Crypto Daily News from ZBG Exchange
1. Market Wrap: Bitcoin Outperforms as Traders Prepare for Next Leg Higher
Bitcoin is up about 5% over the past week, compared with a 3% rise in ether over the same period.
Bitcoin’s rally faded on Tuesday, suggesting that buyers took some profits at around the $68,500 all-time price high.
The cryptocurrency is up about 5% over the past week, compared with a 3% rise in ether over the same period.
Despite a short-term pullback, some analysts are maintaining upward price targets for both BTC and ETH over the next month.
“There is a positive sentiment that often engulfs the crypto markets toward year’s end,” Galina Likhitskaya, vice president at smart contract audit company HashEx told. Likhitskaya has a price target around $80,000 for BTC by the end of the year, and a $5,500 target for ETH during the same period. ETH is currently at $4,777.
“Analysts are suggesting $75,000 as a target on the upside, but if the price takes a turn downwards the price could fall to the 50-day moving average at around $56,000,” Jonas Luethy, a trader at the U.K.-based digital asset broker GlobalBlock told.
Bitcoin (BTC): $67,375, +1.93%
Ether (ETH): $4,777, +0.32%
S&P 500: $4,685, -0.35%
Gold: $1,832, +0.42%
10-year Treasury yield closed at 1.43%
Trading BTC relative to ETH
“Bitcoin is oversold versus ether, and likely to see short-term outperformance as cryptocurrencies digest their gains in a consolidation phase,” Katie Stockton, managing partner at Fairlead Strategies, wrote in a research report.
“The uptick to multi-day highs in BTC/ETH likely signals a switch to better relative outperformance in bitcoin to ethereum, but more is needed to confirm this move,” Mark Newton, head of technical strategy at FundStrat wrote in a research report.
Overall, analysts agree that BTC’s breakout to an all-time high could signal the start of a final leg higher this quarter. However, cryptocurrencies could see a “more pronounced consolidation into next year,” Newton wrote.
2. Huobi Global to Expel Singapore Users, Citing Local Regulations
The exchange is looking to expand overseas to make up for lost Chinese users.
Crypto exchange Huobi Global will close the accounts of all Singapore-based users by March 31, 2022 to comply with local regulations, the exchange said in a statement on Tuesday.
Huobi claims to be expanding its overseas presence to make up for expelling Chinese users, which represent half of its total user base and 30% of its revenue, according to co-founder Du Jun and Global Strategy Director Jeff Mei.
After China’s central bank launched yet another crackdown on crypto trading, Huobi announced it will be phasing out mainland China accounts by the end of 2021.
Singapore, known as a crypto hub, has been included in Huobi’s list of restricted jurisdictions, the statement said. The exchange advised users to withdraw their funds and close their positions before the end of March.
Users from the U.S, Canada, Cuba, Iran, Japan, North Korea, Sudan, Syria, Venezuela, and Crimea, are also prohibited from trading on the platform, according to a July 26 user agreement. However, Singapore was also included on that list.
Huobi did not provide any further details.
Dozens of crypto firms have applied for Singapore’s Payment Services Act (PSA) licenses, including Binance’s local affiliate. Huobi has also applied for a digital token payment license under PSA through its local affiliate Feu International, according to the Monetary Authority of Singapore (MAS) website.
Huobi had moved swathes of its staff to the city-state over the summer in preparation for a renewed crackdown in China.
Feu International is a wholly-owned subsidiary of Huobi Tech, a Hong Kong listed company that is separate to Huobi Global, according to Huobi Tech’s annual report for 2020. The two have a common shareholder and founder, Leon Li.
On Sept. 2, MAS issued an investor warning over Binance’s global website. A few days later, the exchange stopped offering Singapore dollar trading pairs.
3. Circle Establishing Singapore Hub Amid Global Expansion
The USDC backer is also seeking stablecoin partners in the region.
Circle announced plans to establish a hub in Singapore in what the digital payment company calls a key part of its global expansion plans.
