Crypto Today: Bears strike back, as weekend attempt to take BTC above $7,000 fails
BTC/USD is hovering above $6,700. The coin has recovered from the intraday low of $6,570, however, it is still over 3% down from the start of the day and 1% down on a day-to-day basis. Currently, BTC is moving within a short-term bearish trend amid low volatility.
At the time of writing, ETH/USD is changing hands at $152.60. The second-largest coin recovered from the Asian low of $149.86, though it is still down 3.7% from the start of the day. ETH/USD is moving in a short-term bearish trend in sync with the market. The volatility is low.
XRP/USD broke below $0.1900 on the weekend. At the time of writing, the coin is changing hands at $0.1828, down 3.6% since the beginning of the day. The coin is mostly range-bound with a short-term bullish bias.
Among the 100 most important cryptocurrencies, CyberVein (CVT) $0.0328 (+10.6%),Terra (LUNA) $0.1792 (+5.9%) and Chainlink (LINK) $3.33 (+3.5%) are in the green zone. The day’s losers are Maker (MKR) $288.54 (-7.7%), Golem (GNT) $0.0361 (-6.3%), Swipe (SPX) $0.6339 (-5.25%).
The founder of Silk Road believes that Bitcoin is unlikely to hit $14,000 in the nearest future as the price of the first digital asset is vulnerable to further losses. The creator of best-known for creating and operating the darknet marketplace used the popular Elliot Wave Theory to prove his point. The price may decrease to as low as $1,200.
An equivalent reduction by wave II would take prices to $2,800 or $1,200. Wave A of II reduced prices by 84%. An equivalent reduction by wave C of II would take prices to $2,200. – Ulbricht said.
Another bearish forecast came from a famous commodity analyst Peter Schiff. A vocal Bitcoin basher said that gold would soon cost more than Bitcoin.
Over the past several years Bitcoin hodlers poked fun at gold investors because #Bitcoin gained so much more than #gold. Over the next several years those roles will reverse, but not because gold rises more than Bitcoin, but because gold moons as Bitcoin crashes back to earth.
Cryptocurrency crash in mid-March caused a sharp increase in interest rates on numerous DeFi platforms. The US-based cryptocurrency exchange Coinbase explained the factors that drove DeFi rates and outlined the future of the industry. According to Coinbase experts, cryptocurrency proved to be much more volatile than fiat and consequently, riskier than other types of assets. Higher risks pushed the rates for the borrowers higher.
Crypto is more volatile making it more difficult to fit into lending risk models. This both restricts the number of companies who accept crypto as collateral (diminished supply), and they demand a higher interest rate to account for the risk.
The growing demand for stablecoins is another factor behind the growth of the rate. Many traders rushed to borrow stablecoins on DeFi platforms to capitalize on short-term volatility.
Users have been taking their Bitcoins from BitMEX since the market crash in mid-March. The number of coins held on the exchange accounts reduced by 38%, from 306,814 BTC on March 13 to 222,025 BTC on April 9. The exodus may be caused by technical issues and two DDOS attacks, which resulted in the disruption. Many users were angered and not satisfied with how the exchange handled the situation.
Fragmented Chinese cryptocurrency industry may become more consolidated due to increased regulatory scrutiny. According to Binance CEO Changpeng Zhao, the stricter regulation will change the landscape of the local cryptocurrency industry. He believes that this development may lead to mergers and acquisitions.
Federal President: "We are vulnerable" – Bitcoin-Nachrichten.com
Bitcoin Below USD 7,000 Again, Altcoins Struggling to Recover
Total market capitalization
In the past three sessions, a few small-capitalization altcoins declined more than 4%, including MKR, DGB, SXP, CKB, KNC, STX, ARDR, NMR, VSYS and GNT. Out of these, MKR is down close to 7% and DGB declined around 6%.
Author: By Aayush Jindal