U.S.-based crypto exchange Gemini — which is providing crypto custody services for the trust — asserts that donations received by the charity today could have a much larger impact if held into the future:

“This new charity model — the HODL MODL — creates a new paradigm for charitable giving. It brings the HODL ethos of Bitcoin to charitable giving, and means your bitcoin donation today could make an even bigger impact tomorrow.”

Gemini’s founders, Tyler and Cameron Winklevoss have also agreed to match the first 50 Bitcoin donated to the Bitcoin Water Trust.

“We’re thrilled to help a fellow mission-driven organization like Charity: water accept bitcoin and maximize its humanitarian efforts,” the post added.

Charity: water was founded in 2006, with the non-profi working to launch community-owned water projects that provide clean water and sanitation to developing nations. The organization first began accepting Bitcoin donations in 2014.

Related: The rise of crypto charities: Elongate and Munch raise millions for various causes.

Charity has become a popular topic within the crypto industry in recent months after Ethereum co-founder Vitalik Buterin donated billions worth of SHIB tokens that had been airdropped to his wallet by the meme-coin’s creators.

Buterin donated one-tenth of his SHIB holdings to charity after burning the remaining 90% to deter other altcoin developers from airdropping massive quantities of their token’s supply to his wallets for promotion. The India Covid Relief Fund was among the top recipients of Buterin’s dog-token stash, receiving more than $1 billion worth of SHIB.

On May 31, the Human Rights Foundation (HRF) — an organization that supports human rights activism globally — launched several Bitcoin-based grants as part of its $210,000 Bitcoin Development fund.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/1-3m-worth-of-btc-donated-to-bitcoin-hodling-charity-in-less-than-3-weeks

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Blockchain

$1.3M worth of BTC donated to Bitcoin-hodling charity in less than 3 weeks

The Bitcoin Water Trust has already received more than $1.3 million worth of BTC donations despite launching just three weeks ago.

Published

on

New York-based non-profit, Charity: water, has received more than $1 million in BTC donations to its Bitcoin Water Trust within three weeks of the trust’s launch.

The Bitcoin Water Trust was announced during the 2021 Bitcoin conference in Miami. The initiative attracted attention for its “HODL MODL” treasury management strategy — with the non-profit accepting donations in Bitcoin that it will not touch until 2025.

According to the charity’s website, a total of 32.5949 BTC has been donated so far, which equates to more than $1.3 million at current prices.

The charity is hoping to leverage the hypothetical gains Bitcoin could make over the coming years. A June 14 blog post from U.S.-based crypto exchange Gemini — which is providing crypto custody services for the trust — asserts that donations received by the charity today could have a much larger impact if held into the future:

“This new charity model — the HODL MODL — creates a new paradigm for charitable giving. It brings the HODL ethos of Bitcoin to charitable giving, and means your bitcoin donation today could make an even bigger impact tomorrow.”

Gemini’s founders, Tyler and Cameron Winklevoss have also agreed to match the first 50 Bitcoin donated to the Bitcoin Water Trust.

“We’re thrilled to help a fellow mission-driven organization like Charity: water accept bitcoin and maximize its humanitarian efforts,” the post added.

Charity: water was founded in 2006, with the non-profi working to launch community-owned water projects that provide clean water and sanitation to developing nations. The organization first began accepting Bitcoin donations in 2014.

Related: The rise of crypto charities: Elongate and Munch raise millions for various causes.

Charity has become a popular topic within the crypto industry in recent months after Ethereum co-founder Vitalik Buterin donated billions worth of SHIB tokens that had been airdropped to his wallet by the meme-coin’s creators.

Buterin donated one-tenth of his SHIB holdings to charity after burning the remaining 90% to deter other altcoin developers from airdropping massive quantities of their token’s supply to his wallets for promotion. The India Covid Relief Fund was among the top recipients of Buterin’s dog-token stash, receiving more than $1 billion worth of SHIB.

On May 31, the Human Rights Foundation (HRF) — an organization that supports human rights activism globally — launched several Bitcoin-based grants as part of its $210,000 Bitcoin Development fund.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cointelegraph.com/news/1-3m-worth-of-btc-donated-to-bitcoin-hodling-charity-in-less-than-3-weeks

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