Home » 2020 » December » 26

Daily Archives: December 26, 2020

Analysts believe Bitcoin might be overextended as bulls stop working to hold $24,000.

Bitcoin has undergone a strong rally over the past week, moving from $19,000 to highs near $24,300.

As of the time of this article’s writing, BTC trades for $23,100, as bulls have failed to hold the $24,000 support. The cryptocurrency moved higher last evening as institutional money has continued to flood into Bitcoin and after Elon Musk, CEO of Tesla and SpaceX, inquired about investing in BTC with his company’s balance sheet.

But as Bitcoin has begun to show some weakness, even in the face of a confirmed distribution of $600 stimulus cheques to millions of Americans, some analysts have shared their sentiment that a correction is building.

nalysts worried that Bitcoin could correct in the days ahead

Prominent analysts are worried that Bitcoin is entering correction territory as the rally begins to peter out as daily and weekly charts begin to look overextended.

Leading crypto-asset analyst “Bitcoin Jack” shared the chart seen below recently, noting that he has begun to become “cautious” as BTC has now approached diagonal resistance levels

“Potential extended fifths and ending diagonals at double diagonal resistance are the reason. No action yet, but eyes on tomorrow/Tuesday, stops tight. No pattern break down gives way for 26.6 next.”

Jack added that if Bitcoin begins to break down, the key support level he is watching on the reversal will be the “low 19’s.”

This is the same trader that predicted in the middle of March that BTC would see a V-shaped reversal to $10,000 by the start of the summer. He was proven correct almost perfectly. Jack more recently predicted the breakout from $12,000 at the start of October toward $18,000, where Bitcoin temporarily consolidated.

Still long but cautious

Potential extended fifths and ending diagonals at double diagonal resistance are the reason

No action yet, but eyes on tomorrow/Tuesday, stops tight

No pattern break down gives way for 26.6 next

Low 19’s first support level if we break down pic.twitter.com/X5UasaJ3I8

— //Bitcoin ?ack ? (@BTC_JackSparrow) December 20, 2020

This skepticism has been echoed by other traders. Pseudonymous analyst “Alice” noted that they have begun to see signs of exhaustion in the trend of Bitcoin, as evidenced by the formation of “rising wedges”:

“I have noticed some signs of exhaustion, have seen many rising wedge breakups during uptrends though in my day, of course on a lower time frame, that usually leads to blow offs. You can see a bit of tightening on the 4h BBs now, implying momentum slowing down.”

One crypto-asset analyst shared the chart seen below, showing that during last week’s move higher, there was strong selling pressure into last week’s rally on Bitfinex. While Bitcoin was not stopped last week, should this selling pressure increase, it may present a bigger risk to the cryptocurrency, forcing a drawdown.

The post Analysts think Bitcoin may be overextended as bulls fail to hold $24,000 appeared first on CryptoSlate.

Title: Analysts think Bitcoin may be overextended as bulls fail to hold $24,000
Sourced From: cryptoslate.com/analysts-think-bitcoin-may-be-overextended-as-bulls-fail-to-hold-24000/
Published Date: Mon, 21 Dec 2020 14:45:30 +0000

XRP falls 17% as Ripple deals with United States SEC action

The issuer of XRP tokens has come in the regulatory crosshairs for their alleged illegal distribution.

Lawsuit coming for Ripple

Ripple faces a class-action lawsuit from US authorities for its alleged involvement in the illegal issuance and distribution of XRP tokens, financial publication WSJ reported today.

CEO Brad Garlinghouse expressed his frustration in this regard on Twitter. He claimed the US SEC was poised to file charges against himself and Ripple co-founder Chris Larsen for the alleged sales of “unlicensed securities” to US citizens.

Today, the SEC voted to attack crypto. Chairman Jay Clayton – in his final act – is picking winners and trying to limit US innovation in the crypto industry to BTC and ETH. (1/3) https://t.co/r9bgT9Pcuu

— Brad Garlinghouse (@bgarlinghouse) December 22, 2020

Garlinghouse added that Ripple, the company, has and will continue to use XRP because it was the best digital asset for payments, citing its speed, cost, scalability, and energy efficiency as benefits.

