Bitcoin’s correlation with gold and stocks is growing

Bitcoin (BTC) is an uncorrelated asset, or so the narrative used to go. For much of Bitcoin’s lifetime, it existed as something of value to a very small group of people. Now, awareness and demand are accelerating rapidly. So, what does this mean for the status of BTC as a supposedly uncorrelated asset?  That Bitcoin was an uncorrelated asset isn’t just conjecture — the numbers back it up. According to data compiled by VanEck in early 2021, there was almost no discernible pattern between the movements of Bitcoin and other…

Here’s how Bitcoin’s impending death cross could be a contrarian buy signal

Bitcoin’s (BTC) succession of sharp corrections from its all-time high at $64,900 has turned investor sentiment negative, at least for the short-term. While some analysts believe the bottom may have been hit, others are warning of a further fall due to the “Death Cross” pattern that, at the time of writing, is on the verge of completion.  For new traders, the name death cross itself brings a lot of negativity and a feeling of impending doom. This sentiment can trigger selling panics, especially if the market has already been going…

One percent of Bitcoin’s supply has been locked in the WBTC protocol

One percent of Bitcoin’s circulating supply is currently tokenized as Wrapped BTC (WBTC), equating to nearly $6.2 billion worth of BTC.  The milestone was acknowledged by the product manager of crypto custody firm BitGo, Kia Mosayeri, who tweeted the news on June 7. BitGo is the custodian for the Wrapped Bitcoin protocol, which was launched its Bitcoin-backed ERC-20 token WBTC on Ethereum in January 2019. 1% of all BTC has been wrapped into $WBTC! https://t.co/jOi0LZZUyi — WBTC (@WrappedBTC) June 7, 2021 According to Etherscan, there are currently 187,610 Bitcoins wrapped…

Why Bitcoin’s next breakout may not be an altcoin season signal

On April 14, Bitcoin (BTC) reached a $64,900 all-time high after accumulating 124.5% gains in 2021. However, a 27.5% correction followed over the next eleven days, marking a $47,000 local bottom. The popular Crypto Fear and Greed Index reached its lowest level in 12 months on April 25, signaling that investors were closer to “extreme fear,” which was a complete reversal from the “extreme greed” level seen during the Bitcoin rally above $60,000. This downward move from April 14 to 25 wiped out $200 billion from the altcoin market capitalization.…

Pre-2019 Bitcoins now make up just 44% of the BTC active supply

Bitcoin (BTC) is less active than at any time this year, new data shows as traders stubbornly refuse to sell. One metric from on-chain monitoring resource Glassnode reveals that the Bitcoin supply is becoming less and less available despite lower prices. “Spooked” hodlers cling to BTC On June 2, Bitcoin’s active supply hit a five-month low of 44.5%. Bitcoin two-year active supply vs. BTC/USD chart. Source: Glassnode/ Twitter The number measures coins which have moved in the past two years or earlier — and last time it measured that low,…

Bitcoin’s rising popularity will lead to more regulation, says Riksbank

Cryptocurrencies’ persistent growth and ever more mainstream adoption is keeping international monetary authorities on their toes.  In fresh comments this week, Stefan Ingves, the Governor of Riksbank, Sweden’s central bank, said that digital assets’ rising popularity raises the stakes for regulators, central bankers and lawmakers worldwide: “When something gets big enough, things like consumer interests and money laundering come into play. So there’s good reason to believe that [regulation] will happen.” Devising regulatory frameworks for an asset that was initially designed to circumvent the very architecture and rules of traditional…

Analyst says reclaiming $37,500 is Bitcoin’s crucial ‘line in the sand’

Bitcoin (BTC) price continues to limp lower as traders in the U.S. hit the BBQ to enjoy the upcoming Memorial Day holiday on May 31 and regulated futures and options markets like the CME are closed through the weekend. Data from Cointelegraph Markets Pro and TradingView shows that after a brief attempt by Bitcoin (BTC) bulls to rally above $37,000 in the early morning hours on May 29, the price has tumbled below $34,000 as the support needed for a move higher failed to manifest.  BTC/USDT 4-hour chart. Source: TradingView…

How volatility drove one crypto trading strategy to 280x Bitcoin’s gains

What does a highly volatile asset class offer traders, beyond palpitations and the occasional heart attack? Opportunity. Nicole Wirick of Prosperity Wealth Strategies in Michigan summed it up for Forbes: “Market volatility is a normal part of investing and is to be expected in a portfolio. If markets went straight up, then investing would be easy and we’d all be rich.” And during the decade-long bull market on Wall Street, some participants who should know better appear to have forgotten this, as they’ve become used to steadily-increasing stock prices over…

Bitcoin’s drop from $64K comparable to Black Thursday, but Coinbase outflows hint at accumulation

Elon Musk and COVID-19 have something in common: They have both panicked investors — at least once — into dumping their Bitcoin (BTC) holdings. The similarities notched up higher in the previous six days as Musk doubled down on his chaos-inducing perspective toward Bitcoin. The billionaire entrepreneur engaged in a Twitter spat with top cryptocurrency advocates over the weekend, including podcaster Peter McCormick, as he projected his favorite token, Dogecoin (DOGE), as superior to Bitcoin. Obnoxious threads like this make me want to go all in on Doge — Elon…

Here’s how Bitcoin’s intraday volatility complicates leverage trading

The crypto sector is in a bull market, and frequent evidence comes from anonymous traders who post their five-, six- and seven-figure investment returns as screenshots on Crypto Twitter. This condition creates a FOMO-like situation where everyone gets greedy. The temptation to boost potential earnings by twenty times or more is often irresistible for most novice traders. Today, almost every cryptocurrency exchange offers leveraged trading using derivatives. To enter these markets, a trader has to first deposit collateral (margin), which is usually a stablecoin or Bitcoin (BTC). However, unlike spot…