Bitcoin Investors With Less Money Than Elon Musk Should ‘Watch Out’ Said Bill Gates

Bitcoin Investors With Less Money Than Elon Musk Should ‘Watch Out’ Said Bill Gates
Bitcoin Investors With Less Money Than Elon Musk Should ‘Watch Out’ Said Bill Gates

Bill Gates is not bullish on bitcoin because of the massive energy the cryptocurrency uses. The billionaire philanthropist said that during a recent interview and also warned people who have less money than Elon Musk to be wary of potential financial losses if invested in BTC.

Gates on Musk and BTC

Ever since news broke that Elon Musk’s electric vehicle and clean energy company, Tesla, had allocated $1.5 billion in bitcoin, speculations have run rampant within and outside the community about the firm’s potential gains from this investment.

As BTC’s price has increased substantially since January, when the purchase was made, numerous media outlets, including traditional representatives, breached the angle that Tesla can make more profits with the crypto investment rather than with its actual sale of vehicles.

Microsoft co-founder Bill Gates also received this question during a recent Bloomberg interview. Although he averted replying to it directly, the philanthropist offered his rather compelling opinion on BTC, Musk, and cryptocurrency investors.

Bill Gates. Source: Bloomberg

 

In fact, he believes that people purchasing portions of the primary cryptocurrency who have less money than Musk should “watch out.” In other words, almost everyone should “watch out” as Musk is one of the richest men on this planet. He frequently trades this honor with Amazon’s Jeff Bezos.

Not Bullish on Bitcoin

Gates recently said that he was neither short nor long on bitcoin as he had taken a more neutral view on the cryptocurrency. However, he seemed less neutral during the Bloomberg interview.

“I’m not bullish on bitcoin. There’re things we invest in as a society that produce output. Bitcoin happens to use a lot of energy. It happens to promote anonymous transactions. They’re not reversible transactions.”

As previously mentioned, though, BTC transactions are not anonymous as each one is registered on the bitcoin blockchain. They are pseudonymous. As far as energy consumption goes, Kraken’s Head of Growth, Dan Held, recently published a post in an attempt to debunk this belief.

He noted that the proof-of-work consensus algorithm that BTC uses enables it to transmute “electricity into digital gold,” which makes PoW’s costs a “feature, not a bug.” He added that other financial fields, such as banking or even gold, use significantly more energy.

While dismissing BTC as a viable payment option, Gates admitted that digital money is a “good thing” but would have to be easier to use, reversible, and traceable to work.

Featured Image Courtesy of Yahoo

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This article originally syndicated from Bitcoin Investors With Less Money Than Elon Musk Should ‘Watch Out’ Said Bill Gates
Bitcoin Investors With Less Money Than Elon Musk Should ‘Watch Out’ Said Bill Gates was originally published here https://magnewspress.blogspot.com/2021/02/bitcoin-investors-with-less-money-than.html

Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery

Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery
Charles Hoskinson Reveals Significant Updates for Cardano (ADA) as Price Attempts Recovery

The decentralized open-source project running a public blockchain platform for smart contracts, Cardano, plans to implement several significant upgrades in the upcoming few months. During a recent interview, the project’s founder, Charles Hoskinson, also noted that Cardano has been negotiating potential partnerships with many industry names such as Celsius, Fireblocks, and Prime Trust.

Significant Updates Coming for Cardano

The 33-year-old co-founder of Ethereum spoke about his current project’s upcoming plans during an interview with the Financial Fox. Although he failed to provide more precise information on what’s coming, he said that the network will see many “smart contract stuff” in the next up to three months.

Simultaneously, the research arm of the Cardano Foundation is working on several new implementations:

“We are going to be announcing several new things like a smart contract institute that specializes in smart contract development design embedded at a university.”

Cardano’s founder said that he and his team have met with representatives from Prime Trust, Fireblocks, SingularityNET, and Celsius to discuss potential partnerships, such as support for Cardano.