“You cannot build an always-on, global internet finance business without considering Singapore as a hub,” said Dante Disparte, Circle’s Chief Strategy Officer and Global Head of Policy, in the press release. “The Monetary Authority of Singapore (MAS) has been an extraordinary regulatory partner as we have looked to expand our business horizons and invest in the Singaporean market.”
The company will hire a Singapore-based leadership team for the hub and will submit applications to obtain the applicable licenses and registrations. Circle, the principal operator of USD Coin, is also looking for partners to test stablecoin innovations in the local market with MAS observing and guiding the project design.
Circle earlier this year announced plans to go public through a reverse merger with Concord Acquisition Corp, a publicly-traded special acquisition company. The deal will value Circle at $4.5 billion and is expected to close before the end of the year.
Earlier on Tuesday, Circle launched the Circle Ventures fund to back early-stage investments in blockchain companies.
4. First Mover Asia: Bitcoin Enters ‘Extreme Greed’ Territory; Altcoins Rally
Bitcoin volume has increased the past two days but remains well below its mid-October high.
Bitcoin was roughly flat the past 24 hours, trading at about $67,300 at the time of publication. The №1 cryptocurrency by market capitalization spent most of U.S. trading hours on Tuesday ranging between $63,500 and $68,500, with a slightly elevated volume across major centralized exchanges. Ether was down about 1.3% over the same period, trading at just above $4,700.
Data hows that bitcoin’s trading volume has risen in the past two days, but it is still far from the high level last seen on Oct. 15. As reported, a low-volume price rally is often short-lived.
Meanwhile, the bitcoin Fear & Greed Index, which entered “extreme greed” territory on Tuesday, was at the highest level since Oct. 21, which preceded a sharp sell-off in bitcoin. The index measures market emotions: When investors are too greedy, the market may be due for a correction soon.
The kind of FOMO (fear of missing out) on the current market is also reflected in the rally of several alternative cryptocurrencies (altcoins), such as loopring (LRC), livepeer (LPT) and litecoin (LTC). According to analysts, the reasons behind these rallies are more speculative than market fundamentals (notice that the three tokens share similar tickers).
“I don’t know if there’s a specific catalyst for livepeer’s recent price performance,” Messari research analyst Mason Nystrom said. He pointed out that the most recent development on Livepeer, an open-source video platform based on Ethereum, was the acquisition of MistServer, a streaming media server, on Oct. 19.
5. DEXs Have Grown the Most as Competition Among Crypto Exchanges Intensifies
The majority of DEX users are professional crypto traders looking for “new sources of alpha,” said one analyst.
Decentralized exchanges (DEX) have grown massively since 2019, while the number of active exchanges — whether centralized or decentralized — has dropped in the same time period, according to Chainalysis’ latest report.
This finding, which the blockchain data firm published Tuesday, showed that as cryptocurrency exchange competition has intensified, the crypto market — especially large, sophisticated crypto traders — has favored exchanges with high innovation and scalability.
“DEXs have become extremely popular, which coincides with the explosive growth of the DeFi (decentralized finance) category in general,” the report concluded.
The number of active DEXs has climbed significantly since 2019, according to Chainalysis, but the monthly number of active cryptocurrency exchanges dropped to 672 in August 2021 from a peak of 845 in August 2020.
The Chainalysis report separated exchanges into six categories: centralized exchanges, DEXs, high-risk exchanges with few know-your-customer (KYC) requirements, over-the-counter (OTC) brokers and derivatives exchanges — based on their business models and technical infrastructure.
As a result, the blockchain data firm also reported that the number of large DEXs and the total value they have received have grown the most by far since August 2020.
ZBG.com has quickly become one of the top 10 exchanges in the world with its innovative, efficient and global operations, and is known as a “New First-Tier” exchange.
Currently, ZBG supports 11 languages, with an average daily activity of more than 160,000, providing over 3 million users around the world with trustworthy cryptocurrency trading, contract trading and other crypto asset investment services.
In the future, ZBG will continue to expand its global market and provide stable, safe and fast blockchain project listing, diversified crypto assets and blockchain derivatives investment services to more blockchain enthusiasts around the world.
ZBG, World’s top 10 crypto currency exchange.
Link to future value!
November 10, 2021