Market Outlook: Crypto Whale Tales and China’s Blockchain Hype

clicks | 8 months ago | Google AI sentiment 0.20 | comments: discuss | tags: bitcoin cryptocurrency

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(Original link: Jamie Redman Crypto Prices Hold Foundational Support But Fail to Break Upper Resistance
At the time of publication, the market capitalization of all 3,000+ digital assets is hovering around $260 billion on Thursday, November 7. Currently, the top 15 coins with the largest market caps are down a few percentages between 1-5%. BTC is currently trading for $9,240 per coin and the market has an overall valuation of $166 billion today. The digital asset is down 1.44% in the last 24 hours but it’s up +0.16% for the week.
There’s around $22.7 billion in global trades today with BTC and 76% of those trades are paired against tether (USDT). ETH is swapping for $187 per coin and is down 1.74% today but ETH is up 2.3% over the last seven days. ETH has a market valuation of around $20.3 billion and roughly $9.1 billion in trade volume worldwide. XRP has lost more than 3% on Thursday and 1.11% for the week as each coin is trading for $0.29. Lastly, the stablecoin tether (USDT) is holding the fifth-largest market cap today and is capturing roughly two-thirds of all trades within the cryptoconomy. Bitcoin Cash (BCH) Market Action
The fourth-largest market valuation is held by bitcoin cash (BCH) on November 7 and each BCH is swapping for $291 per coin. BCH is down 3.3% today but is up around 2.7% over the course of the last seven days. There’s about $2.28 billion in global BCH swaps and the cryptocurrency has a market cap of around $5.28 billion. Yesterday digital currency analyst John Isige noted that BCH prices re-entered the $300 range and after conquering that price point “bitcoin cash has changed focus to $400.”
“In the meantime, [BCH] is trading at $304 after a 4% gain on the day. The Relative Strength Index (RSI) breaching 70 to show that the bullish action’s momentum is at its peak,” Isige wrote on November 6. “The Moving Average Convergence Divergence (MACD) also puts emphasis on the bullish action.” The following day on November 7 shows 62% of the BCH trades are being swapped with tether (USDT). This is followed by BTC (16.8%), USD (13.8%), ETH (3%), and KRW (2.6%). Whale Watch
Over the last two weeks, there’s been a lot of fear uncertainty and doubt (FUD) surrounding the topic of whales. First, there was a research study that was widely debunked concerning one single BTC whale allegedly manipulating the market in 2017. Then many others have been watching giant whale wallets and onchain movements that showcase massive BTC transactions. The latest bitcoin whale discussion is centered around the Twitter account @whale_alert which has noticed a dormant BTC address housing 80,000 BTC.
“That address alone — if that is actually a whale who’s been holding their coins for so long without doing anything with them — if they decide, ‘Okay, let’s go sell them,’ it would crush the market completely,” Whale Alert explained in a recent interview. “But it’s really hard to say anything about the status of that address: Are those keys lost? Is that person even still alive? … It’s just waiting to see if anything happens with those addresses,” the Twitter account added. Meanwhile according to data stemming from the crypto analysis site Coin Metrics, the Bitcoin Rich List (BTC holders with 1,000 or more) has grown by 30% in the last year. China Embracing Blockchain Could Be Bearish or Bullish
As’s Lubomir Tassev reported on November 6, the new edition of China’s Industrial Structure Adjustment Guidance Catalog has removed bitcoin mining from the unwanted industries list. Since the General Secretary of the Communist Party, Xi Jinping, lauded blockchain in a recent speech, digital currency markets have seen a massive boom and many people believe the new outlook from China is optimistic. There has been a huge shift from Chinese residents transitioning from the over-the-counter marketplace Localbitcoins to Paxful after published strict KYC/AML policies.
Moreover, Chinese traders are using other avenues like Localethereum and as well. However, various pundits believe that China will build a digital currency that will hurt public cryptos like bitcoin in the future. Gold bug and economist Peter Schiff believes a gold-backed digital currency stemming from China will be “bearish for bitcoin.” Schiff tweeted his opinion on November 1 saying :
According to Max Keiser, I’m an idiot because I think gold is better money than bitcoin. He also claims China is about to launch a cryptocurrency backed by gold. This is bullish for gold and bearish for bitcoin. A crypto backed by gold is much better than one backed by nothing. ‘BTC Is Not a Great Medium of Exchange’ Says Facebook’s Crypto Boss
On November 6, the head of Facebook’s cryptocurrency subsidiary Calibra, David Marcus, told participants at the New York Times Dealbook Conference that BTC is an investment and not a currency. Facebook’s crypto boss, David Marcus says BTC is not a good medium of exchange.
“I don’t think of bitcoin as a c...