Dear Teroxx Community,
This week we saw a crypto-market that saw a bullish enviroment and positive price jumps in most assets.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
The presidency of Joe Biden could initially have three effects on the price of Bitcoin. The three key drivers that could be expected to have an initial impact are new economic aid, a strengthening US dollar and a resurgence of stock markets. New corona payments could also have a positive effect on Bitcoin, as they would ease the financial situation of many households and businesses in the US. If the US economy is successfully stimulated, investors will be more willing to invest in speculative investment products such as the market-leading crypto currency.
The perception of Bitcoin is increasingly changing from a speculative investment product to a hedge against inflation.
The market value of Bitcoin has jumped sharply with the recent rise in its price, making the crypto-currency now larger than many corporations. Bitcoin is currently ranked 18th among the largest companies in the United States compared to listed companies.
Bitcoin thus ranks between the Home Depot DIY chain and the telecommunications company Verizon.
Ethereum 2.0 Phase 0 has now been formalised and is expected to start around 1 December. The deposit contract is now online and you can now collect the necessary funds to trigger the staking. People interested in staking can now deposit their 32 Ether (ETH) into the contract via the special launchpad and prepare for the launch.
The contract must collect 16384 deposits of 32 ETH each, i.e. a total of 524,288 ETH or about 200 million US dollars, in order to launch this function. The transitions from phase 1 and phase 2, which are to follow in the coming years, will at some point convert the existing Ethereum infrastructure to the new, staking consensus.
Technical term of the week
Staking: The main idea is that participants can block coins (their “stack”) and at certain intervals the protocol randomly assigns one of them the right to validate the next block. As a rule, the probability of being selected is proportional to the number of coins – the more coins deposited and blocked, the higher the chances = higher chance of rewards.
This week we saw another bull run at Bitcoin. After the PayPal hype cooled off in the media at the beginning of the week, the market kept support just above $13,000, which made the market bullish. Driven by the rally on the world markets (Dow, SP500, Nasdaq, Dax), Bitcoin was also able to make big price jumps last week.
If the world markets around the US election were in a very positive mood, contrary to expectations (hanging packs actually cause uncertainty and falling prices), Bitcoin was boosted and new annual highs were established. $16,000 was almost scratched and all resistance on the way there was broken.
Currently the market is in a phase of “small” correction. Still in a very bullish mood, but new catalysts are now needed for big rises.
In Bitcoin, even small sales down to $14,400 did not change the mood and there were quick and large buybacks, which allowed the $15,000 to be climbed back up.
A lot of support has been built up, but bull-runs are always shaky as profit taking may drive larger sales.
Bullish outlook: If the Tech rallye will push the world markets again we can easily see new yearly highs above $16.000 this week.
Bearish outlook: $15.000 seems magical at the moment. Losing this support longterm could force sell-offs down to $13.500