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Bad Crypto news of the week

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Bitcoin continues to move through the gears. The currency is up more than 12 percent over the week and is now playing with the $18,000 mark. And it’s not just the US dollar that Bitcoin is bashing. It’s also hit all-time highs against the Russian ruble, the Colombian peso, the Brazilian real, the Turkish lira, and the Sudanese pound among others. Its rise, now 375 percent above the point that gold investor Peter Schiff accidentally called as Bitcoin’s bottom, is inevitably causing analysts to ask how high it can go.

One expert is predicting that Bitcoin will soon hit $22,000, citing HODL and funding rates, the fall in Bitcoin reserves, and the growth of institutional accumulation. Investor Mike Novogratz has his eye on $65,000, powered by high demand and limited supply. Thomas Fitzpatrick, a senior analyst at Citibank, is looking even higher. In a report aimed at the bank’s institutional clients, he predicted $318,000 by December 2021.

And yet despite Bitcoin’s current rise, and its positive direction, it’s all happening very quietly. While the coin’s last rush towards $20,000 generated headlines around the world, the press has barely noticed the current price increase.

In China, at least one bank has noticed. The China Construction Bank chose the digital exchange Fusang to issue $3 billion worth of debt securities. The bonds would be tokenized and exchangeable for Bitcoin. But it’s not happening, at least not any time soon. Shortly after the announcement, Fusang said that the issuance would be delayed until further notice “at the request of the issuer.”

In the US, Jay Clayton, the chairman of the United States Securities and Exchange Commission has announced that he is leaving his post. Clayton previously told Bitcoin investors they couldn’t expect to trade on mainstream exchanges without robust regulation.

The blockchain, though, continues to find new uses. IBM is teaming up with German textile manufacturer Kaya&Kato to use the blockchain to track supply chains in the fashion industry. Albany Airport in New York is using the blockchain to track cleanliness, while BitPay is launching a new service to enable businesses to make payments using cryptocurrencies. And Cointelegraph is using Rarible to offer single edition NFTs of its illustrators’ art-inspired illustrations.

But the blockchain might want to steer clear of voting systems for a while. Security experts at MIT say that using blockchain voting technology might increase the risk of hackers trying to tamper with elections.

It’s not all good news for cryptocurrency journalists though. Binance is suing Forbes and two of its journalists. The publication had alleged that Binance had a plan to avoid US regulators. The company denies the allegation and is demanding compensation and punitive damages.

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The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.



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Quant Analyst: Surging Stablecoin Supply To Drive Unprecedented Bitcoin Buy Pressure

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As Bitcoin soars toward a new all-time high and has recaptured the interest of the world of finance, a sizable supply of liquidity is building on exchanges, not in BTC, but in stablecoins. The rising supply alongside surging crypto valuations suggests that the recent rally is “liquidity-driven,” according to one cryptocurrency quantitative analyst.

That liquidity as it continues to stack up on exchanges everywhere could soon bring the most “unprecedented buying pressure in history” to the crypto market. Could the likes of Tether and USD Coin be the key to unlocking the prices in Bitcoin that experts someday predict?

“Liquidity-Driven Market Rally” Takes Bitcoin To Nearly $20,000

Bitcoin price is nearing $20,000, and at this point, the asset has gone parabolic, and most technical analysis has gone out the window. Trendlines no longer hold the unstoppable cryptocurrency back, and indicators have been overheated for weeks on end with not so much as a stumble, let alone a significant pullback.

Beyond technical analysis, fundamental analysis – consisting of quantitive and qualitative analysis – can also be used to determining the health or strength of an asset and its expected performance. Data showing that BTC was moving off of exchanges was perhaps the most useful information leading up to the recent rally.

RELATED READING | FOMO BEGINS: BITCOIN ADOPTION EXPLODES TO HIGHEST LEVEL SINCE PREVIOUS PARABOLIC PEAK

With no BTC on exchanges to buy and a diminishing supply, a sell-side liquidity crisis played out, sending the cryptocurrency from $10,000 to $20,000 in a few months flat.

