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after ECB Stimulus Announcement, Bitcoin Surged to $13.5K 

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Hours after the European Central Bank (ECB) statement and optimistic job data from the U.S., Bitcoin (BTC) price rallied from $12,920 to $13,600.

According to Cointelegraph, it took just four hours for BTC to record a 5% rally in the price, increasing from $12,920 to $13,600. Coincidentally, the rally comes after positive developments from ECB and optimistic job data from the United States.

Factors Favoring the Bitcoin (BTC) Price Rally

As the U.S. and Europe registered a sharp increase in the number of COVID-19 cases, the U.S. stock market continued to decline steeply. However, despite those negative macro factors, BTC continued to rally throughout the past week.

Rise in institutional demand is noticeably strengthening the perception that people regard Bitcoin as a safe-haven asset. Bitcoin’s price outlook usually improves in the short-term when risk-on assets like stocks rally. However, when risk-on assets, such as stocks, decline, indirect pressure is usually placed on BTC.

Several events precipitated risk-on assets to increase on October 29. One was the U.S. job data showing the best weekly performance since the coronavirus pandemic began. The other was ECB’s announcement that a new stimulus package could be implemented in December.

Another stimulus package launched in Europe would do the following: massively increase the risk-on assets appetite in Europe and pressure the U.S. to deliver the necessary stimulus deal. Donald Trump, the U.S. President, earlier on declared that a stimulus package would take effect after the conclusion of the election. Now, the election is 5 days away, setting the U.S. up for a December stimulus deal.

The Governing Council of ECB has been carefully assessing the pandemic dynamics, exchange rate developments, and vaccine rollout prospects. ECB aims to explore all possibilities that guarantee the sustainability of the economy, thereby not only benefiting stocks and gold but also Bitcoin, as evidenced by its price.

ECB president Christine Lagarde hinted that a second stimulus deal is around the corner since they were prompt in addressing COVID-19 first wave.

“We have done that in the past: We have responded very promptly, very appropriately, very heavily, some would say, to the first wave that hit the euro area economies. We have done it for the first wave; we will do it again for the second wave,” she said.

Large Whale Cluster Protect the $13,000 Key Support Area

Technical analysts suggested that BTC risks dropping to lower than $12,700 the time when the Bitcoin’s price had fallen below $13,000. Fortunately, whale clusters have been key in ensuring the $13,000 level remains a strong support area. The futures market also seems to indicate the strong defense of the area as buyer demand appears to overwhelm selling pressure.

However, over the last several days, the Bitcoin futures market has registered a negative funding rate, implying that the most derivatives market is acting against BTC. The good thing is that Bitcoin demand on the spot market continues defending BTC against further sliding since it is seemingly offsetting the selling pressure.

Later today, Bitcoin’s price suddenly dropped 4% from the day’s peak due to intensified stock market uncertainty — specifically, U.S. stock market indices have suffered a 5% to 6% decline since October 12.

Bitcoin News, Cryptocurrency news, News

James Lovett is a talented crypto enthusiast who finds pleasure in sharing more knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. He likes to keep himself furnished and updated with the latest innovation in the crypto industry, blockchain technology, Internet of Things (IoT) and other technologies. As a result, he tries to furnish ardent crypto supporters with the latest news on blockchain and distributed-ledger technologies. Indeed, Blockchain and Cryptocurrency is changing the world as we know “one block at a time”. As a hobby, he also trades in small amounts of cryptos every now and then.
An author with experience writing for tech, digital, and cryptocurrency blogs!



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China retains mining control? Alipay’s ancient NFTs and Amber’s big raise

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This weekly roundup of news from Mainland China, Taiwan, and Hong Kong attempts to curate the industry’s most important news, including influential projects, changes in the regulatory landscape, and enterprise blockchain integrations.

So low you’ve got to reach up to touch the bottom

This week in China felt like one giant mining-farm sized pile of FUD. This is usually a pretty good indication that a bottom is close to being in, but one can never be too sure when it comes to downwards volatility in cryptocurrency. Canaan, one of the largest mining companies in China, announced it was setting up shop in neighboring Kazakhstan. This is an ideal compromise for Canaan as it can remain close to China, while mitigating their regulatory risk. Reading between the lines, it seems like the plan is to mostly continue administration of the company from China while sending the machines overseas.

This would put a wrench in the works of the Bitcoin purists who believe that the crackdowns are a good way to break up China’s dominance in the mining industry. Just this week, a professor at a university in Singapore wrote in Chinese that the shift to a more decentralized network would be a good thing. This raised some eyebrows for the use of a made up word that translates roughly to ‘de-China-ization’, but the article holds even less weight when large mining companies like Canaan are able to shift physical equipment overseas but still remain in control of the governance.

Too big for postage stamps

On June 21, CNBC’s Beijing Bureau Chief Eunice Yoon posted on Twitter that a logistics company in Guangzhou was shipping 3,000 kilograms worth of mining hardware to Maryland, US. According to her claim, the price was $9.37 per kilogram. Some quick math reveals that the total cost would be less than the price of one Bitcoin, at least at the time of writing.

