A prominent crypto strategist and technical analyst is revealing his plan to build a big position in an under-the-radar altcoin.
In a new tweet, the pseudonymous analyst known as Cantering Clark tells his 53,000 followers that he’s looking to accumulate a new breed of crypto asset that targets both users of the decentralized finance (DeFi) space and portfolio managers.
“Another project I am very keen on building a larger position in over the next year. DEXTF.”
DEXTF is an asset management protocol designed to make it easy for users to diversify their investments. The little-known project uses the XTF fund token which functions like an index fund but instead follows the performance of certain crypto assets.
Fund managers can create and mint new XTF fund tokens that track the performance of various cryptocurrencies, allowing users to get exposure to a broad range of coins in one investment. According to the protocol’s website, holders can trade their XTF token funds on-chain just like exchange traded funds.
DEXTF is backed by a non-anonymous team of seasoned finance and investment professionals, including economist Alex Krüger who acts as an advisor for the project.
Krüger, bullish on the protocol, tells his 65,000 Twitter followers that DEXTF will be launching structured products or pre-packaged investment vehicles “very soon” with the goal of eventually becoming a massive revenue source of DEXTF holders once on-chain options markets pick up more steam.
Structured products launching on DEXTF very soon. Structured products represent a major source of revenue for investment banks. Once onchain options markets grow in size, structured products should take DeFi by storm and become a major source of revenue for $DEXTF holders. https://t.co/a4d9GeqhLR
— Alex Krüger (@krugermacro) February 20, 2021
At the time of writing, DEXTF is trading at $2.73 with a market cap of $39.3 million.
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Every uptrend witnesses periodic bouts of profit-booking as short-term traders tend to unwind positions either on adverse news or at critical technical resistance levels. This occurred with Bitcoin (BTC) today as the price momentarily dropped below $48,000 and traders scrambled to close or top up positions before being liquidated.
Elon Musk’s tweet on Feb. 20 that said Bitcoin prices “seem high” and the U.S. Treasury Secretary Janet Yellen’s warning today on Bitcoin being “extremely inefficient” could have dampened short-term sentiment.
Another possible factor that may have exacerbated the fall could have been the unwinding of excessively leveraged long positions. About $1.64 billion worth of Bitcoin futures positions were liquidated during today’s sharp pullback.
However, derivatives data for Bitcoin futures do not show any negative development, as highlighted by Cointelegraph Markets analyst Marcel Pechman.
Let’s analyze the charts of the top-10 cryptocurrencies to spot the critical levels on the upside and the key support levels on the downside.
Bitcoin broke above the resistance line of the ascending channel on Feb. 19, but could not pick up momentum. This showed that the current uptrend was tiring out. Traders aggressively booked profits today, which pulled the price down to the 20-day exponential moving average ($48,081).
However, the lower levels continue to attract buyers as seen from the long tail on the daily candlestick. If the price sustains above the midpoint of the channel, the bulls will again try to push the pair above the channel.
If they manage to do that, the BTC/USD pair could resume the uptrend. The next target on the upside is $60,974.43 and then $66,000. The upsloping moving averages and the relative strength index (RSI) in the positive territory suggest that bulls are in control.
Contrary to this assumption, if the price sustains below the midpoint of the channel, the bears will again try to break the 20-day EMA support. If they manage to do that, the pair may drop to the 50-day simple moving average ($39,885).
Ether (ETH) turned down from the resistance line of the ascending channel on Feb. 20, indicating that traders booked profits after the price reached the psychologically important level at $2,000.
The selling continued today and the ETH/USD pair dropped to the support line of the ascending channel. However, the positive sign is that the bulls purchased the dip as seen from the long tail on the day’s candlestick.
If the buyers can push and sustain the price above the 20-day EMA ($1,753), the positive momentum may remain intact.
On the contrary, if the price sustains below the 20-day EMA, the bears will try to sink the pair below the channel and the 50-day SMA ($1,465). If they succeed, the correction could deepen to $1,200 and then to $1,000.
