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Crypto-to-fiat liquidity startup Xanpool raises $27M

Crypto-to-fiat liquidity startup Xanpool raises $27M

XanPool positions itself as a “Uniswap-like” crypto-to-fiat AMM relying on the liquidity of its participants.

Cryptocurrency-to-fiat infrastructure provider Xanpool continues expanding operations in the Asia Pacific (APAC) by securing fresh funding.

The Hong Kong-based startup raised $27 million in a Series A funding round led by Valar Ventures, the venture capital firm co-founded by PayPal co-creator Peter Thiel.

Other participating investors included crypto-focused venture capital firm CMT Digital as well as angel investors like TransferWise co-founder Taavet Hinrikus, Xanpool announced Friday.

Running operations in 13 countries across APAC, Xanpool is looking to further consolidate its presence in the region with new funding. Xanpool CEO Jeffery Liu told Cointelegraph that the startup operates in countries like India, Hong Kong, Philippines, Singapore, Thailand, Indonesia, Australia, New Zealand, and Japan.

“In the coming quarter or two, we are primarily expanding our services into a few more APAC countries. As well as consolidating our hold in existing markets,” Liu noted.

Since its launch in March 2019, the platform has so far amassed over 500,000 users and 400 business partners, according to the announcement. “By the end of 2022, we aim to have grown our user base by 20x to 10 million users across the APAC,” the CEO said.

XanPool is a peer-to-peer crypto-to-fiat platform and a liquidity network relying on the liquidity of its participants. The platform deploys unused money by individuals and businesses to settle cross-currency and cryptocurrency transactions, reducing the counterparty risk and costs and also allowing liquidity providers (LPs) to earn up to 2% on their idle capital.

Xanpool CEO told Cointelegraph that the startup is running software similar to that of decentralized finance platform Uniswap. “Except that instead of crypto-to-crypto, our automated market maker automates between crypto and fiat,” Liu noted.

Related: Crypto fintech MoonPay reportedly aims for $3.4B valuation in first VC funding

“Instead of crypto native LPs, our LPs range from traditional import-export businesses to money service operators, to crypto funds. This liquidity is essentially used to settle local currency and cryptocurrency transactions immediately from the individual's or business’s wallet,” the CEO said. Liu stressed that Xanpool never touches money on individuals' or businesses' wallets.

“We simply make software which allows the individual or business to automate their buying and selling, and in return earn a fee,” the executive said.

The latest funding brings XanPool’s total raised to around $32 million, including previous funding by individual investors. The company raised $4.3 million in a pre-A financing round last November in conjunction with its official launch.



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Bitcoin extends correction as Ethereum sees 'picture perfect' rejection at all-time highs

Bitcoin extends correction as Ethereum sees 'picture perfect' rejection at all-time highs

A copycat move from ETH leaves investors noticeably disappointed and puts the brakes on the "up only" trend of the past week.

Bitcoin (BTC) stayed closer to $60,000 on Oct. 22 after the largest altcoin Ether (ETH) failed to cement new all-time highs.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

ETH all-time high? Blink and you'll miss it

Data from Cointelegraph Markets Pro and TradingView ETH/USD just match its record $4,380 on Bitstamp before seeing a harsh rejection.

Traders watched in anticipation as Ethereum appeared to follow Bitcoin to historic new levels, only to face immediate resistance and fall sharply back into a lower range.

Trader and analyst Rekt Capital called the event a "picture perfect rejection."

At the time of writing, ETH/USD circled $4,150, preserving $4,000 as support with the exception of a flash dip which immediately followed the all-time high rematch.

ETH/USD 1-day candle chart (Bitstamp). Source: TradingView

Against Bitcoin, Ethereum fared better, with the ETH/BTC pair having bounced near lows last seen in late July. 

Bitcoin could see "additional topside euphoria"

Having similarly failed to hold significantly higher levels, Bitcoin itself took an extended break as overheated markets cooled their excitement.

Related: Too popular: Bitcoin futures ETF in danger of hitting upper limit for contracts

Funding rates were returning to normal on Friday, having reached a state reminiscient of the blow-off top from April. 

Bitcoin funding rates chart. Source: Bybt

As with open interest, however, these were not as frenzied as the Q2 rush, which produced the $64,900 all-time high in place until this week.

"This means there is possibly still room for additional topside euphoria but we are at levels that are starting to stretch the market," crypto trading firm QCP Capital commented in its latest market update.



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Every spectactor in a section of FTX Arena handed $500 in crypto at season opener

Every spectactor in a section of FTX Arena handed $500 in crypto at season opener

The international crypto exchange also gave every spectator a T-shirt linked to an exclusive Opening Night FTX Arena NFT.

Major cryptocurrency exchange FTX has given $500 in crypto to every spectator sitting in one section of the FTX Arena at Thursday’s Miami Heat season opener game against the Milwaukee Bucks. 

As well as the crypto giveaway, every fan in the stadium received a T-shirt with a QR code giving access to an exclusive ‘Opening Night FTX Arena NFT’.

Fans will no doubt be wondering if the free crypto giveaway will become a regular occurrence at Miami Heat games, with totally unconfirmed social media speculation that a different section may be given crypto each game to ramp up excitement.

Messari founder Ryan Selkis did some back of the envelope math and determined that with 21,000 spectators in the arena, and 80 seating sections, the giveaway would cost around $150,000 — which is pretty good bang for buck given the stunt went down welliral on social media.

In April, FTX paid up $135 million to rename the Miami Heat NBA arena FTX Arena for the next 19 years — a bold move considering the company is only two years old.

“Don’t sleep on how powerful this sponsorship will be,” wrote podcaster Anthony Pompliano.

Related: FTX crypto exchange raises $420M from 69 investors

Udonis Haslem, 3-time NBA Champion Miami Heat legend was also announced as ambassador for FTX’s "You In, Miami?" campaign at the game. FTX says it plans to work closely with Haslem to promote crypto within the greater Miami area.

"I'm excited to share my community with FTX and work alongside them to increase awareness of cryptocurrency,” said Haslem.

The promotional blitzkrieg is the most recent installment in FTX’s ongoing campaign  to target sports fans as a way to bring in more mainstream consumers.

In May FTX’s price index app Blockfolio signed an endorsement deal with top NFL draft pick Trevor Lawrence. It also recently signed a $210 million deal to sponsor eSports team TSM, changing the team’s name to TSM FTX for the next 10 years, and it has been a sponsor of major league baseball since June



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17% of addresses snapped up 80% of all Ethereum NFTs since April

17% of addresses snapped up 80% of all Ethereum NFTs since April

According to research from Moonstream the top 16.71% of all NFT hodlers on Ethereum owned 80.98% of NFTs between April 1 and Sept. 25.

