On May 26, bitcoin again failed to overcome an important resistance level of $40,000, after which its price fell to $37,000. The cryptocurrency continues to recover after first its quotes fell by a third to $30,000 on May 19, then rose above $42,000 and again fell to $31,000 on May 23.

Bitcoin fell last week amid a statement by the Chinese authorities. Vice Premier of the State Council of China Liu He called for stricter regulation of mining and crypto-trading in the country. The market collapsed despite the fact that the government did not even offer specific measures to impact the cryptocurrency industry.

The government then reiterated its tough stance on cryptocurrencies in an article titled "Urgently eliminate hype and chaos around virtual currencies," published by Xinhua news agency. After that, miners began to leave China and trading platforms began to suspend services to customers from that country.

The negative impact on the market is already built into the price, in fact, the entire current so-called "cryptogedon" is related to it. Similar bans have happened in China many times before, but all of them had only a temporary negative impact. Accordingly, we are not talking about the long term.

However, the negative background was supported not only by the news from the Celestial Empire. Elon Musk added reasons to sell cryptocurrency after he criticized bitcoin and Tesla refused to sell its products for it.

To be fair, at the time the quotes collapsed, Musk expressed support for the cryptocurrency community by posting a post titled "Tesla Has Diamond Hands." It was a hint that the company was not selling its bitcoins. And then the billionaire reported that he held a meeting with North American miners to discuss the use of renewable energy sources.

Overall, even now, the situation in the global economy and the crypto market points to continued growth. Without these bans, it is likely that the market would have continued to grow after a slight correction. In the near future, growth of 50-70% from the current marks is possible, given the outflow of bitcoins and ethers from exchanges, "free" in the market stabelcoins, as well as the very low value of the top cryptocurrencies in the current growth cycle.

After bitcoin collapsed to $30,000, the largest outflow of bitcoins from cryptocurrency exchanges since last year occurred. In 24 hours, 175 thousand bitcoins worth about $7 billion were withdrawn from trading platforms. It also became known that the main buyers of the cryptocurrency during the fall were large investment funds.

According to Glassnode service, the lion's share of bitcoins sold during the current fall were bought in the last 3-6 months. This suggests that it was mostly newcomers to the market who were selling. Not big investors, but retailers who planned to make a lot of money during the current growth cycle. However, the situation in China and Musk's imprudent statements scared them and caused panic sales. As a result, the price very impulsively sagged.

I still stick to the scenario that bitcoin will reach $80-85 thousand by the end of the year. The current fall, as I think, will only accelerate the price, as it was after the March 2020 collapse.

Much will become known after the June meeting of the U.S. Federal Reserve which will either announce the beginning of the rollback of QE (quantitative easing), as well as other stimulus instruments, or not.

If it is announced, all risky assets will temporarily go down in value. However it seems to me that the Fed understands that it is not the right time to make a collapse in markets, so the stimulus rollback will be postponed and the cryptocurrency will grow and return to the highs as a result.

Customers of the U.S. payment system got the opportunity to use digital money to pay for goods and services. Experts explained why this is important and can influence similar decisions in Apple Pay and Google Pay.

PayPal has allowed U.S. customers to use cryptocurrency. Users who hold Bitcoin, Ethereum, Bitcoin Cash and Litecoin in their wallets will be able to convert them into fiat currencies at the time of purchase at 29 million merchants that work with the payment system.

Against this backdrop, the bitcoin exchange rate rose sharply, peaking at $59,300 for the first time since March 20. Quotes for the cryptocurrency came close to the all-time high of $61,800 set on March 14.

PayPal’s announcement is another milestone in the global acceptance of cryptocurrency as a means of payment and a reinforcement of its fundamental importance, explained Vladimir Smetanin, CEO of Newcent, Swiss financial firm.

The event follows a string of other announcements — Tesla’s recent announcement, Visa’s news yesterday — but it is different in that it covers a huge number of outlets (29 million, according to PayPal) and therefore potentially customers worldwide — with the appropriate country legislation and access to full functionality.

Last week, Tesla added the ability to pay for its products with bitcoins. For now, the service is only available to U.S. customers; it will appear in other countries later this year. The company will not convert BTC received as payment into fiat currency.

At the same time, Visa became the first of the major payment systems which began to carry out transactions in cryptocurrency. The company transferred USDC Stablecoin using the Ethereum blockchain. Previously, it allowed its users to make transactions only in fiat currency.
PayPal, Visa, Tesla are American companies, and this is important because the cryptocurrency industry depends on certain decisions of the US Securities and Exchange Commission (SEC). Amid this news, bitcoin may soon update its historical high in value.