Binance Coin (BNB) has been witnessing volatile moves in the past few days. After the sharp rally on Feb. 19, traders aggressively booked profits on Feb. 20. The bulls tried to resume the uptrend on Feb. 21, but the higher levels have again attracted profit-booking.
The bulls are currently attempting to defend the zone between the 50% Fibonacci retracement level at $233.3485 and the 61.8% retracement level at $206.1262. If they succeed, the BNB/USD pair may continue the volatile range-bound action for a few more days.
On the contrary, if the bears sink the price below $206.1262, the decline could extend to the 20-day EMA ($168). This is an important support to keep an eye on because a break below it will suggest a trend change and a likely fall to $118.
Polkadot (DOT) broke above the ascending channel on Feb. 19 and rose to a new all-time high at $42.2848 on Feb. 20. However, the long wick on the day’s candlestick showed profit-booking at higher levels.
After forming an inside day candlestick pattern on Feb. 21, the DOT/USD pair slumped back into the channel today. However, the bulls bought the dips and have pushed the price back above the channel.
The buyers will now try to push the price above $42.2848 and resume the uptrend. On the other hand, the bears will try to sink the pair back into the channel. If they succeed, the pair may drop to the 20-day EMA ($28.89).
Cardano (ADA) surged above the $0.9817712 overhead resistance on Feb. 20 and reached $1.1980811. However, the long wick on the daily candlestick showed profit-booking at higher levels.
The selling intensified today and that pulled the ADA/USD pair down to the 20-day EMA ($0.834). However, the long tail on today’s candlestick shows aggressive buying at lower levels.
If the price sustains above $1, the bulls will try to resume the up-move. A breakout of $1.1980811 could open the doors for a rally to $1.25 and then $1.50.
Conversely, if the price slips below $0.9817712, the pair may again drop to the 20-day EMA. This is an important support to watch out for because if it cracks, the correction may deepen to $0.6879684.
XRP continues to trade inside the $0.50 to $0.65 range. The altcoin bucked the trend today and rallied while most other major cryptocurrencies were witnessing sharp selling.
The price had rallied to $0.65155 today but the bulls could not sustain the higher levels. This shows the bears have not yet thrown in the towel.
However, the upsloping 20-day EMA ($0.50) and the RSI in the positive territory suggest the path of least resistance is to the upside. If the bulls can propel and sustain the price above $0.65, the rally may extend to $0.78608.
This positive view will invalidate if the price turns down from the current levels and breaks below the $0.50 support. If that happens, the XRP/USD pair may drop to $0.3855.
The bulls could not sustain Litecoin (LTC) above the $240 overhead resistance from Feb. 17 to Feb. 21. This failure to resume the uptrend could have attracted profit-booking from short-term traders, which resulted in a sharp fall today.
The LTC/USD pair broke below the 20-day EMA ($198) and the $185.5821 support today, but the long tail on the day’s candlestick shows the bulls purchased this dip. The flattening 20-day EMA and the RSI just above the midpoint, suggest a balance between supply and demand.
If the price sustains above the 20-day EMA, the bulls will again try to resume the uptrend. On the contrary, if the price again slips below the 20-day EMA, the pair may drop to the 50-day SMA ($165). A break below this support could pull the pair down to $120.
Chainlink (LINK) turned down from the resistance line of the ascending channel on Feb. 20 and formed a Doji candlestick pattern on Feb. 21. The uncertainty of the Doji candlestick was resolved to the downside today.
The LINK/USD pair plunged below the 20-day EMA ($30) and the support line of the channel today. However, the long tail on the candlestick shows aggressive buying by the bulls at lower levels.
If the bulls can sustain the price inside the channel, it will suggest that the uptrend remains intact. On the contrary, if the price again breaks below the channel, it will indicate a possible trend change.
The next critical support on the downside is the 50-day SMA ($23.82) and if this support also cracks, the decline may extend to $20.1111.
The range-bound action in Bitcoin Cash (BCH) resolved to the downside today when the price dipped below the $670 support. This breakdown showed that the equilibrium had tilted in favor of the bears.