Open source blockchain analytics firm Moonstream published a report which found that around 17% of addresses control more than 80% of all NFTs on Ethereum.

The report was published on Oct. 21 and the analysis was conducted on more than 7 million NFT transactions on the Ethereum blockchain between April 1 and Sept. 25, 2021.

The report found that whales, NFT platforms and exchanges which comprise the top 16.71% of all addresses, own 80.98% of NFTs on Ethereum.

The remaining 83.29% of NFT owners were only able to snap up “a handful of tokens'' during that time frame.

“This latter statistic does require a little more nuance in its interpretation, however, as many of those owners are marketplaces and clearinghouses like OpenSea, Nifty Gateway, and other platforms of the same ilk,” Moonstream said.

The figures seem to closely replicate the Pareto Principle, or 80/20 rule, which is a common factor across different markets and sectors. The principle is based on the idea that around 80% of consequences come from 20% of the causes.

“Fascinating to see the Pareto principle more or less hold in a market as avant-garde and traditionally ‘irrational’,” said Reddit user “xddemonesque” in response to the report.

Moonstream’s data set focuses on ERC 721 tokens and does not include any data from Layer 2 networks such as Polygon, nor does it source data from centralized Application Programming Interface’s (APIs).

“Our scan of these 1,145,767 blocks yielded transfer activity for 7,020,950 tokens from 9,292 NFT contracts across 727,102 addresses. These mints and transfers form the core of the dataset,” the report reads.

Related: NFTs allow people to ‘interact with crypto in a hands-on way’ — Shaq

While Moonstream highlighted the “great inequality” of NFT ownership on Ethereum, the firm also argued that the NFT market is still open enough for small investors to participate, and pointed to the majority of NFT holders being small time traders who were able to purchase their assets with relative ease:

“What this data shows us is that the Ethereum NFT market is open in the sense the vast majority of its participants are small-time purchasers who likely make their purchases manually. There are few barriers to entry for those who wish to participate in this market.”


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Too popular: Bitcoin futures ETF in danger of hitting upper limit for contracts

Too popular: Bitcoin futures ETF in danger of hitting upper limit for contracts

Unprecedented demand for the ProShares futures fund could result in longer contracts that may stray from Bitcoin prices.

The ProShares Bitcoin Strategy ETF is on track to reach a limit on the number of futures contracts it’s allowed after quickly becoming a little too popular.

After just a couple of days of trading, the ProShares ETF has reached 1,900 contracts sold for October and there is 2,000 front-month limit imposed by the Chicago Mercantile Exchange.

There are already 1,400 contracts for November and there is an overall maximum limit of 5,000 open contracts according to Bloomberg. One solution could be to offer longer contracts, but that would carry the danger of too much distancing from BTC prices.

President of the advisory firm the ETF Store, Nate Geraci, commented that the fund could start to diverge from market prices, adding:

“The ETF is forced to obtain Bitcoin price exposure at higher and higher prices as it goes further out on the futures curve.”

The launch of competing products such as the Valkyrie Bitcoin Strategy ETF which will commence trading today, and the VanEck ETF which is expected to trade on Monday, Oct. 25, may dilute the demand for the ProShares fund.

As reported by Cointelegraph, the ProShares ETF became the first-ever fund to hit $1 billion in assets under management in just two days. It beat an 18-year-old record previously held by a gold-based fund that did it in three.

Bloomberg senior ETF analyst, Eric Balchunas, said that the momentum will still be hard to stop at this point.

“The unprecedented early volume in BITO makes it like a snowball rolling downhill, as liquidity and assets begets more liquidity and assets.”

Related: VanEck Bitcoin Strategy ETF will likely launch next week as crypto prices reach ATHs

Balchunas also thinks that the success of Bitcoin futures products may speed up the approval of a spot-based Bitcoin ETF.

“Both the success, general functioning of ETFs and the clear issue of potential capacity of futures may get the SEC to reconsider or work out a path for spot.”

As reported by Cointelegraph on Oct. 18, Grayscale has already anticipated this and is preparing to convert its popular Bitcoin Trust into a physically-backed product based on spot markets.



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Major DeFi founders back play-to-earn game that hopes to be next Flappy Bird

Major DeFi founders back play-to-earn game that hopes to be next Flappy Bird

A new blockchain based play to earn game called Fancy Birds hopes to emulate the success of the addictive mobile phenomenon Flappy Bird.

A new play-to-earn (P2E) blockchain game that hopes to emulate the addictive success of 2013 mobile phenomenon Flappy Bird has drawn backing from some of DeFi's biggest names.

Kain Warwick from Synthetix, Stani Kulechov from Aave, Tyler Ward from Barnbridge, angel investor Santiago Santos (ex-ParaFi Capital) and 0xmaki from Sushi joined a pre seed round this week for the forthcoming Fancy Birds which is due to launch in around a month.

Fancy Birds is a single player mobile game with 8,888 randomly generated NFT characters minted initially with custom features, that fight through levels to earn their spot as “the fanciest bird in the nest”.

Successful players earn 40% of the Fancy (FNC) token supply and upgrades will see the game launch multiplayer mode, with breeding, staking and tournaments planned. The team is in discussions to launch it on Ethereum NFT scaling layer 2 project Immutable X.

As with a number of other potentially big meme projects, Fancy Birds seemed to spring out of nowhere on Twitter a couple of weeks ago after Illuvium founder Kieran Warwick wondered on Twitter: "How has someone not created a play to earn Flappy Bird?” He told Cointelegraph:

“It's not complex, just super addictive and a lot of fun and at its peak it had 100 million users daily. Turns out someone is actually building it and it’s in beta now."

Warwick came on board as an advisor and helped organize the pre seed, and the team is now reaching out to Framework Ventures, Delphi Digital and a16z for the next round.

The snowballing project is reminiscent of Barnbridge founder and Flappy Bird investor Tyler Ward's Non Fungible Pepe project, which was memed into existence by a number of the same people earlier this year, making millions in a few weeks before transforming into Universe.xyz for copyright reasons.

Related: Crypto Pepes: What Does The Frog Meme?

Warwick's own project Illuvium is another forthcoming blockchain P2E game that's growing exponentially. The price of the ILV token has risen from $33 in June to the $800 mark now, it’s amassed a half a billion dollar market cap and 200,000 Discord members.

