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 all in one link.
Top Stories This Week
Ready for impact? After reaching $ 42,000, bitcoin price volatility may increase
Another week, another spate of all-time highs. Bitcoin cracked $ 42,000 on Friday and rose 9% in just three hours.
A sharp correction soon followed, causing prices to fall 7% in the next eight hours. This may seem tame on a percentage basis – but that’s a drop of nearly $ 3,000.
Whales sold en masse since early 2021 and taking profit on their positions. You are currently in a battle with new buyers in the US who are aggressively accumulating BTC. Top metrics to watch for right now include Bitcoin outflows from Coinbase and stable Bitcoin inflows into major exchanges.
Raoul Pal has warned that a “New Year Head Fake” could cause a nasty correction in the BTC and gold markets. It’s unclear if this would be as brutal as the Flash crash last March, but it’s worth noting that BTC is overbought on weekly and monthly charts.
In the long run, that’s what JPMorgan Chase believes BTC could hit $ 146,000 However, by crowding out gold, it warned of a short-term spike in between $ 50,000 and $ 100,000 will prove to be “unsustainable” this year.
At the time of writing Market capitalization of BTC has arched beyond Facebook, Tencent and Alibaba and is close to overtaking Tesla. The stunning rally has contributed to the total market capitalization of all cryptocurrencies more than $ 1 trillion For the first time.
ETH is on the way to surpass its all-time high of 2018
The bullish passion for ether has increased this week, and the world’s second largest cryptocurrency has broken over it $ 1,200 For the first time in three years.
The gains were largely due to the clash of fundamental factors, including Bitcoin’s parabolic rally, which Anticipation of ETH futures contracts and a growing DeFi sector.
ETH has grown dramatically since the beginning of the year 66.5%, Continuation of last year’s theme in which it significantly outperformed BTC.
Google searches for “Ethereum” have now reached an all-time high, prompting some optimistic experts to point out that ETH could break its previous record of $ 1,423.88 between January 10th and 16th.
So … what would that be? Observe key levels whether the ETH is breaking new ground? According to Michaël van de Poppe, analyst at Cointelegraph Markets, the Fibonacci expansion finds potential top structures at $ 1,800 and $ 2,700 to $ 2,800. However, he cautioned investors and traders to expect a possible correction anytime soon as nothing is rising in a straight line.
The XRP price rises 55% to the “crucial” level, although the legal problems at Ripple persist
One of the most head-scratching developments in the crypto markets this week was that XRP suddenly returned from the dead.
After Ripple lost a significant portion of its value due to legal troubles due to legal issues, the contested No. 4 cryptocurrency experienced a strange renaissance – prices rose from $ 0.23 to $ 0.35 in a single day.
Michaël van de Poppe said $ 0.35 represents the level of make-or-break that bulls must hold to continue their profits despite no real move in legal proceedings.
In other news this week, Crypto Exchange Uphold said that XRP is not deleted until the lawsuit filed by the US Securities and Exchange Commission is resolved – and competing platforms are urged “not to rush to a judgment before the court’s decision.” In the meantime, Revolut warned its users: “constantly reevaluateYour crypto holdings, including XRP.
So does Ripple CEO Brad Garlinghouse broke his silence Answer five key questions about the SEC lawsuit. When he slammed into “regulatory chaos” in the US, he announced that the company was trying to reach a settlement with the SEC and said that new attempts will be made once Joe Biden is in power. He also warned that the legal process can be slow.
Can Coinbase keep up with the crypto rally?
Coinbase was scrutinized this week, not least because the US crypto exchange is well known You are having serious connectivity problems in times of high trading activity.
The disruption has occasionally prevented traders from taking advantage of price gains and declines – and deprived them of profit-taking and re-entry opportunities.
Coinbase isn’t the only major exchange that struggles with price rallies. Binance also routinely goes offline when BTC makes big profits. Changpeng Zhao, CEO of Binance, commented on the problem back in December 2020, noting that a 5% increase in BTC is common accompanied by a 30-fold increase in trading volume.
