Traders Expect Slow Action in Price of Bitcoin and Altcoin Market for Q4
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3 Monaten ago
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Based on past Q4 figures, traders are expecting that a fall in the price of Bitcoin could cause further losses for the altcoin market.
Traders are expecting a slow fourth-quarter for the price of Bitcoin and the altcoin market as well. Specifically, technical analysts are observing the Bitcoin dominance index to alert against a fall in the altcoin market.
Over the past weeks, the price of Bitcoin has not changed significantly. However, traders are expecting a “slow fourth-quarter” for the top digital asset.
Traders Predict a Boring Quarter for Bitcoin and Altcoins Price
Between September 9 and 11, Bitcoin’s price surged from $9,981 to $11,179. While Bitcoin recorded gains, Cointelegraph reported that altcoins remained in a steady loss and DeFi tokens also plunged. The report also revealed that a further loss in Bitcoin price could affect altcoin, leading it to further decline. Notably, BTC has dropped nearly 6% to $10,500 over the last 15 days.
In addition, another report also showed that some altcoins and DeFi tokens fell 30% to 60%.
A Cointelegraph contributor Michael van de Poppe commented on the recent slump in the price of Bitcoin. The contributor said the current loss might not end soon. In a tweet, van de Poppe posted a chart and added:
“I do believe we’ll be seeing a relatively boring and corrective quarter on the cryptomarkets. In history, ETH frequently bottoms out in December, to start running the quarter after. BTC dominance to run up, to have an altseason in Q1 2021….”
Furthermore, another trader, “Loma” pointed out that the last time there was a fall in altcoin prices, Bitcoin also fell significantly within a short period. However, although altcoins have been dropping recently, BTC and Ether have remained stable. Loma said:
“ALT’s dumping right now while Bitcoin barely moving. Last time I saw that, Bitcoin painted a fat down candle.”
Challenges Surrounding the Crypto Market
Since the previous month, the crypto market has faced several challenges. On the 26th of September, hackers stole $281 million from the KuCoin exchange. KuCoin Global CEO Johnny Lyu announced that the hack affected the firm’s Bitcoin, Ether, and ERC20 hot wallets. Following the hack, the price of Bitcoin and other affected assets barely moved.
After the KuCoin hack, the firm has been making efforts to recover the stolen funds. Now, Johnny Lys has revealed that the trading platform has recovered $204 million in crypto assets. In addition, the CEO said the police are involved and the suspects have been found.
Shortly after the hack, the U.S. Commodity Futures Trading Commission (CFTC) charged BitMEX with violating the Bank Secrecy Act. The U.S. Department of Justice made the announcement on the 1st of October. Also, market experts believe that news of U.S. President Donald Trump’s COVID infection caused a stir in the traditional and crypto markets.
Considering the ongoing uncertainties and events in the crypto space, a famous trader, “Byzantine General,” said it is a “perfect moment to blast up and leave all the weak hands behind.”
Specifically, Byzantine General noted BitMEX’s legal issues, Trump’s COVID-19 positive status, and “funding already negative.”
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
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Following the Bitcoin all-time high on Sunday, December 27, Riot Blockchain stock registered 20% gains on Monday’s trading session. The stock has already appreciated by 13x this year. Apart from BTC, investors of Bitcoin mining companies are making a bomb in the market.
Bitcoin mining giant Riot Blockchain is making all the news in the market at the moment. On Monday, December 28, Riot Blockchain Inc (NASDAQ: RIOT) stock price surged a massive 20% surging past $15.5 levels. One of the biggest milestones with the Monday rally is that the Riot Blockchain has clocked a $1 billion market cap.
The latest price rally comes as Riot Blockchain hints at going aggressively on its Bitcoin mining business. Last week, the Riot Blockchain added new S19 Pro Antimers to its bitcoin mining arsenal. The company announced the purchase of an additional 15,000 Bitcoin (BTC) mining machines from Bitmain. The recent purchase also pushes Riot’s total fleet to 37,640 Next-Generation Bitmain Antminers.
Riot said that the fresh purchase of Antminers will help the mining company to attain a 65% jump in its mining hash-rate. RIOT stock has registered an unprecedented rally this year in 2020. RIOT stock has multiplied by 13x this year registering a 1200% surge so far.
Riot Blockchain has issued nearly 17 million shares since November 2020 with its total outstanding shares going to 67.5 million. It has been a phenomenal journey for Riot ever since it ventured into the Bitcoin mining business in October 2017. With valuations less than $50 million back then, Riot has grown more than 20x in size as of its latest stock price.