Warwick also advised them on setting up community governance based on the models of Illuvium and Synthetix.

"The team has been really receptive, they're going fully decentralized with a DAO first, and a governance council, with 100% of profits (collected platform fees) going back to stakers," he said.

"We reworked the tokenomics so it makes a lot more sense so I think they are poised to be really big players."

Illuvium is an official partner, and fans will be able to use an 8-bit version of that game’s main character Rhamphyre to play in Fancy Birds.

Fancy Birds hopes to appeal to the huge P2E community in countries like the Philippines. "It’s tapping into the same thing as Axie Infinity and it’s on mobile so anyone can play so I'm expecting a tonne of players to pile in," Warwick said.

Meanwhile Warwick said the Illuvium team was gearing up for the launch of its first trailer showing the world exactly how the game works.

“We've obviously built up a ton of hype, we have nearly 200,000 people in Discord now and things are going really well. But the one thing that we haven't shown is our gameplay trailer,” he says.

“There's going to be a lot of people that are waiting on the sideline, and it should help us to get them over the line to say, ‘This is real. This is actually happening. It is a triple A game’.”


via cointelgraph.com
Ripple CEO says the SEC helped Ethereum to overtake XRP as No.2 crypto

Ripple CEO says the SEC helped Ethereum to overtake XRP as No.2 crypto

The Ripple boss claims his company was unfairly treated which has given Ethereum the edge.

Ripple chief executive Brad Garlinghouse has been airing his thoughts over the state of the crypto market and regulations, and a grudge over the financial regulator’s approach to Ethereum appears to have surfaced.

Speaking at the DC Fintech Week virtual conference on Oct. 21, the Ripple boss declared that Ethereum had been granted a regulatory green light that enabled it to surpass his company’s XRP token.

The U.S. Securities and Exchange Commission has been pursuing Ripple over claims that XRP is an unregistered security. In January, Ripple filed a Freedom of Information Act request with the SEC demanding to know why it didn’t consider ETH a security. Six months later in July, a district judge allowed the company to depose a former SEC official who declared in 2018 that ETH was not a security.

Garlinghouse clearly feels that his firm has been hard done by and Ethereum’s subsequent success is at least in part down to more favorable treatment by the SEC. He stated that it is affecting the market, adding:

“Within the last few years, XRP was the second most valuable digital asset. As it became clear the SEC had given a hall pass to ETH, ETH obviously has kind of exploded and that clarity has helped.”

XRP was the second largest crypto asset by market capitalization in late December, 2017. It has currently slipped to seventh place while Ethereum has held the second spot ever since.

Garlinghouse also stated that the SEC has been taking an aggressive posture against crypto with recent actions against his own company and Coinbase. Commenting on Ripple’s battle with the financial regulator, he said that the SEC claims to be protecting consumers but:

“You have nearly 50,000 U.S. people who hold XRP who are trying to sue the SEC for ‘protecting them’.”

Earlier this month a U.S. district judge ruled that individuals holding the company’s XRP token could not participate as defendants in the lawsuit.

Related: XRP purchasers back Ripple, arguing that it is not a security

The SEC’s request to extend the deadline to complete discovery in its ongoing lawsuit with Ripple Labs and its executives has been granted and pushed to Jan. 14, 2022.

Ripple claims that any further delay in resolving this case will “cause serious harm to the interests of the defendants and XRP holders.”

The court acknowledged this but stated that the “additional time sought by the SEC will not affect the schedule to resolve the case.”



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200 Bitcoin ATMs installed at Walmart… with plans for 8000 in total

200 Bitcoin ATMs installed at Walmart… with plans for 8000 in total

Walmart plans to eventually install 8,000 Bitcoin ATMs in the U.S. and has installed 200 in a pilot program.

Walmart has partnered with coin-cashing machine company Coinstar and crypto-cash exchange CoinMe to install 200 Bitcoin ATMs in its stores across the U.S. 

Although the pilot includes only 200 kiosks, the broader launch plans to eventually see the installation of 8,000 bitcoin ATMs across the country, according to Bloomberg. There has been no further details on timelines as of yet.

According to Coin ATM Radar, there are currently over 25,000 bitcoin ATMs at select grocery stores and service stations in the U.S. Coinstar operates 4,400 kiosks enabled for Bitcoin purchases, across 33 states.

Chief strategy officer and head of research at BitOoda Sam Doctor told Bloomberg that while Bitcoin ATMs aren’t a new development, and can already be found at many supermarkets:

“Walmart expands Bitcoin access to more people, though, and gives it further legitimacy among skeptics, should they roll it out beyond an initial pilot.”

Customers can use the Bitcoin ATM by inserting a banknote and receiving a paper voucher with a redemption code. To redeem the code, customers need to then set up a Coinme account and complete a background check. Users cannot withdraw Bitcoin from their account, with no indication of plans to offer this functionality in the near future.

The Bitcoin ATMs have an 11% surcharge, comprised of a 4% fee for the Bitcoin option, plus an additional 7% cash exchange fee.

As a point of comparison, popular crypto trading platforms Binance and Coinbase charge 3% to 4.5%, and 3.99% for debit and credit card purchases respectively. It is free to make a direct deposit from a bank account to a Binance or Coinbase wallet.

The news was welcomed as a sign of mainstream adoption by some, including influencer Lark Davis who said “Wal Mart selling Bitcoin now... cool!” However other users complained about the high fees.

“BTC ATM fees are notoriously high plus the 'current' BTC price is always way higher when buying and lower when selling,” tweeted datcyberguy in response to the news.

“It's a ripoff, but at least it's a sign of adoption — they think some people might want BTC enough to pay huge fees,” commented Reddit user Axatar.

Related: Bitcoin Depot’s crypto ATMs surpass 5,000 as adoption grows

This isn’t the first sign of interest that Walmart has shown in the crypto world. In August, the retail giant announced that it was seeking a crypto product lead to drive the company’s digital currency strategy. The job listing has since been removed from Walmart’s website, but an advertisement for the role remains on Linkedin.

Walmart China has also teamed up with blockchain-based supply chain management platform VeChain to track products.

There was some skepticism over the Bitcoin ATM news however, which comes hot on the heels of a fake Walmart press release in September, which announced a partnership with Litecoin (LTC). The hoax briefly sent prices of the altcoin surging more than 20%.



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Robinhood crypto wallet waitlist hits 1 million people

Robinhood crypto wallet waitlist hits 1 million people

Robinhood CEO Vlad Tenev said crypto as an asset class is here to “stay” and revealed that over a million users have signed up to the firm’s crypto wallet waitlist.