On January 7th, it was announced that Coinbase has acquired the Routefire platform for improved trade execution – a step that could help restore confidence.
Morgan Stanley now has a 10% stake in Michael Saylor’s MicroStrategy
MicroStrategy’s massive foray into Bitcoin is paying off as the company receives a huge investment from Morgan Stanley. The bank has acquired 792,627 shares in the crypto-friendly company, which equates to a 10.9% stake.
The purchase was apparently made on December 31st. MicroStrategy stocks had a colossal month – with stocks rising from $ 289 on December 8th to $ 531 until January 8th.
MicroStrategy has made Bitcoin its primary reserve asset and has made a concerted effort to raise funds so it can buy even more. As of December 21, the company had 70,470 BTC in stock with an astonishing $ 2.9 billion valuation.
Institutional investors like Morgan Stanley have warmed significantly to crypto assets over the past year. Many have attributed Bitcoin’s recent bull market to renewed interest.
Winner and Loser
At the end of the week, Bitcoin is at $ 40,599.80, Ether at $ 1,220.34 and XRP at $ 0.32. The total market capitalization is $ 1,077,848,908,371.
Among the top 100 cryptocurrencies are the three best altcoin winners of the week IOST, Bitcoin SV and avalanche. The top three altcoin losers of the week are Enjin coin, Solana and Nano.
For more information on crypto pricing, see Market analysis by Cointelegraph.
The most memorable quotes
“The next fix will be absolutely painful for all #FOMO buyers.”
“The next fix will be absolutely painful for all #FOMO buyers.”
Michaël van de Poppe, Cointelegraph Markets Analyst
“A lot of it [stimulus] will find its way into the markets. If it does go into the hands of young people, they sure do go straight to their Robinhood accounts. One of the most unique things last time was seeing how many people bought Bitcoin with the exact amount of stimulus. Boom boom. “
Mike Novogratz, CEO of Galaxy Digital
“While the narrative is about institutional money, those institutions, IMO, have actually validated Bitcoin, and now we have family offices serving the rich who are in a hurry to get involved.” There are many inquiries for purchases worth over $ 1M. “
Willy Woo, Statistician
“For your information, the January 2nd Coinbase outflow was an all-time high. It appears that institutions bought BTC when the price was over 30,000. The bull market of $ BTC is not over yet. “
Ki Young Ju, CEO of CryptoQuant
“A #bitcoin will buy you a Tesla now. So when are you going to accept it @elonmusk? “
“It would be a shame to buy Model 3 now when you can buy a Roadster for 1 BTC later this year.”
Juri Bulovic, Fidelity Director of Bitcoin Mining
“I’ve been wondering what to do about the rent for a week. And I just remembered that I had over 14000 moons in r / cryptocurrency here. Sold them and made my rent. It was like a stone lifted from my chest. I can’t find the right word to describe this feeling. “
Satoshinakamoto 7, Reddit users
“A displacement of gold as an ‘alternative’ currency means a great long-term upward trend for Bitcoin.”
“It is important that you constantly reassess your crypto holdings, especially XRP, and that you are familiar with the risks involved.”
“#Ethereum gas charges are rising again, making #defi basically unusable.”
Lark Davis, YouTuber
“On the 1st business day of 2021 #Bitcoin will take its rightful place in the Financial Times.”
Michael Saylor, CEO of MicroStrategy
“An essential part of the SEC’s remit is protecting consumers. It’s hard to see how a ruling that essentially renders XRP essentially worthless and inflicts billions in losses on retail investors who bought XRP in good faith fits that mandate. “
“Where we might have thought $ 50,000 made sense, I think that number will definitely be a little higher. I think we’ll be spending $ 75,000 to $ 100,000 on bitcoin by the end of 2021. “
Catherine Coley, US CEO of Binance
“The number of unique Twitter accounts that tweet about #Bitcoin has just hit an all-time high of 66,832, surpassing the previous high of 64,652 on December 27, 2017.”
