Cryptocurrency Financial News
IOST, the native token of the IOST Network, has surged by 8.65% after the company announced a strategic partnership with Amazon Web Services (AWS) on the development of web3 technologies.
The first two months of 2023 haven’t seen a slowdown in trademark filings, with recent filings covering automotive, clothing and fast-moving consumer goods.
The price of AVAX has more than doubled in 2023 but a growing divergence between several key metrics hints at a bearish reversal ahead.
The collaboration will allow both individuals and institutions to launch subnets that can operate as self-sufficient blockchain systems.
The latest AVAX price rally comes on the heels of Avalanche’s partnership with Amazon Web Services as the cryptocurrency market rebounds.
Avalanche and its dApp ecosystem shall now be supported by Amazon Web Services (AWS), which also comprises one-click node deployment through the AWS marketplace.
With this partnership with AWS, Ava Labs can help customers deploy custom offerings linked to over 100,000 partners spread across 150 countries.
Technically, the Avalanche node operators can operate in AWS GovCloud for the FedRAMP compliance use case, which is an essential pre-requisite for many enterprises and governments.
This partnership will help scale blockchain adoption among many enterprises, government organizations, and other institutions.
Howard Wright, the VP and Global Head of startups at AWS, stated:
Looking forward, web3 and blockchain are inevitable. No one can call the time or date or quarter that it’s going to happen and it’ll be mainstream, but we’ve seen the cycles of growth before. The velocity of this one seems like it’s accelerating and we’re just excited to be a part of this.
Through the partnership, individuals will find it much easier to launch and manage nodes on Avalanche; additionally, it will strengthen and make the network more flexible for developers to work on. This new development has positively affected the altcoin’s price, but it is yet to be seen if the coin can sustain this price sentiment.
The news of AWS being incorporated into the Avalanche ecosystem has instantly spiked investor interest. The daily chart of AVAX displays a 6.6% gain, which can be termed a rally.
This has made the coin break past the $13.60 resistance level, and now AVAX is valued at $14.40. It is yet to be seen if the coin manages to breach the $15 mark, acting as a resistance mark for the coin. A fall from the current price will bring the altcoin down to $13.70.
The Relative Strength Index was overbought, which means the asset was overvalued. The overvalued condition can be attributed to the newest development. Usually, once the asset is overbought, the price corrects itself.
Due to bullish sentiment, AVAX shot past the 20-Simple Moving Average line (SMA), indicating that buyers have been driving the price momentum in the market. Not just the 20-SMA, the altcoin was parked above the 50-SMA due to excessive demand.
The Moving Average Convergence Divergence suggests price momentum and a trend reversal. The indicator formed a few green histograms, which are buy signals for the coin. The most recent histogram increased in size, anticipating the rise in the price of the asset.
Investors could quickly take this as a signal for entry as the price would increase over the next few trading sessions before it started to retrace.
The Directional Movement Index reads the price direction, and it was bullish. The +DI line (blue) was above the -DI line (orange).
The Average Directional Index (red) was near 20 with a slight uptick, confirming that although the price witnessed a northbound movement, the price direction lacks substantial strength.
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The world is upside down. Is bitcoin stable now? Or is everything else extremely volatile all of a sudden? As the planet descends into chaos, bitcoin remains in a weird limbo that’s uncharacteristic of the asset and doesn’t seem to end. That’s both what it feels like and what the stats say. In the latest ARK Invest’s The Bitcoin Monthly report, they put it like this, “bitcoin finds itself in a tug of war between oversold on-chain conditions and a chaotic macro environment.”
What about the numbers, though? The stats support the thesis, “for the third month in a row, bitcoin continues to trade between support at its investor cost basis ($18,814) and resistance at its 200- week moving average ($23,460).” Three months in that range seems like too much. Something’s got to give. However, that’s what everyone’s been thinking for the last few months and we’re still here.
Bitcoin has been less-volatile than usual, sure, but the main factor here is that the whole world is falling to pieces. Every company is in the red, especially techy ones, and all of the world’s currencies except the dollar fell off a cliff. Are we seeing “the dollar milkshake theory” playing out in front of our own eyes? It sure feels that way. Global central banks have been printing bills like there’s no tomorrow, and that extra liquidity is there for the stronger currency to take.
