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2 key derivatives metrics signal that Bitcoin traders expect BTC to hold $40K

2 key derivatives metrics signal that Bitcoin traders expect BTC to hold $40K

The entire crypto market is green on Feb. 28, and derivatives metrics suggest that BTC's bullish reversal will flip $40,000 back to support.

Whenever Bitcoin (BTC) fails to break through important resistance levels, traders gain confidence and add to their altcoin positions. The logic is that, unless BTC drops significantly, these movements historically provide decent rewards for those shifting their portfolios toward higher risk.

Bitcoin/USD at FTX. Source: TradingView

In the past seven days, the aggregate market capitalization performance of the cryptocurrency market showed a modest 3% increase to $1.78 trillion. This number is roughly in line with the performance seen from Bitcoin, Ether (ETH) and BNB.

However, comparing the winners and losers among the top-80 coins provides skewed results. For instance, while the gainers captured a positive 24.9% move on average, the worst performers dropped by 5.9%.

Weekly winners and losers among the top-80 coins. Source: Nomics

Terra (LUNA) rallied 52% on the week after the nonprofit organization supporting the Terra blockchain ecosystem sold $1 billion worth of tokens on Feb. 22. Luna Foundation raised money from Three Arrows Capital and Jump Crypto, a trading group that earlier assisted Solana's Wormhole cross-bridge platform by replenishing their stolen $300 million in Ether.

On Feb. 21, WAVES gained 50.7% after announcing a partnership with Allbridge that makes the protocol cross-chain interoperable and supportive of the Ethereum Virtual Machine (EVM) and non-EVM chains like NEAR Protocol, Solana (SOL) and Terra (LUNA).

Arweave (AR) rallied 28.5% in seven days after Bundlr Network released a high-volume Twitter archiver tool on Feb. 21. The system allows users to store tweets and linked media directly onto Arweave's permanent storage.

Lastly, QuickSwap, the Uniswap (UNI) implementation on the Polygon network, became the largest decentralized exchange DEX protocol by volume, reaching a $40 million daily average in February. Uniswap (UNI) token gained 14.4% over the past seven days, while Polygon (MATIC) rallied 8.5%.

The Tether premium reflects low retail demand

The OKX Tether (USDT) premium is a good gauge of China-based retail trader crypto demand. It measures the difference between China-based peer-to-peer trades and the official U.S. dollar currency.

Excessive buying demand tends to pressure the indicator above fair value at 100%, and during bearish markets, Tether's market offer is flooded, causing a 4% or higher discount.

Tether (USDT) peer-to-peer vs. USD/CNY. Source: OKX

Currently, the Tether premium stands at 100.3%, which is neutral. Still, there has been a consistent improvement in 2022. This data signals that retail demand is picking up, which is positive considering that the total cryptocurrency capitalization dropped 19% between Jan. 1 and Feb. 28.

Futures markets confirm a lack of "euphoria"

Perpetual contracts, also known as inverse swaps, have an embedded rate usually charged every eight hours. Exchanges use this fee to avoid exchange risk imbalances.

A positive funding rate indicates that longs (buyers) demand more leverage. However, the opposite situation occurs when shorts (sellers) require additional leverage, causing the funding rate to turn negative.

Accumulated perpetual futures funding rate on Feb. 28. Source: Coinglass

As depicted above, the accumulated 7-day funding rate is slightly negative in most cases. This data indicates slightly higher demand from shorts (sellers), but it is insignificant. For example, Luna's negative 0.65% weekly rate equals 2.8% per month, a figure th is not too concerning for futures traders.

Had there been a relevant risk appetite from shorts, the rate would be above 1% per week or equivalent to 4.6% per month.

Perpetual futures are retail traders' preferred derivatives because their price tends to track regular spot markets perfectly. Therefore, despite the negative 19% crypto performance in 2022, the neutral Tether premium and the funding rate should be interpreted as positive.

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
Bitcoin climbs to $41K and flippens the Russian ruble

Bitcoin climbs to $41K and flippens the Russian ruble

The Central Bank of Russia reported the country's money supply was 65.3 trillion rubles as of Feb. 1 — roughly $629 billion with the recent drop against the U.S. dollar.

After climbing to a price of more than $41,000 on Monday, Bitcoin’s market capitalization has surpassed that of the Russian ruble. 

According to data from CoinMarketCap, the market cap of Bitcoin (BTC) surged to roughly $780 billion on Monday amid the price rising to $41,391, a 5.7% increase over the last 24 hours. BTC’s market capitalization exceeds the money supply of the Russian ruble, which according to the Central Bank of Russia, was 65.3 trillion rubles as of Feb. 1 — roughly $629 billion at the time of publication.

Russian ruble notes. Source: Pexels

The flippening likely occurred as the Russian ruble is undergoing inflation amid sanctions imposed by the United States and its allies in response to the country’s invasion of Ukraine. Reuters reported the central bank raised its key interest rate from 9.5% to 20% on Monday, and the European Commission has announced plans to remove Russian banks from the SWIFT payments system. 

In contrast, many residents of both Russia and Ukraine seem to have driven trading activity up on exchanges, possibly over concerns about the stability of their countries’ respective fiat currency and using crypto as a means to solicit donations for pro-Ukraine causes. Cointelegraph reported on Feb. 24 — the same day Russian forces launched their attack — the Ukraine-based crypto exchange Kuna had roughly $4.4 million in total trading volume of all tokens over 24 hours.

Related: Bitcoin flippens Tesla and Facebook — Will Amazon be next?

The most recent flippening came more than one year after the price of BTC surged to a then all-time high of $48,200 following news Tesla had purchased an aggregate of $1.5 billion in the crypto asset. Bitcoin’s market cap rose to $871 billion, surpassing that of the Russian ruble, then roughly $791 billion. 



via cointelgraph.com
Global Supply Chain Logistics Company Flexport Has Bitcoin On Their Balance Sheet

Global Supply Chain Logistics Company Flexport Has Bitcoin On Their Balance Sheet

Ryan Peterson, CEO of Flexport, announced on Twitter that their $1.6 billion balance sheet contains bitcoin.