RIOT Stock and Shares of Other Bitcoin Mining Companies Profit from BTC Bull Run
The recent Bitcoin (BTC) price rally during Q4 2020 has also pushed the stocks of Bitcoin mining companies to new highs. Earlier on Sunday, December 28, the BTC price hit its all-time high of $28,000 in a massive bull run followed by huge institutional inflows.
Moreover, along with the BTC price rally, the Bitcoin hash-rate has jumped significantly since November 2020. Over the last two months, the BTC hash-rate has surged nearly 30% and is currently at 132 TH/s. The surge in the hash-rate suggests higher mining activity for Bitcoin.
As a result, Bitcoin mining companies have been making massive purchases of the BTC mining machines. In addition to Riot Blockchain, other giants like the Marathon Patent Group have made aggressive purchases over the last few months. Just like RIOT, the Marathon Patent Group (NASDAQ: MARA) has registered a phenomenal rally of 18% on Monday, December 28. MARA stock has multiplied investors’ wealth by 12x in 2020. It means the MARA stock has also given phenomenal 1100% returns year-to-date.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
How low could XRP go? Watch these price levels next
Published
7 Stunden ago
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Dezember 29, 2020
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XRP price dropped by 30% on Dec. 29 following Coinbase’s decision to suspend trading.
The market sentiment around XRP has become overwhelmingly negative due to the fear of more exchange delistings.
In the near term, XRP faces three key historical support levels at $0.224, $0.1743 and $0.1471.
Where will the XRP price go next?
The ongoing price trend of XRP is not cyclical nor reliant on technical analysis. It is due to investors selling XRP following the suspension of trading across major cryptocurrency exchanges.
On Dec. 29, Coinbase announced that it is suspending the XRP trading pairs on their platform. Paul Grewal, the chief legal officer at Coinbase, wrote:
“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing.”
Given the SEC’s recent action against Ripple, all XRP books have been moved to limit only and Coinbase plans to fully suspend trading in XRP on Tuesday, January 19, 2021, at 10 AM PST. Afterwards, users will continue to retain access to their XRP funds. https://t.co/izreZvgHNl
As Cointelegraph previously reported, analysts anticipated Coinbase to suspend XRP trading after the United States Securities and Exchange Commission filed its complaint.
Coinbase plans to undergo an initial public offering, and it is in the firm’s best interest to remain fully compliant with the regulators in the U.S.
Considering the regulatory uncertainty around XRP, traders have emphasized that technical analysis is of less importance in the short term. Scott Melker, a cryptocurrency trader, said:
“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here. You cannot trade in a vacuum. Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”
In the foreseeable future, XRP has several major support areas it could potentially recover from. However, these are deep support levels on the weekly chart, which shows that it lacks momentum for a major rebound.
The XRP price has fallen by over 60% in merely two weeks, recording one of its steepest two-week drops in history.
What happens next?
Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to break the story that Coinbase had conversations about suspending XRP trading.
Cochran hinted that the SEC are probably looking into more projects and companies than people realize. He said:
“If you thought my scoop on Coinbase delisting/suspending $XRP was insightful, you’re going to love the next scoop I’m working on, this week. Looks like that SEC is far more active than we thought and sniffing around a number of projects and companies!”
In the initial exploit, the attacker liquidated over 11,700 coins on the 1inch decentralized exchange aggregator after inflating the token supply according to data from the Ethereum wallet explorer Nansen. In total, the rogue actor drained more than $5 million from the project as of press time.
Cover Protocol released addressed the incident in a message posted on its Discord group, stating:
“The Blacksmith farming contract has been exploited to mint infinite $COVER tokens. We have restricted minting access to the farming contract in order to stop the attacker. If you are providing liquidity for $COVER token (uniswap or sushiswap) please remove it immediately.”
According to the Cover Protocol team, the issue only affected the token supply with funds held in “claim/noclaim” pools still safe. The project says it is investigating the incident.
The attack caused a massive decline in the COVER token price, falling by more than 97% while also eliciting negative comments from a cross-section of the crypto community on social media. Back in November, Cover was one of the DeFi protocols to merge with Yearn.Finance.
Monday’s incident makes the Cover the latest DeFi project to suffer a malicious exploit in a year ridden with opportunistic profiteering attacks against numerous protocols.
As previously reported by Cointelegraph, the spate of DeFi hacks throughout the year stand out as one of the major disappointments in the crypto space for 2020 with data manipulation deemed as being easy to accomplish on many projects.
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