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Weekly Recap: Bitcoin and Ethereum Lose Interest While Technicals Spell Trouble

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Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) weekly price movements.

Bitcoin Enjoys Crucial Endorsement Closing the Week In the Green

Bitcoin opened Monday’s trading session, January 25th, in a good posture. Its price quickly rose by 8.04% from a low of $33,569.60 to reach an intraday high of $34,865.90 by noon, according to CEX.IO’s exchange rate. Despite the significant upward price action that BTC saw at the beginning of the week, market participants turned their attention to the stocks market.

A group of retail traders led by Reddit’s r/wallstreetbets community bought GameStop stocks en masse, flushing hedge funds out of their short positions. The massive increase in buying pressure pushed GME’s market value by a whopping 460% before the U.S. Securities and Exchange Commission (SEC) was forced to announced trading restrictions.

By the time the financial watchdog announced that it would closely monitor and evaluate the high volatility of certain stocks, more than $5 billion in losses were generated.

Given the amount of attention that shifted towards GameStop, it seems like investors lost interest in Bitcoin. As a result, the flagship cryptocurrency saw its price drop by more than 16.40% from Monday’s high of $34,865.90. By Wednesday, January 27th, BTC had reached the lowest price point of the week at $29,230.60.

Sidelined investors seem to have taken advantage of the downward price action to get back into the market. As buy orders began to pile up, Bitcoin was able to rebound from the $29,000 support barrier towards the $33,500 resistance. The upswing represented a 14.80% price increase, sending BTC holders back into the green by the end of Thursday’s trading session, January 28th.

What came next was a 19.60% price jump that was triggered after Tesla and SpaceX CEO Elon Musk suggested that he now endorses Bitcoin. Market participants seem to have entered an irrational FOMO state pushing BTC’s market value to a weekly high of $38,647.40.

But as time went by, the hype around the pioneer cryptocurrency faded, and prices plummeted by 14.40% to close Friday, January 29th, at a low of $34,306.40. Investors were able to generate 6.10% in profits from Bitcoin’s weekly price action.

Ethereum Investors Shift Their Attention Generating 1.00% in Weekly Losses

Ethereum enjoyed a brief bullish impulse following Monday’s open, January 25th. Indeed, the smart contracts giant saw its price rise by nearly 4%. It went from $1,392.21 to hit a high of $1,474.99 within hours, according to the exchange rate from CEX.IO.

Regardless of the early weekly gains that Ether was able to grasp, its uptrend was also jeopardized by the turmoil that was happening on Wall Street. Ethereum suffered a steep correction due to the lack of interest from investors who were flocking to different stocks such as GameStop and AMC Entertainment.

By Wednesday, January 27th, at 12:00 UTC, ETH has lost more than 16.60% of its market value to trade at $1,210.00, which market the lowest price point of the week. A new wave of capital flooded the cryptocurrency market from that point on, helping Ethereum regain some of the lost ground. The bullish impulse pushed prices back above the $1,400 level.

As a matter of fact, Ether reached a high of $1,439.55 on Friday, January 29th, at 12:00 UTC, representing a 19.60% upswing from the weekly low of $1,210.00. As the weekly trading session was coming to an end, it seems like traders began to exit their long positions, increasing the downward pressure behind the second-largest cryptocurrency by market capitalization.

The spike in sell orders pushed Ethereum’s market value down by 4.36%. Therefore, its price closed on Friday, January 29th, at $1,379.00. ETH holders incurred a 1.00% loss throughout the week of January 25th due to the erratic price action.

Uncertainty Reigns in the Cryptocurrency Market

Even though Bitcoin and Ethereum seem to be going through a consolidation phase, multiple on-chain metrics suggest that a steep correction is underway.

For instance, the Entity-Adjusted Spent Output Profit Ratio (a-SOPR) indicator, which represents the profit ratio of BTC tokens moved on-chain, recently reached its highest value ever recorded. As the a-SOPR surpassed the 1.24 mark while Bitcoin made a new all-time high of $42,000 on January 8th, these prices became too attractive for investors to book profits.