According to professional investor Darren Winter, the “dollar milkshake theory views central bank liquidity as the milkshake and when Fed’s policy transitions from easing to tightening they are exchanging a metaphoric syringe for a big straw sucking liquidity from global markets.” If that’s what we’re seeing, what happens next? Back to The Bitcoin Monthly, ARK says:
“As macro uncertainty and USD strength have increased, foreign currency pairs have been impacted negatively while bitcoin has been relatively stable. Bitcoin’s 30-day realized volatility is nearly equivalent to that of the GBP and EUR for the first time since October 2016”
BTC price chart for 11/07/2022 on Bitstamp | Source: BTC/USD on TradingView.com
The macro-environment has been so bad lately, that there’s the perception that bitcoin has been doing better than stocks. The facts are that, for the first time since 2020, “bitcoin’s 30-day volatility is on par with the Nasdaq’s and the S&P 500’s.” And, we know past performance doesn’t guarantee future results, but “the last time bitcoin’s volatility declined and equaled the rising volatility of equitiy indices was in late 2018 and early 2019, preceding bullish moves in the BTC price.”
However, let’s not kid ourselves, bitcoin has not been doing good. The thing is, not much is prospering out there. Especially in the tech sector. “The price drawdowns from alltime high in Meta (-75.87%) and Netflix (-76.38) have exceeded that of bitcoin’s (-74.46%). To a lesser extent, Amazon also suggests a correction proportional to that of BTC’s “usual” volatility (-48.05%).”
According to The Bitcoin Monthly, the situation “suggests the severity of the macroeconomic environment and bitcoin’s resilience against it.”
The only constant is change, however. Bitcoin’s stability suggests a violent breakout, either up or down. The entire world can’t remain the red forever, something or someone has got to rise above the crowd and show everyone how it’s done. We’ve been waiting for a resolution for what feels like ages, and we’ll probably have to wait some more. There will be a movement, though. When we least expect it, probably.
Featured Image: Bitcoin 3D logo from The Bitcoin Monthly | Charts by TradingView
Huge tech stock losses, mostly occurring after the Wall Street close, fail to show up in Bitcoin price weakness.
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Before it expired, the offer stood at approximately 10x the amount of the domain’s last sale.
Rockefeller International’s Managing Director and Chairman, Ruchir Sharma, argues that Bitcoin (BTC) is really a brilliant concept. One that has been destroyed by excessive speculative fervor and easy access to cheap capital.
Bitcoin Rebound Is A Matter Of Time
Sharma, a New York Times bestselling author and former emerging markets investor at Morgan Stanley (MS), predicted that bitcoin could experience a comeback similar to that of Amazon. Amazon’s value fell by about 90% during the early 2000s dot-com collapse but increased by more than 300 times over the course of the following 20+ years.
Although Sharma agrees that there may be more turbulence for bitcoin and the larger world of digital assets over the next months, this may also serve to remove weak players from the market. Some claim that has already occurred.
According to him, Bitcoin is still “caught up in this speculative mania,” and is still indicating a partial worldwide collapse. He brought up the Amazon incident again, noting that it took the company some time to recover. The shares of the online store needed some time to match and surpass its frothy 1999 level.
Reltaed reading | TA: Bitcoin Price Trims Gains, Key Breakdown Support Nearby
The early 2000s dot-com bust led to a huge decline in the value of Amazon’s shares. However, during the course of the following 20 years, the value of the shares was able to increase by a factor of more than 300.
He noted:
“I’m not willing to call the [market] bottom as of yet on bitcoin and cryptocurrencies. The U.S. bear market regime, which is the driver of risk appetite around the world, is still very much in play.”
As a result of the continuous slide in U.S. stocks, Sharma also forecasted severe drops in Bitcoin and other digital assets during the ensuing six months. He made the point that during bear markets, which continue for about a year, stocks frequently decline by 35%. During this bear market that has only been going on for less than a year, the S&P 500 has only fallen by 20%.
BTC/USD slides below $20k. Source: TradingView
Reliance On Greenback May Stop
Sharma is in favor of a monetary system that is not dominated by the US dollar. He said that although there hasn’t been a currency that can replace the dollar, bitcoin might be the solution.
“The dependence on the U.S. dollar, in general, cannot continue. There is a need for having another currency out there with some transactional need, which is a bit more stable in value. Three to five years from now, hopefully BTC will emerge as a more stable asset.”
Sharma mentioned the Federal Reserve’s moves as well, saying that he didn’t foresee the risk appetite opening up just yet.
Related Reading | Bitcoin On-Chain Data: Miners Deposit Big To Derivatives Exchanges
Featured image from iStock photos, charts from TradingView.com
The king of cryptocurrency is suffering another meltdown at a 3.3% drop in just 24 hours. Bitcoin is currently trading at around $38,210 which is the lowest so far since March of this year when US President Joe Biden signed an executive order on crypto regulations.
Although the BTC price went up at $40,800 on Tuesday, it slid momentarily afterward.
Suggested Reading | Bitcoin (BTC) Dips Below $40,000 Over Ukraine And Possibility Of Fed Rate Hike
Amazon Denies Speculation About Accepting BTC Payments
Amazon’s retraction against the mass speculation that the retail giant will be accepting BTC payments was the main causative factor of the sudden drop. Ether was even pushed further down as well.
