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Bitcoin, Ether Lose Ground as Twitter CFO Rules Out Crypto Investment, Dollar Index Hits 16-Month High – Coindesk

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Chart showing a drop in bitcoin's price Nov. 16 (CoinDesk, highcharts.com)
Bitcoin, ether and other major coins face selling pressure as anti-crypto comments from Twitter’s chief financial officer soured the market mood. The continued strength in the dollar index likely added to bearish forces.
Bitcoin was trading 4.3% lower on the day near $60,800, while ether was nursing a 5.3% loss at $4,320 at press time, according to CoinDesk data. Litecoin, Binance coin, Polkadot’s DOT token and prominent decentralized finance coins flashed bigger losses.
The selling began during early Asia hours after Wall Street Journal quoted social media giant Twitter’s CFO Ned Segal saying that investing cash holdings into crypto assets like bitcoin “doesn’t make sense” right now.
Segal cited price volatility and the lack of accounting rules for these assets as critical factors stopping the company from diversifying into cryptocurrencies.
While there was never any expectation of Twitter announcing crypto investments, Segal’s comments likely provided a reason for traders to take some risk off the table in the wake of the rising dollar and controversial crypto tax reporting requirement introduced by the $1 trillion bipartisan infrastructure bill signed into law by the U.S. President Joe Biden on Monday.
The infrastructure bill requires brokers to provide the Internal Revenue Service with information about traders transacting an amount of over $10,000. The crypto industry is worried that the definition of the word “broker” may be open-ended, bringing miners and node operators under the tax hammer and create tax reporting challenges for investors.
Few companies including Square, Tesla and MicroStrategy have acquired bitcoin as a reserve asset, and widespread corporate adoption remains elusive to date. On Monday, analysts told CoinDesk that bitcoin’s relatively high price volatility is delaying its transition to haven asset from a risk-on or speculative investment.
The dollar index, which tracks the greenback’s value against major fiat currencies, reached a fresh 16-month high of 95.50 early today on lingering fears that Federal Reserve may resort to early interest rate hikes to contain inflation. Interest rate hikes are generally bullish for domestic currencies and weigh over perceived inflation hedges like bitcoin and gold. Like gold, bitcoin is also priced in U.S. dollars. So a rising dollar is considered bearish for the cryptocurrency.
China’s National Development and Reform Commission said on Tuesday that it would consider “punitive electricity prices” for some crypto mines in the next stage of its crypto mining crackdown. China stepped up its crackdown on mining in May and declared bitcoin, ether and tether as illegal in the third quarter.
Analysts said bitcoin could suffer a deeper drawdown in the short term.
“We have noticed some larger sales occur on [cryptocurrency exchange] Bitfinex as well as openings of new short positions,” said Matthew Dibb, COO and co-founder of Stack Funds. While liquidations [forced closure of long positions] so far are quite low by historical standard and funding rates are approaching flat, we could see a further cool-off in BTC for the short term as momentum is beginning to stall.”
Martin Cheung, an options trader from Pulsar Trading Capital, said the downward move represents a healthy correction and could extended further to $60,000 or possibly to $55,000.
“We have been seeing bearish flows in the options market from late last week,” Cheung told CoinDesk in a Telegram chat. “Put-call skews have flipped bearish.”
Put-call skews measure the cost of put options or bearish bets relative to calls or bullish bets. Positive values indicate increased demand for puts or downside protection.
Bitcoin put-call skews (Skew)
The one-month put-call skew has risen to a four-week high of 5% from -2% on Monday, according to data provided by the crypto derivatives research firm Skew. The one-week gauge has increased from 1% to 6%.
A deeper drawdown may be seen later on Tuesday if the U.S. retail sales number beats estimates and Federal Reserve officials start to sound the alarm over inflation, bolstering rate hike fears and adding to the dollar’s strength.
According to FXStreet, retail sales data, scheduled for release at 13:30 UTC (8:30 a.m. ET), are likely to show consumer spending in the world’s largest economy rose 0.7% month-on-month in October.
Atlanta Fed President Raphael Bostic, Richmond Fed President Thomas Barkin, Philadelphia Fed President Patrick Harker, and San Francisco President Mary Daly are scheduled to speak during U.S. hours.
China’s President Xi and U.S. President Biden met on Monday evening at a virtual summit. As markets still await readouts from the meeting, the initial reports appear to be positive.
Also on Tuesday, Reserve Bank of Australia’s Governor Philip Lowe reiterated that the latest data and forecasts do not warrant an increase in the interest rate in 2022.
UPDATE (Nov. 16, 07:50 UTC): Adds information about infrastructure bill in fifth and sixth paragraphs.
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Omkar Godbole
Omkar Godbole is the senior reporter on CoinDesk's Markets team.
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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
@2021 CoinDesk

