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Tech Engineer Shares His Sats-Earning, DIY Home Heating System
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Day: February 1, 2022
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Unlucky Number 7: Ethereum Makes Seventh Milestone 50% Drawdown
Ethereum rides ahead on the crypto market’s most recent trend to the upside. As of press time, ETH, BTC, and larger cryptocurrencies show signs of recovery with potential for continuation in the short term, if they manage to break above their resistance levels.
Related Reading | Ethereum Price Surges 30% Over Last Week Lows, Addresses Holding Over 0.1 ETH Reach New ATH
As of press time, Ethereum (ETH) trades at $2,788 with a 6.5% profit in the last 24 hours.
Data from Arcane Research indicates that Ethereum has seen its seventh 50% drawdown since its inception. The second crypto by market cap dropped to a yearly low of $2,200 which represents a 55% decrease from its high at $4,812.
During the crypto market most recent downside trend, ETH lost a total of over $280 billion in market cap which represents its biggest decline on this metric since its launched. By taking ETH’s price as a proxy, it is possible to conclude the altcoin market as a whole suffered deeply in the past two months.
In that sense, Arcane Research determined that this bearish price action to its yearly lows was one of Ethereum slowest in its history. It took ETH’s price around 75 days to reached $2,200 compared to a 38-day average.
Conversely, Ethereum has always experienced a higher average in terms of recovery. It takes ETH’s price an average of 165 days to returned to previous highs, per conclusions from Arcane Research. The firm added the following on the cryptocurrency’s recovery periods, and its worst period to date, the crypto winter of 2018:
Ethereum and the broader crypto ecosystem look very different from 2016-2018. Still, if history is any indication, and leaving out a new glacial period like 2018, we could perhaps see prices back in the $4,000 range as early as July 2022.
Don’t Fight The FED, Ethereum Could Struggle To See ATHs?
Developments in the U.S. Federal Reserve (FED) monetary policy will most likely operate as an obstacle for Ethereum, and the rest of the crypto market. Although the short terms appear bullish, BTC and ETH have been heavily correlated with the traditional market.
Trading firm QCP Capital recently posted 4 upcoming events from institutions in the U.S. which seems poised to bring some short-term volatility into ETH and the crypto market. On February 8th, the U.S. Congress will host a hearing on Stablecoins, two days later the government is expected to publish new Consumer Price Index (CPI) numbers.
Related Reading | TA: Ethereum Rallies 10%: Why More Gains Seem Possible
This metric has been acting as a headwind for cryptocurrencies since Q4, 2021. Used to measure inflation in the U.S., the higher the CPI, the likely it is for the FED to accelerate its shift in monetary policy. By mid-February, the FED’s FOMC is set to release minutes and on March 17, the same entity could announce an increase in interest rates.
In the long term, Ethereum records bullish fundamentals as it moves closer to The Merge, the fusion between its execution layer (ETH 1.0) and its consensus layer (ETH 2.0). The event could propel ETH into uncharted territory, at least, on its BTC trading pair. QCP Capital said:
ETHBTC, which is holding its triangle support very well. Due to the difference in beta, generally a higher ETHBTC is a bullish signal and vice versa. We still hold the view that a powerful wave 5 will break old highs in ETH. That will possibly happen with the full implementation of ETH 2.0.
Debt Of Nations: Bitcoin Is An Alternative To The Physical Hand Of Keynesian Economics
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MetaMask Joining Forces with MyCrypto
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MetaMask has announced that it is joining forces with the MyCrypto team. While no user experience changes are anticipated in the very near term, long-term goals are in the works.
Pushing Wallets to Greater Heights
MetaMask, one of the world’s most popular wallet apps, has announced that it will partner with MyCrypto, a Web3 solution for unifying Ethereum accounts into a single point of access. The announcement was made on MyCrypto’s blog earlier today and later shared by MetaMask in a tweet.
The post describes MyCypto’s technology as a product that enables interaction “across chains and cities, impacting the balances of wallets, liquidity pools, treasuries, and ultimately the emotional and financial well-being of any number of humans around the globe.” In essence, MyCrypto is designed to serve as a single point of access for all of a user’s Ethereum accounts, wallets, and holdings across the entire ecosystem.