BTC price went straight up when Amazon announced a job advertisement connected to crypto. However, a couple of hours later, an Amazon spokesperson denied claims that Bitcoin will be added as a payment method this year.
Bitcoin peaked at around US$40,545 as the investors rushed with their bets with the speculation of a bearish stride. There were over $950 million of crypto shorts liquidated which is the highest since May of the current year.
The Multi-Wave Correction
The volatility experienced by Bitcoin and all other cryptocurrencies is referred to as a multi-wave correction. It peaked around April and it’s expected to rebound to a maximum of $45,000 before it slides again.
The rollercoaster ride of BTC is part of that correction. The crypto industry suffered a massive decline after reaching a record high of $65,000 because of a bombardment of environmental and regulatory issues.
BTC total market cap at $751.41 billion on the daily chart | Source: TradingView.com
This week’s frantic moves of BTC and other tokens are expected. Meanwhile, investors are looking at the next big wave that can break the BTC out of its sob trading range of a meager $30,000 to $40,000 in the past few months.
Suggested Reading | Dogecoin (DOGE) Struggles, Drops 9% After Elon Musk Twitter Buyout
Where’s Bitcoin Headed?
The risk level is a bit higher this week because the Federal Reserve is set to announce its decision come Wednesday.
More so, news on the investigation regarding alleged bank fraud committed by Tether executives has put the crypto space hanging.
BTC investors have been grappling with inflation, environmental, political, and economic concerns, especially with the Fed. The inflation rate that happened in March this year is by far the worst inflation rate compared to what transpired in 1981.
Multiple factors combined have been impacting volatility in both the stock and crypto markets.
The current price range is said to be a middle ground for Bitcoin as its performance will determine how everything will play out in the next few days. Would it be bullish or bearish? BTC performance at this range will give people a clue about where it’s going.
Featured image from The Facts Chronicle, chart from TradingView.com
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Cryptocurrencies are seeing a significant recovery as investors take advantage of the recent stock market rally and increased risk appetite. Bitcoin hits its highest in two weeks, extending gains from earlier this week that had seen it climb to $41,938 per coin on Saturday morning (Jan 24th).
Related Reading | Bitcoin mimics stocks rally, hits two-week high
Bitcoin, the largest digital currency globally, has hit $41,938. It is 16% high from Thursday’s low and 27% from the current year’s low of $32,950.
Bitcoin price hits two weeks high of $41,938. Source: Tradingview.com
Ether, the second-largest digital currency, has scaled new heights, reaching $3K for the first time since January 21.
Bitcoin recorded its biggest single-day gain since mid-June as fears of faster than expected Fed rate hikes led to an increase in inflation, with the cryptocurrency also being roiled by technological innovation. However, Friday’s 11% rise was enough to consider haven against this trend and get some positive press at least until Monday when everything will likely go back down again.
Bitcoin Price Recovery: Thanks to Amazon
Despite a long week of volatility from earnings, US stocks ended the week strong. The tech-heavy NASDAQ secured gains thanks to Amazon’s robust growth and Facebook owner Meta Platforms’ disappointing results that evening gave them more confidence in their business models moving forward.
Related Reading | Amazon Strong Growth Attributed to the Cloud Despite Retail Headwinds
Bitcoin has moved seamlessly into the mainstream. That resulted in investors looking to get in on the action when risk appetite is low. Ed Hindi, Chief Investment Officer of Tyr Capital, said;
“The current panic and volatility surrounding bitcoin are based on a fundamental misunderstanding of it as an asset class. When valuations on the Nasdaq fall, misguided institutional investors start liquidating bitcoin positions en masse as if it were a tech stock.”
The recent rise in the stock market has given other listed crypto assets a boost. As a result, some currencies even reached new highs.
BTC Price Prediction
Though prices for Bitcoin have seen a significant drop in the last week of January and were sitting at 47% of their all-time high, the cryptocurrency recovered slightly after reaching a low of $33K on Jan 24, 2022, and is worth about $42k.
Buy, sell and hold? Analysts are split on whether or when to buy cryptocurrency. But more than half believe this is a good time for buyers, with only 45% disagreeing.
The experts from the top fintech companies predict that by the end of 2022, bitcoin will reach an all-time high of $93,717 – more than 24K dollars higher than its current all-time high price.
This is a great time to invest in cryptocurrency. Experts predict that by the end of 2025, bitcoin will trade at $192k and mount up over 300% from its November 2021 peak and reach nearly half a million dollars by 2030. While these predictions may seem lofty goals at first glance, they’re significantly less than what experts predicted back in July 2021 when their last forecast said bitcoins prices could reach 265k or 706K, respectively.
Featured image from Pixabay, chart from TradingView.com