The BCH/USD pair broke below the 20-day EMA ($610) and fell to an intraday low at $533.33 today. However, the bulls aggressively purchased the dip below the $539 support, resulting in a sharp rebound.
If the price sustains above the 20-day EMA, the bulls will again try to push the price back into the $670 to $745.39 range. If they succeed, it will suggest that the current correction could be over.
On the contrary, if the price sustains below the 20-day EMA, the pair may again drop to $539 and then to the 50-day SMA ($510).
Stellar Lumens (XLM) failed to resume its uptrend in the past few days, which showed a lack of demand at higher levels. This could have attracted profit-booking from short-term traders who may have dumped their positions today.
The XLM/USD pair broke below the 20-day EMA ($0.44) and the $0.409 support today, but the bulls purchased at lower levels. The flattish 20-day EMA and the RSI below 58 suggest the bullish momentum may be weakening.
If the bulls fail to sustain the price above the 20-day EMA, the bears will again try to sink the price below $0.409. If they manage to do that, the pair could slide to the $0.35 support.
On the other hand, if the price sustains above the 20-day EMA, the bulls will again try to resume the uptrend. A break above $0.535 will suggest an advantage to the bulls and may result in a retest of $0.600681.
The views and opinions expressed here are solely those of the 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.
Market data is provided by HitBTC exchange.
The South Korean government has decided on a date for its 20 percent cryptocurrency taxation policy. However, the impending crypto tax regulation is being met with some resistance.
Kimchi Crypto Tax Law Gets Finalized Start Date
South Korea has once again altered the date for the implementation of its controversial crypto tax plan.
According to local news outlet Arirang on Monday (Feb. 22, 2021), South Korea’s Ministry of Economy and Finance stated that the country’s crypto tax policy would come into effect on January 1, 2022. The government is planning to levy 20 percent on capital gains from cryptocurrency trading.
South Korea’s 20 percent tax policy would affect crypto trading profits that exceed the 2.5 million won ($2,200) threshold. Also, traders would need to report gains on income statements, and failure to pay taxes would attract a fine.
The latest announcement comes after several meetings and postponements. The South Korean government began making plans to implement its crypto tax policy back in January 2020. However, some of the country’s economists argued that the proposal to tax crypto could stifle the growth of the nascent industry in South Korea.
Following a meeting with industry stakeholders, the government decided to postpone its 20 percent tax policy till 2022. The postponement was to give crypto exchanges time to set up modalities to ensure compliance with the new tax regulation.
Meanwhile, some South Korean citizens have signed a petition against the impending tax law. Since February 10, 2021, the petition has garnered about 36,000 signatures. If the petition is able to get 200,000 signatures, the government would need to respond.
South Korea Doubling Down on Clear-cut Cryptocurrency Regulations
South Korea’s tax law is an extension of the government’s drive to regularize the crypto trading market. Back in March 2020, the country’s parliament passed amended legislation that legalized virtual currencies.
By November, South Korean authorities turned their attention to Monero (XMR) and other privacy “coins” and prohibited crypto exchanges from listing these anonymous cryptocurrencies. At the time, the government said the move was part of efforts to curb money laundering crimes in the country.
Apart from its proposed crypto tax law, the South Korean government is working on a central bank digital currency (CBDC) project. According to BTCManager in October 2020, the country was on the final phase of its CBDC pilot program that was introduced in April. Also, South Korea recently published a book about the legal issues that come with CBDCs.
- Sunayna Tuteja is the Federal Reserve Bank of Richmond’s Chief Innovation Officer.
- The Richmond Fed oversees the DMV area.
- Tuteja is a big believer in Bitcoin and crypto.
TD Ameritrade’s former head of digital assets has joined the Federal Reserve Bank of Richmond.
Sunayna Tuteja is the Richmond Fed’s new chief innovation officer, the bank announced today. In her new role, she’ll “lead efforts to identify, research, enable and advocate for new technologies while fostering a culture of innovation, collaboration and experimentation.”
The Richmond Fed is one of 12 banks in the Federal Reserve System (when people refer to “the Fed,” they’re usually talking about the system on a national level). It serves the DMV (DC, Maryland, Virginia) area, as well as North and South Carolina.