  • The CEO of Flexport says they have bitcoin on the balance sheet.
  • Bitcoin White Paper listed on Flexport’s website.
  • The company has a $8 billion valuation with $1.6 billion on the balance sheet.

Ryan Peterson, CEO of Flexport, a global supply-chain logistics company that focuses on connecting the entire global trade ecosystem, tweeted to the world that bitcoin sits securely on their balance sheet.

When asked what percentage of their $1.6 billion balance sheet was in bitcoin, Peterson responded, “We don’t disclose that, but it’s not zero.”

This announcement comes from a thread where Peterson discussed the ability of the company to navigate turbulent waters with current market tensions.

“Never a dull moment in our industry”, Peterson said. “Flexport is fortunate to have over $1.6 billion in net assets on our balance sheet to allow us to continue to play offense while protecting the interests of our customers, employees, and shareholders through the volatility, uncertainty, and chaos.”

The San Francisco-based company also has the Bitcoin whitepaper listed on their website, as Flexport continues to see reason to inform their users about Bitcoin.

With an $8 billion dollar valuation, Flexport has made immense shifts in the logistics ecosystem without owning trains, ships or planes used to move the merchandise across the global supply chain. Rather, Peterson started what is being referred to as “digital freight forwarding”, which takes the supply chain systems of their customers, and then automates the process, typically saving their customers on expenses.

Their system is credited with saving their clients an average of four-hours per work week, and the removal of redundant communication. 41 year-old Peterson and Flexport have drastically altered the landscape of the global supply chain, simply through automation.

Founded in 2013 with the intention of automating the process of customs forms, Flexport has become the central point of automation for the global supply chain.

“I wish I could look inside with a HoloLens to see which containers are Flexport’s,” Peterson said. “Any container ship on the West Coast, I guarantee we are on there.”


via bitcoinmagazine.com
Price analysis 2/28: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT

Price analysis 2/28: BTC, ETH, BNB, XRP, ADA, SOL, AVAX, LUNA, DOGE, DOT

Bitcoin and altcoins surprised investors with a sharp bullish breakout on Feb. 28, signaling a possible change in the short-term trend.

Bitcoin (BTC) soared above $40,000 on Feb. 28 even though the S&P 500 remained soft. This suggests that the correlation between Bitcoin and the U.S. equity markets may be showing the first signs of decoupling. If bulls sustain the price above $38,500 till the end of the day, Bitcoin would avoid four successive months of decline.

The volatility of the past few days does not seem to have shaken the resolve of the long-term investors planning to stick with their positions. Data from on-chain analytics firm Glassnode showed that the amount of Bitcoin supply that last moved between three to five years ago soared to more than 2.8 million Bitcoin, which is a four-year high.

Daily cryptocurrency market performance. Source: Coin360

Interestingly, an experiment by Portuguese software developer Tiago Vasconcelos to develop an artificial intelligence trading bot for Bitcoin resulted in the bot concluding that “the best move is to buy as soon as possible and never sell!”

Could bulls sustain the momentum and push Bitcoin toward the next overhead resistance? Will altcoins also join the party? Let’s analyze the charts of the top-10 cryptocurrencies to find out.

BTC/USDT

Bitcoin turned down from the 50-day simple moving average (SMA) ($40,261) on Feb. 26 but the bears could not pull the price below $37,000. The price rebounded sharply on Feb. 28 and the bulls have cleared the overhead hurdle at the 50-day SMA.

BTC/USDT daily chart. Source: TradingView

If bulls sustain the price above the 50-day SMA, the BTC/USDT pair could start its northward journey toward the resistance line of the channel. The bears are expected to mount a strong defense at this level. The bulls will have to push the pair above the channel to indicate that the correction may be over.

The 20-day exponential moving average (EMA) ($39,813) is flattening out and the relative strength index (RSI) has risen to just above the midpoint. This indicates that the bulls are attempting a strong comeback.

This positive view will invalidate in the short term if the price fails to sustain above the moving averages. The pair could then again drop to the support line of the channel.

ETH/USDT

Ether (ETH) turned down from the 50-day SMA ($2,865) and dropped to the support line of the triangle indicating that higher levels continue to attract selling by the bears.

ETH/USDT daily chart. Source: TradingView

The price has rebounded off the support line of the triangle but the bulls will have to push and sustain the ETH/USDT pair above the 50-day SMA to signal a possible change in the short-term trend. If that happens, the pair could rally to the resistance line of the triangle.

Conversely, if the price turns down from the moving averages, it will suggest that the bears continue to sell at higher levels. That will increase the possibility of a break below the triangle. A close below the triangle could open the doors for a possible retest at $2,300.

BNB/USDT

BNB turned down from the 20-day EMA ($385) on Feb. 26 but the price has rebounded sharply off the strong support at $350 on Feb. 28. This indicates that the price is stuck between these two levels.

BNB/USDT daily chart. Source: TradingView

Both moving averages are sloping down and the RSI is just below the midpoint, indicating that bears have a slight edge. If the price turns down from the 20-day EMA, the possibility of a break below $350 increases. If that happens, the BNB/USDT pair could drop to the $330 to $320 support zone.

Conversely, if the price rises from the current level and breaks above the moving averages, it will indicate that the bulls are attempting a comeback. The pair could then rally to $445.

XRP/USDT

Ripple (XRP) turned down from the downtrend line on Feb. 26, indicating that bears are defending this resistance with vigor. A minor positive is that the bulls are defending the support at the 50-day SMA ($0.72).

XRP/USDT daily chart. Source: TradingView

If the price maintains above $0.75, the bulls will again attempt to push and sustain the XRP/USDT pair above the downtrend line. If they succeed, it could clear the path for a possible rally to $0.91.

Alternatively, if the price turns down from the current level, the bears will try to pull the pair below $0.68. If that happens, the pair could retest the Feb. 24 intraday low at $0.62. The flattish moving averages and the RSI just above the midpoint do not give a clear advantage either to the bulls or the bears.

ADA/USDT

The bulls have sustained Cardano (ADA) above $0.82 in the past few days but are struggling to push the price to the breakdown level at $1. This indicates that demand dries up at higher levels.