If this on-chain gauge proves to be as accurate as it was in the past when it anticipated the market top of April 2013, December 2013, and December 2017, Bitcoin could be bound for a devastating retracement.

Likewise, Ethereum is about to flash a sell signal on its weekly chart based on the Tom Demark (TD) Sequential indicator. The bearish formation will likely emerge as a green nine candlestick, which is indicative of a one to four weekly candlesticks correction before the uptrend resume. A spike in sell orders may help validate the pessimistic outlook pushing Ether’s market value towards the $1,000 support or lower.

From a technical perspective, the only way Bitcoin can invalidate the bearish thesis and rise to $50,000 is if it regains $40,000 as support. Meanwhile, Ethereum would have to close above $1,440 decisively to advance towards $2,000.

Altcoin News, Bitcoin News, Cryptocurrency news, Ethereum News, Guest Posts

Author: Konstantin Anissimov

Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.



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Coinbase S1-Filing with US SEC for Direct Stock Listing Goes Public

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In the S-1 filing, Coinbase has made crucial disclosures to the public with its plans of launching direct stock listing on Nasdaq. As per its recent valuations, Coinbase pegs a value of over $100 billion.

Crypto exchange Coinbase is inching closer to its direct stock listing on Nasdaq. On Thursday, February 25, Coinbase submitted its S-1 filing with the US Securities and Exchange Commission (SEC), thereby making it public for the first time.

The recent submission is a crucial step for Coinbase’s direct stock listing on Nasdaq. The S1 filing with the SEC offers a deeper insight into Coinbase’s business. All the disclosures effectively work as a pitch to the investors. Before this, Coinbase submitted its confidential draft document to the US SEC in mid-December.

The rumors of Coinbase’s public listing first emerged during last summer of 2020. Over the last few weeks, Coinbvase has been releasing its shares in the secondary market to investors. As per its latest share offering, Coinbase’s valuations spiked above $100 billion with a per-share price value of $373. The official blog post for Coinbase notes:

“Coinbase Global, Inc. today announced that it has filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission (the “SEC”) relating to a proposed public direct listing of its Class A common stock. Coinbase intends to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “COIN”.

Coinbase has confirmed that it will take the help of Goldman Sachs, JPMorgan Securities and Citigroup to “assist us with respect to certain matters relating to our listing.”

Coinbase’s Strong Growth Story

Over the last two years, Coinbase has registered strong growth with a major spike in the customer base. By the end of 2018, Coinbase valuations stood at $8 billion and have multiplied 12x by now. As Coinbase noted:

“We have grown quickly and in a capital-efficient manner since our founding. For the years ended December 31, 2020 and December 31, 2019, we generated total revenue of $1.3 billion and $533.7 million, respectively, net income (loss) of $322.3 million and $(30.4) million, respectively, and Adjusted EBITDA of $527.4 million and $24.3 million, respectively.”

After registering a $30 million loss in 2019, Coinbase reported $322.3 million net income as its first positive year in 2020. However, Coinbase has noted that as it expands its operations, its expenses will continue to grow simultaneously. The crypto exchange said:

“We expect our operating expenses to increase significantly in the foreseeable future and may not be able to achieve profitability or achieve positive cash flow from operations on a consistent basis, which may cause our business, operating results, and financial condition to be adversely impacted”.

Other business news can be found here.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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Nash: Bridging Gap between Fiat and Crypto

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Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet.

Nash specializes in providing the best fiat/crypto gateway services for both retail and business customers, combining the lowest prices and fees with high-security wallets. This exchange service is fully licensed to operate in Europe.

For BTC, ETH, NEO and USDC, Nash offers 0% fees. This is possible because Nash operates its own crypto-crypto exchange. Nash’s unique Layer-2 exchange provides the same performance as centralized exchanges without taking custody of funds.