More than 1 million people are on the waitlist for Robinhood’s long-awaited crypto wallet according to CEO Vlad Tenev

Speaking to Jim Cramer during CNBC’s Disruptor 50 summit on Oct. 21, Tenev stated that was very “proud” of Robinhood's progress in crypto, as he highlighted the firm’s recent push to provide a crypto wallet for its users:

“A lot of people have been asking us for the ability to send and receive cryptocurrencies, transfer them to hardware wallets, transfer them onto the platform to consolidate. And you know, the crypto wallets waitlist is well over a million people now, which is very exciting.”

“We see an opportunity to continue growing that business,” he added.

Robinhood users have long urged the company to develop a crypto wallet as the platform currently does not support deposits or withdrawals, and only allows users to buy crypto with U.S. dollars and trade digital assets on the platform.

On Sept. 22, Robinhood finally announced its plans to roll out a digital asset wallet, and opened up a waitlist for first access to the new feature. A Robinhood representative told Market Watch last month that the wallet will debut this month for some users, and will eventually open up to all users in early 2022.

During the event Tenev emphasized the importance of the emerging crypto sector, noting that it’s “here to stay as an asset class” and it holds specific advantages such as being able to connect a global market.

“So, you know, regardless of where you are in the world whether you’re in the U.S. or overseas, you can have a wallet, you can send people cryptocurrencies from that wallet to their wallet.,” he said.

Related: Robinhood launches 24/7 phone support, crypto users included

Robinhood first launched Bitcoin (BTC) and Ether (ETH) trading in 2018 for customers in five U.S. states. Robinhood has since expanded its altcoin support to assets such as Dogecoin (DOGE) and Litecoin (LTC), and currently allows traders based in all but four U.S. states to access its commission-free crypto trading services.

When Teven was asked if Robinhood would expand support to Shiba Inu (SHIB), the CEO suggested that it was unlikely anytime soon as he cited the firm’s stringent listing policy.

“We only offer seven coins currently. And I think it goes back to safety first, right. So we’re not generally going to be the first to add any new asset. We want to make sure that it goes through a stringent set of criteria,”

Speaking on the firm’s vision, Tenev argued that Robinhood offers a greater chance for financial inclusion than its competitors, as he asserted that its commission-free trading structure “changed the industry.”

“I think that, you look at cryptocurrencies, for instance, people are still paying 3%, 4% fees to access that market. You see a lot of opportunities to serve more customers that have even less money, who are even more underserved than the people we have now,” he said.



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The Bitcoin Price Could Be Headed Toward Six Figures

The Bitcoin Price Could Be Headed Toward Six Figures

The bitcoin price is rebounding from a 56% price drawdown, post a 228% recovery. Historically what comes next is yet another massive recovery

The below is from a recent edition of the Deep Dive, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now.

As most people who own bitcoin know, price drawdowns that are greater than 50% have been a regular occurrence after each all-time high. What we also know is that bitcoin price has proven to significantly recover from every major drawdown, which has made it the best performing asset over the last decade.

Currently we’re rebounding from a 56% price drawdown post a 228% recovery. Historically what comes next is yet another massive recovery. This double top pattern playing out is eerily similar to 2013 where price went on to explode over 10 times in just 52 days, starting in early October. As we hover around $66,000, a six-figure bitcoin price is only a 51% price move away. This is a more conserative percentage move during a bitcoin bull cycle recovery based on previous cycles.

History may not repeat itself exactly but all of the on-chain metrics, recent price action and expectations of new entrant demand, during the most bullish holder behavior in bitcoin’s history, have signaled a major price recovery underway.

At its core, bitcoin price is a function of new demand, through increased adoption, relative to the amount of limited supply available on the market. And right now, there’s just not that much supply on the market until the current holders of bitcoin find a new, higher price worth selling at. This is the free market, volatile nature of bitcoin that so many criticize playing out. Except this time the volatility is price exploding to the upside just like it has in every previous cycle.

Source: Yassine Elmandjra, ARK Investment Management

via bitcoinmagazine.com
Shanghai Man: Blockchain Week with Vitalik still happening, ‘Bitcoin’ searches on WeChat hit 26M in a day

Shanghai Man: Blockchain Week with Vitalik still happening, ‘Bitcoin’ searches on WeChat hit 26M in a day

This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industrys most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

In this 30th edition of the Shanghai Man column, we preview the Wanxiang Shanghai Blockchain Week, an offline event that normally is the biggest blockchain conference on the Chinese calendar. Next week, despite all the regulatory crackdowns, the event is still planning to go ahead, albeit with a one-month delay from its usual place in mid-September.

The flagship event

Historically, Wanxiang Blockchain Week has attracted huge crowds of industry participants including traders, investors, developers, financial institutions, and traditional companies. The three-day event is usually supplemented with a busy schedule of side events, focusing on areas like DeFi or network-specific meetups.

Last year, following the COVID-19 lockdowns, the event was much more subdued, notably with a lack of overseas speakers such as Vitalik Buterin and Gavin Wood physically attending. These two thought-leaders both have strong ties to Shanghai and always helped to raise the profile of the event from a technical perspective.

 

An advertisement for the Wanxiang Blockchain Summit focuses on digital transformation this year. Source: Wanxiang Blockchain Labs

 

Wanxiang Blockchain is a large investment outfit that supports some of the strongest projects in the space. It has invested over 100 billion RMB in over 200 projects, operating somewhat like the Consensys of the East. Its ties to China Wanxiang Group give it an elevated position in the business world, including a closer relationship to enterprises and government resources.

This years event is set to take place on October 26 and 27, with keynote speeches planned from Vitalik Buterin of Ethereum, Sergey Nazarov of Chainlink, Yat Siu of Animoca Brands and Anatoly Yakovenko of Solana. Its not clear whether any of these will physically attend the event, but given Chinas strict quarantine restrictions and cryptocurrency policies, it is more likely that they will give the speech via video.

In the past, most of the speeches have focused on the infrastructure and applications, rather than cryptocurrencies and trading-related activities. This has allowed the event to keep attracting government representatives regardless of increasingly negative policies.

The Metaverse and NFT art are two topics that have managed to avoid the wrath of regulators. As such, a number of related events have been grouped into what is being called Shanghai Metaverse Week, which may be just a subtle way for Blockchain Week events to avoid scrutiny from the government. This Metaverse Week is being hosted by partners including Litentry, Polygon, Harmony, Flow, Tezos and Mask Network. The event is planning to have exclusive live streams in Decentraland.