He believes that integrations on larger-scale companies like the aforementioned names could enhance the adoption of the entire ecosystem.

“You need that for dApps, you need that for institutional investors to come in, you need that for all different kinds of actors, and that’s what consumes the majority of our time right now as a company.”

CryptoPotato recently reported that Cardano plans to release its long-anticipated Hard Fork Combinator (HFC) called Mary on March 1st, while all quality assurance and developer checks take place on February 24th.

DA’s Price Performance

Cardano’s native cryptocurrency, ADA, has been among the best performers in the past several weeks by taking full advantage of the bull run.

The asset entered the new year at $0.16, but it exploded in value in the following weeks. Several days ago, ADA breached $1 and continued north to a new 3-year record above $1.20. Following this 650% price surge, though, came the most recent cryptocurrency market correction.

ADA traded at about $1,15 when the sentiment changed, and the bears took control. In about 24 hours, the asset plummeted by more than 30% and bottomed beneath $0.80. Nevertheless, it has reclaimed some ground since then and has neared $1 once again.

ADAUSD. Source: TradingView

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Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?

Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?
Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?

ETH/USD – Market Falls Of Out Rising Pirce Channel

Key Support Levels: $1465, $1425, $1358.
Key Resistance Levels: $1600, $1681, $1700.

Yesterday, Ethereum dropped to $1550 but quickly recovered by the end of the day to close the daily candle just beneath $1800. Today, the market tumbled again and declined by another 10% to reach the current $1550 level.

Ethereum had slipped further earlier in the day, reaching a low of $1358 before recovering to its current rate. The support here was provided by the low seen on February 2nd, 2021, and was further bolstered by a rising trend line.

If ETH closes near these levels today, it would have fallen out of the ascending price channel that it has been trading within throughout the entire period of 2021.

ETH/USD Daily Chart. Source: TradingView

ETH-USD Short Term Price Prediction

Looking ahead, if the bearish action continues, the first support lies at $1465 (.382 Fib & 50-day MA). This is followed by $1425, $1358 (today’s low), and $1291 (.5 Fib). Additional support lies at $1250 (downside 1.618 Fib) and $1173 (100-days EMA).

On the other side, the first resistance lies at $1600. This is followed by $1681 (previous channel support – now resistance), $1700, $1765, and $1800.

The daily RSI took a precipitous drop over the past few days as it fell from the bullish favor into extreme bearish territory. It has not been this bearish for quite some time, and we have to go all the way back to September to see a similar level. This is quite a promising situation as it gave the momentum an opportunity to reset after being parabolic for an extended period.

ETH/BTC – Bulls Attempting To Defend 200-days EMA

Key Support Levels: 0.0318 BTC, 0.03 BTC, 0.0295 BTC.
Key Resistance Levels: 0.0337 BTC, 0.035 BTC, 0.0361 BTC.

Against Bitcoin, Ethereum is also struggling quite significantly as it spikes as low as 0.03 BTC today. The cryptocurrency has now established a descending price channel and is trading above the midline of the channel.

It started the month by hitting a fresh 2021 high at 0.046 BTC but quickly rolled over from here to begin the downtrend. After hitting 0.03 BTC today, the bulls quickly regrouped to bring the price back above 0.032 BTC (200-day EMA).

A break beneath this 200-days EMA might send Ethereum into an extended bearish spiral over the next few weeks.

ETH/BTC Daily Chart. Source: TradingView

ETH-BTC Short Term Price Prediction

Looking ahead, the first support lies at 0.0318 BTC, which is combined support provided by the 200-days EMA, the December 2020 highs, the .618 Fib, and a downside 1.618 Fib Extension. Beneath this, support lies at 0.03 BTC, 0.0295 BTC (downside 1.272 Fib Extension), and 0.0284 BTC (Feb 2020 Highs).

On the other side, the first level of resistance now lies at 0.0337 BTC (Nov 2020 Highs). This is followed by 0.035 BTC, 0.0361 BTC, and 0.038 BTC.