For other crypto assets, tradeable on Layer 1 user wallets, Nash charges just 1% fees, with no hidden slippage fees.

What’s more, Nash provides the safest software wallet by using secure multi-party computation (MPC) technology. MPC ensures a user’s full private key is never used to sign transactions and allows for security policies like address whitelists. Nash never has control over user funds.

On the business side, Nash offers its fiat gateway services as a white-label solution for third parties. Fees remain as low as 1%, with no tricks like huge asset mark-ups. Nash is a highly competitive solution for projects seeking a licensed fiat gateway for their platform and token.

Nash Link is a solution for merchants to accept cryptocurrency without setting up a blockchain wallet. Nash pays merchants the exact fiat price they set in their preferred national currency (€, £ or $) with 0% fees, managing risk around price volatility This is also possible thanks to Nash’s Layer-2 exchange.

In 2021, Nash will expand into digital banking services. High-interest DeFi-staking products will go live in Q2. In Q3, Nash will offer national currency checking accounts (with IBANs) on its platform. These will enable an even simpler savings product where users can easily deposit cash and lock it in a DeFi-powered crypto savings account. With a debit card arriving in Q4, Nash will seamlessly integrate traditional and crypto finance by the end of the year.

Altcoin News, Blockchain News, Cryptocurrency news, News

Please check out latest news, expert comments and industry insights from Coinspeaker’s contributors.



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Federal Reserve Wire and ACH Systems Back Online after Outage Affecting Exchanges

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Some other services offered by the Fed were also disrupted some of which include, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web and FedMail.

For an hour, the Federal reserve wire and ACH systems were down. During the Wednesday downtime, a number of US-based crypto exchanges was affected.

The systems allow the Fed to send wires and settle the transactions in real-time. Fedwire offers real-time settlement across accredited institutions. Gemini and Kraken reported delays in Federal Reserve wire and automated clearing house transactions. But the severity of it was much greater as no bank was able to send or receive wires. During the downtime, many in the crypto community were quick to point out that Blockchain could serve the same purpose without ever experiencing a downtime period. In line with blockchain, it was also a perfect moment to sell Bitcoin as the best form of money.

Some other services offered by the Fed were also disrupted some of which include, FedLine Advantage, FedLine Command, FedLine Direct, FedLine Web and FedMail.

At the time, the Fed in an effort to curb panic was quick to comment on the failure. Jim Strader, Richmond Federal Reserve spokesperson stated:

“A Federal Reserve operational error resulted in disruption of service in several business lines. We are restoring services and are communicating with all Federal Reserve Financial Services customers about the status of operations.”

The Fed in a few hours had restored all but Account Services. During the disruption, neither the dollar nor Bitcoin seemed to react. There was also no major impact on any bank or exchange during the outage.

Federal Reserve Calls for Digital Currency Clarity

On the same day of the outage, the Fed was reigniting interest in issuing a digital currency. The US Federal Reserve Chairman Jerome Powell stated that 2021 would be the year for broad consultation with the public about a potential CBDC. In FED notes outlining some ‘preconditions’ on any potential digital currency, the body noted;

“Engaging with individuals and businesses and consulting with consumer groups, community organizations, and business associations to understand the use case for a CBDC will help in the decision whether to issue a CBDC and its potential design,”

The paper further noted that the senate had a big role to play, with any potential issue of a CBDC having to be on a “legislative authorization.” Features of the digital dollar were also key with interest in privacy, security access and delivery. The notes however failed to report if the digital currency would be blockchain-based or not.

The Feds stance comes just a week after Treasury Secretary Janet Yellen talked about a digital dollar being feasible. She further pointed out that with too many Americans lacking access to payment systems and bank accounts, a CBDC would be ideal.

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Kiguru is a fine writer with a preference for innovation, finance, and the convergence of the two. A firm adherent to the groundbreaking capability of cryptographic forms of money and the blockchain. When not in his office, he is tuned in to Nas, Eminem, and The Beatles.





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