 

 

Changes in the ranks

Searches containing the keyword Bitcoin on WeChat spiked to nearly 26 million on October 15, fueled by the news of an ETF approval in the US. These levels of attention hadnt been seen since mid-summer when the regulatory crackdown drew a lot of attention to the asset.

Exchange volumes tell an interesting story as OKEx has picked up steam recently, emerging as a clear second to Binance with about 11% of the total market share according to FTXs global volume monitor. Huobi, which announced it would be restricting Chinese users from using the platform at the end of 2021, has struggled to keep pace with OKEx and has now slipped behind FTX, into the fourth position and only a few billion dollars per day ahead of ByBit.

Huobi dominated the CeFi scene between 2014 and 2016, where it enjoyed extended spells as the highest volume exchange. Now a new wave of CeFi exchanges led by FTX and ByBit are starting to eat away at the dominance of the traditional CeFi leaders Huobi, Binance, and OKEx, collectively known as HBO.

Catching the NFT trend

A number of major corporations have been dropping their own NFTs these days, including eCommerce giant JD.com. The retailer, which has its own blockchain, is releasing a set of seven NFT models through its WeChat mini-program later this year.

Last week, logistics company DHL also announced an NFT launching on the VeChain mainnet. These NFTs are emerging as a way to reward customers, but with the strict policies, its unlikely these NFTs will end up on open marketplaces and expose many users to the greater cryptocurrency ecosystem.

 

 

DHL used VeChain’s ToolChain to create these NFTs for their retail users. Source: DHL

 

Losing out to the US

An announcement on the website for the National Development Reform Commission proclaimed that the US has now overtaken China as the top Bitcoin mining country in the world. The brief article boasts that this transformation has come just two months after Beijing ruled cryptocurrency mining to be illegal.

Its unclear whether or not this article is intended to be taken literally,or as a very subtle but sarcastic reminder that recent political decisions may not be in the best interest of the country.

 

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Bulls fight to keep Ethereum price above $4K ahead of Friday’s $435M options expiry

Bulls fight to keep Ethereum price above $4K ahead of Friday’s $435M options expiry

ETH price failed to overcome its previous all-time high, but derivatives data signals that bulls will try their best to keep the price above $4,000 for the short-term.

Ether (ETH) flirted with its $4,380 all-time high on Oct. 21 but failed to breach it by a few dollars. Some analysts, including independent market analyst Scott Melker, believe that an exchange-traded fund (ETF) approval is the next logical step for the U.S. Securities and Exchange Commission (SEC).

However disappointed Ether bulls might be, they are likely to score a $78 million profit on Oct. 22's options expiry. Bears were apparently caught off-guard as Ether accumulated a 35% gain month-to-date.

Ether price at Bitstamp in USD. Source: TradingView

Investor sentiment was also positively impacted by the pension fund for firefighters in Houston, which announced a $25 million allocation in Bitcoin (BTC) and Ether.

The constant reduction of Ether's liquid supply is also a key factor behind the recent rally. According to Glassnode data, the Ether balance on exchanges reached a 2-year low.

Ether balance on exchanges. Source: Glassnode

Having fewer coins deposited on exchanges, especially for Ether, could mean that investors are moving to decentralized finance (DeFi) in search of better yields. Although it doesn't prevent anyone from selling, this movement does create incentives for long-term holding, and so does the ETH 2.0 stake to become a validator.

Bears were stunned after Ether broke $4,000

Ether was trading below $3,000 just three weeks ago and this partially explains why bears placed 89% of their bets on Ether trading at $4,000 or lower on Oct. 22.

Friday's expiry total open interest is represented by $230 million calls (buy) options stacked against $195 million puts (sell) options, a 27% lead for the neutral-to-bullish instruments. Still, this generalistic view needs further detail, depending on the expiry price.

ETH options aggregate open interest for Oct. 22. Source: Bybt.com

The current long-to-short metric is deceptive because the recent Ether rally will likely wipe out most of their bearish bets. For example, if Ether's price remains above $4,000 at 8:00 am UTC on Friday, only $22 million of the put (sell) options will be available.

Bears need sub-$4,000 to balance the scales

Any expiry price above $4,000 favors the bulls, although most damage occurs above $4,200 as their net profit increases to $136 million.

Below are the four likeliest scenarios considering the current price levels. The data shows how many contracts will be available on Oct. 22 for both bulls (call) and bear (put) instruments.

  • Between $3,600 and $4,000: 15,640 calls vs. 14,340 puts. The net result is neutral.
  • Between $4,000 and $4,200: 25,000 calls vs. 5,440 puts. The net result favors bulls by $78 million.
  • Between $4,200 and $4,400: 34,180 calls vs. 1,890 puts. Bulls' profit increases to $136 million.
  • Above $4,400: 44,230 calls vs. 60 puts. Bulls completely dominate by profiting $186 million.

As shown above, the imbalance favoring either side represents the potential theoretical profit from the expiry.

This crude estimate considers call (buy) options used in bullish strategies and put (sell) options exclusively in neutral-to-bearish trades. However, a trader could have sold a put option, effectively gaining a positive exposure to Ether above a specific price. Unfortunately, there's no easy way to estimate this effect.

$4,000 is likely to hold, at least until Friday's expiry

Bears need a 3% correction from the current $4,100 price to avoid a $78 million loss. Although it might not seem much at first, traders must also account for recent positive newsflow and on-chain metrics.

With less than 10 hours ahead of the Oct. 22 expiry, bulls are likely to secure a win by keeping Ether above $4,000. As for the bears, focusing on the $1.1 billion monthly expiry on Oct. 29 seems to be the most logical route.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.



via cointelgraph.com
A Timeline Of Bitcoin And The Six Groups Who’ve Bought It

A Timeline Of Bitcoin And The Six Groups Who’ve Bought It

Throughout Bitcoin’s lifetime, different people have participated in the network based on different desires.

Originally published in The Conversation, under Creative Commons licence CC-BY-ND. Updated here by the author.

Mainstream commentators are often dismissive of the people who buy bitcoin, writing them off as naive victims of a fraudulent bubble. But if we look more carefully, we can trace the history of bitcoin, and its growing acceptability, through the arrival of different kinds of buyers. Each group has been drawn by a different narrative of bitcoin’s value, and it is these groups and narratives that have gradually contributed to its long-term growth.