The cooperation aims to bring two separate teams together to create a solid, unified team. In the short term, no changes to user experience are expected: there are no known plans to rebrand or merge Githubs, for example.
Instead, the focus is on further developing features that the community has actively requested, such as developing anti-phishing features, building an in-house marketing and community relations team, and focusing on other requested developments, such as improvements in UX, network handling, and error messages.
The MyCrypto team notes the importance of balancing security, usability, beauty, and education as part of building a perfect wallet that can be used across multiple networks.
In the long term, the team writes that it aims to develop “a superior way to access unique applications across multiple accounts, protocols, and networks” across desktop, mobile, web, and extension applications.
Disclosure: At the time of writing, the author of this feature owned ETH and other cryptocurrencies.
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$1.8M Lost to Fake MetaMask Token Honeypot Scam
A fake MetaMask token has conned traders out of over $1.8 million. Hackers injected code into the DEXTools application’s front end, convincing traders that the token was verified. The MetaMask…
Alias Addresses: The Latest Name In Ethereum Usability?
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Investing Survey: Win A $360 Subscription To Pro BTC Trader
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Bitcoin Wallet Ledger Joins DeFi Movement, Integrating DEX Platform De…
Ledger became the first hardware wallet integrated into DeversiFi, a decentralized exchange (DEX), marking Ledger’s move into the DeFi ecosystem. Ledger Enters the DeFi Arena Ledger, a leader in helping…
MetaMask Joining Forces with MyCrypto
Share this article
MetaMask has announced that it is joining forces with the MyCrypto team. While no user experience changes are anticipated in the very near term, long-term goals are in the works.
Pushing Wallets to Greater Heights
MetaMask, one of the world’s most popular wallet apps, has announced that it will partner with MyCrypto, a Web3 solution for unifying Ethereum accounts into a single point of access. The announcement was made on MyCrypto’s blog earlier today and later shared by MetaMask in a tweet.
The post describes MyCypto’s technology as a product that enables interaction “across chains and cities, impacting the balances of wallets, liquidity pools, treasuries, and ultimately the emotional and financial well-being of any number of humans around the globe.” In essence, MyCrypto is designed to serve as a single point of access for all of a user’s Ethereum accounts, wallets, and holdings across the entire ecosystem.
The cooperation aims to bring two separate teams together to create a solid, unified team. In the short term, no changes to user experience are expected: there are no known plans to rebrand or merge Githubs, for example.
Instead, the focus is on further developing features that the community has actively requested, such as developing anti-phishing features, building an in-house marketing and community relations team, and focusing on other requested developments, such as improvements in UX, network handling, and error messages.
The MyCrypto team notes the importance of balancing security, usability, beauty, and education as part of building a perfect wallet that can be used across multiple networks.
In the long term, the team writes that it aims to develop “a superior way to access unique applications across multiple accounts, protocols, and networks” across desktop, mobile, web, and extension applications.
Disclosure: At the time of writing, the author of this feature owned ETH and other cryptocurrencies.
Share this article
$1.8M Lost to Fake MetaMask Token Honeypot Scam
A fake MetaMask token has conned traders out of over $1.8 million. Hackers injected code into the DEXTools application’s front end, convincing traders that the token was verified. The MetaMask…
What Is The Crypto Volatility Index?
The Crypto Volatility Index (CVI) is a decentralized solution used as a benchmark to track the volatility from cryptocurrency option prices and the overall crypto market.
Alias Addresses: The Latest Name In Ethereum Usability?
The Ethereum Name Service (ENS) is one of Ethereum’s most important usability features. By default, Ethereum addresses appear as garbled text. By substituting that text for human-readable names, ENS makes…
Bitcoin Wallet Ledger Joins DeFi Movement, Integrating DEX Platform De…
Ledger became the first hardware wallet integrated into DeversiFi, a decentralized exchange (DEX), marking Ledger’s move into the DeFi ecosystem. Ledger Enters the DeFi Arena Ledger, a leader in helping…
Institutional Investors Cautiously Building Crypto Positions As BTC Remains Below $40,000
Institutional investors appear to be dipping their toes back into the crypto markets to get in on lower price levels, according to a new report.
