Cryptocurrency news: Bitcoin growth, Fed buyback, Ethereum 2.0 staking, XRP bottom
Bitcoin price is on the verge of recovery from $ 8,000. In this final article, we will discuss the chances of BTC growth, and also whether there will be a dump immediately before halving.
The stock market is also recovering and investors are increasingly believing in the power of the US Federal Reserve and its printing press. It got to the point that 30% of the US economy is actually already bought by the Fed. What's next?
In the cryptocurrency news section, we will analyze the precarious position of the Ripple XRP coin, which is threatened to establish the fourth bottom. And the theme of the release will be Ethereum, there were news about the future staking and the fate of the classic miners after switching to the POS algorithm.
Six consecutive weeks of Bitcoin growth after the March 12 collapse show that bulls are stronger than ever , and everyone wants to have time to stock up on cheap bitcoins:
Daily chart is not as green as weekly. But still, we canceled the “head and shoulders” figure, and the current chart does not even remotely resemble a bear flag:
Now, the price of bitcoin has come close to an assault on the $ 8,000 level, where there is strong resistance, which is strengthened by a 200-day moving average.
Also, it is very likely to expect a strong pullback on bitcoin , if the resistance of $ 8,000 lasts for the next week. Then we can get a little surrender of the bulls before the halving with a return to $ 7,200.
We want to note that in recent days the price of bitcoin has been making sharp jumps of $ 100 or more on short time frames, for example, for 15 minutes :
It all looks like someone is deliberately pushing the price up. Like an old joke, to make it easier for you, here's a magical pendell. So far, most of these pendels send bitcoin up, but how long will it last?
Personally, this state of affairs worries us a lot, because they can easily stumble the market in the opposite direction. Especially if more and more people will believe in the beginning of a new round of growth, and exchanges will see the opportunity to break another jackpot on the mass liquidation of positions.
But this is nothing more than our fears related to the extremely high degree of mistrust in cryptocurrency exchanges.
US stock market, if you look at the key S&P 500 and Dow indices Jones last week closed at a slight minus, but overall it can be said a pretty positive result. Especially when you consider the fact that unemployment in the United States has increased to 26 million people, and the only one who continues to hold the market - is the Federal Reserve. Their balance on April 9 exceeded $ 6 trillion, and over the past two weeks it increased by another $ 500 billion:
This is a good example of a policy of unlimited quantitative easing, when the Fed buys everything in order to prevent markets from falling. And at the moment they own virtually 30% of the US economy before the crisis, and then this percentage will only grow.
Especially if leading companies such as Google, Amazon and Facebook upset investors with reports for the first quarter of 2020, because it is time for them to talk about their finances.
The question is what the Fed is going to do with all these assets in the future. After all, it is necessary to at least partially close the US government debt, which in the light of current events accelerated growth:
But Apparently, they are going to solve this problem as they become available, and now all the forces are going to buy assets, if only another "Black Thursday" does not happen, as it was on March 12. And, apparently, many believe that this plan will work, and no crisis in fact will happen, just a slight shake-up due to temporary economic downtime due to quarantine.
This trend is confirmed by the price of gold. Last week, it stopped growing and even fell in price:
Moreover, gold is predicted to be corrected for $ 100 and more dollars in case of further growth of the stock market. Because then investors can start to flow back into risky assets.
A classic joke of traders and investors that has taken root well into crypto so: "I bought the bottom - the second bottom as a gift." But does it happen that a coin has three bottoms and everything indicates that in the near future there is a chance to get a fourth?
This is because the clouds over XRP are gathering, and the magic of Ripple no longer works. So, on August 14, 2018, the XRP price dropped to $ 0.26, so this coin set the bottom of the [bear market 2018 before everyone else, because bitcoin came to the same point only in December 2018.
And on March 13, 2020 during the collapse in all markets, without exception, for XRP they gave less than $ 0.14 and this was the third bottom.
At the time of preparation of this article, the price of the coin has not recovered above $ 0.20, despite the good position of bitcoin, which the entire market is pulling along. Such a weak buyback is associated with low customer activity, and their absence can explain this graph:
It shows that the number of Twitter mentions of XRP coins for the first quarter of this year fell by 16%. And if you take it from the beginning of 2018, then they started talking less about Ripple by as much as 82%.
In order to attract attention and somehow rectify the situation, Ripple sued YouTube, which in their opinion does not fight scammers in any way, and this damages the company's reputation and XRP cryptocurrency:
But this is more like trying to make excuses for a low price than a real solution to the problem.
Traders note that such a weak recovery in XRP could threaten a new breakthrough down and the search for a fourth bottom. This process will not happen by itself and will require a good impulse down from the side of bitcoin. But if the worst-case scenario from the first part of the article is realized, then XRP runs the risk of failing again and we will see $ 0.12 or even $ 0.10 for one coin.
ETH steak book
"Welcome to the club" - Satoshi Nakamoto would tell Vitalik Buterin if he hadn’t decided to go into the shadows many years ago. The fact is that in China, the court recognized Ethereum as legal property, noting that it was allowed to own the ether and it could even be sold publicly. Earlier, only Bitcoin was awarded such an assessment in China.
Also Vitalik Buterin was convicted of interest in the decentralized finance market. So_ on Twitter, it was reported that one of the Ethereum creator’s wallets had an operation to convert 250 ethers to $ 45,000 in stablecoin DAI :
As previously reported there are more than 22,000 validators in the Ethereum 2.0 test network, but will there be such a rush with real airs? This week calculator appeared for calculating the remuneration for broadcast staking.
It’s not bad, if you remember that now the profitability of deposits in banks tends to zero, the main thing is that the price of airtime does not disappoint.
Many also expect that the start of staking will attract large investors to the industry who want to take this opportunity to earn money. And the transition to the Proof-of-Stake algorithm in itself will be the beginning of the massive introduction of decentralized finance, because in many respects their adoption is constrained by the low transaction speed in the Ethereum blockchain.
Let's see if both of these bets work. We remind you that the launch of the first phase of Ethereum 2.0 is expected this summer. But for the classic miners, we have disappointing news.
Buterin said that miners using the Proof-of-Work algorithm, after updating the ether, can switch to work on the network with proof of zero disclosure, should we understand the speech about Zcash ? As well as Ethereum Classic and other coins with a similar algorithm mining .
Such statements indicate the desire of developers to abandon plans to leave the current Ethereum network on the current algorithm as a control shard of the updated platform. That is, Ethereum will forever say goodbye to classic mining, but for now this is only an assumption, so do not rush to get upset.
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