This kind of green light from PayPal and other payment systems could influence similar decisions in Apple Pay and Google Pay. Especially since Apple Pay executives have spoken quite positively about cryptocurrencies and have even done integration with BitPay.

Back in the fall of 2019, Apple Pay vice president Jennifer Bailey said the payments company was interested in the digital space. She said that cryptocurrencies have long-term potential and great prospects for the future. At the same time, in February of this year, cryptoprocessing service BitPay announced that it would add its card to Apple Pay.

In February, Elon Musk’s favorite cryptocurrency became really popular. Here is a column about the altcoin meme’s journey from being a joke to billion-dollar capitalization project.

In 2013, the first bitcoin bull market occurred — it crossed the $130 mark and moved into an active growth phase, exceeding $1100 in a few months. The cryptocurrency sphere was becoming more and more popular. At the same time, two programmers — Billy Marcus from IBM and Jackson Palmer from Adobe — turned their attention to it. Palmer jokingly created the cryptocurrency Dogecoin, and Marcus joined him a few days after registering the domain Dogecoin.com.

The altcoin was issued on the Litecoin blockchain, making its issuance unlimited. Dogecoin immediately gained a community on the wave of cryptocurrency hype — only a month after its launch, Dogecoin.com was visited by more than a million people.

Reddit played no small role in the spread of the asset. Its users began to use the token for donations — coins were cheap, as well as transaction fees. The cryptocurrency was also used to fund the Jamaican bobsleigh team. Its performance at Sochi Olympics in 2014 was in jeopardy, and some of the funds were raised in the form of donations in Dogecoin.
This is not the only appearance of cryptocurrency in the world of sports. For example, in 2014, the community raised over $50,000 and placed an altcoin logo on a NASCAR racing series car.

The community is a distinctive feature of the project. This case occurred at the dawn of its inception, in December 2013. Then hackers stole almost all the coins from the Dogewallet platform. To help the affected customers of the platform, a fundraiser called “SaveDogemas” was organized. After a month, the amount of donations was enough to cover all the losses.

Elon Musk’s interest

In April 2019, the project conducted a mock poll on its Twitter, asking users to choose a new CEO. Among the contenders were Ethereum creator Vitalik Buterin, Litecoin founder Charlie Lee, Tesla and SpaceX head Elon Musk, and Metal startup CEO Marshall Hayner. Musk won almost half of the votes and was solemnly announced as the new head of Dogecoin.

“Dogecoin might be my favorite cryptocurrency. It’s very cool,” Musk wrote at the time. After that, he called himself the former CEO of the altcoin and published several joking tweets about it. However, businessman began to actively promote the asset almost two years later — at the beginning of 2021.

Dogecoin’s multiple growth in 2021

At the end of January, altcoin quotes rose 1115% in three days — it was trading at $0.007 on January 27 and set a historical high of $0.087 on the 29th. This growth was caused by the movement of WallStreetBets, which influenced the “pamp” shares of various companies, including Gamestop, a chain of video game stores.

Dogecoin’s first spike in quotes this year came after Twitter user WSB Chairman (938,000 followers) wrote about the cryptocurrency. He noted that a lot of people are talking about Dogecoin and asked what kind of asset it is.

However the growth turned out to be short-lived. Immediately after the price set a historical high of $0.087, there was a “dump”, the next day it fell almost 4 times, to $0.022. The cryptocurrency began to recover in February amid a slew of reports about it from Elon Musk.

On February 7, quotes of the asset on the crypto exchange Currency.com reached an all-time high above $0.089, after which it went into a decline phase again. As of February 24, the asset is trading at $0.052.

Digital money industry valuation exceeds $1.175 trillion for the first time amid rising bitcoin and other coins.

On Friday, February 5, the total capitalization of the crypto market reached an all-time high of more than $1.175 trillion, with total daily trading volumes reaching $160 billion. This came on the back of the rise in the value of bitcoin and other cryptocurrencies.

Over the past week, the main digital coin gained 13%, Ethereum gained 24%, and Polkadot gained 20%. At its peak, bitcoin’s capitalization exceeded $700 billion and ETH was $190 billion.

Earlier payment giant Visa announced the release of its own system (API) for the purchase of cryptocurrencies, which will be integrated by banks. The launch of the product is scheduled for the end of this year. The first user of the service will be a digital bank First Boulevard.

Source: https://medium.com/switchere-news/crypto-market-capitalization-hit-a-new-historic-high-35af88dee4ca

[edited to include source]

Since the beginning of the year, the Ethereum exchange rate has increased by 270%. Analysts expect the upward movement to continue, but there is a factor that may cancel the scenario with growth.