Digital asset manager CoinShares says investors are cautiously adding to their crypto portfolios.
“Digital asset investment products saw inflows for a second week totaling US$19m last week, while small, it continues to suggest investors are beginning to cautiously add to positions at these depressed price levels.”
Bitcoin (BTC), the largest crypto by market cap, led the way last week in inflows, totaling $22 million. This marks the second week of inflows in a row for Bitcoin.
Leading smart contract platform Ethereum (ETH) has not fared as well as Bitcoin over the past two months, according to the firm.
“Ethereum continues to suffer from negative sentiment with outflows of US$27m, the 8th consecutive week which now total US$272m.”
Multi-asset investment products enjoyed inflows of $32.1 million, while multiple digital assets suffered outflows.
“Solana, Polkadot and Cardano saw outflows last week suggesting investors are shunning altcoins, although multi-asset funds (a combination of coins) saw inflows totaling US$32m, the largest since June 2021, suggesting investors are adopting a diversified investment approach.”
Solana (SOL), Polkadot (DOT) and Cardano (ADA) all saw relatively minor outflows last week, equaling less than $10 million in total.
The full CoinShares report can be read here.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia
Bitcoin Maxi Jack Dorsey Slams Facebook Over ‘Wasted Effort and Time’ on Diem
On-Chain Analyst Willy Woo Makes Argument for Why Bitcoin (BTC) Is Not in a Bear Market
Crypto analyst Willy Woo is examining the on-chain metrics of Bitcoin (BTC) to determine the flagship cryptocurrency’s current market state.
Woo says on the What Bitcoin Did podcast that, based on on-chain analysis, Bitcoin is not exhibiting a “bear market setup.”
“Structurally on-chain, it’s not a bear market setup. Even though I would say we’re at peak fear. No doubt about it, people are really scared.”
The on-chain analyst says that the high levels of fear in the market present an opportunity as an upward retracement is likely.
“It’s an opportunity to buy. You don’t often get this kind of pullback without it relief-bouncing even. You don’t sort of slide, slide, slide and then capitulate.
We’ve come down from $69,000 to $33,000. It would be hard-pressed to capitulate from $33,000 down to say $20,000. Because that’s like retracing something like a 2018 bear market over two and a half months instead of a year right.”
Woo also says that demand for Bitcoin is returning as various investors resume buying.
“Structurally, it’s [Bitcoin] very, very strong and demand started to come back. And the hodlers [longtime Bitcoin holders] that were slightly being just dispirited by the futures traders selling down have stopped selling. They’re rebounding now, and there’s accumulation coming.
The whales are now, and when I say whales these are guys with more than 1,000 Bitcoins, I term a lot of those guys as potentially institutional investors, they are starting to flip over to buying. They peaked their selling in December, so you could say institutions were selling down in December, which is kind of a part of their normal cycle – they sell down, they redeploy in January. Looks like that started…
The futures, you know, coming off the Chicago Mercantile Exchange [CME] and ETF [exchange-traded fund] and you know all the other futures exchanges. But I primarily think that the CME and these futures ETFs drive a lot of this now. That demand started to come in. It started coming in a few days ago.”
Bitcoin is trading at $37,369 at time of writing, down about 46% from its all-time high.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Swill Klitch/Sensvector
Bitcoin price closes in on $40K, but pro traders are still skeptical
The Bitcoin (BTC) daily price chart seems to be making a steady recovery pattern, but some concerning indicators are coming from derivatives markets. At the moment, the futures and options markets are showing a lack of confidence from Bitcoin pro traders, but there’s a positive spin to the data.
The road to $40,000 seems uncomfortably predictable, and cryptocurrency traders usually call it “manipulation” when such price movements happen.
If you #bitcoin around that region, just be careful.
A picture speaks a thousands words and I think mine says it all.
Make it or break it time around the corner for #btc. This weekend is weekly close & monthly close as well so expect volatility and manipulation.#Crypto pic.twitter.com/kPhDKAjupQ
— @Maze (Will never DM 1st or Follow) (@_CryptoMaze_) January 28, 2022
Regardless of the rationale behind Bitcoin’s price recovery, investors should analyze derivatives markets to understand how whales, market makers and arbitrage desks are positioned.
