Day: May 25, 2021

Amid rising stablecoin inflow, cautious traders fear a dead cat bounce

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The recent extreme volatility in the cryptocurrency market following Bitcoin’s (BTC) dip to $30,000 and the recovery to $38,000 has traders confused about whether the current price action is a ‘dead cat bounce’ which will see token prices head lower or a solid reversal that will set the floor for the next leg higher for the market.  While BTC price still remains more than 40% below its all-time high of $64,863, bulls have managed to weather multiple attempts to significantly break below support at $36,000.  BTC/USDT 4-hour chart. Source: TradingView…

OneOf raises $63M for new Green NFT platform for musicians

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Sustainable technology company OneOf has raised $63 million in seed funding to finance its new Green NFT platform for musicians, offering further evidence that the market for nonfungible tokens remains hot. Several investors and venture capitalists participated in the seed round, including Bill Tai, Sun Said of Nima Capital, Sangha Capital, Tezos Foundation, Jack Herrick and Jaeson Ma of East West Ventures. Built on the Tezos protocol, OneOf is a marketplace for artists and fans to tap into digital collectibles. The company claims that minting NFTs on Tezos uses over…

Coinbase Comments on Bitcoin’s Ecological Impact

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Key Takeaways The popular cryptocurrency exchange Coinbase has commented on Bitcoin’s ecological impact and energy consumption. It says that although Bitcoin mining is energy-intensive, the process is largely based on renewable energy. It also says that cryptocurrency firms are promoting the use of renewable energy in Bitcoin mining. Share this article Coinbase has published a statement on Bitcoin mining’s energy consumption, arguing the process has a minimal ecological impact. Bitcoin Relies on Renewable Energy “Bitcoin mining is an energy-intensive process,” Coinbase wrote. “There’s no debate about that.” However, the firm…

Negative funding rates incentivize traders to long Polygon (MATIC) and AAVE

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Data shows that AAVE and Polygon (MATIC) traders are currently being paid up to 4.3% per week to long future contracts. In the crypto markets, traders are usually bullish, or at least the majority of retail investors are. This causes an interesting phenomenon as it incentives arbitrage desks and whales to sell futures contracts while simultaneously buying on regular spot exchanges. Crypto total market capitalization, USD billion. Source: TradingView The above chart shows the incredible 240% gain accumulated in 2021 as crypto reached a $2.58 trillion total capitalization on May 11.…

Mark Cuban officially backs Polygon

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Billionaire investor Mark Cuban has thrown his weight behind Polygon, according to a new disclosure on one of his websites, offering further evidence that wealthy investors are tapping into the digital asset market despite the recent turmoil.  The addition of Polygon to the Mark Cuban Companies website appears to have been made recently and reaffirms the billionaire’s backing of the project. Cuban, who was once a polarizing figure in the cryptocurrency market, has become a more vocal supporter of the nascent asset class over the past year. Recently, when Elon…

Grayscale GBTC and ETHE Premiums Back at Highs

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Key Takeaways The premium for Grayscale’s Bitcoin and Ethereum shares recorded a sharp increase on Monday. The GBTC surge can partly be attributed to the launch of a Simplify ETF in the U.S. Leading analyst Ben Lilly points to increased demand among market movers after last week’s crypto price crash. Share this article The premium for Grayscale’s Bitcoin and Ethereum shares reached two-month highs Monday, indicating positive market sentiments.  Grayscale’s Rise Back to Glory  Grayscale’s GBTC and ETHE premiums have risen to two-month highs. The premiums for ETHE jumped from…

Korea’s crypto market is among the strongest — and the strangest — in the world

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On a day in which Bitcoin crashed briefly to $30,000 in a rampant bear market, the leading cryptocurrency never got anywhere close to that on Korean exchanges. The so-called “kimchi premium” saw to that, keeping the price of Bitcoin as much as $5,000 above its level on leading U.S. exchanges. The major reason for this kimchi premium is that Korea’s exchanges are fairly isolated by a combination of the country’s strict capital control laws preventing funds from leaving the country, and the tax code and anti-money laundering (AML) regulations that make…

Chia Hits $500 Million Valuation, Planning IPO

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Key Takeaways Chia has raised $61 million from leading venture capitalists in its latest funding round, putting its valuation at $500 million. Chia is being touted as an eco-friendly alternative to Proof-of-Work blockchains like Bitcoin. The firm is also said to be eyeing an IPO or SPAC merger in the future. Share this article Chia, a storage-based cryptocurrency that’s been described as a “green Bitcoin,” has raised $61 million in a Series D funding round led by Andreessen Horowitz and Richmond Global Ventures. Chia Gains Traction  Chia has landed a…

Indonesia to Launch Central Bank Digital Currency

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Key Takeaways Indonesia is working on a central bank digital currency, Governor Perry Warjiyo has announced. Transaction volumes on digital banking platforms has surged since the start of the pandemic. The U.S. and a number of other countries are also in the process of researching CBDCs. Share this article Indonesia has seen a strong increase in digital banking transactions during the Covid crisis. Now, the country will capitalize on its citizens’ growing interest in mobile banking systems by launching its own digital token. Modernizing Money Indonesia is launching a central…

Here are 2 key price indicators every crypto trader should know

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Technical analysis, the study of chart patterns, is a tool that helps traders increase their edge over others. This is done by keeping the trader on the right side of the trend and providing warnings when the trend is about to reverse. There are many indicators and patterns that can accomplish this task but there is no one particular indicator that fits the bill for all market conditions. Therefore, traders prefer to use a combination of indicators, which come in handy both during trending and range-bound markets. However, this does…