Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue
Another week, another round of Crypto Tidbits.
At long last, Bitcoin and other large-cap cryptocurrencies are breaking higher. The market leader, for once, has posted a strong move over the past seven days, moving as high as $9,690. The pivotal $9,700 resistance was rejected — Bitcoin now trades for $9,650 as of this article’s writing. Yet analysts remain bullish that the move from the low-$9,000s indicates buyers are back in control.
Chart of BTC's price action over the past week from TradingView.com
It’s important to note that Bitcoin’s macro volatility indicators remain at extremely low levels. This suggests that there is a more violent move on its way, but it still isn’t clear what direction that will take the asset.
By recent standards, Bitcoin’s move has been impressive. But what has been even more impressive is the price action of Ethereum.
In the past 72 hours, the popular altcoin has gained nearly 20%, rallying from approximately $244 to a local high of $289. This rally has resulted in the ratio between ETH and BTC spiking in favor of the altcoin.
Ethereum’s strong outperformance of a majority of other large-cap cryptocurrencies is somewhat of an unknown phenomenon. From a perspective of its charts, the move seemed technical; the asset compressed into the $250 macro resistance, then exploded higher. There are some, though, that have suggested that this was a move caused by fundamentals. By fundamentals, these commentators mean
Certain prominent altcoins, such as Synthetix Network Token and Chainlink, have seen retracements since their local highs. This comes in spite of strength in Bitcoin and Ethereum, which is a market divergence certain technical analysts called weeks ago.
Other altcoins, though, have ripped higher. Take YFI as an example: the altcoin, after starting to trade on decentralized exchanges a week ago, is up by over 10,000%. The cryptocurrency is now in the top-100 cryptocurrencies.
The overall strength of the crypto market this week comes on the back of a rapid appreciation in precious metals. For the first time in around nine years, the price of an ounce of gold surmounted $1,900. And silver surged approximately 10% in 36 hours. Kyle Bass — the CIO of Hayman Capital Management — commented on this trend when he recently said:
“Silver, Gold, Bitcoin, etc all look to be ready to make explosive moves higher given the sheer amount of money printing going on around the world.”
Silver, Gold, Bitcoin, etc all look to be ready to make explosive moves higher given the sheer amount of money printing going on around the world. Here is a chart or front-month silver going back 10 years. pic.twitter.com/i9kHa9TVmi
— Kyle Bass (@Jkylebass) July 21, 2020
Related Reading: Crypto Tidbits: Twitter’s “Bitcoin Scam,” Elon Musk & Dogecoin, Institutions Want BTC & ETH
- U.S. Banks Can Now Hold Bitcoin: This Wednesday, Bitcoin was gifted with news that the Office of the Comptroller of the Currency’s senior deputy said U.S. banks can hold cryptographic keys. That’s to say, banks are now legally allowed to custody Bitcoin, Ethereum, and other digital assets that involve cryptographic keys. “The OCC recognizes that, as the financial markets become increasingly technological, there will likely be increasing need for banks and other service providers to leverage new technology and innovative ways to provide traditional services on behalf of customers,” a letter from the office read.
- Visa Discusses Bitcoin, Partnerships with Coinbase and Fold: In a blog published on July 22nd, global payments giant Visa revealed it wants to “advance its approach to digital currency.” “We believe that digital currencies have the potential to extend the value of digital payments to a greater number of people and places. As such, we want to help shape and support the role they play in the future of money. We look forward to sharing more with you on this work in the months that follow.” The company added that it has entered partnerships with digital currency platforms like Coinbase and Fold to “provide a bridge between digital currencies and our existing global network of 61 million merchants.”
- U.S. Deliberates Over More Stimulus: U.S. politicians are deliberating over more stimulus for the economy as dozens of millions remain unemployed as previous measures expire. There have been discussions of the next stimulus bill amounting to over $1 trillion, which may further boost the Bitcoin narrative.
- Cardano Activates Shelley: Hours ago as of the time of this article’s writing, Cardano rolled out Shelley to the mainnet in a hard fork.
Featured Image from Shutterstock Price tags: ethusd, xbtusd, btcusd, btcusdt Charts from TradingView.com Crypto Tidbits: Ethereum Surges 20%, US Banks Can Hold Bitcoin, DeFi Still in Vogue