Bitcoin relief rally thwarted at $34,000

Altcoin surging, Bitcoin relief rally thwarted at $34,000

Several altcoins made double-digit daily gains as Bitcoin’s relief rally hit a wall at $34,000

Bitcoin’s (BTC) contraction below $30,000 was short-lived: the cryptocurrency quickly found support thanks to a new wave of buyers, including MicroStrategy with its $10 million acquisition.

Data from Cointelegraph Markets and TradingView show that this influx of funds has allowed BTC to reach a daily high of $33,866. While waiting for the Biden administration to approve a multi trillion dollar stimulus package, conversations about Bitcoin by The News Spy as a store of value are back and more heated than ever.

Although Bitcoin’s recent volatility has prompted some analysts to argue that the cryptocurrency is a cyclical asset rather than a hedge, the downturn has attracted the attentions of retail investors, who have taken advantage of the price drop to buy.

Even the Bank for International Settlements has admitted that digital currencies could have uses: the institution plans to conduct a series of tests on Central Bank Digital Currencies during 2021.

Now that the Crypto Fear and Greed Index has changed from „Extreme Greed“ to „Fear“, it seems that some investors are following Warren Buffet’s advice to „buy when there is blood in the streets“.

Institutional investors fear future regulation

According to Chad Steinglass, Head of Trading at CrossTower, Bitcoin’s correction may have been triggered by critical comments made by Janet Yellen, who is likely to become the new US Treasury Secretary.

Prior to Yellen’s comments, Bitcoin was experiencing a period of „post-correction consolidation“ between $34,000 and $38,000, while traders were „waiting to see which side of the range would be challenged or breached.“

Steinglass further explained that Bitcoin’s next movements will be determined by the actions of institutional investors:

„$31,000 has proven to be solid support, or at least not everyone has sold. We will have to wait and see if that wall holds, if institutions continue to accumulate. If they do, the uptrend is likely to reestablish itself and continue.

However, if they move to the sidelines pending further regulatory clarity, the lack of large buying flows will be felt.“

The big upswing in altcoins

Many of the major alternative cryptocurrencies have rebounded strongly: Polkadot (DOT) is in the green by 10%, reaching a peak of $18; Chainlink (LINK) is up 10% and conquered $23; Tezos (XTZ) is also performing well, with its price reaching $3.22 thanks to a daily increase of 16%.

Helt sosial aktivitet følger 100% rally

Helt sosial aktivitet følger 100% rally i Cardano-prisen

Cardano-prisen har doblet seg siden starten av 2021, og farten sammenfaller med en ny heltid i Cardano-relaterte Twitter-omtaler.

Sosiale medier omtaler om Cardano har vokst siden begynnelsen av året, og i løpet av denne tiden har prisen på ADA-token mer enn doblet seg, i prosessen som overgår Bitcoin Cash (BCH) for å bli den sjette største kryptovalutaen etter markedsverdi. .

Et dypere dykk i data fra Twitter-data klarte ikke å identifisere en spesifikk driver for ADAs bullish prishandling, men data fra The Tie viste at Cardano Bitcoin Circuit nevner nylig nådde en heltidshøyde, med prisen som sporet økningen.
Cardano 30-dagers gjennomsnittlig tweetvolum kontra pris. Kilde: TheTIE

Søkeordanalyse av Cardano-relaterte tweets kunne heller ikke identifisere den motiverende faktoren bak den nylige økningen i sosiale medier, men begreper som „pool“, „stake“ og „staking pools“ var de hyppigste utløsende ordene i de fleste diskusjoner ledet av medlemmer i samfunnet. .

I private kommentarer med Cointelegraph sa Joshua Frank, grunnlegger av The Tie, at praten om en „interoperabilitetsbro mellom Cardano og IOTA“ som begynte å gjøre rundene 2. januar ser ut til å ha korrespondert med den oppadgående prisbevegelsen og en relativt stor økning. i tweets.

Dette refererer til en nylig diskusjon om Iotas uenighet der medstifter av prosjekt Dominik Schiener ble spurt om Iota Foundation var interessert i å utvikle en „bro til Cardano.“ Som svar uttalte Schiener: “Yeh 100%. Når vi er klare, tar jeg kontakt med Charles igjen. “

I følge Frank:

„24 timer etter at ideen begynte å bli diskutert, så Cardano en økning på 63% i tweetvolum og pris økte med 27% mot USD og 25% mot BTC, noe som tyder på at dette var et ukorrelert trekk.“

Utvikling går inn i Gougen-fasen

Cardanos veikart viser at prosjektet nylig gikk over fra Shelly-tiden til Goguen-tiden.

Shelly-epoken brakte desentralisering til kjernen i nettverket og gjorde det mulig for ADA-holdere å stake og delegere tokens for å tjene belønninger.

Nå som prosjektet har gått inn i Goguen-tiden, er utviklingsfokuset på integrering av smarte kontrakter og muligheten til å bygge desentraliserte applikasjoner, eller DApps, på nettverket.

Tillegget av smarte kontrakter og DApps åpner et helt nytt område av funksjonaliteter for Cardano-nettverket, inkludert muligheten til å lage desentraliserte finansieringsapplikasjoner.

I en nylig samtale med Cointelegraph, mente Cardano-grunnlegger Charles Hoskinson om fremtiden til DeFi og hvordan teamet planlegger å „ta ledelsen i DeFi-rommet ved å utvikle partnerskap på det afrikanske kontinentet.“

I følge Hoskinson vil det virkelige potensialet til DeFi bli realisert i utviklingsland der han ser potensialet for å skaffe seg 100 millioner nye brukere i løpet av de neste tre årene.

Ether fees rise sharply again

The transaction costs on the Ethereum Blockhain have risen sharply again.

The fees Ethereum network have according to data from YCharts on Sunday an average of 10.20 US dollars per transaction reached

The network’s fees rose only twice in 2020, averaging $ 12.54 for a short time in early September. Towards the middle of the month they rose again to $ 11.69.

Bitcoin Pro network transactions have consistently seen high fees over the past year . This was partly due to the DeFi boom in which the block chain for various credit and return activities used . At times, the high fees have made it difficult for contributors to participate in DeFi activities.

„#Ethereum gas fees are rising sharply again. This means that #DeFi is practically unusable,“ said crypto YouTuber Lark Davis on Twitter on Monday

The network’s traffic tolerance has been a problem for years. Transactors faced major delays and fees just before the climax of the last major crypto bull run. Back then, a blockchain game called CryptoKitties was gaining popularity.

Ethereum has recently introduced its long-awaited network upgrade initiated , the Ethereum is called 2.0. The network is to be converted to a proof-of-stake mining algorithm. The upgrade is expected to bring better scaling for Ethereum . However, the process will likely take years to complete.

In the past 24 hours, Ether ( ETH ) has grown from just under $ 830 to $ 1,161 .