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Crypto Airdrop: What's an Airdrop and Why Crypto Airdrops Are Issued – Coindesk

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Crypto Airdrop: What’s an Airdrop and Why Crypto Airdrops Are Issued  Coindesk
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Foundry launches a BTC mining rig marketplace with over 40k units – Techstory

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The Bitcoin mining industry is booming as the overall network hashrate continues to increase. This has been used as a good opportunity by Foundry to launch a BTC mining rig marketplace. The mining rig marketplace is called the Foundryx and has over 40,000 mining units for resale. They also have their own mining setups, which contribute 16.8% to the total BTC hash rate. This also makes them the largest miner as per hash rate, followed closely by AntPool.
The company has been making money by employing the mining rigs themselves and selling them as well. This makes it really profitable for them. In August 2020, the digital currency group invested $100 million in the company. Foundry was just a year old when this investment was made, and they have been working in the BTC mining industry ever since. Their new marketplace is also a step in the right direction as it offers much-needed rigs in the market,
Foundry USA launches BTC mining rig marketplace
The company is already the largest individual contributor of the BTC hash rate with 29.83 EH/s. And now, they are planning to use the company’s robust shipping and logistic units to reach customers who purchase from their new mining unit marketplace. I think their profits are going off the charts with this new business idea.
One very important thing to note here is that the BTC mining rig marketplace has units for resale. This means it doesn’t sell new devices. The mining rigs have been used before and hence will be available for cheaper rates. Additionally, the current supply chain issues and chip shortages have increased the demand for used rigs. Currently, there aren’t many used rigs resellers in the market that can be trusted properly, but with Foundryx, the trust factor is there. This is why they are planning to become a properly trusted secondary marketplace of BTC mining rigs. It is also important to note that Foundry has also been launching staking services on 20 different networks, which will be yet another important business for them.
What are your thoughts on Foundry USA launching a used BTC mining rig marketplace? And do you think it will take off due to the current shortage of chips and rigs supply? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Metaverse will be a multitrillion dollar market, says Cathie Wood.
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I am a geek trying to make an audience for his awesome content. With laser eyes, I believe that Bitcoin is going to $100k very soon. HODL! Follow me on Twitter for more updates.

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Crypto Markets Rebound $130B: Bitcoin Recovers 5%, Shiba Inu Up 37% Since Yesterday’s Low – CryptoPotato

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The crypto market has recovered more than $100 billion in a day with BTC standing at $36,000 and the alts with more impressive gains.
After the two consecutive days of price slides, bitcoin has reclaimed some ground and stands around $36,000. The altcoins have reacted even better with notable double-digit price gains from Terra, Avalanche, Shiba Inu, and many others.
The past few days didn’t go all that well for the primary cryptocurrency. It was just on Thursday when a sudden price pump drove the asset to a multi-day high at $43,500.
However, this is where it all went south. Bitcoin started to dump in value rapidly and slumped to $38,000 a day later. This became the lowest price point since early August.
While this was a steep correction of its own, the bears only tightened their grip on the market. As a result, BTC dropped by another $4,000 and dipped to around $34,000. This, on the other hand, became the lowest price point since late July.
Since then, though, BTC added around $2,000 and now stands at $36,000. Nevertheless, its market capitalization is still well below $700 billion.
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The altcoins suffered even more than BTC in the past few days with massive price drops. Now, though, most are well in the green on a daily scale.
Ethereum went down by roughly $1,000 in two days, bottoming at $2,300. Now, though, ETH has added more than $200 of value and sits above $2,500. More similar gains come from Ripple and Solana.
On the other hand, Binance Coin, Cardano, Polkadot, Dogecoin, and MATIC have recovered around 10% each. More gains come from Terra (20%), Avalanche (13%), and Shiba Inu (21%) on a daily scale. SHIB is up by approximately 40% since yesterday’s low, though.
Ultimately, the cryptocurrency market capitalization is up by $130 billion since yesterday’s low and is now at nearly $1.7 trillion.
Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn

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