Posted on

ARK Invest’s Cathie Wood Reveals Why Bitcoin Will Reach $1.48 Million

ARK Invest CEO Cathie Wood is no stranger to Bitcoin predictions given that the asset manager has previously said that BTC will go to $500,000 and even reach $1 million. As always, Wood remains steadfast in her Bitcoin predictions, coming out once more with an even more daring figure for the pioneer cryptocurrency.

Cathie Wood Says Bitcoin To $1 Million

Cathie Wood, who is the founder and CEO of ARK Invest, an investment firm with over $6 billion in assets under management (AUM) has come forward with a new price expectation for Bitcoin. The CEO had a chat with Natalie Brunell, hist of the “Coin Stories” podcast, where she made this new prediction.

As Wood explains, ARK Invest’s research team’s efforts have shown that Bitcoin’s growth will be largely driven by institutional adoption. They expect the digital asset to undergo a massive rally as the next decade begins.

Wood points to the adoption trend of new assets by these large institutional investors and how they often tend to allocate their portfolios. As the CEO points out, between 5% and 6% of institutional investors’ portfolios were allocated to assets such as real estate after the managers had tested the waters.

Bitcoin could be seen as being in the ‘testing the waters’ phase where institutional investors are still only putting around 1% into the digital asset to see how it turns out. Then gradually, they expand their allocation until they get to that 5% to 6% range. Now, when this happens, as Wood has pointed out before, BTC will cross the 7-figure mark.

Bitcoin price chart from Tradingview.com (ARK Invest Cathie Wood)

Wood tells Brunell that she wants the Bitcoin price to cross $1 million by 2030. But this doesn’t mean that the CEO does not expect the digital asset to grow further as she puts it as high as $1.48 million in the next seven years.

The ARK Invest founder further points out that some companies are already starting to exceed the conservative 1% allocation. “Tesla, Square have Bitcoin on the balance sheets. But we make very cautious assumptions and I think the corporate treasury assumption is 2.5% of all cash and cash equivalent in Bitcoin.”

Wood stated:

If we’re right and the purchasing power of Bitcoin becomes so obvious in the years ahead, meaning the purchasing power goes up, instead of cash [dollars] staying pretty flat, if not, in real terms, deteriorating, then more and more corporate treasuries are going to be putting Bitcoin on their balance sheets.

She believes analysts at these companies will ask companies to put money into BTC rather than leave it in cash where the value continues to decline.

Posted on

Hedera (HBAR) Q3 Triumph: Transaction Volume Soars, Network Revenue Crosses 1M Milestone

According to a recent report by the online database platform Messari, the Hedera (HBAR) Network, an open-source, public blockchain governed by the Hedera Governing Council, has showcased significant growth in the face of a challenging crypto market during Q3 2023. 

Hedera Network Hits New Record With 99 Million Daily Transactions

Per the report, Hedera Network’s transaction volume continued its upward trajectory, achieving a new record of 99 million daily average transactions in Q3 2023. 

This milestone marks the fifth consecutive quarterly increase in transaction activity, with the Hedera Consensus Service responsible for 99% of all transactions on the network. 

Notably, the network’s revenue derived from transaction fees surpassed $1 million for the first time, experiencing a remarkable 30% quarter-on-quarter growth. 

Hedera

According to Messari, the Hedera Consensus Service largely drove the revenue growth and remained independent of HBAR’s price fluctuations, as transaction fees are fixed in USD terms.

While the overall crypto market experienced a moderate downturn during Q3 2023, HBAR’s circulating market capitalization grew by 7.6% quarter-on-quarter, reaching $1.7 billion by the end of September. 

HBAR’s fully diluted market capitalization also increased by 2.5%, settling at $2.5 billion. As a result, the Hedera Network emerged as the 31st-largest crypto protocol by market capitalization, demonstrating its growing prominence in the industry.

Hedera’s TVL Skyrockets By 29%

The protocol’s Total Value Locked (TVL) reached $31 million in Q3 2023, a 29% increase from the previous quarter. While the broader market witnessed a reduction in TVL, Hedera’s year-over-year (YoY) TVL growth stood at an impressive 75%. 

