Blockchain and Cryptocurrency News Roundup

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  • January 11, 2021
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11 January 2021.

Dive into a short summary of some of the biggest headlines in Crypto this week. Biconomy raises $1.5M in seed funding for bid to simplify Blockchain transactions, Altcoins plunge as Bitcoin sees massive retracement, analyst says Altseason could outperform BTC, Bitcoin whales are profiting as ‘weak hands’ sell BTC throughout $40K bull run & Crypto markets drop $60 billion as investors fear correction is coming.

Biconomy raises $1.5M in seed funding for bid to simplify Blockchain transactions

Blockchain transaction platform Biconomy announced Monday it has secured $1.5 million in a seed funding round led by European venture capital group Eden Block. Eight other investors participated in the round, including blockchain-focused venture capital firm Fenbushi Capital, cryptocurrency exchange Binance and digital asset fund manager DACM. The seed funding will be used to develop ways of reducing friction for users interacting with blockchain applications, to bring on new staff members and launch the next iteration of the platform, Biconomy V2. “The ways in which users pay and use blockchain applications needs a complete overhaul,” said Ahmed Al-Balaghi, co-founder and CEO at Biconomy. “Netflix does not charge its users a fee every time they watch a video, so why should dApps charge users a gas fee for every interaction?” he added. Biconomy aims to enable blockchain developers to provide a simplified onboarding and transaction experience for users of Web 3.0 and blockchain projects.

The company will be launching a developer program to support Web 3.0 projects in the near future.


Altcoins plunge as Bitcoin sees massive retracement, analyst says Altseason could outperform BTC

The cryptocurrency market has recently faced steep correction as Bitcoin has failed to hold the $40,000 level, and has currently dropped to $35,203 at the time of writing. The world’s largest cryptocurrency has seen a steep plunge of 13.2% in the past 24 hours, but has managed to hold above the $33,000 level. Ethereum has also seen a large decline, dropping by almost 18% in the past 24 hours, sinking to $1,098 at the time of writing. Other large cap altcoins have also seen massive retracements, Litecoin (LTC) fell 20%, Polkadot (DOT) shed 19%, Bitcoin SV (BSV) crashed by 33%. Although the entire cryptocurrency market is currently in a sea of red, cryptocurrency trader Michael van de Poppe believes that the altcoin market capitalization still looks bullish. He explained: “The #altcoin market capitalization still looks great. The first level of the impulse wave was hit at $320 billion. As long as it remains above $225 billion, then the next run will bring the #altcoin capitalization towards new all-time highs.” According to the cryptocurrency trader, as long as altcoins are stable against their Bitcoin pair, altcoins could outperform Bitcoin during the altcoins season. He elaborated: “As stated previously, the only one to watch is $ETH / $BTC when $BTC / $USD corrects. As long as altcoins remain stable in their $BTC pair, the market is great. And then altcoins will start running through their $BTC pairs, once $BTC corrects. Altseason. Outperforming $BTC.” Although Bitcoin’s price retracement has pulled many altcoins down with it, Bitcoin’s current address activity still looks bullish, according to cryptocurrency analytics firm Santiment. The analytics firm explained: “#Bitcoin’s current address activity, despite the mild -6.7% correction the past 24 hours, continues growing at historic rates. Looking at the 30-day trend of daily active addresses, $BTC continues to increase in addresses unlike 2017’s historic run.” Cryptocurrency trader Michael van de Poppe previously revealed which cryptocurrencies he thought would do well in 2021, including Polkadot, Cardano (ADA), Cosmos (ATOM) and Ethereum (ETH). However, the trader also warned against “going all in” on altcoins. He recommended allocating wisely and compounding profits would be the best strategy to reach financial freedom.