He further said:

“The SEC, out of step with other G20 countries & the rest of the US govt, should not be able to cherry-pick what innovation looks like (especially when their decision directly benefits China).”

Garlinghouse further noted that the regulation of Bitcoin and Ethereum in the US unfairly and directly benefits the mining industry in China, apart from the scores of entrepreneurs building on those protocols in that region. 

However, this prevented other blockchains or US-based startups, such as Ripple, to adequately benefit from the technology, in his view.

XRP a security or not?

In case the lawsuit is filed, it shall revive one of the longest-running questions in the cryptocurrency space: How much does Ripple benefit from XRP, and to what end does it control the token?

As such, the San Francisco-based company has distanced itself from XRP in the past few years after initially launching and distributing the token back in 2012. Regardless, Ripple continues to hold over 50 billion XRP to sell on the open market and fund its business activities.

Seems like a good time to bump this classic from the blog.

For the last time, Ripple Labs created XRP. https://t.co/DCP17OuYeg

— Preston Byrne (@prestonjbyrne) December 22, 2020

Garlinghouse and Larsen also each own a significant amount of XRP, with industry observers stating such a holding does not qualify as wholly “decentralized,” noted financial publication Fortune

Meanwhile, XRP took a knock as the development came out. The token fell 10% to $0.46 in the Asian trading session as traders reacted to news of the lawsuit. However, the broader crypto market tumbled as well, with Bitcoin falling 3% and Ethereum by 4%.

The post XRP falls 17% as Ripple faces US SEC action appeared first on CryptoSlate.

Title: XRP falls 17% as Ripple faces US SEC action
Sourced From: cryptoslate.com/xrp-falls-10-as-ripple-faces-us-sec-action/
Published Date: Tue, 22 Dec 2020 09:42:43 +0000

Did you miss our previous article…

Even after 400% rally, analysts are still thrilled about DeFi protocol SushiSwap (SUSHI).

SushiSwap’s native token SUSHI, even after the recent drop, is up strongly since the lows seen in October. From its all-time low price of just over $0.50, the cryptocurrency has shot as high as $3.00. Even at the current price of $2.65, it is up by over 400 percent since the lows.

Chart of SUSHI’s price action over the past two months. Source: TradingView.com.

This persistent rally in the once-controversial cryptocurrency comes amid positive developments as it looks to eat at the market share that Uniswap has carved out for itself. SushiSwap has begun to do this as the market casts aside the initial controversy surrounding the cryptocurrency that pertained to the initial founder taking capital from a developer fund.

SushiSwap is attempting to increase its dominance with increased liquidity incentives and new features, along with a partnership with Yearn.finance that should help with the platform’s long-term sustainability.

Why is SUSHI still rallying in face of DeFi underperformance?

SUSHI has clearly been an outperformer in the DeFi space over the past few months, managing to gain 400 percent while other decentralized finance coins have only seen 100 percent rallies or so.

This strong rally can be pinned to a number of fundamental trends for the Ethereum-based altcoin.

Some of these are as follows:

First and foremost, SushiSwap’s “BentoBox” offering is expected to launch soon. First proposed by SushiSwap contributor “Boring,” BentoBox was slated as a way for users to obtain margin leverage on any token with a supported pair.

As crypto investor Future Fund notes, the offering three months later is now a lot more comprehensive and has the ability to boost SUSHI’s value proposition and accrual over time.

“BentoBox has evolved from just a lending solution and into its own unique modular vault. It has the ability to hold not just lending contracts, but multiple protocols and extensions.”

The evolution of @SushiSwap Bentobox. $SUSHI

1. BentoBox has evolved from just a lending solution and into its own unique modular vault. It has the ability to hold not just lending contracts, but multiple protocols and extensions.

— Future Fund (@FUTURE_FUND_) December 21, 2020

Along with the original value proposition of allowing investors to more easily trade and speculate on the ever-changing DeFi space, BentoBox may also allow for synthetic assets like stablecoins, shares of companies, and gold. With SUSHI likely to lie at the core of this system as collateral, the coin may come in higher demand and may continue to push higher.