Hedera

SaucerSwap, the leading protocol within the Hedera ecosystem, accounted for most of the TVL, with $27 million locked, comprising 87% of the Hedera Network’s total TVL. According to Messari, this growth in TVL can be attributed to the launch of new protocols within the ecosystem.

On the flip side, the Hedera community has strongly emphasized enhancing developer tools and collaborations. 

In Q3 2023, significant progress was made toward achieving Ethereum Virtual Machine (EVM) equivalence. The community introduced developer-focused features, integrated the JSON-RPC codebase, and refined contract creation transactions through HIP-729. 

These efforts have increased compatibility with EVM networks and expanded the capabilities of smart contract development on the Hedera Network.

High Staking Percentage And Strategic Partnerships

The Hedera Network reported a high staking percentage, with 85% of the circulating supply and 56% of the total supply staked. 

Core entities such as the HBAR Foundation, Swirlds, and Swirlds Labs have staked their HBAR allocations and the Hedera Treasury to support validators in meeting the minimum staking threshold for network consensus. Notably, these entities have chosen not to collect staking rewards. 

Per the report, the Hedera Governing Council modified the staking rewards structure during Q3, adjusting the reward rate to 2.5% and setting a maximum staked quantity to ensure proportional reward rates.

Despite the challenging crypto market conditions in Q3 2023, the Hedera Network has showcased significant growth. The expansion of TVL and the dominance of SaucerSwap further solidified the ecosystem’s position. 

Hedera

Despite the growth of Hedera Network’s ecosystem, the native token, HBAR, is currently trading at $0.0460, reflecting a 4.5% decrease in value over the past 24 hours. This trend has persisted throughout the year, resulting in a year-to-date decline of 24%.

Featured image from Shutterstock, chart from TradingView.com 

Posted on

XRP Price Prediction: Rare Bent Fork Pattern Predicts Explosive 3000% Surge To $15

Crypto analyst Egrag Crypto has been continuously bullish on the future of the XRP price and the latest prediction proves this. This time around, the crypto analyst is using a rare Bent Fork Pattern to back up his prediction that the XRP price is headed for double-digits.

The Rare Bent Fork Pattern

Egrag first mentioned the Bent Fork Pattern in a June post while showing a bullish roadmap for the XRP price. In the earlier post, the analyst points out ‘four distinct tracks’. These include the “Track A) Major Historical Support, Track B) Ranging Zone, Track C) Mid-Cycle Top, and Track D) Cycle Top.”

As Egrag explained, the Track D is the cycle top which could see the altcoin’s price reach as high as $15, although not without incidence. Despite expecting a surge, Egrag says that XRP could fall lower before this happens. However, the analyst asks investors not to fret when this happens. Rather, they should see it as an opportunity to buy the cryptocurrency for lower prices.

Now, four months after the initial post was made, Egrag has revisited this Bent Fork Pattern, doubling down on the previous prediction. In a post made on Wednesday, October 18, Egrag updated the previous prediction, showing what needs to happen for the XRP price to reach the lofty price of $15. This would mean at least a 3,000% price increase for XRP if the pattern plays out exactly as expected.

In the chart below, the analyst explains that the XRP price needs to breach the white line for the rally to begin. “the real excitement is if #XRP shatters the ‘White’ Ascending Triangle – get ready for some market-shaking action,” the analyst said.

Bent Fork Pattern XRP price

Looking at a time frame, the crypto analyst asks investors to keep an eye out for the 3rd and 4th week of November as this is when something interesting might happen. “Feeling uncertain about your next move? This might just be your last chance to seize a buying opportunity,” Egrag said in closing.

Not The Only Bullish Chart For XRP Price

Interestingly, Egrag’s XRP price prediction using the Bent Fork Pattern also matches their other predictions for the altcoin. Earlier in the week, Egrag had also put forward another forecast but used the Elliot Wave Theory to present the bull case.

