1. Market Wrap: Bitcoin Near $58K, Reverses Two-Day Losses Despite Lower Trading Volume
The price gain came amid new signs of growing mainstream adoption of bitcoin and other cryptocurrencies.
Bitcoin (BTC) trading around $57,775.92 as of 20:00 UTC (4 p.m. ET). Climbing 2.86% over the previous 24 hours.
Bitcoin’s 24-hour range: $55,639.58-$58,179.66
BTC trades above its 10-hour and 50-hour averages on the hourly chart, a bullish signal for market technicians.
After two days of losses, bitcoin ended Thursday in the green after markets closed in the U.S.
The gains came amid new signs of growing mainstream adoption of bitcoin and other cryptocurrencies.
State Street, the second-oldest bank in the U.S. with $3.1 trillion in assets under management, announced it is providing the infrastructure for a new bank-grade trading platform for digital assets set to go live mid-year — and that it might eventually use the system itself.
2. Coinbase Joins DeFi Alliance Ahead of Public Listing
The group formerly known as the Chicago DeFi Alliance has added a prominent member to its ranks.
Coinbase announced in a tweet Thursday it had joined the DeFi Alliance.
Launched in early 2020 as the Chicago DeFi Alliance, the group provides mentorship and funding for early stage tech teams working in the $49 billion decentralized finance (DeFi) sector. DeFi includes technologies that could one day make centralized exchanges obsolete.
Coinbase CEO Brian Armstrong said in the firm’s earnings call earlier this week that providing access to DeFi apps would be a priority for Coinbase going forward.
A Coinbase rep said the partnership with the DeFi Alliance involves no investment or financial support.
3. Ether’s Record Run Came With Less Support Than Bitcoin’s, Blockchain Analysis Shows
Philip Gradwell of Chainalysis said that “relatively little” ether was bought above $1,850 and even less was bought at $2,000 or above.
Compared with bitcoin’s (BTC) rally to a record price above $61,000 in March, ether’s latest bull run to an all-time high over $2,100 was supported by scantier demand from buyers, according to a top blockchain-data analyst.
Philip Gradwell, chief economist at Chainalysis, said on CoinDesk TV’s “First Mover” show that “relatively little”ether (ETH) was bought at prices above $1,850 and even less was bought at $2,000 or above.
“The reason why this is important is because the price that people are willing to buy and hold at tells us the level of demand that there is at that price level,” Gradwell said. “So not a huge amount of demand at that $2,000 price.”
4. This Indicator Suggests Bitcoin Is Overdue for a Big Price Move
Bitcoin may be building for a big move as price volatility hits four-month low.
A popular price-chart indicator known as the Bollinger bandwidth suggests bitcoin could soon chart a big move — up or down.
The leading cryptocurrency has spent the better part of the last three weeks trading in the range of $50,000 to $60,000. The consolidation has worsened of late, with bitcoin bulls unwilling to lead the price action above $60,000 and bears struggling to force a break below $55,000.
Due to the persistent lack of clear directional bias, the Bollinger bandwidth, a price volatility gauge, has declined to a four-month low of 0.15. Bitcoin (BTC) witnessed big moves during the 2017 bull run each time the bandwidth fell to 0.15.
The indicator is calculated by dividing the spread between the Bollinger bands by the 20-day average of the cryptocurrency’s price. Bollinger bands are volatility lines placed two standard deviations above and below the 20-day average of price.
5. Chinese Web Firm Meitu Buys $10M More in Bitcoin
The publicly traded app developer has now spent $100 million on bitcoin and ether.
Chinese app developer Meitu said Thursday it purchased 175.6 bitcoin (BTC, +3.3%) for $10 million, bringing its total holdings of the cryptocurrency to over 940 coins.
The Hong Kong Stock Exchange-listed company has invested $100 million in bitcoin and ether (ETH, +5.16%) positions since adopting a “cryptocurrency investment plan” in early March.
The company is part of a broader trend of publicly traded firms diversifying their cash treasury with bitcoin during the coronavirus pandemic.
Notably, Meitu, which also owns ETH, said it is buying crypto to prep for a “foray into the blockchain industry.”
Meitu held 31,000 ETH and over 940 BTC Thursday. It has invested roughly the same amount in both cryptos, though the ETH position, at nearly $64 million, was worth more at press time.
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April 9, 2021