The RSI has been in bearish territory for most of February for ETH/BTC. It is starting to level out today, which could suggest the bearish momentum is ready to start fading.

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This article originally syndicated from Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH?
Ethereum Price Analysis: 30% Correction in Two Days But is the Worst Over for ETH? was originally published here https://magnewspress.blogspot.com/2021/02/ethereum-price-analysis-30-correction.html

Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures

Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures
Pro traders went long as Bitcoin fell to $45K, liquidating $5.9B in futures

In the past 48 hours, Bitcoin’s (BTC) price has dropped by $13,360 and more than $2.6 billion worth of futures contracts have been liquidated. When including altcoins, the total sum of liquidations equaled $5.9 billion.

After marking a record-high open interest at $19.5 billion on Feb. 21, the metric has stabilized at $16.5 billion. This means that half of the terminated leverage positions have been reopened.

According to the top traders’ long-to-short data and various funding rate indicators, retail traders took the largest hit.

Top traders bought the dip

The top traders’ long-to-short indicator is calculated by using clients’ consolidated positions, including spot, margin, perpetual and futures contracts. Unlike the futures premium or options skew indicators, this metric gathers a broader view of professional traders’ effective net position.

Top traders long-to-short ratio. Source: Bybt.com

Despite the discrepancies between crypto exchange methodologies, analyzing changes over time provides valuable insights.

Top traders at Huobi held a 0.81 long-to-short ratio on Feb. 20, favoring shorts by 19%. By adding net long positions over the following 48 hours, the indicator peaked at 0.95, indicating that buy-side activity prevailed.

OKEx top traders were aggressive net buyers over the past three days. Starting from a 0.86 indicator favoring shorts by 14%, they’ve managed to revert it to a 69% net buyer position.

Lastly, Binance top traders started at 1.36, favoring net longs, but were either liquidated or opened net shorts until reaching the current 1.23 level. Either way, those traders haven’t been adding positions over the past three days.

Overall, the average top traders’ long-to-short position went from 1.01 (flat) on Jan. 20 to the current 1.37 favoring net longs. Therefore, it’s clear that arbitrage desks and whales increased their longs throughout the liquidations.

The reduced funding rate shows retail investors reduced their longs

If top traders are net buyers, then retail must be holding the other end, even if that happened through leveraged long liquidations.

To keep a balanced risk exposure, derivatives exchanges charge either perpetual futures longs (buyers) or shorts (sellers) a fee every eight hours. Known as the funding rate, this indicator will turn positive when longs are the ones demanding more leverage.

On the other hand, periods of fear and heavy selling activity lead to negative funding rate turns. This time around, shorts would be the one paying up.

BTC perpetual contacts funding rate. Source: NYDIG

Since Feb. 6, the average weekly funding rate has exceeded 2.3%. That happened while Bitcoin surpassed $38,000, indicating excessively leverged retail longs. On the other hand, top traders usually opt for fixed-calendar futures in order to avoid the exorbitant funding fees during rallies.

This movement faded completely on Feb. 23 as Bitcoin’s price plunged below $50,000. After briefly flirting with a negative funding rate, it has now stabilized near 0.5% per week. The metric signals that retail traders were liquidated, hence causing the indicator to return to neutral levels.

Although $50,000 sounds like a meaningful psychological level, Bitcoin’s 67% year-to-date gains will likely continue to attract investors. The modest 3% performance from the S&P 500 and a 0.6% yield on  five-year U.S. Treasury Notes offer no match for the potential upside that can be captured from cryptocurrencies.

author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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1 billion people will store life savings on their phone in Bitcoin by 2026 — MicroStrategy CEO

1 billion people will store life savings on their phone in Bitcoin by 2026 — MicroStrategy CEO
1 billion people will store life savings on their phone in Bitcoin by 2026 — MicroStrategy CEO

Bitcoin (BTC) will be the savings method of choice for 1 billion people on their phones by 2026, MicroStrategy CEO Michael Saylor predicted.