The Idealists

Bitcoin arose from a tiny group of cryptographers, known as “cypherpunks,” who were trying to solve the “double spend” problem facing digital money: “cash” held as a digital file could easily be copied and then used multiple times. The problem is easily solved by financial institutions, who use a secure central ledger to record how much everyone has in their accounts, but the cryptographers wanted a solution that was more akin to physical cash: private, untraceable, and independent of third parties like the banks.

Satoshi Nakamoto’s solution was the Bitcoin blockchain, a cryptographically-secured public ledger that records transactions anonymously and is kept as multiple copies on many different users’ computers. The first narrative of bitcoin’s value was built into Nakamoto’s original “white paper.” He claimed that bitcoin would be superior to existing forms of electronic money such as credit cards, providing benefits like eliminating chargebacks to merchants and reducing transaction fees.

The Libertarians

But from an early stage, Nakamoto also marketed bitcoin to a libertarian audience. He did so by stressing the absence of any central authority and particularly bitcoin’s independence from both states and existing financial institutions.

Nakamoto criticised central banks for debasing money by issuing increasing amounts of it and designed bitcoin to have a hard limit on the amount that could be issued. And he stressed the anonymity of bitcoin transactions: safe, more or less, from the prying eyes of the state. Libertarians became enthusiastic advocates and buyers of bitcoin, more as an act of autonomy than for financial reasons. They have remained highly influential in the Bitcoin community.

The HODLers

These, however, were small constituencies, and bitcoin really started to take off in July 2010 when a short article on Slashdot.org (“news for nerds”) spread the word to many young and technically-savvy buyers. This community was influenced by the “Californian ideology” – belief in the capacity of technology and entrepreneurs to transform the world.

Many bought small quantities at a low price and were somewhat bemused to find themselves sitting on significant investments when the price multiplied. They became used to huge fluctuations in the price and frequently advocated “HODLing” bitcoin (a misspelling of “hold,” first used in a now iconic message posted by an inebriated user determined to resist constant “sell” messages from day traders). The HODLers insisted, half seriously, that bitcoin was going “to the moon!” and talked of buying “lambos” (lamborghinis) with their gains. This countercultural levity generated a sense of community and a commitment to holding bitcoin that helps stop its value from sinking to zero when sentiment turns against it.

The Gamblers

The more recent groups that have contributed to bitcoin’s history are more conventional. The fourth group consists of individual speculators who have been attracted by the volatility and peaks in bitcoin prices.

On the one hand, we have day traders, who hope to exploit the volatility of bitcoin’s price by buying and selling quickly to take advantage of short-term price movements. Like speculators in any other asset, they have no real interest in the larger picture or of questions of inherent value, but only in the price today. Their only narratives are “buy” and “sell,” often employed in an attempt to influence the market.

On the other hand, we have those who are drawn in by news of price bubbles. Ironically, bubble narratives in the press, often designed to deter investors, can have the opposite effect. These investors join what Keynes called a “beauty contest” – they don’t care about long-term or intrinsic value but only about what other people might be prepared to pay for bitcoin in the short- to medium-term future.

The Portfolio Balancers

Bitcoin started to become more attractive to more sophisticated investors when narratives of its value as a useful element in a larger investment portfolio started to emerge. These investors buy bitcoin to hedge against wider risks in the financial system. According to modern portfolio theory, investors can reduce the riskiness of their portfolios overall by holding some bitcoin because its peaks and troughs don’t line up with those of other assets (i.e., bitcoin became known as an “uncorrelated” asset), providing some insurance against stock market crashes. This is arguably the narrative that started to break down the barriers to bitcoin’s acceptability among mainstream investors: they often take the view that risk, rather than something to be avoided, is something to be embraced as a source of high returns in a properly-balanced portfolio.

The Corporate Enthusiasts

Most recently the continuing upward progression of bitcoin’s price plateaus and market value have started to make it attractive to corporate investors. Initially this has been driven by enthusiasts in senior positions in a few large corporations who have made very large purchases of bitcoin to hold as part of the corporation’s own portfolio of assets. These purchases have enhanced the narrative of bitcoin as a mainstream investment, but they also contribute to a different narrative about the value of the corporation’s own shares. When a company’s bitcoin holding becomes a significant part of its assets, its own shares can be positioned as bitcoin-like investments, which should rise in price when bitcoin does, and vice-versa. They therefore become more attractive to investors who want some exposure to bitcoin but are wary of buying it themselves – or are legally prevented from buying it, like some mutual funds.

Where Next?

As bitcoin becomes attractive to more and more constituencies of buyers, the major financial institutions are becoming increasingly eager to get in on the act. We can expect them to package up new financial products, including derivatives, that give investors indirect exposure to the bitcoin market. In a narrative that has been bubbling under for some time, they are preparing to position bitcoin-related products as a routine element of institutional portfolios. If they succeed, the packagers will also have to buy bitcoin themselves to hedge against their commitments to buyers of their financial products. The irony, of course, is that these recent developments tie bitcoin ever tighter into the financial institutions that Nakamoto designed it to escape from.

Bitcoin’s value, then, has been built on an evolving series of narratives which have drawn in successive waves of buyers. While mainstream commentators are often dismissive of bitcoin as lacking inherent value, all asset market values depend on narrative processes like these, so bitcoin is much more like conventional assets than they are prepared to admit. Of course, bitcoin prices may well collapse again, but so may those of any other financial asset. Investing in bitcoin is arguably neither more nor less risky, for example, than investing in the latest technology company to be launched on the stock market without ever having made a profit.

This is a guest post by Dave Elder-Vass. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.


via bitcoinmagazine.com
Associated Press plans to launch Chainlink node to publish data

Associated Press plans to launch Chainlink node to publish data

The news agency added it would be open to shifting its approach based on the response from developers as it kept "a finger on the pulse of the blockchain economy."

The Associated Press news agency announced it would be launching its own Chainlink oracle node to ensure any data from its U.S. newspaper and broadcaster members would be cryptographically verified.

In an Oct. 21 announcement, the Associated Press, or AP, said smart contract developers would have access to the agency’s “economic, sports, and race call data” once the node was operational. According to the AP, it will be publishing data on-chain for developers to access and reference in any relevant applications, in addition to providing information on upcoming elections and serving artists working with nonfungible tokens.

“Chainlink technology is the ideal way to provide smart contract developers anywhere in the world with direct, on-demand access to AP’s trusted economic, sports, and race call data” said AP director of blockchain and data licensing Dwayne Desaulniers. “Working with Chainlink allows this information to be compatible with any blockchain.”

The AP said its primary reason for the shift to blockchain was “trust,” in that the on-chain data it provided would be “a publicly accessible, safe and secure record of verified information.” The news agency added it would be open to shifting its approach based on the response from developers as it kept "a finger on the pulse of the blockchain economy."