As Egrag notes, the fifth wave is where the main movement really lies where the analyst expects the price surge to happen. Just like with the Bent Fork Pattern, it also suggests a double-digit price level at the top. However, the wave theory takes it a step further with a $27 price mark compared to the Bent Fork’s $15 mark.

Another similarity between both predictions is that the June Bent Fork chart shows the XRP price at $15 somewhere between 2025 and 2026. This is the same timeframe presented using the Elliot Wave analysis, so most of this will likely play out in the bull market.

XRP price chart from Tradingview.com (Crypto analyst Bent Fork pattern 3000% $15)

Posted on

What is USDT? All About Tether Stablecoin Cryptocurrency

USDT, also known as Tether, has become an integral part of cryptocurrency markets since its launch in 2014. Pegged 1:1 to the US dollar, it is the most widely used stablecoin with a market capitalization of over $83 billion as of October 2023. But it is also controversial, with opaque reserves and questions around its long-term viability.

Here is an in-depth look at how USDT works, its importance in crypto, and the risks it presents.

What is USDT? Overview of Tether Stablecoin Cryptocurrency

At its core, Tether functions as a stablecoin, meaning each token is backed by an equivalent amount of traditional fiat currency.

This peg to the dollar aims to minimize volatility compared to other cryptocurrencies like Bitcoin and Ethereum. USDT operates on different blockchains like Bitcoin, Ethereum, Tron and others, allowing it to be transferred seamlessly between different networks.

Crypto traders rely on USDT as a stable store of value when trading between different digital assets. It is also widely used on decentralized finance (DeFi) platforms for lending, borrowing, and making payments.

USDT price: $1

USDT Market Cap: ~$83 billion (as of October 2023)

USDT what is USDT Tether STablecoin cryptocurrency

Key Features of USDT Crypto

The key features that define Tether include:

  • Pegged 1:1 to the US dollar – USDT aims to maintain parity with the dollar
  • Operates on different blockchains – Enables transfer between networks
  • Hedges against crypto volatility – Acts as a stable haven when markets are fluctuating
  • Wide adoption – Used extensively in crypto trading and DeFi protocols

How Does USDT Maintain Its Dollar Peg?

According to Tether Limited, the company behind USDT, every token in circulation is backed 1:1 by their reserves, which include both traditional currency and cash equivalents. When buyers purchase USDT by depositing $1 per token, new tokens are issued while the dollars are held in reserves.

This mechanism theoretically allows users to redeem each USDT to USD. By allowing two-way convertibility between USDT and dollars, the supply can adjust to maintain the 1:1 parity.

However, Tether’s reserves have been shrouded in secrecy over the years, leading to allegations that the company does not hold sufficient dollar reserves to back all USDT in circulation. Tether settled a case with the New York Attorney General in 2021, agreeing to release periodic reports on its reserves.

So far, the redemptions have generally maintained the dollar peg. But questions linger over the breakdown of reserves and their adequacy as USDT supply has ballooned.

USDT what is USDT Tether STablecoin cryptocurrency

USDT Price Chart from CoinMarketCap

The Role and Importance of USDT in Crypto

Despite the opacity, USDT continues to play a hugely important role in cryptocurrency markets. It is one of the most widely traded crypto assets, with daily trading volumes in the billions of dollars against assets like Bitcoin.

Exchanges rely on stablecoin trading pairs like BTC/USDT to enable traders to hedge risk during times of high volatility.

USDT is also widely integrated into DeFi protocols like lending and borrowing platforms, decentralized exchanges, yield farms, and more. It provides stability in an otherwise volatile environment for decentralized finance.

The demand for USDT trading, transactions, and parking value in a stable asset continues to drive increasing adoption.

Future Outlook for Tether Stablecoin

Going forward, the biggest threat to USDT is the risk of losing its 1:1 dollar peg and collapsing in value if its reserves are inadequate. Tether also faces potential regulatory crackdowns from authorities who may threaten its viability. Competing stablecoins like USDC and BUSD are more transparent about reserves and could gain share.

