Connect with us

Market Watch

DeFi Token Yearn Finance (YFI) Unsurps Bitcoin Dollar Value, As Waves Makes List of Top Gainers

Published

on

In Brief: Here’s a recap of the cryptocurrncy market watch – 18th August 2020

  • Bitcoin crosses the  $12,000 resistance level and finds support around $12,200.
  • Yearn finance (YFI) swings bullish again, with a 50% gain to create new all-time high.
  • WAVES continues gains of a week with today’s gains driving towards  the $4.5 price level

Our today’s top gainers list features a few DeFi token accomplishing brilliantly, following bitcoin’s market leadership.

Bitcoin continues to maintains the position of the top cryptocurrency by market capitalization and once again, it has proven it’s worth by defeating the long-held $12,000 resistance level. After several days of sideways motion, Bitcoin (BTC) finally breaks the $12k price level and as foretold by several analysts, is moving towards $13,000.

Today, DeFi token, Yearn.Finance (YFI) reports the highest 24 hour gains, followed by WAVES which made roughly 18% profit in the past 24 hours. Meanwhile, bitcoin is observed moving towards the sub-$13,000 level.

Bitcoin Surges Past $12,000 (BTC 3.45% Gain)

Bitcoin’s profit since yesterday is not so glamorous when compared to its top competitions. Hence, it cannot exactly be considered a top gainer. However, the coin is observed to be arriving at a decisive point, and may be getting ready for a new rush of gains.

Today, Bitcoin documents a 3.45% gain, breaking a major resistance level at $12,000. BTC has, in effect, been tagged as the top crypto by market capitalization, according to CoinMarketCap.

Bitcoin price chart

Bitcoin is up by 19.9% in the 1 year time frame, and also boosted by 3.0% in the last week. The top crypto has been able to make twice as much gains obtained since the last day. 

About 92% of traders are eager in extra earnings as the trading day matures, indicating an abundant bullish market attention towards bitcoin.

Technical Indicators

It is highly likely that bitcoin will break the resistance at $12,500 and press forward. Although the RSI is horizontal at the 50.0 level, the coin has broken major resistance at $12,200.

  • The next  major resistance level is $12,500
  • Next level of major support is $12,200
  •  RSI is horizontal at 50.0, and further movement will be determined by the next direction of the RSI.

Bitcoin is now trading around $12,217, with a market cap of $225 billion. 

Yearn.finance reaches new all-time high (YFI, 34% Gain)

DeFi token, Yearn Finance, YFI, continues to maintain a week-long market gain which accumulates to 102.7%. Within the last 24 hours, the coin profited around 36%. 

YFI overtook the opposition at $12,000, right after breaking the $11,800 resistance level. Before midday, the coin tested the $12,500 price level. Although it initially failed to break the $12,500 level properly, the cryptocurrency had now retraced back to the $9,500 price area.

Yearn Finance YFI price action

YFI recorded the most gains among the top gaining cryptocurrencies of the ongoing bull season within the last month, with a documented gain of around 1000%.

YFI shows a brilliant market traction within the last 24 hours. Presently, YFI trades at $9,905

Waves Makes Top Gainers List (WAVES 18% Up)

Waves price action

Also on today’s list of top gainers is WAVES, which has advanced greatly in order to attain today’s list of top gainers. In the last 24 hours, the coin made approximately 18% profit. WAVES looks bullish in the hourly time frame with a gaining record of roughly 6.5% in the last hour.

WAVES has been in earnings since last year, and the coin recently made the headlines. The coin is up by nearly 261% in a year, 197% within the last 30 days, and has also recorded a 122% gain within the last seven days.

The market opinion is bullish for WAVES as 80% of traders chose for a buy, indicating a possible upward profit for this cryptocurrency.

WAVES currently trades at $4.20, with a total market cap of $437 million.

Technical Indicators

  • Next major resistance at $4.50
  • Next major support level at $4.20
  • RSI peaks through the 30.0 oversold condition. 
  • Bullish ride moves above the Bollinger indicator.