Related: Blockchain in journalism: Winds of change carry media to new frontiers

This is not the news agency’s first foray into blockchain technology. The AP was reportedly interested in exploring ways to secure intellectual property rights, support ethical journalism, and track content usage when it partnered with blockchain-based journalism startup Civil in 2018. In addition, the AP published the results of contentious 2020 U.S. presidential election onto the Ethereum and EOS blockchains.



via cointelgraph.com
Early meeting of E-Gold founders may hold clue to Satoshi Nakamoto’s identity — Peter Thiel

Early meeting of E-Gold founders may hold clue to Satoshi Nakamoto’s identity — Peter Thiel

Did Satoshi Nakamoto work on E-Gold? If so, Peter Thiel thinks he has a way to narrow down the identity of Bitcoin’s creator.

PayPal co-founder and billionaire venture capitalist Peter Thiel believes he may hold a clue on how to find Satoshi Nakamoto, Bitcoin’s (BTC) pseudonymous creator who disappeared two years after mining the cryptocurrency’s genesis block in January 2009. 

His theory stems from an early meeting of E-Gold founders in February 2000, where roughly 200 people coalesced around a beach in Anguilla to devise a strategy for promoting a new currency system that could challenge central banks. E-Gold was a digital gold currency that folded in 2007 after its founders were indicted by the United States Justice Department.

“I met them on the beach in Anguilla in February of 2000,” Thiel told a cryptocurrency conference in Miami on Wednesday, referring to the E-Gold founders. “My sort of theory on Satoshi’s identity was that Satoshi was on that beach in Anguilla.” He further explained:

“We were beginning the revolution against the central banks on the beach in Anguilla. We were going to make PayPal interoperable with E-Gold and blow up all the central banks.”

E-Gold’s failure may have given Satoshi the foresight to remain anonymous when building its successor. “Bitcoin was the answer to E-Gold, and Satoshi learned that you had to be anonymous and you had to not have a company,” Thiel said.

Related: Satoshi Nakamoto statue goes up in Budapest

Not everyone is convinced that Nakamoto was behind earlier e-cash protocols. Dustin D. Trammell, one of the first cypherpunks to mine Bitcoin, told Cointelegraph Brasil in March that Nakamoto lacked bias in implementing new technology, which implies they were approaching the project with a fresh perspective.

Nakamoto’s 2008 white paper has spawned a multi-trillion-dollar crypto industry, with tens of thousands of digital assets vying for a piece of the pie. Bitcoin is in the midst of a historic week, having shattered new all-time highs above $67,000 on Wednesday.



via cointelgraph.com
Bitcoin And The Philosophy Of Free Choice

Bitcoin And The Philosophy Of Free Choice

Bitcoin allows people to opt out of systems not designed to their benefit, and creates a “network state” of like minded thinking.

The profoundness of philosophy is typically measured in extremities and diversions from a central understood point. This can address the thought collective, or the individual, when discussing knowledge and experiences with the intention of developing a grandiose understanding of the subject at hand, or positing real and lasting change. The road map for such a study is as follows: First, we define the problem of a system. Second, we define a solution for the system. Third, we implement the solution that allows us into a new system. Following this path, we must first define our central understood point, or the problem.

The Problem Is Money

This isn’t your typical “digital gold” conversation, we will step outside of this box for now. No matter one’s political alignment, everyone can basically agree the system is broken. But which “system” are we referring to? A system can be anything from the order you prepare yourself in the morning, to machines used to further our understanding of quantum physics.

Do we mean the financial system? Sure, that plays into it. The nonstop inflation, the quantitative easing growing, repo rates going to never-before-seen levels, certainly finance has to do with it. Covid-19 vaccine response to less than your liking? Public education response to a global pandemic not conducive to your wants? Did the moratorium on rent only succeed in delaying interest-frozen debt? Job never called you back when you were deemed unessential? Social Security’s absence for your retirement causing existential questions of the requirements asked of your income? Maybe it’s just the fact that you can’t stand needing a license for every “freedom” you think you have. Well, who controls all of this?

The Problem Is The State

This is not a manifesto for anarchism, though I do wander closer to it each day. The problem is that the state has failed us. Financially, bureaucratically, generally, and fully, the state has failed us. The reason for this failure is the incentive. The incentive to serve the people of majority in the system has evaporated and the majority amassed far less wealth than the minority, and the minority reigns as the supreme being. Legislation is crafted under the burdensome weight of cash.

In a fiat standard, the answer is always more: more printing, more bailouts, more tax cuts, more quantitative easing, more securities, more taxes, more, more, and more. In an ecosystem of debt, we will just raise the ceiling.

If the system is the state, and fiat fuels the system by allowing the minority to ignore the majority for lack of voice in the existing system, then exit the system. This brings us to the solution.

The Solution Is Exit The State

Easier said than done, right? Not anymore. This isn’t as simple as “if you don’t like it then leave.” Exiting the state, or exiting the existing system, does not imply nor encourage complete nullification of the state. Exiting the state simply means choosing to opt-out of the system designed against you, and opting into a system that is designed for you.

In a previous article, I spoke on how “Fiat Is The State”, and “Bitcoin Is Stateless.” Without rehashing what either of those statements means, let’s just assume they are true. Fiat currencies are beholden to their states, and bitcoin is beholden to no one, it is “stateless.”

Theoretically, if our problem is the state, and the antithesis of the state is being anti-state, or “stateless,” then Bitcoin stands as the logical solution to the existing problem as it allows you to exit the current system by utilizing its global network to exit the given system of your state.

Buying bitcoin isn’t enough to fix the system, it simply allows the individual gratification of successfully exiting a system weighted against you, and this is only if one follows in the path of becoming sovereign over their own wealth, as the purchase of a coin does not constitute a full exit. How then do we accomplish this for the collective, rather than the individual? How do we implement sovereignty?

Implementing A Solution Of Sovereignty

This piece is not a technical walkthrough such as the setting up of a node or explaining how wallets work. Instead, we will focus on a solution for the collective, rather than the individual. How do we accomplish a collective exit of the current system? One person at a time.

The first premise must be understood. There is a problem, and that problem is the state. Bitcoin allows individuals to operate outside of the bounds of any surrounding state (go read that article from earlier if you still haven’t), making Bitcoin the solution, or the exit from a system. To implement exiting the system, you must first be capable of truly exiting the system. Most individuals are not yet fully capable of a complete exit of the system, and that is okay. We don’t need to all do it; we may not even need to do it all. We must simply be willing to if we need it. What does it mean to exit the system?

