Comes every saturday Hodler’s digest will help you keep track of every single important message that happened this week. The best (and worst) quotes, highlights of adoption and regulation, leading coins, predictions, and more – one week on Cointelegraph in one link.
Top Stories This Week
Bitcoin price falls and falls below $ 17,000 in the biggest crash since March
At the beginning of the week, the crypto markets were full of optimism. Bitcoin was a zone of resistance away from all-time highs were altcoins Rally in the three-digit rangeand the wave made one splash on the homepage of the Wall Street Journal.
With Bitcoin’s market cap at all-time highs, it was time to celebrate with a lovely turkey dinner and all that comes with it. Unfortunately, Thanksgiving left the crypto world with a pretty bitter aftertaste.
On November 26th, the price of BTC suffered one of the biggest dollar losses since March. Overall, the world’s largest cryptocurrency has collapsed by more than 15%. Massive liquidations were held responsible for the crash of $ 19,484 to $ 16,334 in one day.
As Cointelegraph analyst Michaël van de Poppe noted, market corrections are rarely elegant things. “They’re often vertical and painful. Up stairs, down elevator ” he wrote.
Three reasons traders now expect Bitcoin to hit $ 13,000 ahead of a new rally
So … what happens next? Are hopes of hitting $ 20,000 in the short term being dashed or was this just a road slip to shake off?
Well it very much depends on who you ask. Some traders are anticipating another steep pullback in the not-too-distant future, pointing to historical patterns suggesting that BTC might fall back on that $ 13,800- $ 14,500 Range.
A pseudonymous trader called “Salsa Tekila” said BTC had to break $ 17,500 staying in bullish territory add that $ 18,700 is the only major resistance to all-time highs. However, the trader cautioned that things are looking bearish below $ 17,500… And this could be a drop on that $ 11,000 to $ 13,000 Range.
Others, like Crypto Index Fund provider Stack Funds, have called the pullback a “healthy correction” that was needed before Bitcoin continued its bullish trend.
The company said BTC has been at overbought levels since October, meaning some heat is badly needed to leave the market.
Meanwhile, Quantum Economics founder Mati Greenspan said the correction may have bottomed out already, adding: “A 17% pullback is rather tame for this phase of the cycle.”
Ethereum 2.0 was confirmed just hours before the December 1 launch deadline
Eth2’s beacon chain was confirmed for Dec. 1 after 16,834 validators were transferred 524,288 ETH in a deposit agreement.
There were doubts whether the deposit agreement would hit the minimum threshold by Nov. 24, which paved the way for the serious start of Phase 0 a week later.
However, remittances increased rapidly as the deadline approached. There was a festive atmosphere in the ETH community, not least because an upgrade finally began that was plagued by delays and complications.
While Genesis participants cannot withdraw their coins until Eth2 has reached phase 1.5 – which merges the Ethereum mainnet with Eth2’s beacon chain and sharded environment – many Hodlers wait for third parties despite the potential risk Withdrawal staking services start from exit fraud.
Yearn Finance goes on acquisition course
Aside from the big cryptocurrencies, Yearn Finance had a very busy week. As a sign that the DeFi markets are consolidating, the protocol has completed three high profile mergers in as many days.
On November 25th, Yearn Finance announced a partnership Using Pickle Finance to Increase Incentives for Productive Agriculture. It is also hoped that the move will compensate those affected when $ 20 million is lost in a recent Pickle exploit.
A day later, YFI longed for more. The founder of the protocol, Andre Cronje, gave details of a further integration. This time Yearn planned it combine forces with Cream, a loan protocol similar to Compound and Aave.
But the buying frenzy was far from over. A new collaboration with the market coverage provider Cover was also presented on Saturday.
Observers say Yearn “tracks down developers and monopolizes talent,” but critics have claimed that none of these acquisitions were actually approved by a community vote.
Facebook’s Libra is expected to be launched as a USD stablecoin in January 2021
After months of uncertainty and regulatory drama, Facebook’s contested Libra project could finally be about to launch … kind of.
According to reports, Libra will initially take the form of a US dollar-backed digital currency – and it could see the light of day as early as January 2021.
Eventually, according to the Financial Times, the Libra Association will add more fiat currencies to the basket of assets to prop up the value of the Libra.
The exact start date is not yet known and depends on whether the Libra Association receives approval from regulators in Switzerland to act as a payment service.
Winner and Loser
At the end of the week, Bitcoin is at $ 17,707.60, Ether at $ 541.01 and XRP at $ 0.62. The total market capitalization is 530,787,776,807 USD.
