Archives: November 2020

Will Bitcoin soon rise above $16,000? Trader names two bullish factors for upside potential

Bitcoin has experienced some slight turbulence in the last few hours after Pfizer developed a highly effective vaccine.

Initially, the news lowered the BTC price slightly, but since then it has shown signs of strength as buyers absorb sell orders.
It remains unclear whether or not this news and the ongoing rally in the equity markets in the days and weeks ahead is a good omen for the crypto currency.
If BTC continues to be traded like gold, it could soon take a nosedive down as precious metals and so-called „safe havens“ have been hit hard by the news.
One analyst points to a wealth of evidence suggesting that Bitcoin Trader app next big move will be a break above $16,000.

Bitcoin and the aggregated crypto market are experiencing stagnant growth, while the stock market is recovering today.

Pfizer had previously announced that its vaccine against the rapidly spreading virus has a 90% effectiveness.

This is great news for the stock market in terms of reducing global uncertainty and boosting the economy, but it is bad news for safe investments like gold – which has taken a nosedive today.

Bitcoin is still stable in the lower $15,000 range, but it also faced increased instability this morning.

Nevertheless, one analyst still believes that a move beyond $16,000 is imminent.
Bitcoin slows its rise due to vaccine news

At the time of writing, Bitcoin is trading slightly more than 1% lower at its current price of $15,300. This is roughly the price at which it was traded last week.

Although BTC has shown signs of correlation with both gold and equities in the past, its recent huge uptrend may have made it independent.

Its scarcity still makes it a great hedge against the threat of inflation, whether or not the economy remains partially shut down for a long period of time.
Analyst: BTC could recover over $16,000 next

One trader now writes in a recent tweet that both the strength of the stock market and the V-shaped reversal after Bitcoin’s slump to $14,400 indicate that a move beyond $16,000 is imminent.

„BTC – I would rather be Long towards NYO. A shorting into an earlier consolidation after a V-shaped reversal is a bear trap imo. Strong futures are open, V Reversal, after a lot of downward liquidity was attacked over the weekend. A retest at $16,000 earlier this week would be nice“.

The coming days should provide some insight into the correlation, which Bitcoin will follow in the coming weeks.

Group now controls over 51% of Grin’s hashrate

The anonymous cryptocurrency Grin (GRIN) is currently very vulnerable to a 51% attack. An unknown group of miners now control more than half of the network’s hashrate.

Grin risks 51% attack

As a reminder, the 51% attacks generally concern blockchains that use Proof-of-Work. They can occur when an entity controls more than half of the network hashrate. The latter can then reorganize the chain and the blocks to profit from them or censor transactions. This is why the occurrence of a 51% attack on Grin can be extremely problematic for the altcoin.

Grin’s second mining pool, 2Miners, issued an alert yesterday , reporting that an unknown mining pool was handling 57% of the payment network hashrate . Bitcoin Revolution data also shows that the share of hashrate controlled by this unknown entity has since increased: it has risen to 58% today:

What are the risks for Grin users?

We can already note that a block was reorganized by the unknown entity, on the day of November 7. While for now the network does not appear to be otherwise affected , this can be of concern to Grin users, who now have a sword of Damocles hanging over their blockchain.

That said, an entity can have this power over an altcoin without ever doing anything with it. For the Grin network in particular, the sparkpool mining pool had already controlled more than 60% of the network hashrate , without using the possibilities it gave it.

However, the occurrence of these vulnerabilities is no coincidence: the hash rate of the GRIN has dropped drastically for more than a year, which made it more vulnerable to attacks by 51%:

Less confidence = falling GRIN price?

Another real risk is of course the erosion of confidence in the security of the Grin network. This could have direct consequences on the price of GRIN , which was already not in great shape in recent months.

It exceeded 0.60 dollars in August but has fallen steadily since to reach 0.23 dollars this morning. For the week, it loses nsaids i 16% , with a more marked fall since the announcement of the vulnerability yesterday:

Over the past twelve months, the GRIN has lost 79% of its value. Its market cap has now fallen to $ 13 million, which places it at 324th in the ranking of cryptocurrencies by market capitalization.

Bitcoin är bubblan som fortsätter att ge

När bitcoinpriset steg över 13 400 USD under den senaste veckan har en gammal debatt återuppstått: Är det en bubbla och kommer den att spricka?

Bitcoin märktes som en bubbla från de tidigaste dagarna. Bubble-epitetet uppträdde 2013 när det var bara $ 266 och har upprepats nästan varje år sedan dess

Det tycktes trotsa konventionell investeringsförståelse. Aktiens värden stöds av vinst och obligationer med räntebetalningar. Crypto Engine, som guld, har ingen sådan grund. Hur förklarar vi då dess extraordinära resultat som en ny tillgång?

Två faktorer hjälper till att förklara detta:

Dess bredare antagande, inklusive från stora institutionella investerare; och
Dess relativa brist (det kommer bara att bli 21 miljoner mynt präglade).

Fiat-valutor som rand och US-dollar drabbas av alla svagheter i centralt kontrollerade valutor som har registrerats tillbaka till romerska och till och med babyloniska tider. Linjaler som kontrollerar dessa valutor verkar bara inte hjälpa sig själva – de blåser sig så småningom i glömska genom att trycka mer mynt, vilket bryter mot knapphetsprincipen som kärnan i alla sunda pengar.

USA: s fondförvaltare och kontroversiella Peter Schiff, aldrig ett stort fan av bitcoin, twittrade förra veckan: ”Om du mäter storleken på tillgångsbubblor baserat på nivån på övertygelse som köpare har i sin handel är bitcoinbubblan den största jag har sett . Bitcoininnehavare är mer säkra på att de har rätt och är säkra på att de inte kan förlora än vad dot-com- eller husköpare gjorde under dessa bubblor. ”

”Sedan bitcoins start har många intelligenta investerare observerat att det verkar vara en bubbla. De har mer rätt än de vet. Om vi ​​definierar en bubbeltillgång som en som är övervärderad i förhållande till inneboende värde, kan vi tänka på alla monetära tillgångar som bubblatillgångar ”, skriver Matt Huang i en ny forskningspublikation för Paradigm.

Nobelpristagaren Robert Shiller observerade att guld är en bubbla som varat tusentals år. Det har vissa industriella användningsområden, men det är värdet är att underliggande värde är en fråga om tro. „Vi kan tänka på pengar som en bubbla som aldrig dyker upp (eller som inte har dykt upp ännu) och värdet av fiatvaluta, guld eller bitcoin som förlitar sig på kollektiv tro“, skriver Huang.