However, USDT retains first-mover advantage and the network effects of wider integration in crypto infrastructure. It continues to maintain peg stability through redemptions so far. If Tether can provide greater transparency and embrace compliance, USDT may retain its dominant position for some time. But traders should exercise caution and understand the risks of relying too much on USDT long-term.

Despite controversies around reserves and regulation, Tether remains an integral cog in the crypto economy machine. But as the market matures, stablecoins built on greater transparency and compliance are likely to emerge as leaders.

USDT what is USDT Tether STablecoin cryptocurrency

How Does USDT Work?

There are a few key mechanisms that enable USDT to function as a stablecoin pegged to the US dollar:

Minting and Issuing New USDT

Tether mints new USDT when buyers deposit $1 per token with the company. The dollars are added to reserves, while an equivalent amount of USDT is issued on the blockchain ledger. This USDT enters circulation when transferred to the buyer’s wallet address. The minting helps adjust supply to match demand.

Sending and Receiving USDT Transactions

Once issued, USDT can be transacted between addresses on its supported blockchains like any other cryptocurrency. Senders can broadcast transactions and pay small network fees to send USDT to recipients’ wallet addresses. These peer-to-peer transactions are recorded transparently on public blockchain explorers.

Trading USDT on Exchanges and DeFi

USDT is listed as a trading pair on most major centralized crypto exchanges as well as decentralized exchanges. Traders can use USDT to buy and sell other cryptos like Bitcoin in a stable manner when volatility is high. In decentralized finance, USDT also serves as a stable currency for lending, borrowing, liquidity provision, and more.

Redeeming USDT for Dollars

In theory, USDT holders can redeem each token for exactly 1 US dollar from Tether Limited. This is made possible by the underlying reserves that back each token. Redemptions help maintain the 1:1 peg when USDT falls below $1 on exchanges. However, Tether reserves the right to delay or deny redemptions in some circumstances.

Pros and Cons of USDT Stablecoin

USDT provides stability amid crypto volatility but also carries risks:

Pros

  • Avoid volatility by parking value in USDT
  • Seamless transfers between blockchains
  • Wide acceptance in crypto ecosystem
  • Useful for decentralized trading and finance

Cons

  • Opaque reserves raise viability concerns
  • Regulatory crackdowns could threaten operations
  • Reliant on Tether’s redemption policy to maintain peg
  • Vulnerable to bank runs if reserves are inadequate

Tether pioneered stablecoins in crypto but transparent alternatives like USDC are emerging. Regulatory direction will play a key role in determining whether USDT maintains dominance long-term.

In conclusion, USDT remains indispensable for crypto trading and finance today. But prudent users should assess risks of relying extensively on USDT if its opaque operations and reserves raise too many questions about its sustainability. As the sector develops, the stability and transparency offered by its competitors could make them a safer bet over the coming years

USDT FAQ: Tether Frequently Asked Questions & Answers

What is USDT TRC20?

USDT TRC20 is the version of Tether stablecoin issued on the Tron blockchain as a TRC20 token. It allows faster transactions and lower fees compared to USDT on Ethereum. USDT ERC20 is available only on Ethereum.

What does USDT mean?

USDT stands for United States Dollar Tether. It is a cryptocurrency issued by Tether that is pegged 1:1 to the US dollar. Each USDT token is backed by $1 in reserves according to Tether Limited.

What is the difference between USDC and USDT?

USDC is issued by Circle while USDT is issued by Tether. USDC has greater transparency on reserves and audits compared to the more opaque USDT. However, USDT currently has wider adoption in crypto trading and DeFi applications.

What is Tether USDT?

Tether USDT is a stablecoin cryptocurrency whose value is pegged to the US dollar on a 1:1 basis. It allows crypto traders and users to avoid volatility by storing value in USDT tokens backed by equivalent USD reserves.

What does USDT stand for?

USDT stands for United States Dollar Tether. It is the ticker symbol used to designate the Tether stablecoin whose value is pegged to the US dollar.

Is USDT a cryptocurrency?

Yes, USDT is a cryptocurrency token issued on various blockchains. However, unlike volatile cryptos, USDT is a stablecoin designed to have a stable value through US dollar reserves.