Comments

Decentralize Daily

From Crypto and Blockchain to AI, Fintech and Web 3.0 delivered twice in a week (Mondays and Fridays)

Learning Guides

Understanding Speculation and Crypto Volatility

Published

on

Everyone who dabbles in the crypto industry learns almost immediately that the market is very volatile and oftentimes things can change very quickly. That volatility is the fundamental reason why some investors make absolutely stunning gains in so short a time and others lose a lot of money as well. Trading in crypto is one of the riskiest ventures any person can undertake and as they say, it’s not for the faint of heart. The risks can be mitigated of course and sometimes depends specifically on the coin or crypto asset being traded on, barring general market trends.

Nevertheless, to get to the bottom of the volatility concept, one must understand speculation in the market. To start off, the concept of speculation isn’t limited to cryptocurrencies, on the contrary, speculation has existed for as long as economics and trading has. But it is worth saying that speculation is often a feature of novel sectors, assets, commodities and the like. So, even though cryptocurrencies have been around for more than a decade, they’re still in their infancy as far as markets go. One could say that the market is still trying to find its feet.

One of the fundamental reasons why cryptocurrencies are so volatile is that they are fundamentally backed by nothing of value outside the attention that they get. Unlike many fiat currencies which are either pegged to another currency’s value or whose value is unilaterally determined by a central authority, cryptocurrencies only derive value as a function of how many people are willing to use is to transact, i.e. trust in the asset because other people trust it. As a rule of thumb, the larger the number of people who accept the asset, the more valuable it becomes.

This is one of the hallmarks of speculative trading. In the crypto world or in any market that’s novel and untested, many people are in it to win it which means their strategies in trade has the objective of making as much profits as possible in the short term. Therefore, the market enters a subtly dangerous cycle of rapidly changing prices of assets. Basically, investors typically buy assets when prices are low and wait. As more investors are attracted to the commodity for its low prices, it sets off a cascade where more people buy in, causing the price to steadily rise. 

However, all good things must come to an end and it almost always gets to a breaking point whereupon the price gets high enough for investors to begin to sell. This reverses the earlier cascade and as more and more investors pull out, the prices can fall dramatically causing even more to sell off in fear of losing whatever investments they have left. The prices having fallen resets the game and primes investors to begin buying again.

Volatility has been one of the talking points of many critics of cryptocurrencies often comparing it to a Ponzi scheme. And in certain cases, persons of interest with large pulls and audiences can substantially affect the rate at which prices rise and fall. Other factors include government regulations. Volatility at its core reflects the often chaotic nature of trade and market interactions and human hopes and fears.

Comments

Decentralize Daily

From Crypto and Blockchain to AI, Fintech and Web 3.0 delivered twice in a week (Mondays and Fridays)

Continue Reading

Market Watch

What China’s crypto clampdown means for investors

Published

on

Over the weekend, China, the biggest crypto mining country once again, began to clamp down on cryptocurrency. Ten Chinese agencies including the central bank and banking, securities and foreign exchange regulators have vowed to work hand in hand to expose illegal cryptocurrency activity.

China has always placed stricter rules on cryptocurrencies but the new rule has made all crypto-related activities illegal. According to the People’s Bank of China (PBOC), it is illegal to cryptocurrency trading and anyone that does so will be severely punished; this includes those within China that are working for overseas platforms. To fully phase out the cryptocurrency mining sector, the National Development and Reform Council (NDRC) said that it would launch a nationwide crackdown on cryptocurrency.

Over the years, China does not recognize cryptocurrency as a legal tender. In 2013, the Chinese government referred to Bitcoin as a virtual commodity that individuals are allowed to freely participate in. This freedom, however, precludes banks and payment companies from providing services that are Bitcoin related.

In 2017, Initial Coin Offering (ICO) was banned. The ban was also extended to the conversion of legal tenders to cryptocurrencies by trading platforms which led most of the platforms to shut down operations in China. The crackdown led 88 trading platforms and 85 ICO platforms to withdraw from the market as of July 2018.