Forecast of the week
Mike Novogratz predicts that young people will buy Bitcoin with their stimulus checks
Joe Biden said he was working on a multi-trillion dollar package that will deliver $ 2,000 Stimulus checks for US citizens to help them weather the economic impact of COVID-19.
And according to Mike Novogratz, such measures could be more good news for the markets. He said: “When it does get into the hands of young people, they go straight to their Robinhood accounts. One of the most unique things last time was seeing how many people bought Bitcoin with the exact amount of stimulus. Boom Boom.”
The Galaxy Digital CEO argued that there was still plenty of “speculative surplus” on Wall Street, citing Tesla’s dramatic surge as an example.
However, Novogratz says the disconnect between markets and the economy is likely to create problems at some point. In his interview with CNBC, he added, “You have to watch out for the cracks. One day we’ll wake up and the markets will reverse and then they will reverse hard. I just don’t know when that is.”
FUD of the week
Rapper Hiiikey confirms hack on YouTube channel, fake crypto giveaway steals $ 70,000
A YouTube page from US rapper Hiiikey was hacked this week and taken over by scammers promoting a fake Bitcoin and Ether giveaway.
Hiiikey, real name Keyshawn Butler, has 249,000 subscribers on the video-sharing website. His page was renamed to “[Ethereum FUND]And a livestream with an old video from Ethereum co-founder Vitalik Buterin has started.
At one point, the livestream had more than 56,000 viewers, and the hackers received at least one 39.1 ETHwhich was almost worth it $ 50,000 at the time of writing.
Worryingly, the fraudulent livestream was active for several hours before it was shut down.
Bitcoiner is losing nearly $ 100,000 in BTC in its wallet
A crypto enthusiast warned “cocky” hodlers after losing the password to his wallet for not acting carefully enough.
Reddit user Onnar said he lost access to 2.6 BTC when trying to transfer a wallet to a new computer purchased over the holidays. The user claimed to have formatted his old system’s drive without checking that the password manager still contained the password needed to access the private keys.
Onnar wrote, “I’ve been going through all of my remaining disk files and notes for the past week and a half. The password is nowhere to be found.”
Many Reddit users agreed with Onnar’s plight, and some offered advice on how to avoid similar accidents in the future.
“The standard now is to use a hardware wallet and write the seeds on paper and on a metal plate. The standard is not to encrypt your startup words in a computer file for very good reasons. “ one wrote.
Trump bans Chinese payment apps, including Alipay and WeChat Pay
After less than two weeks in office, President Donald Trump has issued a new regulation for Chinese payment apps
The order prohibits US citizens or people in the US from using nine apps – including Alipay and WeChat Pay.
The executive order will come into effect in 45 days. At this point, Trump is already absent. Given that his previous order to get ByteDance to part ways with TikTok was stalled in court while he was still in office, there’s no reason to believe Trump will find his way here.
Biden’s transition team had not responded to Cointelegraph’s request for comment on whether the new administration plans to enforce Trump’s order.
The focus on payment apps is particularly important. The recent moves by the U.S. national security apparatus have definitely shown that China’s payment systems, particularly the central bank’s upcoming digital currency, are concerned.
Many crypto companies as well as the broader tech industry have warned of a cold technology war between China and the US, including Facebook’s Mark Zuckerberg and several executives from Ripple Labs.
Best Cointelegraph properties
Bitcoin turns 12: From the Genesis Block to Adoption on Wall Street
The Bitcoin network as we know it today was officially launched 12 years ago this week when Satoshi Nakamoto released the first software client.
The Rise of Crypto: Bitcoin Sets Milestones, But Alts Can Go Independent
Unfounded hype? This time around, investors have started realizing the value proposition of Bitcoin and Ether.
Bullish crypto events of 2020 that will drive historic adoption
These are the most important events in the field of crypto in 2020 that will have a lasting impact on the introduction of blockchain and digital currencies.