Bitmain lends a helping hand

Cointelegraph reported on June 23 that massive mining company Bitmain was suspending sales of mining hardware in a move to support the over-supplied secondhand markets. According to the article, sales of hashing power in China has seen a decrease of around 75% since the Spring. Bitmain is reportedly moving operations abroad as well, which would be a major move for the hardware manufacturing giant.

Mine-ami

Francis Suarez, everyone’s favorite Bitcoin-friendly mayor, was at it again on June 18 when he announced that all Chinese Bitcoin miners were welcome in Miami. The announcement was translated and posted on Sina Finance’s Blockchain Weibo account, which attracted over 53 comments from surprised netizens. Most of these user comments were negative in nature however, both towards Suarez and Bitcoin in general. A large portion of Weibo users hold cryptocurrencies in ill-regard, especially those that have been investing in the stagnant Chinese stock market.

Amber is the color of your energy

Amber, a cryptocurrency service provider based in Hong Kong, completed a Series B funding round worth $100m. Amber is well known among institutions for their financial services that include asset management, OTC services and lending.

Alipay’s foray into NFTs

Top payment processor Alipay continues to push its AntChain technology by partnering with the Dunhuang Research Academy to release 8,000 NFT skins. Dunhuang is famous for being an old silk road outpost and is home to Mogao Caves, a Unesco Heritage site. The NFTs featured artwork inspired by the cultural site and quickly sold out. AntChain is a private blockchain developed by Alibaba’s Ant Group.





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Klaytn death cross debut coincides with a 57% KLAY price pump

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Bids for Klaytn’s native cryptocurrency KLAY spiked on Thursday after the South Korea-based public blockchain project confirmed its listing on Binance, one of the world’s top cryptocurrency exchanges by volume.

The KLAY/USDT exchange rate surged 41.25% to an intraday high of $1.243. The pair’s massive move uphill accompanied a dramatic intraday spike in trade volumes — 28.68 million so far into Thursday versus 13.05 million in the previous session, validating the bullish sentiment across the Klaytn market.

Profit-taking sentiment pushed KLAY prices lower after it reached $1.243. Source: TradingView.com

The gains came on the prospect of Klaytn’s global expansion after its addition on Binance. So far, the option to trade spot KLAY was majorly available across heavily-regulated South Korean exchanges — particularly Bithumb — thanks to Klaytn’s affiliation with the regional internet giant Kakao.  

Binance’s listing would introduce KLAY to wider markets, Klaytn recognized in the official announcement, adding that they would introduce a launchpool through which Binance users can stake Binance Coin (BNB) or Binance USD (BUSD) to farm KLAY tokens.

“With the official introduction of KLAY on Binance, Klaytn expects to accelerate its global expansion, inviting global developers and service providers to participate in its ecosystem.”

The news of Binance-Klaytn partnership came just as KLAY was bouncing off its six-month low level of $0.72. In turn, the rebound followed a 83.45% price crash from KLAY’s mid-April peak of $4.35. As a result, the latest 57% spike from $0.72 to $1.243 did little in taking KLAY out of its prevailing bearish bias.

Atop that, the token painted a death cross on its daily timeframe chart.

KLAY’s 50-day simple moving average is set to cross below its 200-day simple moving average. Source: TradingView.com

In detail, a death cross occurs when an asset’s short-term moving average closes below its long-term moving average. Traders interpret the said crossover as a signal to limit their upside bias in a market and/or increase their bearish bets.

The 50-200 moving average crossover particularly has been proven to be a reliable forecaster of some of the most severe bear markets of the past century: in 1929, 1938, 1974, and 2008, according to Investopedia.

If past is any signal, the Klaytn token could face further downside corrections once the Binance listing hype settles.

The Bitcoin Factor

Meanwhile, KLAY’s medium-term bias also depends on how Bitcoin (BTC) performs in the coming daily sessions.

The chart below shows how KLAY has erratically tailed Bitcoin price trends in the recent history. For example, both the assets topped out in mid-April with a slight lag. Meanwhile, they recently bottomed out with just a 24-hour difference, hinting that, in the future, they would keep trending hand-in-hand.

Bitcoin and KLAY price trends since the beginning of 2021. Source: TradingView.com

But that is not good news for KLAY.

Oleg Belousov, founder and CEO of cryptocurrency exchange N.Exchange, told Cointelegraph that he expected Bitcoin to fall towards $20,000, citing China’s renewed crackdown on the cryptocurrency sector.

“There are concerns that more countries will follow in China’s footsteps and join the ban, which will cause a further drop in rates,” he said.

Belousov added that Bitcoin still has hopes in countries that are democratic and constitutional, stating that they can’t legally ban cryoto.

Meanwhile, technical chartists said that the recent upside reversal in the Bitcoin market is a signal that the cryptocurrency would move higher. 

If the correlation stands, KLAY could head higher, as well.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.