While retail traders’ favorite instrument is the perpetual contract (inverse swaps), pro traders often opt for fixed-calendar futures and options. Although they are more complicated to trade, these derivatives offer more complex strategies.
Liquidations are behind us, but so is the route to $69,000
Data shows that there hasn’t been a relevant futures contract liquidation since Jan. 23. When leverage long (buyers) have their positions terminated, it accelerates the price correction, because derivatives exchanges need to sell those futures at market prices.
Notice how the last “big” forced position termination on longs was $290 million on Jan. 23. This partially explains why Bitcoin’s recovery was relatively tranquil over the past week. Still, the market is nowhere near being out of the water, considering that BTC is currently trading 44% below the $69,000 all-time high.
The Bitcoin futures annualized premium should run between 5% to 12% to compensate traders for “locking in” the money for 2 to 3 months until the contract expiry. Levels below 5% are extremely bearish, while the numbers above 12% indicate bullishness.
The above chart shows that this metric dipped below 5% on Jan. 21 and hasn’t yet shown signs of confidence from pro traders.
So the big question is: Is the glass half full? For example, if Bitcoin breaks the $42,000 resistance, some traders will likely be caught off guard, so there’s additional buying activity because no one wants to be left behind.
Bitcoin futures markets are neutral, but options traders are skeptical
Currently, it’s a bit difficult to discern a direction in the market, but the 25% delta skew is a telling sign whenever arbitrage desks and market makers overcharge for upside or downside protection.
If traders fear a Bitcoin price crash, the skew indicator will move above 10%. On the other hand, generalized excitement reflects a negative 10% skew.
As displayed above, we’ve been near 10% for almost a week despite the 18% BTC price recovery since the $33,000 bottom. The options skew data shows that pro traders are still pricing higher odds for a market crash.
Despite the not-so-positive indicator from Bitcoin options, these arbitrage desks and market makers will be forced to reverse bearish positions once the price breaks $42,000. However, considering that the futures premium did not show signs of desperation even as the market crashed 52% from the all-time high, the data provides a constructive view.
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.
Solana-based Phantom Wallet Hits $1.2B Valuation Following a $109M Funding Round
Solana ecosystem wallet, Phantom, has recently raised $109 million in a Series B funding round led by the crypto venture capital firm, Paradigm.
Phantom Hits $1.2 Billion Valuation
With the latest cash injection, Phantom has now attained the status of a crypto unicorn firm, as the funding brings its market value to $1.2 billion.
In an official blog post published on Monday, Phantom noted that the funds raised will be used to improve the wallet’s technical capabilities. These include boosting user experience and security on multiple blockchains, helping users to discover decentralized applications (dApps), and expanding its team as the Phantom user base continues to grow.
Paradigm, a16z, and Others Invest in Phantom
The funding round also saw contributions from several top investors, including Andreessen Horowitz (a16z), Variant, Solana Ventures, and Jump Capital.
“The team at Phantom is honored to work with these incredible partners and to have their trust in executing our vision to bring Web3 to the broader world. It is clear that the explosive adoption of NFTs and DeFi has underscored the tremendous role crypto wallets have in providing a user experience that is safe, fun, and easy-to-use,” the project noted.
Phantom Launches iOS Mobile App
In addition to the funding, Phantom revealed the launch of its iOS mobile app, which will allow users to store, send, and receive tokens and NFTs, as well as stake SOL. The non-custodian crypto wallet initially announced plans to roll out a mobile application last November to enhance the growth of the Solana ecosystem.
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Boasting over two million daily active users, Phantom has continued to enjoy the popularity and growing acceptance of the Solana network, especially through DeFi protocols, developers, and the NFT space.
Currently, Phantom users have staked over 112.4 million SOL worth a whopping $10.4 billion, swapped $1.37 billion in tokens, and made 55.2M NFT, DeFi, and app transactions.
Phantom also revealed plans to launch its Android wallet later this year, boosting its mission to “empower” new users with the most widely utilized Solana crypto wallet.
According to Phantom, the launch of these additional platforms will help it facilitate new avenues for growing its user base while also providing opportunities to innovate on safety and security.
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