ADA/USDT daily chart. Source: TradingView

The longer the price sustains below the moving averages, the greater the possibility of a retest of the recent intraday low at $0.74. If this support cracks, the downtrend could resume and the ADA/USDT pair could plunge to $0.68.

Contrary to this assumption, if the price rises and breaks above $1, it will suggest that the markets have rejected the lower levels. The pair could then rise to the resistance line of the descending channel. The bulls will have to push and sustain the price above the channel to indicate that the downtrend may have ended.

SOL/USDT

Solana (SOL) has been sandwiched between the 20-day EMA ($94) and the strong support at $81 but this tight range trading is unlikely to continue for long.

SOL/USDT daily chart. Source: TradingView

The RSI is showing signs of forming a positive divergence, signaling that the bearish momentum may be slowing. If bulls push and sustain the price above the 20-day EMA, the SOL/USDT pair could rise to the resistance line of the descending channel.

A break and close above the channel will be the first indication that the bears may be losing their grip. The pair could then rise to the overhead resistance at $122. This positive view will invalidate on a break and close below $81.

AVAX/USDT

Avalanche (AVAX) has been oscillating near the moving averages for the past three days. Although bulls pushed the price above the moving averages on Feb. 25, they could not sustain the higher levels. Strong selling pulled the price back below the moving averages on Feb. 27.

AVAX/USDT daily chart. Source: TradingView

The bulls are currently attempting to sustain the price above the moving averages. If they manage to do that, the AVAX/USDT pair could rally to the downtrend line of the descending channel. This level could act as a stiff resistance but if bulls overcome it, the pair will indicate that the downtrend may have ended.

Contrary to this assumption, if the price turns down from the current level or the overhead resistance, it will suggest that bears continue to sell on rallies. The bears could gain strength if the price slips below $64.

Related: eBay to add crypto payment options soon, says CEO

LUNA/USDT

Terra’s LUNA token turned down from $80 but the bulls successfully defended the immediate support at $70. This indicates that traders are accumulating on every minor dip.

LUNA/USDT daily chart. Source: TradingView

The buying picked up momentum on Feb. 28 and the bulls pushed the price above the overhead resistance at $70. The upsloping 20-day EMA ($62) and the RSI in the overbought territory indicate that bulls are in control.

The LUNA/USDT pair could now rise to $90 where the bears may again mount a strong resistance. A break and close above this level could propel the pair to the all-time high at $103.

Conversely, if the price turns down from $90, the pair could again drop to $70 and consolidate between these two levels for a few days.

DOGE/USDT

Dogecoin (DOGE) has been struggling to bounce off the strong support at $0.12, indicating a lack of urgency among bulls to buy at higher levels.

DOGE/USDT daily chart. Source: TradingView

The longer the price clings to the strong support at $0.12 without a strong bounce, the greater the possibility of a breakdown. If the bears pull the price below $0.12, the DOGE/USDT pair could retest the psychological support at $0.10.

This is an important level for the bulls to defend because if it cracks, the selling could intensify further and the pair could slide to $0.06. The first sign of strength will be a break and close above the 50-day SMA ($0.14). That could result in a rally to $0.17.

DOT/USDT

Polkadot’s (DOT) recovery stalled at the downtrend line, indicating that the sentiment remains negative and traders are selling on rallies to strong resistance levels.

DOT/USDT daily chart. Source: TradingView

The price could remain stuck between the downtrend line and $14 for the next few days. If bears pull the price below $14, the DOT/USDT pair could resume its downtrend and decline to the strong support at $10.

The buyers will have to push and sustain the price above the downtrend line to signal that the bears may be losing their grip. The pair could then rally to the overhead resistance at $23 where the bears may mount a strong defense.

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
Neo users explain why they've held on to the project despite China's heavy crypto crackdown

Neo users explain why they've held on to the project despite China's heavy crypto crackdown

"I didn't worry too much. I knew the developer team, the community supporting Neo wasn't going to quit," said Neo investor Lucas.

It's been a wild ride for Neo investors in the past few years, especially as China began to incrementally introduce harsher crypto regulations applicable to the project, which has been dubbed by some as "Ethereum of China." But despite the odds, the community appears to be resilient, with a dedicated society of developers worldwide and bourgeoning decentralized finance, or DeFi, hub that came into prominence via the launch of the Neo N3 mainnet last year. 

As told by Neo investors Lucas and Jiří, who spoke to Cointelegraph, they were not expecting such a "huge drop in price" for Neo. Nevertheless, they decided to hold their Neo tokens through all the price turmoil, citing the project developers' dedication to its underlying technology. Lucas said:

"I know a bunch of Neo developer communities that are located across the world. They're not going to stop the project just because one country doesn't agree with their vision."

When asked about what made Neo's DeFi applications particularly attractive, compared to other alternatives, Jiří said:

"For Flamingo Finance, you could follow any steps on the roadmap they are preparing and what will be going next. They always kept the deadlines, or there was some reasonable justification for a delay. So I really like the transparency of the process of how the platform was evolving."

Flamingo Finance is a platform for converting crypto, earning yields and providing liquidity. The project migrated to Neo N3 in Q4 of 2021. According to DeFi Llama, Flamingo Finance has approximately $80 million in total value locked. Lucas, who is also a user of Flamingo Finance, added: 

"They really focused on their on their user base. A while ago, they released a feature where you could claim different DeFi pools. I asked the team for a "claim all" button so that I don't have to spend time clicking the different pools to claim rewards. Within a few days, that feature was implemented."

On Monday, Neo also announced a partnership with EU social economy network Diesis, which has a support network of 90,000 organizations, and 1.2 million workers across 21 countries. Through the deal, Neo will help the latter develop blockchain solutions using the Neo N3 ecosystem's decentralized file storage, NeoID. Luca Pastorelli, president of Diesis Network, commented:

"Neo pioneered the dBFT [delegated Byzantine Fault Tolerance] consensus mechanism, so there is no mining on Neo. And N3 being an all-in-one development experience makes it the ideal blockchain partner for a global social and solidarity economy network."


via cointelgraph.com
Bitcoin rebounds over $41K after painting a 'bullish hammer' — Can BTC hit $64K next?