The number of long positions on Ethereum at BItfinex has set a new historic high at 2.093 million ETH. Since the beginning of the year, this figure has grown by more than 300%. On the one hand, this is a favorable factor for the exchange rate of the cryptocurrency, as it indicates the confidence of investors in its future. On the other hand, the cost of altcoin has increased by 270% to $490 since January. If investors start fixing profit, that may lead to lower quotations.

Ethereum maintains growth potential, NewsBTC analyst Aayush Jindal said. According to this forecast, the coin rate may rise up to $500 in the nearest future. If this level of resistance is overcome, the price is likely to continue rising up to $520.

Jindal specified that the Ethereum quotes drop is also possible. The price may go down to $465. A key support level has been formed at this level, which will protect the cryptocurrency rate from a significant decline.

Cointelegraph analyst Rakesh Upadhyay is also optimistic. In his opinion, Ethereum may rise to $520 and then to $550 soon. But to do this, the price of the coin must be fixed above the resistance level of $488, which is actively protected by sellers.

Upadhyay stressed that it is important for the altcoin holders to keep an eye on the $442 level. An important support level has been formed here. If the Ethereum price falls below it, it will cancel the upside scenario and make it possible to drop to $399.

The day before yesterday, November 18, IBC Group, an investment company based in Dubai, announced that it had invested about $10 million in Ethereum. The firm acquired 20,000 ETH and transferred them to a deposit contract for the second version of the altcoin network. When it is launched, this will allow the company to passively increase the number of coins through the stacking function.

Source: https://medium.com/switchere-news/will-ethereum-rise-up-to-550-what-should-investors-expect-d8be0156006f

The growth of the crypto rates is influenced by many factors — from the introduction of stacking and the withdrawal of tokens on the exchanges to acquisitions and obtaining financing.

There are at least 15 reasons that can cause a gradual or sharp rise in the price of cryptocurrencies. Cryptocurrency price hikes occur after disclosure of important information about the project development. They may be:

• Project mergers and acquisitions
  Conclusion of partnerships
  Receiving financing
  Introduction of Stacking
  Burning tokens
  Adding a token to a new exchange
  Starting the main token network

On average, in the first hour after the disclosure of such information token price rises, but slightly — only by 0.5%. This is due to the fact that it takes some time for information to spread in the crypto community. On the first day after the publication of the news, the asset price rises by 0.8–1.3%, and within a week — by 2–8.2%.

In the short term, announcements of significant improvements to the project and mergers and acquisitions have the greatest impact on the crypto exchange rate. In the long run, news about stacking implementation, partnerships, and halving also becomes an important driver.
News of mergers of projects or takeovers of one another in 90% of cases leads to an increase in token value within a week. On average, in such cases, assets increase by 8.23%.

There is a tendency to accumulate BTC in the cryptomarket, according to Delphi Digital analysts. They found that this year the time horizons of digital coin holders have increased.

In 2020, Bitcoin is in a more stable upward trend than last year, according to a new report by the analytical company Delphi Digital. Experts have found that this year the balances of cryptocurrency exchange wallets continued to fall, despite the rise in the price of the main digital coin. This suggests that traders and investors, selling the asset, put less pressure on its quotes, Cointelegraph.

“This indicates a more stable upward trend in bitcoin compared to 2019. The data indicate that the time horizons of crypto holders have increased,” — experts believe.

Over the past 6 months, the balance of crypto-exchange wallets has fallen from a historical high of 2.96 million BTC in late February to 2.59 million BTC in mid-September. Then the cryptocurrency was traded at the level of $9580, now it costs $10,430. Delphi Digital emphasized that when the rate of crypto is growing and its stocks on the stock exchanges are decreasing, it indicates a tendency to accumulate an asset.

Since the beginning of this year, the largest cryptocurrencies in terms of capitalization showed high growth in value. The bitcoin rate increased by 65% to $11,800, the Ethereum price - by 240% to $455. Crypto-experts have a positive outlook on the digital money market in the next few months.

Our considerations about Bitcoin


Bitcoin is now in the range of $11-12k, we see a decrease in volatility, but we believe that in the fall we will see the main cryptocurrency at a price of $14k, and maybe even higher - all the prerequisites for this are there. Tension and instability are growing in the world. This is now the main catalyst for the growth of crypto prices, and institutional investors are beginning to enter this market.

Our considerations about Ethereum

As to Ethereum, it's very difficult to predict, because everything rests on the success of the transition to Ethereum 2.0 and the solution of the problem of network scalability. Nevertheless, we can see that despite significant risks, most investors are positive: the exchange rate of the cryptocurrency is growing, the number of addresses where ETH is stored is increasing.

What do you think about it?