To China, the crackdown on cryptocurrency is necessary as the country is trying to launch its official digital currency and the need to fulfil its 2060 climate targets. The crackdown was necessary as cryptocurrency was seen as infringing on people’s properties and ‘disrupting the normal economic order.’

The statement by PBOC on Friday was unequivocal as the current crackdown is distinct from the previous ones. In his statement on Friday, PBOC called Bitcoin, Ether and Tether ‘legally irreparable’ and should not be used. The new regulations forbid financial institutions, marketing and IT providers from supporting crypto-related activities. The activities of both crypto holders and miners are now considered illegal. This is what Henri Arslanian, a PwC crypto leader termed as “No ambiguity. No room for discussion. No grey areas” in his tweet.  

What does this mean for crypto holders worldwide?

The major effect of China’s crackdown on cryptocurrency is the increase in price volatility. While volatility is a common phenomenon in the crypto world, a crackdown initiated by the world biggest cryptocurrency mining country will have a huge effect on market price.    

After the PBOC interview, Bitcoin fell by 4% within 24 hours and is currently trading at $43,320. Ethereum fell by 6% and it is currently trading at $3,036. With the Evergrande debt crisis and the huge blow bedevilling the crypto market, a clampdown by China would most likely keep the market price on the red until another good news crops up.

Comments

Decentralize Daily

From Crypto and Blockchain to AI, Fintech and Web 3.0 delivered twice in a week (Mondays and Fridays)

Continue Reading

Crypto Assets

Crypto prices drop as global market fear increases

Published

on

Top cryptocurrency prices have fallen amidst a drop in stocks and fears over China’s Evergrande debt crisis. In the last 24hour, Bitcoin dropped from $47,772 to $42,630 shedding about 8.58%. this is the lowest in price since another bull run began on Sept 5 after the April crash.

El- Salvador’s President, Nayib Bukele sees the fall as an opportunity to invest more. Recall that the country adopted Bitcoin as a legal tender on September 7. Despite the adoption, the price of Bitcoin has fallen by almost 14% since then.

Other coins have experienced dramatic crashes within the last 24hours. Solana, a coin that has experienced 355% growth within the last 3 months fell from $162 to $130 shedding about 11.39% within the last 24hours. Solana’s fall may be categorized by the 17-hour outage which the founder, Anatoly Yakovenko said was caused by bots “flooding the networks”

Ethereum fell by 9.37% while Dogecoin and Axie Infinity fell by 11.22% and 14.14% respectively within the last 24hrs hours. While crypto experiences dark Monday, El-Salvador keeps investing more money in Bitcoin.

A look at the global market

The global market is experiencing fear due to the Evergrande debt crisis. A report published by the University of Michigan shows that consumer’s sentiment is beginning to decline. This trend alone may impact the crypto market as well.

On the other hand, the global market downturn must have been spurred by the Evergrande debt crisis. The company grew to be one of China’s biggest companies by borrowing more than $300bn. Last year, Beijing made rules to control the debt owed by big real estate developers. This led Evergrande to offer its properties at major discounts to raise more money to keep the business afloat. Right now, the company is struggling to meet the interest on payment of debts.

Why would it matter if Evergrande fails?

The collapse of the multi-million dollars company would affect the global market; including the crypto market. Many people bought properties from Evergrande and they expect to make gains. If Evergrande falls, crypto investors will be forced to withdraw more money to keep their business running without the means to invest more. When one business fails, the other gets affected indirectly. This also applies to other firms that do businesses with Evergrande.

The potential impact on China’s financial system is another effect of Evergrande’s fall. In his statement to BBC, Mattie Berkink, the Economist Intelligence Unit (EIU), said that “the financial fallout would be far-reaching. Evergrande reportedly owes money to around 171 domestic banks 121 other financial firms” if the company fails, other lenders or businesses may be forced to lend less. Thereby leading to a credit crunch- a situation where companies struggle to borrow money.

Comments

Decentralize Daily

From Crypto and Blockchain to AI, Fintech and Web 3.0 delivered twice in a week (Mondays and Fridays)

Continue Reading

TRENDING

%d bloggers like this: