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Bitcoin Price Hits $16000 for First Time Since 2017

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Today, Bitcoin price reached the 33-month highs to settle above $16,000. Analysts now suggest some salient reasons could have fueled the surge.

On November 12, Bitcoin surged past $16000, a level that was last seen in 2017. Coinspeaker’s data showed that after 5 a.m. ET, the price of the dominant crypto, had climbed up to $16019. Currently, it is trading at $16016.

This year alone, Bitcoin (BTC) chalked up a stellar price rally, more than doubling in value, reminiscent of the 2017 monster rally. At first, the reason for such a high move was not clearly established, but now industry analysts have come up with 3 main reasons to explain such a trend. The reasons include the non-overheated derivatives market, $14900 whale supply zone, and $16000 repeated retest.

Bitcoin Derivatives Market’s Recent Dip Reset

Bitcoin experienced an abrupt decline in price to as low as $15072 two days ago. Merely 24 hours earlier, it had dipped to $14805, leaving traders in jitters.

However, the price drop was not that bad since it had a silver lining, which was beneficial to BTC. On the one hand, Whales were now able to profit while at their positions currently located around the $15000 support level. On the other hand, long contract holders – often referred to as late buyers – were flushed out, thereby neutralizing the futures market.

Hence, ongoing BTC rally critically survived due to the Bitcoin futures contracts funding rate and the futures market reset.’ Funding’ is a mechanism Futures exchanges use to achieve balance in the cryptocurrency market.

Implying, buyers have to incentivize short-sellers when most of the market is involved in Bitcoin buying. Likewise, in the market, the behavior can happen vice versa: sellers will have to pay buyers when most of the market is involved in BTC selling.

BTC had a funding rate above 0.01% before Tuesday’s drop, indicating an overcrowded market due to heavy demand or intensive Bitcoin buying. However, BTC funding rates stabilized and the cryptocurrency futures contracts neutralized once the minor correction to the $15000 support level occurred.

Bitcoin Weakened Resistance Due to Repeated Retest of $16000

Up to yesterday, the $16000 area was regarded as Bitcoin heavy resistance level. Whales are most probably targeting this resistance level since Traders are seeing large sell orders taking place at that point.

One Bitcoin trader Edward Morra has witnessed the presence of many sell orders near $16000, saying that Bitfinex had the most orders above that level. Bitcoin has managed to push through the large sell orders occurring at $16000 due to the past week’s repeated retests that have collectively weakened the existing resistance.

Whale Support Area Held Perfectly at $14900

Throughout this week, $14900 has proved to be a whale support area. High-net-worth individuals have been buying BTC at this price, making purchases cluster at that point, thereby forming a support level.

Macro factors like Pfizer‘s vaccine development – which have caused the market to be extremely volatile – have not been able to shake Bitcoin out of its support level. Therefore, $14,900 has now become BTC’s stable support level as the market trend continues to show.

Major exchange Gemini‘s billionaire co-founder Cameron Winklevoss has come out to emphasized the importance of the $14900 to $15000 support range, saying:

“Bitcoin closed yesterday above $15,000 for the third day in a row. This is the first time in history that Bitcoin has held this price level for 72 hours. A new record.”

For more Bitcoin updates, please, follow this link.

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James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then.
An author with experience writing for tech, digital, and cryptocurrency blogs!



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Bitcoin Interest Soars as Wall Street Journal Discusses Its Adoption in Front Page

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According to the report, Grayscale had about $5.9 billion in assets under management. Interestingly, this has recorded a massive surge to over $10 billion.

Bitcoin is currently enjoying the rally of its life since the previous market bull run that saw it surge to near $20,000. Just in 2 months, the digital asset has gained about 80% value which saw it fall short of just 4% gain to equal its all-time high of $19,783 after reaching $18,965. Wall Street Journal accessed some of the possible causes for this unexpected Bitcoin bull run that has had a drop-down effect on almost all the leading altcoins.

According to the Wall Street Journal, there has been a demand from a new group of investors who seek to make huge profits from the high level of predictions and the recently announced adoptions.

Wall Street Journal noted that there has been high interest from both institutional and retail investors. Typical evidence is a surge in trading volume on the leading exchanges and Bitcoin platforms including Square Inc’s Cash App. In 2019, it was noted that customers purchased around $555 million on the platform. This has multiplied to $1.6 billion in the third quarter of 2020 according to the Wall Street Journal. Also, the price surge of Bitcoin has been linked to the recent addition of features on the PayPal Holdings Inc (NASDAQ: PYPL) platform that allows users to purchase Bitcoin directly from their account. 

Interestingly, this feature is currently available to US customers and would be made accessible to other countries by next year. This can even take the price higher. 

Impact of the Report by the Wall Street Journal of Bitcoin

The Wall Street report dug into the Bitcoin investment life of Grayscale Investments, a private hedge fund. According to the report, Grayscale had about $5.9 billion in assets under management. Interestingly, this has recorded a massive surge to over $10 billion. This has made them one of the main winners of the recent bull run. 

According to Dan Morehead, the CEO of Pantera Capital, two main factors have driven the Bitcoin price to the current height. The first factor is its known ability of hedging against inflation. The Central Bank has been said to push inflation forcing investors to consider Bitcoin. The report states that the fixed supply of Bitcoin was meant to make its inflation resistant. 

The other factor is the known mainstream online platforms that promote and facilitate cryptocurrency trading. These have been able to work hand in hand to cause investors to migrate to Bitcoin. 

Wall Street billionaire Paul Tudor Jones who earlier revealed to have put 1% to 2% of his worth into Bitcoin believes that Bitcoin is a good speculation. Another Wall Street billionaire Stanley Druckenmiller believes that Bitcoin is very similar to gold. However, Bitcoin would outperform gold because of its smaller size and volatility. 