With Bitcoin still trending hard and technicals remaining unreliable, quantitative data is king. And according to a leading crypto quant analyst, there is plenty of reason for more upside. In fact, billions and billions of reasons are pilling up on exchanges right now.

Crypto Quant CEO: Stablecoin Supply To Drive “Unprecedented Buying Pressure”

According to Ki Young Ju, CEO of Crypto Quant, the stablecoin supply is growing rapidly on cryptocurrency exchanges. This liquidity, he claims, will soon drive “unprecedented buying pressure” in crypto markets. The capital pouring in tells the CEO that the current rally is liquidity-driven, and is set to continue henceforth.

RELATED READING | WHY THE RECORD $5,000 BITCOIN MONTHLY CLOSE COULD SOON BECOME THE NORM

The data is yet another factor backing up the theory that Bitcoin has begun a new bull trend, and could reach some of the astronomical prices that experts predict.

Bitcoin rallies with each injection of more Tether into the market | Source: BTCUSD on TradingView.com

In the past, sharp-eyed crypto analysts notice a correlation between new Tether minted and Bitcoin rallies. That relationship is all due to the liquidity that the stablecoin supplies, which eventually flows into the Bitcoin and crypto market cap.

But liquidity pouring in like never before, things will only get more bullish for Bitcoin and crypto from here on out.

Featured image from Deposit Photos, Charts from TradingView.com and Crypto Quant





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RSK-based DeFi protocol launches innovative decentralized exchange concept

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DeFi protocol Money on Chain, a lending platform and stablecoin issuer based on Bitcoin (BTC) sidechain RSK, announced Wednesday the launch of TEX, an automated token swap platform based on an order book with a unique twist.

Instead of being available instantaneously, orders are processed in batches according to a slightly variable interval of a few minutes. Each execution, called a tick, matches the orders submitted to the blockchain.

Each trade occurring in a given tick is performed at the same average price between all orders submitted by traders. Limit orders submitted by users indicate the maximum or minimum acceptable price. For example, a limit order to sell Bitcoin for $18,000 will not be triggered if the average price is $17,900.

As Max Carjuzaa, CEO of Money on Chain, explained to Cointelegraph that the system also uses an oracle system for more fine-tuned control. With so-called market maker orders, traders express a price with a certain percentage offset from the reference rate obtained by the oracle. This ensures that the orders will track the changes in price occurring between ticks.

The design of the system was inspired by the London Spot Fix, a pricing mechanism for gold where a committee decides on the price of gold two times per day.

Automated market makers like Uniswap are often seen as a necessity in light of the slow performance of blockchain-based systems. When asked if these concerns drove the design of TEX, Carjuzaa replied:

“No, the primary reason it was adopted is fair price discovery. The method used in the TEX is a way to avoid front-running and ensure fair price discovery, even at low volume.”

Front-running and price discovery are often considered major issues in AMM exchanges, but Carjuzaa also believes the system “needs much less liquidity to operate.” For the same liquidity, he claims AMMs will have more slippage compared to TEX. This benefit is “especially important in a new network, and enables organic liquidity growth.”



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2 counterarguments for CNBC’s Brian Kelly who sees a $19K Bitcoin top

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CNBC Fast Money trader Brian Kelly sees three potential signs of a price top as Bitcoin (BTC) hits $19,000. Both fundamental and technical factors suggest a pullback could be imminent as the rally becomes overextended.

BTC/USDT 1-hour chart (Binance). Source: TradingView.com

Kelly named three reasons why a short-term Bitcoin pullback might occur. The reasons were the pump of altcoins, overpriced address growth and high funding rates. On Nov. 25, he said on CNBC:

“I’m still a Bitcoin bull. In the long run, I’m going to be a bull for the next decade. But, if I take off the long-term investor hat and put on my short-term hedge fund trader hat, there are a couple of things out there that I’m starting to see are signs of a top.”

Altcoin pump is shaking things up

As Cointelegraph reported, alternative cryptocurrencies, or altcoins, such as XRP and Stellar (XLM) have surged steeply in recent months. Their uptrends were reminiscent of the January 2018 altcoin mania, when BTC started to pull back and altcoins rallied.