Further, SUSHI is expected to see value accrual from this new offering as platform fees will be distributed to holders of the coin.

BentoBox is currently being audited, some reports suggest, and will be released soon.

Secondly, the Yearn.finance partnership is believed to show that SushiSwap will have long-term staying power as the core decentralized exchange of the Yearn ecosystem.

Cross-chain ambitions

Underpinning all this, SushiSwap seemingly has intentions to go cross chain.

As reported by CryptoSlate previously, SushiSwap team lead “0xMaki” says there are plans to “open” the platform on Polkadot in the coming months:

“If you LP’ed past end september you still have 2/3 of your rewards that will be available in 6mo. and you will receive moonSushi when we open on Polkadot,” he recently tweeted in regards to a comment about long-term staying power of SUSHI.

If you LP’ed past end september you still have 2/3 of your rewards that will be available in 6mo. and you will receive moonSushi when we open on Polkadot.

The more you know.. ?

— 0xMaki 源 義経 (@0xMaki) December 15, 2020

Polkadot is expected to be a serious Ethereum competitor, especially if issues around scaling persist into the future, which will prevent many retail users from accessing DeFi.

The post Even after 400% rally, analysts are still excited about DeFi protocol SushiSwap (SUSHI) appeared first on CryptoSlate.

Title: Even after 400% rally, analysts are still excited about DeFi protocol SushiSwap (SUSHI)
Sourced From: cryptoslate.com/even-after-400-rally-analysts-are-still-excited-about-defi-protocol-sushiswap-sushi/
Published Date: Tue, 22 Dec 2020 09:42:40 +0000

Anthony Scaramucci’s SkyBridge Capital Seeks SEC Consent to Release Bitcoin Fund

Following the impressive list of institutional investors who have put their funds into bitcoin in 2020, it appears that more big names are showing interest in the number one crypto asset, after a global investments firm filed with the U.S. SEC to launch a bitcoin fund for accredited investors.

SkyBridge Proposes Bitcoin Fund

According to an SEC document on Monday (Dec. 21, 2020), Anthony Scaramucci’s billion-dollar hedge fund, SkyBridge Capital, filed a Form D with the U.S. securities watchdog for its first bitcoin fund.

The fund, known as SkyBridge Bitcoin Fund L.P., will have Scaramucci serving as manager. Also, SkyBridge registered the new fund under Rule 506(c), meaning that the issuer can advertise its offering with the condition that the buyers are verified, accredited investors.

Founded in 2005 by Scaramucci, SkyBridge earlier noted in a previous SEC filing that it could “seek exposure to digital assets.” A part of the November document stated thus:

“Investment Funds may invest in digital assets without restriction as to market capitalization or technological features or attributes (including lesser-known or novel digital assets known as “altcoins”) and may invest in initial coin offerings, which have historically been subject to fraud.”

If the SEC approves the proposal, it could mean that more institutional investors would get exposed to bitcoin through the SkyBridge Bitcoin Fund L.P. Also, while the filing does not disclose the revenue range, the minimum investment for participants is set at $50,000.

Institutions Pour Into Bitcoin

Indeed, 2020 has been a good year for bitcoin, with institutional interest in BTC showing no signs of slowing down. As reported by CryptoPotato in November, financial services behemoth Guggenheim filed an application with the SEC to buy $500 million worth of BTC through its Macro Opportunities Fund.

Another company, Microstrategy, which has been on a bitcoin purchasing spree, recently announced another BTC buy worth $650 million. Other big firms like MassMutual and Ruffer Investment also invested in the top cryptocurrency.

Apart from companies, wealthy individuals like the billionaires Paul Tudor Jones and Stanley Druckenmiller also bought bitcoin. Meanwhile, JPMorgan analysts state that the institutional investment wave in bitcoin has kept the price of the crypto asset from correcting.