Bitcoin rebounds over $41K after painting a 'bullish hammer' — Can BTC hit $64K next?

Yes, if the signs of bottoming out coming from the U.S. stock market are true.

Bitcoin (BTC) rallied above $41,000 on Feb. 28 in a new sign of buying sentiment returning after last week's brutal selloff across the risk-on markets, including the S&P 500.

BTC's price jumped by over 9% to reach $41,300, in part, as traders reacted to the ongoing development in the Russia-Ukraine crisis. In doing so, the cryptocurrency briefly broke its correlation with the U.S. stock market indexes to perform more like safe-haven gold, whose price also went higher in early trading on Feb. 28.

BTC/USD versus XAUUSD and S&P 500 daily price chart. Source: TradingView

Bitcoin downtrend exhausting — analyst

Johal Miles, an independent market analyst, spotted "significant buying pressure" in the market, adding that its downtrend might be heading towards exhaustion.

Miles highlighted Bitcoin's recent upside retracement moves upon testing levels near $34,000 as support. For instance, on Jan. 24 and Feb. 24, BTC's price formed a bullish hammer candlestick on its daily chart, hinting at a U-turn during an established downtrend.

BTC/USD daily price chart. Source: Johal Miles, TradingView

The same bullish hammers appeared last year in May and June, with their bottoms sitting below the key support level of $30,000. This was followed up with a sharp price reversal in the Bitcoin market with BTC's price reaching as high as $69,000 in November 2021.

Additionally, Miles noted that the buying sentiment in the area between $28,500 and $34,200 came to be comparatively higher than around $46,000, a support Bitcoin broke to the downside in January 2022.

"The key difference between the current range and the range we had previously at $46 thousand is we are now seeing significant buying pressure when we visit the lows," the analyst tweeted Feb. 28, adding:

The spells exhaustion of the downtrend to me, similar to summer.

BTC to $64K?

Alexander Tkachenko, CEO and founder, VNX — a Luxembourg-based token issuance platform, highlighted Bitcoin's potential to rebound sharply following a confirmed U.S. stock market bottom, adding that its price could reach $64,000 based on Wycoff methodology.

BTC/USD daily price chart featuring Wycoff model. Source: TradingView

"From a global perspective, all signs are that Bitcoin has entered the re-accumulation stage according to Wycoff's methodology," he told Cointelegraph, adding:

"One can expect a move towards USD64,000 and a further upward trend mid-term. The potential growth in the price of Bitcoin is imminent as projected, particularly drawing on the coin's close ties to mainstream or the traditional stock market, the S&P Index."

Macro analysts also noted that the benchmark S&P 500 might have started bottoming out after staging a historical reversal on Feb. 24. In detail, the index rebounded by nearly 4.5% despite being initially down by more than 2.5%. Such a retracement has not happened since the 2008 financial crisis.

Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, said sharp stock market reversals during a price correction are "indicative of a classic bear market rally," except when the economy has not been undergoing a phase of recession.

"Historical precedence says we are [near the lows of the ongoing correction] if we avoid a recession," he told Business Insider while highlighting the improving U.S. economic data, ranging from a strong consumer balance sheet to record-high corporate earnings to a strengthening labor market.

SPX daily price chart ft. MACD indicator. Source: TradingView

The views lined up with what FS Insight predicted in its recent S&P 500 market analysis. Co-founded by JPMorgan's former equity strategist Tom Lee, the firm noted that the index showed signs of bottoming out.

Related: Hodl, don’t trade, says the AI Bitcoin trading bot

"Prices remain under prior days' highs amidst a negative trend with bearish momentum," said Mark Newton, FS's head of technical strategy, in a note, adding:

"I favor being long and buying dips, anticipating that markets work higher into March FOMC and that Growth outperforms Value."

The correlation between Bitcoin and S&P 500 was 0.36 above zero as of Feb. 28, 4:30 pm UTC.

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
State Street Corporation To Offer Custodial Services For Bitcoin And Crypto

State Street Corporation To Offer Custodial Services For Bitcoin And Crypto

State Street Corporation, the largest custodial service provider in the world, plans to launch custodial services for bitcoin and other cryptocurrencies.

  • State Street, the largest asset custodian in the world, plans to launch a custodial service for bitcoin and other digital assets.
  • Globally Systemically Important Financial Institution (G-SIFI) State Street has regulatory hurdles.
  • VP and head of State Street digital says market will “take comfort” from largest custodian in the world offering digital custody of assets

State Street Corporation, an institutional asset manager with over $4.1 trillion in assets, intends to provide custodial services for bitcoin and other cryptocurrencies, according to an interview given to Bloomburg.

Nadine Chakar, executive vice president and head of State Street Digital, alluded to the added pressure of regulatory hurdles presented by being a Globally Systemically Important Financial Institution (G-SIFI). These particular institutions are asset managers whose failure could trigger major economic events.

“We think a custodian bank like State Street can continue to do what it’s best at, which is keeping order and safety into the system. But we’ll do it differently,” referring to their status as a G-SIFI, and being the largest custodian in the world.

“It’s my personal mission to prove that elephants can truly dance,” referencing comments that the size of State Street is too big to fail. “The minute we get the nod, we’ll be ready,” Chakar told Bloomberg. “We’re literally investing in the future, we know clients are out there looking for this.”

Chakar spoke to the volatility of bitcoin and other cryptocurrencies saying that further institutional adoption will create a more stable environment, citing one of the reasons she believes State Street can provide this stability is the market would “take comfort” from custodial solutions offered from a G-SIFI of their size.

In December 2019, State Street launched a custodial pilot that was meant to combine the custodial services of Gemini, a cryptocurrency exchange, and the reporting services of State Street.

In June of 2021, State Street launched a digital division, led by Chakar. Joining the growing list of institutional adoption, including Fidelity and their recent “Bitcoin First” initiative, Ron O’ Hanley, CEO of State Street had this to say on digital assets:

“The financial industry is transforming to a digital economy, and we see digital assets as one of the most significant forces impacting our industry over the next five years.”


via bitcoinmagazine.com
South Korea to invest $187M in national Metaverse project

South Korea to invest $187M in national Metaverse project

The government will provide $186.7 million to stimulate the growth of a Metaverse platform that it hopes businesses and industry will thrive in.

