1. Market Wrap: Bitcoin Flat at $56.7K, Ether Rises and It Wasn’t Dogeday’s Afternoon
Bitcoin price takes a pit stop with ether and dogecoin stealing the spotlight.
The bitcoin market takes a breather, ether flashes green and recent data suggests joke cryptocurrency dogecoin is more volatile than most major altcoins.
Bitcoin (BTC) trading around $56,665 as of 21:00 UTC (4 p.m. ET). Gaining 1.6% over the previous 24 hours.
Bitcoin’s 24-hour range: $53,780-$56,574
BTC close to the 10-hour and 50-hour moving average on the hourly chart, a sideways but rising and trending bullish signal for market technicians.
Despite going as high as $56,574 to as low as $53,780 over the past 24 hours, bitcoin’s price is relatively sideways since 0:00 UTC on Tuesday (8 p.m. ET Monday). It’s a respite for a market that saw a deep dive during the weekend as record-high action in the derivatives market saw the price of the world’s oldest cryptocurrency drop to $53,787.
Katie Stockon, a technical analyst for research firm Fairlead Strategies, noted in her weekly outlook that the bitcoin market is in a “risk-off” mode, meaning investors could be pushing the sell button to move into other assets such as cash.
2. Mike Novogratz’s Galaxy Digital Said to Be in Talks to Buy Crypto Custodian BitGo
A deal between the asset manager and the crypto custodian is close to being finalized, sources tell us.
Galaxy Digital, the cryptocurrency-focused financial services firm run by Michael Novogratz, is in advanced discussions to buy BitGo, the U.S.-regulated crypto custody specialist, according to four people familiar with the situation.
Both Galaxy and BitGo declined to comment.
Silicon Valley’s BitGo was last year reported to have been in acquisition talks with fintech giant PayPal. No deal was reached, but PayPal offered as much as $750 million in cash for the custody company, we reported last month, citing two sources familiar with the matter. PayPal later agreed to acquire Curv, another cryptocurrency custody firm.
3. DOGE Army Retreats, Tail Between Legs, as Dogeday Ends With 21% Drop
The DOGE frenzy appears to have spread to decentralized finance, where several imitator tokens have chalked up staggering single-day gains.
Some fans of the joke cryptocurrency dogecoin had positioned Tuesday as a day to send its prices skyrocketing — to $1, or maybe just a meme-y 69 cents. On the meme-y date of April 20, or 4/20.
Prices for the eight-year-old cryptocurrency, ticker DOGE, had surged more than 60-fold this year to a market value of more than $40 billion. So it seemed like anything was possible. Social media posters dubbed it “dogeday.”
But as of midafternoon, the joke appeared to be on the dogecoin holders. As of press time, the token, symbolized by the Shiba Inu dog breed, was down 21% on the day, to the decidedly unremarkable price of 34 cents. Earlier it had fallen to as low as 29 cents.
4. Solana Bucked Bitcoin Sell-Off; Upstart Blockchain Challenges Ethereum on Speed, Fees
Solana’s SOL tokens have jumped 17-fold in price this year, for a market capitalization over $8 billion.
Solana, the native token of the blockchain backed by FTX’s Sam Bankman-Fried, logged a record daily percentage gain on Sunday, defying bitcoin’s 6% sell-off.
The SOL tokens surged 30% on the FTX exchange to near $33 that day, according to TradingView. It was a staggering daily return considering that prices for bitcoin, along with most of other crypto assets, dropped to multi-week lows.
After a year-to-date return of nearly 1,600%, Solana now has a total market capitalization of more than $8.3 billion, according to Messari, just after Tron’s $9.17 billion.
5. During Bitcoin’s Latest Price Crash, ‘Tether Premium’ Shows Where Money Went
The stablecoin’s price in dollars surged during the recent market correction to the highest since the “Black Thursday” sell-off in March 2020.
Tether (USDT), the oldest and most popular stablecoin, diverged significantly from its peg to the U.S. dollar during bitcoin’s (BTC) recent price drop.
But rather than seeing the move as a defect of the stablecoin, whose market cap stands at $52 billion, some analysts and exchange executives say the “tether premium” shows the token’s growing use as a safe-haven asset in almost-anything-can-happen-at-anytime cryptocurrency markets.
“During a crash, traders will race to sell their bitcoin in exchange for tether, which is similar to the U.S. dollar in that it is recognized as a temporary safe haven amidst extreme price volatility,” Kaiko, a blockchain data analytics firm, wrote in an April 19 newsletter. “A sudden increase in buying pressure for tether often has the effect of causing positive drift from the stablecoin’s one-to-one peg.”
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April 21, 2021