Title: Anthony Scaramucci’s SkyBridge Capital Seeks SEC Permission to Launch Bitcoin Fund
Sourced From: cryptopotato.com/anthony-scaramuccis-skybridge-capital-seeks-sec-permission-to-launch-bitcoin-fund/
Published Date: Tue, 22 Dec 2020 09:42:20 +0000

XRP Price Crashes as SEC Prepares to Sue Ripple

The moment has come. Apparently, the SEC is ready to sue Ripple for issuing XRP as a non-registered security.

After several years of uncertainty, it seems that U.S. regulators would be willing to answer once and for all the most crucial question that any member of the XRP Army has ever asked. Is XRP a security?

According to Fortune, the American company received a notice on Monday that it would be sued by the SEC. Brad Garlinghouse, Ripple’s CEO, did not deny the news and, in fact, spoke out on his Twitter account, claiming that the move undermined American innovation.

What’s Going on With Ripple, XRP and the SEC

The SEC has already ruled on Bitcoin and Ethereum, assuring that neither are securities. This gives some freedom to the exchanges and users to operate with them.

However, speculation about whether or not XRP passes the famous Howey Test has always been up for grabs. Many experts claim that XRP has all the features of a security, while others argue that it doesn’t. But in the absence of a clear stance from the SEC, the debate had no clear winner.

They Key Aspects of the Howey Test. Image: Inwara

Now, the alarms are sounding. If XRP is indeed classified as a security, Ripple would have to pay a hefty fine for the offense committed —just as what happened with the KIN case. Likewise, the token would probably be delisted from many major exchanges that would not be authorized to accept it, Ripple would be subject to stricter control, and it’s interesting to see what would happen to the price of XRP.

Unlike Bitcoin and Ethereum, which were issued without a central entity to benefit from it, Ripple’s history with XRP is very different. In very general terms, the developers of XRP issued the tokens, founded a company (Ripple), and then self-gifted a large number of tokens, assigning about 80% of the supply to the company they created and managed.

This has resulted in many analysts seeing XRP as an expression of Ripple’s value in the same way that a stock or other security would be.

Ripple Is In Combat Mode

Brad Garlinghouse has already announced that he is putting on the boxing gloves: “Make no mistake, we are ready to fight and win,” he said on his Twitter account, “this battle is just beginning.”

Ripple’s CEO is already preparing for the upcoming legal battle. In a document posted on Ripple’s official blog, the company made several arguments that contradict the SEC’s claims. They attack various aspects, from the technical to the geopolitical, asserting that Bitcoin and Ethereum were controlled by China —the United States’ political rival.

Policy reasons counsel against finding XRP to be an investment contract.

A. Innovation in the cryptocurrency industry will be fully ceded to China. The Bitcoin and Ethereum blockchains are highly susceptible to Chinese control because both are subject to simple majority rule, whereas the XRPL prevents comparable centralization

The arguments generated diverse reactions. On the one hand, Ripple’s supporters —such as the president of SBI Holdings, Yoshitaka Kitao— argued that XRP was obviously not a security. Mr. Yoshitaka added that other regulators — like Japan’s FSA— have already declared XRP not a security.

But on the other hand, critics like Vitalik Buterin scoffed at Ripple’s desperation and the lack of seriousness of some arguments.

Looks like the Ripple/XRP team is sinking to new levels of strangeness. They’re claiming that their shitcoin should not be called a security for *public policy reasons*, namely because Bitcoin and Ethereum are “Chinese-controlled”. ??https://t.co/ts02JqrTrB pic.twitter.com/mKwEzGIetk

— vitalik.eth (@VitalikButerin) December 22, 2020

The price of XRP did not react very well to the news. In the last 24 hours, it dropped 17.2%, one of the worst crashes in the Top 100 of the largest cryptocurrencies by market cap.

XRP/USD. Source: TradingViewTitle: XRP Price Crashes as SEC Prepares to Sue Ripple
Sourced From: cryptopotato.com/ripple-face-sue-sec-xrp-security/
Published Date: Tue, 22 Dec 2020 09:42:16 +0000

Did you miss our previous article…

2021's Most Anticipated Growth & Wealth-Building Opportunity

Join Thousands of Early Adopters Just Like You Who Want to Grow Capital and Truly Understand Cryptocurrency Together