South Korea’s Ministry of ICT, Science, and Future Planning pledged 223.7 billion KRW ($186.7 million) to create a broad Metaverse ecosystem to support the growth of digital content and corporate growth within the country.

The Ministry wrote in an official statement on Feb. 27 that funds will be spent on completing four main objectives in creating what appears to be an all-encompassing Metaverse ecosystem titled the Expanded Virtual World.

The government agency intends on using its Metaverse as a platform for expanding the virtual industrial growth of cities, education, and media.

Content creators will enjoy support on multiple fronts to attract the right talent to help build the platform. The Ministry said that it will host community-oriented creative activities, a Metaverse developer contest, and a hackathon.

CEO of Hashed Simon Kim pointed out that the new Metaverse platform has a particular focus on boosting commercial expansion by providing financial support for participants. He told Cointelegraph today that he doesn’t think there is a problem with the government providing funding because “the private sector is actively investing in the metaverse market.” He continued:

“It is the regulatory issue that the government should pay more attention to. In Korea, publishing of NFT games is prohibited, and token issuance is also prohibited.”

Hashed is a South Korean crypto ecosystem venture capital and incubator. It has invested in Metaverse projects such as Decentraland and The Sandbox.

Head of Communication and Policy Department at the Ministry Park Yungyu stated in the announcement that this initiative to build a Metaverse platform is part of the broader ‘Digital New Deal’ in South Korea. The Digital New Deal is a set of policies designed to foster the growth of digital technologies according to Park who added:

“It is important to create a world-class Metaverse ecosystem as the starting point to intensively foster a new hyper-connected industry.”

The Ministry also expects its Metaverse to have a global reach since there will be seamless access to South Korean companies over time. It plans on providing support for corporate growth by offering financial support and technological development.

Related: Monster Energy files NFT and metaverse trademark applications

Seoul’s municipal government has also been exploring its options regarding a public Metaverse space since last year. Last November, tentative plans for a “Metaverse 120 Center” were announced.



via cointelgraph.com
Non-zero BTC addresses hit all-time high of 40 million

Non-zero BTC addresses hit all-time high of 40 million

The supply-side dynamics of the Bitcoin network continue to demonstrate strong adoption as there are now more addresses with a positive BTC balance than ever before.

On-chain statistics through February have suggested positive sentiment for Bitcoin as addresses with a non-zero balance of BTC reached an all-time high.

Additionally, those wallets with a positive BTC balance are increasingly hodling their coins. The amount of BTC circulating supply last moved between three and five years ago reached a four-year high of just over 2.8 million coins, according to data from on-chain analytics firm Glassnode.

The number of addresses with a non-zero balance was on a steep increase through 2019 and 2020 until the middle of 2021, when growth appeared to have plateaued at about 35 million addresses. However, growth in this metric has spiked since the beginning of 2022, leading to a new ATH of 40,276,163 according to Glassnode.

The sudden spike in BTC supply that was last active three to five years ago coincides with the peak of the last extended bull market at the beginning of 2018.

Among the addresses with a non-zero balance, Glassnode reported that 817,445 of them have at least one whole BTC, a 10-month high on Feb. 28.

Supply-side dynamics in Bitcoin have provided several metrics of note this past month. FSInsight reported on Feb. 9 that 75% of the BTC circulating supply was illiquid because it had not moved for an extended period of time. The financial research firm’s report described the situation as a “powder keg” that is ready to blow as soon as a moderate amount of BTC is bought on the market.

Related: Bitcoin fails to beat resistance as $40K stays out of reach into weekly close

Political turbulence in Canada and Ukraine in February has also shed more light on Bitcoin’s ability to remain censor-proof. Some Canadians have adopted Bitcoin to protect their funds from being frozen, while the Ukrainian government is now accepting BTC donations as tensions escalate in the region.

BTC is currently trading at $37,827, down around 45% from the Nov. 10, ATH of $69,000 according to CoinGecko.



via cointelgraph.com
Are NFTs coming soon to your favorite video games?

Are NFTs coming soon to your favorite video games?

Gamers love digital collectibles, but they aren’t fawning over NFTs. What gives? And what does this mean for the future of gaming?

In 1996, when the Nintendo 64 was first launched in the United States, it sold 1.6 million units (worth $200 each) in its first quarter. Its closest competitor for the holiday season was a $30 Tickle Me Elmo doll, which sold around a million units in the same window. More than 20 years later, when Nintendo’s $300 Switch sold 1.5 million units in its first week, there was a lot more competition, and not just for the holiday season.

The business of gaming has changed dramatically since its early days. From basic monetization through the sale of physical and digital copies of games to in-game monetization through microtransactions, the widespread adoption of the internet has caused a pronounced shift in the gaming landscape. While the previous millennium’s video game studios depended on revenue from selling games and gaming hardware, today’s goliaths don’t expect you to buy their games at all.

The business of gaming

Nintendo is a relatively rare example of a large gaming studio that hasn’t delved too deep into the microtransaction waters. Fortnite rakes in around $5 billion per year for Epic Games, and with numbers like that, you can bet most gaming companies are at least investigating the free-to-play model. However, this shift in consumer mindset from deep loathing to moderate acceptance for microtransactions has been a long, arduous process.

Fortnite was far from the first game to introduce microtransactions, but it was one of the first mainstream examples of a live-service game that relied purely on in-game purchases. This came at a time when the concept of microtransactions invoked images of toxic loot-box economies and luck-based purchases that had games morphing into “pay-to-win” ecosystems and as consumers were growing increasingly frustrated with game publishers.

Fortnite flipped the script, pushing microtransactions as a way to distinguish yourself in-game while supporting the developers on the side. They did not affect gameplay, preventing deeper pockets from dominating the games, and served as an excellent way for those with money and appreciation to show it — a sort of vanity-fuelled charity. Sound familiar?

Treasure Chest from Fortnite. Source: Fortnite Wiki

Will it blend?