Neither Tuteja nor the bank were immediately available for comment.
Tuteja worked at TD Ameritrade for more than a decade; according to her LinkedIn page, she last worked as managing director, head of digital assets & distributed ledger tech, with a focus on “blockchain & crypto.” During her tenure, the company began approaching crypto with a slightly more open mind; in 2017, TD Ameritrade began supporting Bitcoin futures trades.
And in a profile, she described herself as a “crypto nerd.”
Fed Chair Jerome Powell doesn’t really care about cryptocurrencies, but he recently said he’s at least keeping an eye on regulatory answers for state-controlled coins called CBDCs (central bank digital currencies). China is already piloting a CBDC, and several other countries and central banks around the world are currently in the process of developing their own.
UK-Based Broker I.G. Group (IGG) has informed retail traders to close their derivative positions on cryptocurrencies on its platform. This development is after the U.K. regulatory body FCA banned the sale of crypto derivatives and exchange-traded notes on January 6.
IGG revealed this development in a post from an administrator on IGG’s online forum on Sunday.
The statement stated that the firm had reached its internal product limit for exposure to cryptocurrencies and removed them from its offerings. This includes open spread bet and contract for difference (CFD) positions on cryptocurrencies.
The post further urged traders to close all relevant cryptocurrency positions before March 24 at 15:00 local time. After which, IGG will close all positions still open based on the available bid/ask prices. The broker also revealed that it would be increasing its margin requirements in line with the new regulations. There could also be significant changes to its crypto trading requirements as it looks to follow regulatory requirements.
FCA Ban Causing Ripple Effect on U.K. Crypto Market
IGG’s decision comes after the U.K Financial Conduct Authority (FCA) banned the sale of derivatives and exchange-traded notes. The regulatory body had claimed that such financial products were too risky for retail consumers who could quickly lose money.
It also stated that the prevalence of market abuse and financial crime in the secondary market and the inadequate understanding of crypto assets by retail consumers made it apparent for such products to be banned.
Since the ban was implemented, derivative exchanges within the U.K have restricted clients from trading cryptocurrencies on their platforms. The FCA ban is not without controversy, as many crypto stakeholders have been critical of the decision.
Chief among the criticism is that banning cryptocurrency derivatives would drive retail users to unregulated platforms that will offer less protection than regulated exchanges. Since the ban’s inception, it is unclear whether traders in the U.K have stopped trading derivatives.
The U.K is one of the largest markets of crypto adopters, and it is unlikely that traders will abandon the lure of high rewards on derivatives for other trading options. Other countries are also contemplating banning cryptocurrency trading with Nigeria recently offering a blanket ban on crypto exchanges and India set to put a strict crypto regulation into law.
- Bitcoin today had its biggest single-day fall in value.
- This means that billions were temporarily lost by companies invested in the asset.
- Bitcoin is still down but big investors are still up.
Over $13.6 billion worth of Bitcoin holdings disappeared from companies’ books today after a shocking market dip.
Bitcoin earlier dropped from its near-record high of $58,000 to $47,700 in just 24 hours—the largest single-day fall in value for the cryptocurrency. This means the cumulative value of the 1.3 million Bitcoin held by 41 companies per data tracked by Bitcoin Treasuries temporarily went from $76.7 billion-worth to $63.1 billion—a $13.6 billion loss.
But Bitcoin has done what it always does, it seems, and bounced back: At the time of writing, the currency is down just 6.9% in the past 24 hours, meaning that more than half of those losses have since been recovered.
That’s a sizable drop for some of them, though. Business intelligence firm MicroStrategy, which holds the most Bitcoin of any public company, this month sold off $1 billion-worth of debt to buy Bitcoin. But the 71,079 Bitcoin it owns today is worth $3.8 billion. Yesterday it was worth $4.1 billion—a loss of over $336 million.
Car company Tesla, which also made a monster investment this month—of $1.5 billion—is down $208 million at the time of writing from where it was yesterday.
