Bitcoin fell on Monday, retreating after breaking a price of $ 50,000 last week for the first time and soon after surpassing a market cap of $ 1 trillion. Over the weekend, bitcoin switched to a new record price of over 58,000 USD .
At the time of publication, the largest cryptocurrency was changing hands around $ 54,000. Price charts seem to indicate support levels around $ 50,700, or $ 41,800 in a deeper pullback , according to Matt Blom, head of sales and trading for the company. EQUOS digital asset exchange.
"The current price path may weaken " said Simon Peters, analyst for the eToro trading platform.
In traditional markets, investors were approached by the up Yields on US government bonds . For 30-year bonds, the" real yield ", which subtracts the inflation rate , turned positive for the first time since June 2020 . Continued rise in yields could make the country's bonds more attractive to foreign investors, pushing the US dollar higher and carryingselling pressure on risky assets like stocks and bitcoin.
"Market reflationists win the day as bond yields rise from Australia to the United States," according to Bloomberg News .
European stocks slipped and US equity futures indicates a lower opening . Oil and copper prices have increased , and gold strengthened 0.7% to $ 1,797 an ounce.
The Bitcoin market is correcting itself even if the news feed seems bullish Chart of daily Bitcoin price movements, with the RSI indicator shown below with the MACD indicator. Source: TradingView /
Bitcoin could have more leeway , according to David Lifchitz, CIO of Paris quantitative trading firm based on ExoAlpha .
"A 15% correction could occur, taking some steam out of the hot market, before reaching new ones vertices, "Lifchitz told. " The more a movement is parabolias rising and rapid, the more fragile it is, so a pullback would be more than welcome.
A healthy cooling of the market seems overdue, Omkar Godbole from wrote Monday . Several indicators on the price charts are signaling overexploited conditions, including a reading above 70 on the widely followed Relative Strength Index (RSI).
BITCOIN NEWS ROUNDUP : This chart, taken from JPMorgan's 86-page report last week on cryptocurrencies, shows how much the price of faster bitcoin has climbed against other notable assets over the past half century . Source: JPMorgan
ETHER PASSES $ 2K: Ether price ( ETH ), the native cryptocurrency of the Ethereum blockchain, topped $ 2,000 for the first time in an extension of this year's mighty bull run . At least trThere are growing areas of demand fueling the rise in the price of ether, according to Will Foxley of: decentralized finance, known as DeFi, most of which was designed to run on the Ethereum blockchain; the build-up of the next Ethereum "2.0" update and the move to a repository-type "staking" system; and Chicago-based CME's New Ether Derivatives Market. On Monday, however, ether prices were dropping, apparently caught in the downstream of a crypto market sell-off.
MEOW! A digital token depicting a ten-year-old pixelated feline image known as N yan Cat fetched a price of 300 ETH ($ 590,000) in an online auction last week. According to to Daniel Kuhn from, "This is not thegif file that has been sold, which is still reproducible and found everywhere online, but a cryptographic hash of the psychedelic image on the Ethereum blockchain. "This is a purring example of the sudden fascination with these" tokens. non-fungible ", which are typically owned by a single item such as digital art, collectibles, or video game skins.
BCH, BSV BECOME COLLATERAL DAMAGE OF BITCOIN POPULARITY: Cryptocurrency exchange OKCoin has written off bitcoin cash (BSV) and bitcoin SV (BSV) cryptocurrencies to avoid new customers '' deceivers, many of whom are looking to buy bitcoin. Exchange superiors wanted to avoid any confusion new customers might have between the larger cryptocurrency and the also named tokens, Colin Harper of reported .
US Banking giant JPMorgan recognizes existential threat from digital finance
Crypto journalists who ran last week to digest the opus of 86 pages from JPMorgan on bitcoin and digital finance invariably referenced on the juiciest part: the potential shock to the market that could come from any " problem "involving the $ 35 billion stablecoin tether (USDT) .
What JPMorgan, America's largest bank, said about the threat to its industry is less salacious, but perhaps more significant: The risk that the large established players in traditional finance will takeent of the delay in the rapid transition to cryptocurrencies and digital finance.
"Banks have been put to sleep, according to the report, prepared by no less than 35 co-authors, including Nikolaos Panigirtzoglou, Global Market Analyst . "Now is the time to fight back.
Digital finance startups likely benefit from a much lower regulatory burden " , but banks would have to fall back on their own advantages, including trillion dollar balance sheets, regulatory clout, and Federal Reserve support.
" Traditional banks could become final winners in the digital age of banking because of their advantage over the franchise deposit, risk management and regulation, ”according to the report.
How are they going to catch up? Banks may need to open their portfolios to acquire digital avant-garde competitors, or increase their internal spending on technology.
"We would not underestimate banks forming technology partnerships to tackle stock loss , even if they is relegated to a wholesale model, which could be a boon to the technology partners of the winning bank of choice, ”the analysts wrote.
L The analysis assumes that banks will acquire , not vice versa. And this is not a given, given the rapidly increasing value of some advanced crypto readers.
The digital exchange Coinbase would now be t rading to a valuation of $ 77 billion or more data $ 100 billion in private equity markets and Binance rival internally BNB tokens are worth more than $ 40 billion after increase seven times this year. The market value of major banks, by comparison, has stagnated or declined recently. JPMorgan is still far ahead with a market value of $ 451 billion, and Bank of America stands at 297 billion dollars. But Wells Fargo's $ 157 billion and Citigroup's $ 137 billionseem not too far out of sight, given the breakneck pace of growth in the crypto industry.
Either way, it looks like banks are going to have to put a lot of money into digital finance to avoid obsolescence , which is probably optimistic for the crypto industry in general and therefore for early entrants in particular.
"While the market has set itself the rally in bitcoin, the real economic and exciting action is in the new battle for digital supremacy among the banks and fintech ", wrote the analysts.
Opinions and Observations
ARTHUR HAYES COMES BACK TO WRITING: "It 's risky, sure, but if your goal is to speculate To get out of the boredom of the Covid lockdown, or to increase your declining real wages, the crypto can and does generate such results. It could also, like traditional markets, turn into a sinkhole where your money and resources are torched, ”wrote Arthur Hayes, co-founder of BitMEX, in his blog , the first such post since August. It made no mention of the Federal charges pending against him .
LASER EYES: The the new thing Bitcoin bulls are doing these days is modify their Twitter profiles so that it looks like lasers are coming out of their eyes. Apparently, this is part of a campaignowed by some investors to keep data " Anthony Scaramucci , Chief Strategy Officer of CoinShares Meltem Demirors , CEO of MicroStrategy Michael Saylor , US Senator Cynthia Lummis from Wyoming and representative of the United States Warren Davidson from Ohio ,. It all looks a lot like a game, played with an asset now worth more of $ 1 trillion. Tweet and image published on February 18 under thehashtag # LaserRayUntil100K. Source: Twitter / bitbug42
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