Nonfungible tokens (NFTs) were bound to find their way into gaming ecosystems. From early implementations like CryptoKitties to today’s Axie Infinity, digitally owned tokens are seemingly destined to be coupled with games.

Some of the biggest names in the video game industry are embracing NFTs, and it’s no real surprise. Gaming has never been more accessible than it is today, evolving from a niche consumer base to establishing global pop-culture trends. For decades, gaming collectibles have sold for obscene prices — why should their digital cousins be any different?

From Ubisoft to Square Enix, what’s really intriguing the industry is figuring out the best approach. Some have simply started selling digital items as NFTs, enabling buyers to resell them to other, more eager enthusiasts. Others are attempting to adopt the play-to-earn (P2E) model used by Axie Infinity.

Earlier this year, American video game retailer GameStop announced plans to partner with an Australian crypto firm to develop a $100 million fund for NFT creators, content and technology. In his New Year’s letter, Square Enix president Yosuke Matsuda indicated that the company would like to incorporate blockchain/NFTs into its future releases, but he did not mention any specifics.

Recently, Ubisoft attempted to release a limited-edition collection of NFTs alongside its Ghost Recon Breakpoint game. In a perfect world, this would have been a celebratory moment — one of the world’s largest, most valued gaming mammoths had proclaimed the adoption of blockchain technology. As you might already know, this announcement didn’t quite go according to plan.

Adventure capitalism

According to a report from DappRadar, gaming-related NFTs generated revenue worth nearly $5 billion last year and represented around one-fifth of all NFT sales in 2021. Ubisoft unveiled an NFT project on Dec. 7 — a move that was met with a 96% dislike ratio on its announcement video on YouTube — and two weeks later, it had reportedly only sold 15 NFTs, collectively worth less than $1,800.

“The traditional gaming industry is not going to adopt NFTs in their current state,” Wade Rosen, the CEO of legendary video game corporation Atari, told Cointelegraph. According to Rosen, though blockchain gaming will continue to evolve, there currently isn’t enough tangible utility for players to consider adoption yet.

“NFTs — how they are produced, what value they provide to individual players, and communities of players that form around individual titles — will need to evolve pretty significantly before you can expect to see any widespread adoption within the [traditional gaming] industry. We do see a lot of potential for NFTs and blockchain technology within video games, but not until the definition of an NFT evolves significantly beyond where it stands now.”

It’s not that gamers don’t like the idea of buying NFTs — it’s that they have been marketed as blatant cash grabs. To drive NFT sales, Ubisoft made it absurdly difficult to earn any in-game items for free. Still, some of the most prominent players from Zynga to EA Sports are keeping a close eye on blockchain and how it could impact the business of gaming — an industry worth around $80 billion.

“The reaction to the topic within the industry is binary and visceral, and unfortunately, that just isn’t a good environment for exploration,” Rosen added. “We expect most of the related innovation over the next 12 to 18 months to happen within the more narrow blockchain gaming space.”

American gamers, with an average age of 35, have seen the medium shift from text-based to 2D to 3D to virtual reality multiplayer, all in around two decades. 

During this time, the gaming industry has primarily profited from selling entertainment products that offer nothing more than a game. But as soon as you let money flow in and out of a game, you effectively turn its economy into a stock market.

This has led many gamers to feel that — with NFTs and blockchain — studios and game publishers are more focused on creating markets than on engaging, unique and, most importantly, fun gaming experiences. 

Make games fun again

There is a middle ground for gaming NFTs, one where publishers don’t run blatant cash grabs and the tokens themselves have no impact on the financial incentives of the game. There are countless factors to consider when investigating why adoption rates have been slow, but many are convinced that cracking the case is only a matter of time.

Elliot Hill, director of communications at Verasity — a blockchain-based advertising technology firm — told Cointelegraph that while NFTs are clearly innovative and useful, they lack adequate infrastructure.

“With these hurdles in the rear-view mirror, it’s my view that widespread adoption of NFT technology is now much more likely by major game companies,” he said.

On the surface, video game studios are like software companies: They both hire developers, designers, managers and executives, along with sales and marketing teams, to build and sell a product. However, they serve an entirely different clientele.

The video game industry works some of the longest hours among software-based companies, filling a strange space between the extravagance of Hollywood and the structure of Big Tech. However, with NFTs practically tacking on optional financial services sidequests to video games, the line between work and play begins to blur.

Gaming NFTs exist at an intersection between some of the most fast-paced, high-skill, high-value environments in the world: technology, finance and entertainment. Each of these sectors accommodates all kinds of market conditions and consumer behaviors, and it will take time for them to understand the intricacies of the others.

Sarah Austin, co-founder of NFT and metaverse gaming launchpad QGlobe, told Cointelegraph that NFT games are in their early stages and haven’t evolved much beyond simple GameFi and P2E models.

“Going from AAA games to NFT games can feel disappointing. However, if the player’s motivation is to earn rewards, then they are less concerned with the quality of gameplay.”

According to research from Nielsen, consumers spent over $90 billion on microtransactions in 2021. The gaming consumer market is happy to spend money in-game, but not at the cost of the game itself. The more utility and impact an NFT has in-game, the less important the actual game becomes.

“The GameFi/P2E arena is where the industry is starting — not the end state,” said Atari’s Rosen. “Personally, I am intrigued by the potential for NFTs to allow for more collaboration and interaction between games and among virtual worlds. Eventually, NFTs may become building blocks that allow players and developers to create new, shared experiences.”

However, there are also cultural elements at play. While pay-to-win microtransaction economies are shunned in the West, gamers in the East seem to have adopted them wholeheartedly. Chinese game developer miHoYo’s worldwide smash hit Genshin Impact essentially runs on a luck-based loot-box economy but managed to gross over $2 billion in its first year.

Genshin Impact title image. Source: GameRant.

As Square Enix president Yosuke Matsuda previously stated, not everyone plays games just to have fun. Some want to contribute to the games they’re playing, and so far, traditional gaming has no incentive models that cater to these consumers.