Bitcoin whales are profiting as ‘weak hands’ sell BTC throughout $40K bull run

High or low, Bitcoin is still being shaken out of small investors and flowing to “millionaire” wallets, data confirms this week. Bitcoin (BTC) is changing hands fast after its drop to $32,000 and only millionaires are winning, data shows. Statistics governing wallet balances from Glassnode on Jan. 11 reveal that the main investors “buying the dip” are those with a balance in excess of 1,000 BTC ($36 million). Compiled by Elias Simos, protocol specialist at blockchain infrastructure provider Bison Trails, the numbers suggest that the wealthy have been profiting from Bitcoin being sold by smaller investors throughout December and January. “Addresses with more than 1k $BTC continue growing at the expense of all others–even as this most recent downturn is taking effect,” Simos summarized. While the number of wallets with smaller balances decreased as BTC/USD climbed from $19,000 on Dec. 1 to recent highs of $42,000, the 1,000 BTC+ group became an outlier, growing in presence. The net effect is thus weak hands selling to strong — and the richer the entity, the stronger the hands. “Don’t be part of the #BTC transfers to billionaires, corporations and hedge funds …. at least not yet,” entrepreneur Alistair Milne warned Twitter followers while responding to Simos’ findings.While institutional buy-ins have become the standard narrative of Bitcoin over the past few months, a rogue “weak hands” signal from one of them caught analysts’ attention this week. As Cointelegraph reported, Guggenheim Partners, which announced a sizable fund allocation to BTC in late November, is allegedly planning to sell some of its holdings already. The trigger came from CIO Scott Minerd, who on Monday said that Bitcoin’s weekend drop provides the impetus to rethink its position. “Bitcoin’s parabolic rise is unsustainable in the near term. Vulnerable to a setback,” he wrote. His suggestion appeared to confuse market participants, with responses querying the rationale behind the decision, coming just weeks after Guggenheim’s initial entry. “CIO of huge firm day trading btc? It’s a 5-10yr hold minimum,” macro investor Dan Tapeiro argued. Institutional uptake comes amid a more fundamental supply and demand squeeze for Bitcoin, with large buyers already outpacing what miners can produce each month. At the same time, miners have stepped up their sales in recent days, in what one theory suggests is some well-earned profit-taking at or near all-time highs.


Crypto markets drop $60 billion as investors fear correction is coming

Billions were wiped from Bitcoin and the broader crypto market cap as fears of a bear market began to grip traders. It was a bad weekend for cryptocurrencies. After Bitcoin hit $40,000 and global market cap soared past the $1 trillion mark the weekend put a damper on things. Total market cap is now hovering below $940 billion, losing 17% in the past 24 hours alone, according to data company Nomics. That’s a $60 billion loss. Eesh. Accounting for most of those losses was Bitcoin, which has pulled back 20% in the past 24 hours and shows little sign of stopping its drop. But the world’s biggest cryptocurrency wasn’t the worst affected. Ethereum saw 22% losses, Ripple 25%, Litecoin 25.2% and EOS 28%. In fact, there was only one winner in the top 20 cryptocurrencies by market cap, Compound’s Dai, which saw its market cap shoot up 45%. Interestingly, trading volume was up 123%. Why is that interesting? Because Dai is widely seen as a stable hedge or counterweight against the volatility of more popular crypto-assets such as Ethereum or Bitcoin. The stable value of DAI means it is good for investors or traders who believe the market is about to go down.  A rush to Dai is like a rush to gold for investors in the fiat world: people are waiting out rough market conditions. Why the sudden rush? There appears to have been several large movements of Bitcoin moving over the weekend, according to Whale Watch. These signals are then interpreted as a sign a peak may have been reached, causing a cascading effect among smaller traders. However, looking at technical indicators opinion is split whether Bitcoin has overheated – stochastic indicators say it is – or has room left in its current bull run – Williams %R, Bollinger Bands and Keltner Channels all say Bitcoin looks peachy. Perhaps it might have something to do with things outside the crypto community. In the UK, HSBC has blocked crypto traders from depositing their money into accounts registered at the bank, according to the Sunday Times. It’s a reminder that while the narrative of institutional investors coming into the space has given Bitcoin an air of acceptance, the cryptocurrency still has a long way to go.  To a change in the mood about 2021 and an increasingly popular view that some stocks have become overheated. “After being bullish for several months, we are definitely becoming more cautious on the stock market up at these levels,” Matt Maley, the chief market strategist at Miller Tabak + Co., wrote in a note. He added the “dollar is so extremely oversold, over-hated, and over-shortened that it all but has to rally for a while at some point soon.” It’s also earnings season again, with big banks like JPMorgan, Citigroup and Wells Fargo all expected to release their numbers. The expectation is that overall, corporate profits will continue to fall in the fourth quarter. Analysts expect to see aggregate S&P 500 earnings per share decline 8.8% year-over-year in the fourth quarter, giving this last quarter the gloomy accolade of the third-largest year-on-year drop in earnings for the index since 2009, according to FactSet. 


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