Among the top 100 cryptocurrencies are the top three altcoin winners of the week Stellar, Horizons and XRP. The top three altcoin losers of the week are Energy web token, NXM and Synthetix.
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“It is very common for market corrections to not go smoothly. They are often vertical and painful. Up stairs, elevator down.”
Michaël van de Poppe, Cointelegraph Analyst
“#Bitcoin has been negatively compared to many things over the years, such as tulips, rat poison, Ponzi schemes, snake oil, etc., but the one that hurt the most by far was the Segway comparison. ”
Tyler Winklevoss, Co-Founder and CEO of Gemini
“The New York Times plans to publish a negative story about Coinbase […] History will likely imply that black employees were discriminated against during this process; that’s wrong. “
“Everyone should invest 2% to 3% of their net worth in Bitcoin and look at it in five years and it will get a lot more.”
Mike Novogratz, Founder and CEO of Galaxy Digital
“WHAT CRAP – new to Coinbase – and all of my XRP trades went into suspension and didn’t finally show up until the bottom fell out – which resulted in me losing a ton of money !!!”
Mike Palagi, Coinbase users
Forecast of the week
Institutional money could bring Bitcoin to $ 250,000 in a year, says a macro investor
Raoul Pal, CEO of Global Macro Investor, has predicted that Bitcoin could hit $ 150,000 by November 2021 in the most conservative scenario – and could even increase $ 250,000 due to the large amount of institutional money currently flowing into the market.
Most of Bitcoin’s additional offering is currently being taken over by PayPal, Square, and Grayscale, according to Pal. He believes the resulting supply shortage is what triggered the recent surge in Bitcoin.
“I’ve never seen a market with this imbalance between supply and demand,” said Pal, pointing to the macroeconomic factors that speak for Bitcoin.
Pal continued to forecast that additional monetary stimulus to keep economies sustained after COVID-19 will devalue the fiat and this, along with low interest rates, will drive the price of Bitcoin to new highs.
“It’s life changing. No other asset has trended 5x, 10x, 20x in a short period of time,” he told Cointelegraph.
FUD of the week
The XRP price rises to $ 0.90 and crashes in seconds when Coinbase goes down
Altcoins weren’t immune to the Bitcoin carnage, and it was red across the board immediately after the pre-Thanksgiving nightmare.
But just before that fix happened, something crazy happened to XRP.
The # 3 cryptocurrency, not known as a big-reward digital asset, had a blockbuster in November. At the time of writing, it’s up 154% since the start of the month – from $ 0.24 to $ 0.61. Most of these gains were concentrated in a few days.
At one point this week, XRP peaked at $ 0.76, but over on Coinbase it came to a head $ 0.90 before it crashes again by 30% within seconds. This was the highest price level since May 2018.
The rally was apparently driven by Coinbase users as the price of XRP did not hit the same highs on other exchanges.
Some disgruntled traders flocked to Downtector claiming they lost “a lot of money” after their trades weren’t processed.
PayPal blocks users from crypto trading via PayPal’s own service
Well this is awkward. A PayPal user has claimed his account was restricted because he made too many trades using the platform’s new crypto service.
On Reddit, the user in question claimed that PayPal sent him a message informing him that his account was permanently restricted “due to a potential risk”. However, “TheCoolDoc” claimed they only made 10 crypto transactions in a week – buying during the break-ins and selling at high prices.
Oddly enough, PayPal had requested an explanation for every transaction. Hours later, the user was informed that they could no longer do any more business on the platform – and the balance in their account was held for 180 days.
Other Reddit users pointed out that the service is intended to be a bitcoin bank account rather than a trading account. Even so, TheCoolDoc has vowed that they will “never buy another Satoshi of crypto” from PayPal.
Chinese police today seized $ 4.2 billion worth of crypto assets from PlusToken Ponzi
The PlusToken scandal has reportedly led to a titanic seizure of crypto assets by Chinese authorities – worth $ 4.2 billion at today’s prices.
Court rulings from The Block show authorities have seized 194,775 BTC and 883,083 ETH – alongside millions of Litecoin, Dogecoin and XRP.
Profits from the confiscated crypto assets are forfeited to the state treasury. The exact details of how the assets will be treated and processed in accordance with national laws have not been fully set out.
The PlusToken program had presented itself as a South Korean crypto platform that could generate 8 to 16% returns per month and attracted 2 million members. It later found out that this was one of the biggest exit scams in the industry.
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