There’s certainly a large enough market to warrant the effort, but it seems gaming NFTs, in their current form, are more geared toward attracting casino gamblers than average gamers. NFTs are most certainly coming to mainstream gaming — it’s just a matter of who can figure out the right balance between the finance of gaming and the gamification of finance.



via cointelgraph.com
Buying And Selling Real Estate With Bitcoin In 2022

Buying And Selling Real Estate With Bitcoin In 2022

Bitcoin’s usage is only growing, and so too will its usage in real estate transactions — so why not transact with it yourself?

Bitcoin has created a new form of wealth, particularly for those who purchased bitcoin at its lowest value. Bitcoin is being used in over 270,000 transactions daily, and its usage is only increasing.

So, why not use your Bitcoin to make your real estate transactions? This guide will explain everything you need to know about property transactions involving bitcoin.

Photo by Austin Distel on Unsplash

How To Make Your Real Estate Transactions Using Bitcoin

Finding Real Estate Agents That Use Bitcoin

When using bitcoin to make your real estate transactions, you must be aware of real estate agents and companies that have experience of using bitcoin in the sale or purchase of a home.

Some real estate agents that have experience using bitcoin include:

  • Magnum Real Estate Group - This is a New York-based real estate company adapted to the younger generation’s desire to make business transactions using bitcoin possible.
  • Kuper Sotheby’s International Realty - This Texas-based real estate company was the first in Texas to make a real estate transaction using Bitcoin.
  • Sand Key Realty - This real estate company is Florida-based and has a history of listing properties for sale, with the seller accepting bitcoin as the form of payment.
  • Open Listings - sites like Open Listings are making it easier to purchase homes using bitcoin, with options to limit search results to houses being sold for bitcoin.

The future of real estate is changing to accommodate the use of bitcoin in property transactions, and more real estate companies are facilitating bitcoin transactions. In fact, bitcoin is becoming as popular an investment as real estate.

Using Bitcoin To Purchase A Property

If you plan to use bitcoin to purchase a property, you must first inquire whether the seller is accepting bitcoin. If the seller does not accept bitcoin, you must convert your cryptocurrency into traditional currency using a third-party website.

If the seller accepts bitcoin, you must negotiate the sale price in bitcoin.

You may only use bitcoin to purchase a property if you do not need to obtain a mortgage for the property, like a cash buyer. This is because banks are hesitant to accept bitcoin, partly because of its associations with money laundering, and it is an unstable currency.

Once the sale has been negotiated, you must also figure out the method of payment if your real estate agent fees can’t be paid using the currency.

Using Bitcoin To Sell A Property

If you wish to sell your property in exchange for bitcoin, you must first find a real estate company that has experience using bitcoin to make real estate transactions (see the list above for guidance).

When listing your property, you must determine whether you are listing it only for bitcoin buyers or if you are willing to accept other cryptocurrencies or traditional currency. Once it is listed, buyers will make offers in your preferred currency, and you can accept the offer and sell your home for Bitcoin.

Buying A Home With Bitcoin: The Benefits And Disadvantages

There are many advantages to purchasing a home using bitcoin, including:

  • If you have made a profit from investing in bitcoin, buying property using the currency is a great way to consolidate your profits.
  • Investing in property gives you a chance to diversify your assets.
  • Real estate transactions favor cash buyers, and using bitcoin is like being a cash buyer, which can give you more negotiating power

However, there are also some disadvantages to buying a home with bitcoin, including:

  • One of the drawbacks of purchasing a property using bitcoin is the lack of sellers. There is limited availability of properties being sold for bitcoin, and you may have a hard time finding properties in your desired location.
  • If you decide to invest in property, you may miss out on future appreciation and returns on your bitcoin.
  • You will need to enlist the help of a tax expert, as making real estate transactions can be pretty complex in terms of taxes.

Selling A Home With Bitcoin: The Benefits And Disadvantages

Some of the advantages of selling a home using bitcoin include:

  • The chance of appreciation offered by owning bitcoin.
  • If you open up the sale of your home to bitcoin buyers, you will widen your audience and attract more cash buyers.

Some of the disadvantages of selling a home using bitcoin include:

  • The chances of appreciation are equally weighed with the possibilities of bitcoin’s value depreciating, resulting in losses.
  • The complexity of taxes involved in bitcoin real estate transactions applies to both the seller and the buyer.
  • You will also need to establish a secure virtual wallet for your new bitcoin, which may involve enlisting help, depending on how well-versed you are in cryptocurrency storage.

Summary

Like many other transactions, real estate transactions are starting to accommodate the use of bitcoin to buy and sell houses. Since bitcoin is an emerging currency, there are limits to the sellers, buyers, and real estate companies willing to deal in bitcoin.

However, selling with bitcoin is indeed possible and grants sellers the opportunity for gains with bitcoin. Buying with bitcoin also offers buyers the chance to consolidate their profits and diversify their investment portfolio.

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


via bitcoinmagazine.com
Top 5 cryptocurrencies to watch this week: BTC, LUNA, AVAX, ATOM, FTM

Top 5 cryptocurrencies to watch this week: BTC, LUNA, AVAX, ATOM, FTM

Crypto markets are expected to remain volatile for the foreseeable future, but BTC’s battle to reclaim $40,000 could be followed with rallies from LUNA, AVAX, ATOM and FTM.

The geopolitical news flow is likely to result in volatile moves in Bitcoin (BTC) and altcoins in the next few days. News of Russian President Vladimir Putin ordering the nuclear deterrence forces on high alert may be viewed as a negative, but reports of talks between the warring nations could be positive as it raises hopes of an end to the conflict.

The crypto community came into focus as the Ukrainian government called for help and sought crypto donations. Some individuals on social media said their Ukrainian credit cards had stopped working and they were not able to withdraw money from their banks. They highlighted how crypto was the only money left with them.

Crypto market data daily view. Source: Coin360

While some analysts are projecting that Bitcoin may have bottomed out, Cointelegraph contributor Marcel Pechman warned that derivatives data remains inconclusive. Similarly, Ether futures data was also not painting a hugely bullish picture.

The near-term price action will be dictated by the developments in the Russia-Ukraine war. Let’s study the charts of the top-5 cryptocurrencies that may lead the recovery on news of a peaceful resolution to the ongoing conflict.