Bitcoin functions as a global currency, backed by the efforts put into maintaining the network by nodes and miners. Nodes are basically just people with a computer that validates transactions. Miners actually solve the encryption used by Bitcoin by expending electricity. This expenditure of tangible resources allows us to associate a value based on the resources spent. This system exists outside of the state, as the state has no power over the protocol. The state cannot decide to create more bitcoin, only a network consensus can do that. The state cannot hide transactions because Bitcoin is a public ledger that keeps everyone accountable. Any node can check any transaction that has ever happened. Owning your own coins, taking the sovereign leap, and taking control of your own coins with self-custody, and being able to function with a fungible currency anywhere in the world, that… is exiting the system.

Once enough individuals have taken their exit of the system, not completely abandoning it, or leaving, but by the possession of a new asset, they can now exist outside of the state. Now, one person, one coin, one wallet, may not be the largest concern of the state. However, were 30, or 40% of citizens or more capable of an exit, or threatening an exit, then perhaps the state becomes willing to listen. Perhaps, to get this new asset you hold in a system they cannot touch, they create more incentive for you to want to opt back in with rewards of some sort. Perhaps it’s a restructuring of the entire system, and perhaps the old way is cast to the darkened pits of human failure, written about in learned texts of the future, telling of a lost and scattered time.

To state it shortly, exit the system together, and make them work to get you back. Once this takes place, we move to the last ideal in this pursuit of sovereignty. We must now replace the system, but with what?

The Network State Versus A Network State

These are two separate ideals that represent completely different ideologies. One of them is now, and in almost everything we do, while the other is a not-too-distant future.

“A Network State” is something that has been popularized by Balaji Srinivasan. He argues that the collective bargaining power of like-minded individuals that are prepared to exit the system can control a heartily-weighted opinion that is difficult to ignore. He speaks to the possibilities of these voiced collectives earning statehood, pooling assets, buying properties, and creating their own virtual and physical communities within, or outside of specific nation-states.

“The Network State” is something else entirely. It’s the nomenclature of collective consensus:the ideas that permeate within each individual that steps out of the current system. Once a Bitcoiner becomes a Bitcoiner, they then enter into the collective consensus, or “The Nation State of Bitcoin” (if you will).

“The Network State” allows for collective thought and continued growth in ideals as well as countless other benefits. “A Network State” is the manifestation of a digital community that is recognized in an official capacity. “A Network State” is not a requirement but is most assuredly the path we are set upon. “The Network State” is imperative, nay, essential for future adoption.

“A Network State” would have to be born of those belonging to “The Network State.” But being part of “The Network State,” does not require admittance into “A Network State.” Read it again.

This choice is inherent and arguably dogmatic of Bitcoin. A requisite to enter a network state after exiting the existing system stands in opposition to the ideology of freedom deeply rooted in the protocol. To enter the system of a network state requires the absolute release of the previous system, but also requires the absence of any system.

Both the leaving of the original system and the lack of need for a new one, are what gives an individual true choice in the adoption of a new system. Without choice, you were simply forced into upgrading your analog system for a digital one.

This is a guest post by Shawn Amick. Opinions expressed are entirely their own and do not necessarily reflect those of BTC, Inc. or Bitcoin Magazine.


via bitcoinmagazine.com
Traders brace for a drop to $58K if Bitcoin price loses the $62K support

Traders brace for a drop to $58K if Bitcoin price loses the $62K support

After a 100%+ move to a new all-time high, profit taking kicks in and Bitcoin traders brace for a possible retest of the $58,000 to $62,000 zone.

Whipsaw price action has returned to the cryptocurrency market after Bitcoin’s (BTC) price lost steam at $67,100 and retracted to the $62,000 level.  

An early morning 87% flash crash in the price of BTC at Binance US saw the price briefly touch $10,000 and it may have set the market on edge, but generally, it appears to have been an isolated event. Data from Cointelegraph Markets Pro and TradingView show that bears have briefly taken control of the market with the price now fluctuating between $62,000 to $63,500.

BTC/USDT 4-hour chart. Source: TradingView

Here’s a look at what traders and analysts are saying about the recent price action for Bitcoin and what could be next for the top-ranked digital asset.

$66,000 needs to become support

The rapid climb in Bitcoin over the past three weeks pushed the price back to the major resistance level it faced in April, a fact highlighted by independent crypto analyst ‘Rekt Capital.’ As shown below, there was a firm rejection near the $63,500 resistance level.

The main difference this time around is that now bulls are attempting to establish this level as the new support zone, which will give BTC a good foundation for a further push higher.

For the short term, this has now become a key price level to keep an eye on as the market heads into the final week of October.

Historically, Q4 has been bullish

The breakout to a new all-time high has many across the space debating whether now is a good time to take profits or if it’s time to increase position sizes instead.

According to David Lifchitz, managing partner and chief investment officer at ExoAlpha, “In crypto-land, everything is possible,” and he suggested that “a continuous uptrend taking BTC to $80,000 shortly from here, or a mild pullback down to $58,000 or even down to $53,000 before pulling higher toward $80,000 and above” were both well within the realm of possibilities.

Historically speaking, “probabilities would favor some pullback after the recent torrid ride,” according to Lifchitz, who highlighted the $64,500 and $58,000 levels as some of the key areas to keep an eye on for the potential to “lighten up positions in case of a pullback and load-up again in the $53K region if the pullback deepens, or reload where the first stops were hit if the pullback doesn't deepen.”

Overall, Lifchitz indicated that the path ahead looks positive for Bitcoin and the wider cryptocurrency market as it enters the final quarter of 2021.

Lifchitz said:

“The 4th quarter has historically been bullish, so it favors an upside target by year-end. So overall bullish mid-term but maybe some light turbulence ahead.”

Related: Bitcoin bulls set to net an $830M profit after Friday's BTC options expiry

Bitcoin needs to hold $62,000

A final perspective was offered by pseudonymous Twitter user ‘E-Club Trading’, who posted the following chart showing the recent price action and important support and resistance zones.

BTC/USD 1-day chart. Source: Twitter

The analyst said:

“A bit of profit taking in BTC as it drops below the previous high of $65,000. It needs to hold above $62,000, or we could retest $58,000 in the next few sessions. Glad to be out of the way for the moment.”

The overall cryptocurrency market cap now stands at $2.548 trillion and Bitcoin’s dominance rate is 46.5%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



via cointelgraph.com