Bitcoin is waiting for the pump, Ethereum 2.0, Samsung introduces BTC, the stock market
The price of bitcoin is near $ 9,500, we are still moving along the uptrend line, but we run the risk of falling down at any time under the pressure of the bears. To prevent this from happening, the bulls urgently need to once again test the BTC cost level for $ 10,000.
But the stock market is growing at an unprecedented pace and everything indicates that the US Federal Reserve was able to create a miracle. But the growth of the S&P 500 index above 3,000 points is now not dictated by anything other than expectations for rapid economic growth. But in this very economy, things are extremely bad and the world is heading into recession.
From the main crypto news today, we analyze Samsung's innovations and how soon bitcoin can appear in most smartphones. And the developers of Ethereum 2.0 shared their plans for readiness for the zero phase of Ethereum 2.0 and the timing of its launch.
Over the past week, the price of bitcoin behaved extremely risky and at the moment this state of affairs is fully preserved:
At the beginning of the week, we fell below the trend line and many were already waiting for a fall to the $ 8,000 area, but the exchange rate could return to the price of $ 9,500. Thus, it was again above the uptrend, then moved straight along the line and now starts to go lower again.
On the weekly chart, we are repeating the pattern of 11 candles, which was before the growth in 2019:
A small accumulation was also formed due to movement along the 50 week moving average:
All this should indicate that this week will please us with growth, but we personally do not have confidence in this yet. Perhaps we are ready to assume that the bulls will try once again to lead Bitcoin to take $ 10,000, and the current course of events will depend on the success of this venture.
As you understand, this is only our subjective point of view and not a financial recommendation, but the following news can provide assistance in such a scenario. The Grayscale Investments investment crypto fund bought almost 18,910 BTC after halving on May 11, despite the fact that the miners managed to get 12,337 BTC:
Grayscale's Bitcoin Trust bought 18,910 Bitcoins since the halving.
Only 12,337 Bitcoins have been mined since the halving.
Wall Street wants Bitcoin, and they don't care what Goldman Sachs has to say. pic.twitter.com/Br6a4ijuze
— Kevin Rooke (@kerooke) May 27, 2020
Recall that Grayscale Investments do not buy bitcoins , because they wanted to - they attract investments for this business, which means that there are people who are ready to invest in it here and now.
Also in favor of growth is the Glassnode study, which notes the withdrawal of 320,000 bitcoins from exchanges after the market collapse in March of this year:
But there is one interesting point: bitcoins flow from the Bitfinex , BitMEX and Huobi platforms , but on Coinbase , Binance and Bitstamp, the balances are at the same level or slightly increased. And here it is not clear whether people gathered to actively walk, or traders are afraid that some of the trinity of Bitfinex, BitMEX and Huobi would not repeat the fate of the sad Mt.Gox.
By the way, the analyst at JPMorgan is sure that after the halving, the real value of bitcoin doubled and equaled the current price, which is also a good sign. But is it worth it to trust banks in matters of bitcoin - decide for yourself.
One of two things: either this world has completely gone mad, or the printing press of the Central Banks is the most powerful force on this planet. See for yourself, last week the S&P 500 closed in positive territory and the price rose above the 50-week moving average:
The previous two crises began with a fall below the yellow line, this is a 200-week moving. Then the market grew to the blue line and from there went to the abyss, but now we see continued growth.
But set history aside and try to understand if there are reasons for the bull rally in the stock market? Here, the Boeing aviation giant was about to lay off 12,000 employees and several thousand more on the way. And this is not due to quarantine, but because the company expects a sharp drop in demand for its products. Because airlines also massively kick people out and are lining up for state support.
The automotive industry has a similar picture. So, Nissan is cutting production worldwide. And at this pace, we can reach 2 billion unemployed worldwide by the end of 2020, as the Boston Consulting Group predicts.
And this is not due to quarantine, on the contrary, it is now being removed everywhere, although it is not yet clear where this will lead. The biggest threat is a drop in demand, as in April the Americans cut their spending by 13%, while their income grew by 10%.
Interestingly, revenue growth is social benefits, but people are in no hurry to spend "helicopter money." They put them under their pillows or buy stocks, something should explain the growth in the stock market. But they don’t carry this money to stores, and then a chain reaction, when there is no sales, and then there is no production and goodbye work.
I remember that in the history of the United States there was already a period when the economy collapsed, but people were not worried about work, because you could take loans and buy shares. Then it all ended in the Great Depression, a 10-year-long financial crisis. Will there be a repetition of this story, we will find out in the near future.
It seems that the smartphone can do anything, but soon it will also learn how to trade cryptocurrency . In principle, today you can download a wallet or a trading terminal to your phone , but Samsung offers something more.
Crypto wallets and support for blockchain networks have already appeared in their flagship smartphones. Now they will add a special chip there to protect financial transactions. We are talking about access to online banking, exchange terminals and sending transactions in cryptocurrency.
The second innovation is the connection of the custodial service and the trading terminal of the Gemini crypto exchange to the Samsung crypto wallet, which will open access to almost all operations of the exchange.
Why is this important, because you can install the exchange application on your mobile now? Because all these functions, we are talking about a crypto wallet with funds protection and connection to the exchange, will now be built into the flagship models of Samsung smartphones. And this will significantly increase the number of cryptocurrency users in the future.
We almost never talk about the price of altcoins , because leading coins usually obediently repeat the movements of bitcoin. But Ethereum this week surprised when it rose more than $ 240:
This could be facilitated by a number of news about the state of the blockchain broadcast. So, we got a three-month maximum in the number of active coins:
Previous 3-month high of 20,651,473.403 was observed on 25 May 2020
— glassnode alerts (@glassnodealerts) May 27, 2020
The historical maximum of $ 275 million reached the number of wallets with a balance of 10 ethers:
Previous ATH of 275,270.000 was observed on 26 May 2020
— glassnode alerts (@glassnodealerts) May 27, 2020
And since the historical maximum price in January 2018, the number of addresses with a non-zero balance in the Ethereum blockchain increased by 350%:
Based on all this, we can say that people believe in broadcasting, invest in broadcasting and believe that it should cost much more in the long term than now. The confidence of many in this is fueled by an early transition to the version of the Ethereum 2.0 platform, but here again there are problems.
We told earlier that the main problem before starting the zero phase is the support of several clients in the test network. And it seems like the developers managed to find solutions, and they were ready to launch an almost official test network, two months after which it was possible to begin the transition to POS mining.
But, it seems, something went wrong and now the Berlin hard fork is officially postponed to the fall. Without this update, it is impossible to go to the zero phase of Ethereum 2.0 and this means that staking will not appear on the air until the end of autumn or the beginning of winter 2020.
In general, we need to wait again, and it is not yet clear exactly how many. We will keep you up to date on Ethereum 2.0 development events, as well as other news from the world of cryptocurrencies and finance.