In an interview with CNBC on Feb. 23, Saylor, whose company owns in excess of 70,000 BTC, continued his public Bitcoin advocacy, calling it “the dominant digital monetary network.”

Saylor: Billions will choose Bitcoin for savings

Saylor was speaking a day after United States Treasury Secretary Janet Yellen described Bitcoin as “inefficient,” comments that accompanied a price dip of over 20% from all-time highs of $58,300.

For him, however, the comments were of little consequence compared with the broader Bitcoin use case quickly encroaching into more and more people’s financial lives.

“The story here that’s not being told is that Bitcoin is egalitarian progressive technology,” he told CNBC’s Squawk Box segment.

“We’re going to see a day when 7 to 8 billion people have a bar of digital gold on their phone, and they’re using it to store their life savings with it.”

Continuing, he cited Bitcoin’s 12-year race to becoming a trillion-dollar asset — two to four times quicker than technology giants such as Amazon, Google and Apple.

“So, the world needs this thing, and I think you can expect that we’ll have a billion people storing their value — in essence, a savings account — on a mobile device within five years, and they’re going to want to use something like Bitcoin,” he added.

“Bitcoin is the dominant digital monetary network.”

nalyst: Tesla will “double down” on BTC holdings

Saylor continues to make waves with MicroStrategy’s ongoing Bitcoin buys, the latest of which involved raising $900 million solely to add to its existing holdings.

While skeptics claim that few others will follow in the company’s footsteps, another CNBC guest on Tuesday forecast that Tesla, which itself bought $1.5 billion in BTC, will “double down” on its exposure.

 “I think this is not just a fad. I think Tesla’s going to continue to double down on its Bitcoin investment and you’ll see it from a transaction perspective as well,” said Dan Ives, managing director and senior equity research analyst at Wedbush Securities.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

BTC/USD saw a welcome reprieve on Tuesday as lows of $45,000 reversed upward on news that U.S. lawmakers had reached a settlement with stablecoin issuer Tether, ending a two-year lawsuit.

At the time of writing, the pair traded above $48,000, with $50,000 appearing to act as current resistance.

“As expected, ‘they’ protected the 44k level. I think $BTC will go up or sideways as there’s no more Tether FUD,” Ki Young Ju, CEO of on-chain analytics service CryptoQuant, added about whales controlling the extent of further losses.

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$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?

$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?
$5.64 billion liquidated in 24 hours as Bitcoin extends losses — Is a relief rally near?

The price of Bitcoin (BTC) plummeted by more than 17% in the last 24 hours as the futures market saw mass liquidations across the board.

Liquidations occur when leveraged futures positions fall to a certain threshold. For example, a position using 10x leverage would get liquidated or turn worthless if the price of BTC drops by 5%.

What triggered the mass Bitcoin liquidation fest?

If the Bitcoin futures market is highly overleveraged and overcrowded, a minor price movement can trigger mass liquidations.

According to analysts at Santiment, a data analytics firm, an address was responsible for the second-largest Bitcoin transaction of the year, as Cointelegraph reported.

More than 2,700 BTC were transferred right before the drop, which were bigger than the 2,000 BTC inflow seen before the March 2020 crash when Bitcoin dropped below $4,000. The analysts said:

“As we noted yesterday, there was an 11x exchange inflow spike that initiated #Bitcoin’s price correction from its $58.3k #ATH. Further data combing revealed that an address was responsible for the 2nd largest $BTC transaction of the year, an import of 2,700 tokens to the wallet before a quick sell-off. This same address also made a 2,000 $BTC import last March right as the Black Thursday correction took place. In total, it’s made 73 transactions in its one-year existence, for a total of 91,935 $BTC imported, with all tokens moving away within minutes after arrival.”

Total cryptocurrency futures liquidations. Source: Bybt

It is a possibility that a major sell-off in the spot market triggered the futures market to see intense selling pressure from many long positions getting liquidated.

When Bitcoin initially began to correct on Feb. 22, the futures funding rate of the dominant cryptocurrency was hovering at around 0.15% even as it continued to drop.

