Dear Teroxx Community,
This week we saw a positive market movements.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
The Ether price reaches the next record high, but transaction fees are also rising to record heights, dampening sentiment. The fresh upswing is partly due to increased interest in Decentralised Financial Services (DeFi), as many projects from this line of business are based on the Ethereum blockchain. However, this is also pushing the Ethereum blockchain’s transaction fees to record highs. “This is a real crisis. We can grab our popcorn already, because it will be exciting to see how Ethereum manoeuvres its way out of this misery again.” Transaction fees were over $23 at times.
Grayscale has made frequent headlines this year thanks to record-breaking BTC buying and demand. But despite the inflows, the BTC/USD pair has been unable to rise further.
At the beginning of February, the trust’s buying premium is around US$6.50. Before that, however, it could go as high as 40 US dollars. In the past, this has coincided with a strong fluctuation. Large premiums, on the other hand, mean large upward movements for Bitcoin. As soon as they are released, Bitcoin tends to shoot upwards as customers reinvest their profits in BTC. The period before that is characterised by a lack of price development.
Michael Wu admits that Bitcoin will continue to be very volatile, but the cryptocurrency is now no longer a speculative bubble. “In the beginning, this lack of understanding, this scepticism, leads to high price volatility. However, I am convinced that Bitcoin can no longer be called a speculative bubble, because in the meantime all the institutional investors, the billionaires and the billion-dollar corporations have entered the crypto market. ” Accordingly, the combination of limited supply and increasing demand is seen as the driving force behind Bitcoin’s rising price trend in the long run.
Technical term of the week
Double-Top: A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset’s price falls below a support level equal to the low between the two prior highs.
Bulish outlook: If Bitcoin crosses $40,000 in the long term, the market could experience “FOMO” (Fear of missing out) and drive prices even higher.
Bearish outlook: The Chinese New Year could lead to selling pressure if Bitcoin fails to form new highs at the same time.