Crypto News: Crypto Market Volatility Continues
Big Corporates and Firms Buy Into Bitcoin (BTC) Dips, Crypto Market Volatility Continues Despite Pullback
After Tuesday’s crypto market bloodbath, Bitcoin (BTC) and the overall cryptocurrency have staged a recovery, with cryptocurrency market volatility staying high.
From hitting a low sub $46,000 levels, Bitcoin registered a strong pullback as it continues to flirt around $50K levels. After heavy dumping by the Bitcoin whales that led to over 20% correction on Tuesday, some big players made the most of Bitcoin price dips.
Late Tuesday, Jack Dorsey-basked Square Inc announced its Q4 2020 results wherein it announced a fresh $170 billion worth of Bitcoin (BTC) purchase. For this aggregate purchase value, the company added over 3300 Bitcoins to its kitty. This fresh Bitcoin purchase comes almost 6 months after Square Inc announced its $50 million in Bitcoin when the BTC price was around $10,000.
The official press release noted: “The investment is part of Square’s ongoing commitment to bitcoin, and the company plans to assess its aggregate investment in bitcoin relative to its other investments on an ongoing basis”.
In another major announcement on Wednesday, February 24, business intelligence firm MicroStrategy announced an additional purchase of 19,452 Bitcoins for an aggregated price of $1.026 billion and an average price of $52,765 per BTC.
With this MicroStrategy holds 90,531 bitcoins for an aggregate purchase value of $2.171 billion and an average price of $23,985 per BTC. Speaking about the new investment, MicroStrategy CEO Michael Saylor said: “The company now holds over 90,000 bitcoins, reaffirming our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, can serve as a dependable store of value. We will continue to pursue our strategy of acquiring bitcoin with excess cash and we may from time to time, subject to market conditions, issue debt or equity securities in capital raising transactions with the objective of using the proceeds to purchase additional bitcoin.”
The recently launched North America’s first Bitcoin ETF from Purpose Investments scooped some fresh Bitcoin supply during Tuesday’s dip. Purpose acquired over 2200 Bitcoins in a single day taking its total Bitcoin holdings to 9,320 BTC in just 4 days of launch. With this, the Purpose Bitcoin ETF holds nearly half-a-billion dollars in BTC.
Purpose-Bitcoin-ETF-Holdings (Courtesy; Glassnode)
The next Bitcoin price prediction is currently pegged to $60,000, however, BTC first needs to convincingly break $51.5K levels to start its next journey. As per another Glassnode, The Bitcoin futures registered a record trading volume of over $180 billion across major exchanges during Tuesday’s market dip. Also, the Bitcoin funding rates were leaning downwards hitting one-month lows.
Altcoin News: The Altcoin Market Stages Strong Recovery With Ethereum (ETH), Cardano (ADA) and Chainlink (LINK) Leading
After slipping sub $1450 levels on Tuesday, Ethereum (ETH) has shown good recovery and is currently back above $1600 levels. One positive indicator with this price recovery is that there have been fewer liquidations for ETH coins on their way up, as per data by Skew analytics.
However, with the crypto market staying under pressure on Monday, the CME Ether futures registered a record trading volume close to $160 million. On the other hand, one of the major concerns with Ethereum is the surge in the ETH gas fee. As per Santiment, the average Ethereum transaction price peaked at $37.60, its highest in Ethereum’s 6-year history.
Ethereum-ETH-Gas-Fee (Courtesy: Santiment)
The next Ethereum Price prediction remains $2000 in the short term. Along with Ethereum, other top-ten cryptocurrencies like Cardano (ADA) and Chainlink (LINK) have registered strong recovery.
The Cardano’s ADA price has surged 11% today and is back $1 while Chainlink (LINK) has surged 9% to move back above $28, at press time.
Top Cryptocurrency Regulatory News In the Market
-U.S. Treasury Secretary Janet Yellen lashes out at Bitcoin calling it a ‘speculative asset’ and ‘extremely inefficient’. Speaking to CNBC’s Andrew Ross Sorkin at a New York Times DealBook conference, Yellen said: “I don’t think that bitcoin … is widely used as a transaction mechanism. To the extent it is used I fear it’s often for illicit finance. It’s an extremely inefficient way of conducting transactions, and the amount of energy that’s consumed in processing those transactions is staggering.”
-iFinex, the parent company of Bitfinex and Tether, announced its $18.5 million settlement with the NYAG’s office for the two-year-long legal battle about the misappropriate use of funds.
While Tether claimed no wrongdoing in the matter, New York Attorney General Letitia James said: “Bitfinex and Tether recklessly and unlawfully covered-up massive financial losses to keep their scheme going and protect their bottom lines. Tether’s claims that its virtual currency was fully backed by U.S. dollars at all times was a lie. This resolution makes clear that those trading virtual currencies in New York state who think they can avoid our laws cannot and will not”.
-India’s central bank – Reserve Bank of India (RBI) – is working to launch its own digital currency said Governor Shaktikanta Das during an interview with CNBC TV 18 on Wednesday, February 24. “While we cannot guess the date of its launch, it is receiving our full attention,” he said. The central bank, however, remains firm on banning private cryptocurrencies stating that they would impact financial stability.
On the same day, Federal Reserve Chairman Jerome Powell made a similar announcement. Powell said that the central bank will engage in a dialogue with the public giving a timeline for the development of the digital dollar for the very first time.
Crypto market volatility – 77.86
Altcoins news – 68.41
Ethereum Price Prediction – 70.81
Bitcoin price prediction – 77.54
- $51 + 2.4%
- $51 + 2.4%