The last time Bitcoin caught the attention of the mainstream media was around 2017 when it started making waves. Bitcoin price has been said to go even higher by next year due to its last halving event. However, it is still a very risky investment and largely driven by speculation rather than valuation. 

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Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.



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West Coast Aquaculture (WCA) Completes $3.65M IPO with Over 89% Raised via Tether (USDT)

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West Coast Aquaculture (WCA) stocks are now listed on the Sydney Stock Exchange under the SSX code 833.

As cryptocurrencies get globally accepted, an Australian-based West Coast Aquaculture (WCA) has announced that it successfully completed raising $3.65 million via IPO with over 89% through Tether (USDT). According to news outlet Coindesk, the WCA crypto IPO was facilitated by a fintech firm STAX. “The successful WCA capital raise and IPO, paves the way for the future of capital markets in Australia”, said STAX CEO Kenny Lee.

The use of digital assets to raise funds will significantly revolutionize global IPOs as more people who would have otherwise been locked out can now access with much ease.

“We are allowing access to a market which has been hard for overseas investors to get into, and it will only benefit Australian businesses longer term,” Lee explained.

West Coast Aquaculture (WCA) stocks are now listed on the Sydney Stock Exchange under the SSX code 833. According to the IPO files, WCA, which is an international fisheries company with an Asia Pacific presence, anticipates to use the funds to expand its business operations. Notably, the company indicated that it will focus more on its supply chain to ensure the future growth of its business.

“We are proud to be part of this historic moment in Australian investment history, said Neo Ching Hoe, CEO and founder of WCA. “We hope this bold initiative helps open the door to more global investment for local companies,” added he.

The Bigger Picture of WCA Crypto-Backed IPO

Companies in different sectors of the market are now understanding the fact that the use of the latest technologies including blockchain technology will put them ahead of their competitors. Blockchain technology has many uses that are bound to boom in the next few years, particularly in the cryptocurrency industry.

Despite the challenges involved with dealing with digital assets including possible scams and cyber attacks, they promise to revolutionize our financial system in a great way.

Notably, WCA crypto IPO has coincided with the ongoing crypto volatility that has seen most assets rally in the past few days. The increased volatility is an aspect that can bring unprecedented chaos during an IPO if not properly managed. However, thanks to the development of stablecoins, the volatility issue was completely eradicated.

The stablecoin industry, which has tremendously grown in the past few months has experienced a huge demand globally. According to the metrics provided by CoinGecko, the stablecoin industry has a market capitalization of $24,816,940,078 with its past 24-hour trading volume at $78,736,340,870. Notably, its past 24-hour trading volume is much higher than Ethereum and Bitcoin trading volumes.

This is a clear indication of the huge demand for stablecoins in the global market.

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A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”



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Bitcoin Price Hovering Close to $20K While XRP Shocks Crypto Market with 2-Year High

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Bitcoin and XRP are not the only currencies whose price has shown such performance. Other altcoins like Ethereum (ETH), Chainlink (LINK) are on a steady rise as well.

This week, Bitcoin (BTC) and XRP (XRP) are under the spotlight of crypto enthusiasts as the price of both currencies has shocked the community. While Bitcoin is on the way to break the $20k level, XRP has managed to soar by nearly 80% to hit $0.79, which is the highest since May 10, 2018.

Bitcoin Price to Reach $19,000

On November 24, the Bitcoin price has surpassed $19,000 for the first time in almost three years. And obviously, the top crypto is striving towards another milestone of $20k. This month so far, Bitcoin is about 40% up. Year-to-date, it is 160% up. Wall Street analysts are very optimistic about BTC’s future and believe it is standing good chances to surpass its all-time high record of $19,657.30 set on December 17, 2017.

According to the Wall Street Journal, there has been high interest from both institutional and retail investors. Therefore, Bitcoin is experiencing a bull run now. In addition, the Wall Street Journal bets on Bitcoin’s further growth in 2021.

Mati Greenspan, portfolio manager and founder of Quantum Economics, said:

“The main difference between now and the 2017 rally is that back then the market was driven by retail speculation and now it’s being driven by corporations and billionaires.”

At the moment of writing, Bitcoin is trading at $19,148 per coin. BTC market cap has totaled $355.2 billion.

XRP Soars as Airdrop Frenzy Builds

XRP is another coin that has shocked the crypto community with rapid growth. In 48 hours, it has surged by about 80%. Its 7-day growth has totaled 119%. Earlier today, the XRP price reached a high of $0.79, the highest level since May 10, 2018. Currently, XRP is trading at $0.67. Its market cap is $30.3 billion.

As analysts have explained, XRP’s jump results from the smart contract platform Flare Network’s airdrop of “spark” tokens to XRP holders. In particular, 45 billion spark tokens, based on a snapshot of XRP addresses, will be distributed on December 12. The initiative is supported by Ripple’s investment arm RippleX (formerly Xpring).

Jehan Chu, a managing partner at Hong Kong blockchain investment firm Kenetic Capital, stated:

“The impending airdrop is supercharging the XRP bull market and whipping mindshare of one of the largest crypto communities into a frenzy. With the imminent launch of Flare, a smart contract utility fork of XRP, the pair will attempt to challenge Ethereum’s dominance in decentralized finance and decentralized applications.”

Notably, Bitcoin and XRP are not the only currencies whose price has shown such performance. Other altcoins like Ethereum (ETH), Chainlink (LINK) are on a steady rise as well. ETH climbed a new high since June 2018 to $600 in the early hours of trading today, while LINK surged 740% in its year-to-date record.

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Daria is an economic student interested in the development of modern technologies. She is eager to know as much as possible about cryptos as she believes they can change our view on finance and the world in general.



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