Individual investors took a hit too. The Grayscale Bitcoin Trust, which holds 649,130 Bitcoin is down $2.8 billion. Smaller investment firm Ruffer Investment Company lost $195 million.
But it’s worth noting a lot of the big dogs on the list are still doing well in terms of when they bought Bitcoin given that the currency is still up 57% in the past month. As previously reported by Decrypt, Tesla has made crazy profits on its investment—more than with its 2020 car sales.
MicroStrategy can’t be too worried about the market dip, either. Since the company first bet on Bitcoin by investing last August, the currency is up 352%.
Listen To This Episode:
This episode of Bitcoin Magazine’s “Bitcoin In Asia” featured Ahyke Otutubuike, a technical writer and Bitcoin user based in Nigeria.
Nigeria has been in the news this month as its central bank issued a directive, prohibiting regulated financial institutions from dealing with cryptocurrency exchanges and companies that touch crypto, essentially unbanking them. Ahyke had a piece in Bitcoin Magazine this past week explaining the situation and adding context for Bitcoin’s place in Nigeria’s economy overall, he added additional analysis in this episode. He discussed the momentum for Bitcoin in Nigeria and its main use cases, national economic factors behind the central bank’s move, what he sees as the main drivers of the action and what comes next.
Global money transfer service MoneyGram says it has officially suspended its partnership with blockchain payments firm Ripple amid the latter’s litigation with the SEC.
According to MoneyGram’s quarterly outlook, the company is “not planning for any benefit from Ripple market development fees” for Q1 2021. MoneyGram said it had a more than $12 million net expense benefit from Ripple in the same quarter last year.
“Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple’s platform,” said MoneyGram.
The collaboration between the two firms largely began three years ago, when MoneyGram integrated XRP into its payment system. The following year, Ripple and MoneyGram entered into a partnership for cross-border payments and foreign exchange settlements with digital assets.
Ripple followed through with a $50 million investment in November 2019 in exchange for a 10% stake in the company. As of December, the firm has sold roughly $15 million of the MoneyGram stock.
However, amid the news in December that the U.S. Securities and Exchange Commission would be taking legal action against Ripple as well as its CEO Brad Garlinghouse, and co-founder Christian Larsen, MoneyGram has seemingly attempted to distance itself from the firm. A few days after the SEC announcement, MoneyGram said it had never utilized Ripple’s On-Demand Liquidity and RippleNet services “for direct transfers of consumer funds.”
MoneyGram is not the only firm to react to the SEC’s lawsuit against Ripple. Many crypto exchanges have already delisted or suspended trading for the XRP token. Although the fallout from the lawsuit initially caused the XRP price to drop, the token has largely recovered in two months, and is currently $0.5975 at the time of publication.
Shares of Long Bitcoin Corp (LBCC), a beverage turned cryptocurrency mining company, have been officially delisted by the United States Securities and Exchange Commission, or SEC.
The company was ordered to delist its stock after failing for years to produce any financial reports. Long Bitcoin Corp’s last earnings report was for the quarter ending September 30, 2018, according to Bloomberg.
Long Bitcoin Corp is registered in the state of Delaware, according to SEC filing information.
Originally known as Long Island Ice Tea, Long Bitcoin rebranded during the height of crypto euphoria in January 2018. That was shortly after Bitcoin (BTC) peaked in price and right around the time that altcoins hit new all-time highs. At the time, Long Blockchain said there “can be no assurance” that it will be successful in developing distributed ledger technology.
According to the SEC, the company’s shift from beverages to blockchain never materialized. Under the conditions of the SEC’s order, Long Blockchain agreed to have its shares revoked without admitting or denying the regulator’s findings.
As Cointelegraph previously reported, Long Blockchain was in financial trouble long before the rebranding. The tech-heavy Nasdaq exchange delisted the company in April 2018 due to low market capitalization.
As of Friday — presumably, its final trading day — Long Blockchain Corp was worth $1.12 a share for a total market value of $32.7 million.
LBCC share prices surged during the height of the 2017-18 bull market before declining precipitously over a four-month period. The company was essentially a penny stock between 2018 and 2020.