What is the USDT token contract address?

The USDT token address allows users to verify USDT transactions on block explorers. For example, the USDT Ethereum contract address is 0xdac17f958d2ee523a2206206994597c13d831ec7.

What is the current price of USDT?

The price of USDT is pegged to $1.00 USD. It aims to maintain parity with the dollar through Tether Limited’s dollar reserves that back each USDT token 1:1.

What is USDT crypto used for?

USDT provides stability versus volatile crypto assets. It is used for trading, payments, earning yield, loans, and other financial activities where dollar-pegged stability is preferred.

Where can I buy USDT coins?

USDT can be purchased on most major crypto exchanges like Binance, Coinbase, Kraken, KuCoin etc. You can trade dollars or cryptos like BTC for USDT tokens on these centralized platforms.

Is it safe to invest in USDT stablecoin?

USDT does carry risks related to transparency and reserves that should be considered. Stablecoins like USDC with more transparency could potentially be safer long-term investments.

Posted on

Bitcoin ETF Approval Anticipated To Trigger Fiat Influx Of $24-50 Billion

In a recent report released by Matrixport, a digital assets financial services platform, the spotlight shifts beyond Bitcoin (BTC) as the eagerly anticipated approval of a Bitcoin spot Exchange-Traded Fund (ETF) by the US Securities and Exchange Commission (SEC) could have far-reaching effects. 

According to the analysis, not only could the Bitcoin market experience a significant boost, but Tether (USDT) and the broader crypto market could also see positive outcomes.

Potential Impact On Bitcoin

Matrixport’s foresight, outlined in their 2023 outlook report published on December 9, 2022, projected a substantial crypto rally driven by factors such as lower US inflation and favorable macroeconomic conditions. 

Bitcoin

This projection anticipated strong rebounds for Bitcoin and Ethereum (ETH), along with a notable decrease in volatility.

Surrounding the approval of these pending applications, a standout performer in the market has been Grayscale Investments’ Bitcoin Trust (GBTC), with its share prices surging by an impressive 167% year-to-date, outpacing Bitcoin’s 71% growth. 

While GBTC’s net-asset-value (NAV) discount marginally narrowed from -45% to -43% at the beginning of the year, the game-changing moment arrived when BlackRock announced its ETF application on June 15, 2023.

Matrixport’s earlier reports analyzed the US registered investor advisor (RIA) community, comprising approximately 15,000 advisors overseeing around $5 trillion. 

Recognizing the potential of this group, the report suggests that even a modest 1% allocation recommendation for Bitcoin would result in approximately $50 billion in inflows. 

$56,000 BTC Price Projection

Drawing a parallel with precious metals ETFs boasting an estimated $120 billion in market capitalization, and assuming that between 10-20% of precious metal ETF investors explore a Bitcoin ETF as a diversification tactic against monetary debasement and inflation hedges, the potential influx into the Bitcoin ETF could reach a significant $12-24 billion.

The report speculates on the implications for Tether’s market capitalization by looking at the potential impact of BlackRock’s Bitcoin ETF approval. 

Acting as a proxy for potential ETF inflows, a $24 billion increase in Tether’s market cap could conservatively push Bitcoin’s price to $42,000. With an even larger influx of $50 billion resulting from a 1% allocation by RIAs, Bitcoin could rally to $56,000.

Overall, Matrixport’s analysis sheds light on the potential ripple effects of Bitcoin ETF approval, extending beyond Bitcoin’s immediate market and encompassing Tether and the wider cryptocurrency landscape.

As market participants eagerly await regulatory decisions, the industry remains poised for potential growth and transformation.

Bitcoin

As of the time of writing, the leading cryptocurrency in the market, Bitcoin (BTC), is trading at $28,700, reflecting a 1.8% increase over the past 24 hours.

It is worth noting that BTC has successfully maintained the gains it has made since mid-September. During this period, the cryptocurrency broke its short-term downtrend structure after reaching its peak for the year at $31,800 on July 13.

Featured image from Shutterstock, chart from TradingView.com