This trend showed two things: overleveraged buyers were aggressively buying each dip and the market remained overheated even as the pullback happened.

As a result, new buyers during the short-term downtrend were continuously liquidated, igniting a brutal cycle of cascading liquidations.

However, a pseudonymous trader known as “Byzantine General” described it as a “coordinated shakeout,” and said it is a healthy trend.

Bitcoin price chart with orderbook suite. Source: Byzantine General

If Bitcoin dropped on a so-called “black swan” news or some abnormality, it would be a cause for concern. But, the trader pinpointed the presence of relatively large buy orders to show that buyers are waiting to step in to buy the dip. He said:

“I’m glad I’m seeing signs of this being a coordinated shakeout because that implies that BTC is still bullish and big players just want their bids filled. If it wasn’t premeditated then it would be a lot more scary.”

In the near term, it is critical that Bitcoin defends the $45,000 support area to ensure that the short-term cycle does not enter the “bear zone.” Below it, the probability of a deeper and prolonged correction rapidly increases.

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Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip

Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip
Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip

Bitcoin (BTC) lost 20% in a day partly thanks to the actions of a single whale, new research suggests. 

Data from on-chain analytics firm Santiment on Feb. 23 showed that BTC/USD dipped to $47,400 after Bitcoin’s second-largest transaction of 2021 took place.

Ghost of Bitcoin sell-offs past returns

The transaction, 2,700 BTC worth $156.6 million at $58,000 per token, resulted in a sale which piled pressure on the market, this snowballing into the largest one-hour candle in Bitcoin’s history.

“As we noted yesterday, there was an 11x exchange inflow spike that initiated #Bitcoin’s price correction from its $58.3k #ATH,” Santiment wrote in accompanying comments on Twitter.

“Further data combing revealed that an address was responsible for the 2nd largest $BTC transaction of the year, an import of 2,700 tokens to the wallet before a quick sell-off.”

Import chart for suspect whale sell-off address. Source: Santiment/ Twitter

The findings shed light on what exactly was happening as volatility took over for Bitcoin, which managed to recover to $54,000 before trading below $50,000 once more at the time of writing.

Some believe that the market was overextended, with naysayers in particular claiming that a bubble-like process had long been underway. Others argued that it was simply “business as usual” for crypto trading, but as Cointelegraph reported, concerns had mounted about unusual inflows to exchanges.

Santiment noted that the same address had also sold immediately before the cross-asset price crash in March 2020. At the time, Bitcoin lost almost 60% of its value and hit $3,600.

“This same address also made a 2,000 $BTC import last March right as the Black Thursday correction took place,” it revealed.

“In total, it’s made 73 transactions in its one-year existence, for a total of 91,935 $BTC imported, with all tokens moving away within minutes after arrival.”

Whales in the spotlight

Suspicions had long been eyeing whales, who had profited from small wallets selling during previous price dips throughout Bitcoin’s recent bull run. As Cointelegraph reported, the number of whale-sized wallets had been growing, while smallholders had been decreasing.

Bitcoin whale addresses vs. BTC/USD chart. Source: Dovey Wan/ Twitter

“The most interesting side by side tells you how Bitcoin investor profile progress – ‘whales’ diminished as price elevated in the last cycle; new group of whales just keep popping up this time, while shrimps are the weak hands who sold too early,” Primitive founding partner Dovey Wan tweeted last week alongside a chart comparing the 2017 and 2021 bull runs.

“THE GREAT WEALTH TRANSFER,” she added. 

Some responses to the research meanwhile noted that the wallet in question had been responsible for a fraction of total trading volume and that its influence should therefore be limited.

“We don’t believe that one address alone triggers the price retracement of the largest crypto asset in the world, so we certainly wouldn’t want you to believe it either,” Santiment replied.

“Was this address activity a contributing factor though? Yes.”

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This article originally syndicated from Whale who sold Bitcoin before 2020 crash cashed out $156M before this week’s 20% dip
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