BTC/USDT

Bitcoin’s rebound off the Feb. 24 intraday low at $34,322 reached the moving averages on Feb. 26 where the bears are mounting a strong resistance. However, a minor positive is that the bulls have not given up much ground.

BTC/USDT daily chart. Source: TradingView

The moving averages are flattening out and the relative strength index (RSI) is attempting to rise to the midpoint, signaling that bulls are making a comeback. If bulls drive and sustain the price above the moving averages, the BTC/USDT pair could rally to the overhead resistance at $45,821. This level is likely to attract strong selling by the bears.

Contrary to this assumption, if the price turns down from the moving averages, the pair could consolidate between $39,600 and $36,250 for a few days. A break and close below this support could open the doors for a possible drop to $32,900.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the price has been trading in a tight range between $38,200 and $39,600. The rising 20-exponential moving average and the RSI just above the midpoint indicate a minor advantage to buyers.

A breakout and close above $39,600 could push the price to $41,000 and thereafter to $42,000. The bears are likely to mount a strong resistance in this zone.

If the price turns down from this zone but does not dip back below $39,600, it will suggest that the sentiment has changed from sell on rallies to buy on dips. That could increase the prospects of the continuation of the up-move.

Conversely, a break and close below $38,200 will indicate aggressive selling near $39,600. The pair could then again drop toward $36,250.

LUNA/USDT

Terra’s LUNA token picked up bullish momentum after breaking and closing above the downtrend line. Strong buying pushed the price above the minor resistance at $70 on Feb. 25.

LUNA/USDT daily chart. Source: TradingView

The moving averages are on the verge of a bullish crossover but the RSI is near the overbought zone. This suggests that bulls have the upper hand but the LUNA/USDT pair could witness a minor correction or consolidation in the near term.

On the downside, the bulls are likely to defend the breakout level at $70 and below that the 20-day EMA ($60). If the price rebounds off either support, the pair could extend its rally to $90 where the bears may again offer stiff resistance. This bullish view will be negated on a break and close below the 20-day EMA.

LUNA/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the pair had been trading between $47 and $60 for many days. A break and close above $60 signaled the start of a possible new up-move. The 20-EMA is sloping up and the RSI is in the positive zone, indicating advantage to buyers.

If bulls defend the 20-EMA, the possibility of the continuation of the uptrend increases. The pair could then rise above $80 and later rally to the overhead resistance zone between $84 to $87. Conversely, if the price turns down and slips below $70, the pair could drop to $64.

AVAX/USDT

Avalanche (AVAX) has been trading inside the descending channel for the past few days. The price broke below the moving averages on Feb. 20 but the bulls reclaimed the level on Feb. 25, indicating strong buying at lower levels.

AVAX/USDT daily chart. Source: TradingView

The bulls will now attempt to push the price to the downtrend line of the descending channel. This is an important level to watch out for because a break and close above it will indicate a possible change in trend. The AVAX/USDT pair could first rally to $100 and thereafter start an up-move to $120.

Alternatively, if the price turns down from the downtrend line, the pair could drop to the moving averages. If the price rebounds off this level, the possibility of a break above the channel increases.

This bullish view will invalidate if the price turns down from the current level or the overhead resistance and breaks below $70.

AVAX/USDT 4-hour chart. Source: TradingView

The price has been trading between the overhead resistance at $83 and the moving averages. The 20-EMA is flattening out and the RSI is near the midpoint, indicating a balance between supply and demand.

This balance will shift in favor of the bears if they pull the price below $76. The pair could then drop to the next support at $73. Alternatively, if the price rebounds off the current level and breaks above $83, the pair could pick up momentum and rally to the overhead resistance zone at $97 to $100.

Related: Terra's Mirror Protocol MIR rebounds 40% two days after crashing to record low

ATOM/USDT

Cosmos (ATOM) rebounded from the strong support at $20 on Feb. 24. This indicates that traders are attempting to keep the $20 to $45 range intact.

ATOM/USDT daily chart. Source: TradingView

The price rose above the 20-day EMA ($27) on Feb. 26 and the bulls are attempting to sustain the ATOM/USDT pair above this level. The 20-day EMA is flattening out and the RSI is just above the midpoint, indicating that bulls are attempting a comeback.

If bulls drive and sustain the price above the 50-day simple moving average ($31), the pair could rally to $37. Contrary to this assumption, if the price turns down and slips below the 20-day EMA, it will suggest that bears are defending the overhead resistance at the 50-day SMA. The pair could then drop to $24.

ATOM/USDT 4-hour chart. Source: TradingView

The bulls have pushed the price above the moving averages and the downtrend line on the 4-hour chart. The 20-EMA has started to turn up and the RSI is in the positive territory, indicating that bulls have the upper hand.

If the pair sustains above the downtrend line, the bulls will attempt to clear the barrier at $31 and push the price to $34. Contrary to this assumption, if the price turns down and slips below the 20-EMA, the pair may drop to the 50-SMA.

FTM/USDT

Fantom (FTM) has been trading inside a large range between $1.24 and $3.38 for the past several months. The price rebounded sharply off the support of the range on Feb. 24, indicating that bulls continue to buy at this level.

FTM/USDT daily chart. Source: TradingView

The rebound has reached the 20-day EMA ($1.82) which is acting as a strong resistance. If bulls drive and sustain the price above this level, the FTM/USDT pair could reach the 50-day SMA ($2.18). A break above this level could clear the path for a possible up-move to $2.60.

Contrary to this assumption, if the price turns down from this level, the pair could consolidate between the 20-day EMA and $1.24 for a few more days. The critical level to watch on the downside is $1.24 because if this level cracks, the pair could start a new downtrend.

FTM/USDT 4-hour chart. Source: TradingView

The moving averages have completed a bullish crossover on the 4-hour chart indicating that the short-term downtrend could be over. If the price rebounds off the moving averages, it will suggest that traders are buying on dips.

The buyers will then attempt to push and sustain the price above the downtrend line. If they manage to do that, the pair could rise to $2.14 and then to $2.40. This positive view will invalidate in the short term if the pair sustains below the moving averages. Such a move will indicate that bears are active at higher levels.

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