Bitcoin breaks $40,000 and sets its sights on a new all-time high, ETH fees spike as a new price record is set, and Elon Musk really loves Dogecoin.
Published every Saturday, Hodler’s Digest helps you stay on top of all the week’s important news. The best (and worst) quotes, adoption and regulatory highlights, highlights, predictions and more – the week at Cointelegraph in one link.
This week’s headlines
Bitcoin sees $50,000 less than a month after the price of BTC broke its 2017 record.
Bitcoin is showing signs of a new rally after passing the $40,000 resistance zone, fueling hopes for a new record.
It will be very important for Bitcoin to stay above this level in the near future. This comes days after MicroStrategy exposed more than 1,400 companies to Bitcoin.
According to Michel van de Poppe, analyst at Cointelegraph Markets, BTC’s strength means that its market dominance is being restored at the expense of most altcoins.
He added, “However, an apparent break above the historical record of $42,000 should take the price of bitcoin to $50,000.”
Bitcoin has crossed the $40,000 mark for the first time in 23 days, but this time market sentiment is much calmer and the derivatives market is not as overheated.
Some establishments took advantage of this week’s blowout to take money off the table. Ruffer Investment, for example, made a $650 million profit after doubling its cash flow in just two months.
With the Ethereum price reaching $1,750, the royalty of the Ethereum network has reached its highest level ever.
ETH set new records this week, moving closer and closer to $2,000.
After trading at $1,756.51, the world’s second-largest cryptocurrency has fallen slightly to $1,672.99 at the time of writing.
This record is due to the intense interest in theFi components, many of which use the Ethereum network as a backbone. Expectations have also been driven up by the launch of CME Group Ether futures.
There is only one problem: the price of gasoline is rising. This week, transaction fees rose so much that some exchanges no longer accept gas.
Blockstream’s developer, Mr. Grubles, fears that this could affect the proper functioning of DeFi protocols: “This is a legitimate crisis. We will have to stock up on popcorn to see how Ethereum will fare”.
“Welcome” – DOGE rises after Elon Musk returns to Twitter … to force the coin
To some extent, the rise in crypto prices can be attributed to Elon Musk. For reasons unknown, the richest man in the world is obsessed with Dogecoin.
Tesla’s CEO caused quite a stir this week when he shared a fake photo of him dressed as Rafiki from “The Lion King,” with Simba inu shiba on top of his face in the famous scene where the cub is held aloft on “Pride of the Rock.”
Musk helped DOGE get off the ground this week, but the comments he made in a club discussion about bitcoin did not have the same impact as last Friday, when BTC jumped several thousand dollars because Musk added #bitcoin to his Twitter bio.
During a conversation at the club, the billionaire reportedly said, “I’m late to the party, but I’m a Bitcoin supporter.
This week, a new study looked at Musk’s tweet six times about BTC or DOGE, and concluded that his comments caused price spikes and a “significant increase” in trading volume.
But an article in the Blockchain Research Lab warns, “While Musk’s behavior and communications may be considered positive or fun (and thus perhaps uncritical), similar studies have already shown that negative tweets can also have a negative impact on financial results.”
The rage to win: XRP price drops 50% after reaching its highest level in two weeks
XRP was the subject of a commercial frenzy last week, with an 86% breakthrough after it became the new focal point of r/Satoshistreetbets, a spin-off of r/Wallstreetbets.
The pump came while XRP’s legal troubles showed no sign of stopping, and the Securities and Exchange Commission (SEC) confronted Ripple later this month.
On February 1 at 8:30 am (Eastern Time), the Telegram and Discord chat prompted people to buy XRP en masse, but as expected, the pump ended in tears. Within two hours, Altcoin fell by almost 50%…. , scaring off new investors.
Keith Waring tweeted, the coin dealer, “Although the $XRP army will be aggressive if you warn them about the elephant in the coin’s escrow form, I can’t help but feel sorry for those who bought at .75c today. X R (I)P”.
PayPal offers encrypted payments to merchants, limited exchanges on Venmo
PayPal revealed that its crypto commerce service has “exceeded expectations” since its limited launch in the United States.
The payments giant now plans to focus on encrypted, chain and digital currencies in 2021, with a “significant” investment in the new entity. According to the company, those who bought Bitcoin ended up putting twice as much money into the system as before.
After an “excellent response,” CEO Dan Schulman said that crypto will be offered as a funding source later this quarter when users store at one of PayPal’s 29 million merchants, and that a “full roadmap” of new services will follow.
In November, PayPal took a big step toward digital assets by allowing its U.S. users to buy cryptocurrencies directly through the application. US-based customers are limited to $20,000 per week. Since then, the volume of cryptocurrency transactions on the platform has reached record levels, peaking on January 11 with $242 million in transactions.
Winners and losers
At the end of the week, Bitcoin stands at $40,776.40, Ether at $1,676.86 and XRP at $0.44. The total market capitalization is $1,218,786,711,013.
Among the top 100 cryptocurrencies, the top three altcoin players of the week are UMA, 0x and PancakeSwap. The first three altcoins of the week were lost against HedgeTrade, ThorChain and Fantom.
For more information on cryptocurrency prices, don’t forget to read Cointelegraph’s market analysis.
Most memorable quotes
“After a record year in 2020, when it grew by more than 300%, Bitcoin is expected to remain strong in 2021 as more individuals – and large institutional buyers – enter the market.”
Jesse Cohen, Senior Financial Analyst at Investing.com.
“While Musk’s behavior and communications may be considered positive or fun (and thus perhaps non-critical), similar studies have already shown that negative tweets can also have a negative impact on financial results.”
Lennart Ante, co-founder of the Blockchain Research Laboratory.
“If one tweet can increase the cap on the Bitcoin market by $111 billion, another tweet can erase a similar value.”
Lennart Ante, co-founder of the Blockchain Research Laboratory.
Elon Musk, CEO of Tesla
“We have also seen an exceptional response to our cryptocurrency launch…. The volume of cryptocurrency transactions on our platform has far exceeded our expectations.”
Dan Schulman, CEO of PayPal
“The economic climate for Bitcoin could not be better right now.”
Duncan McInnes, co-manager of Roefer.
“Despite the aggressive $XRP army warning you about the elephant in the room escrow form, I still can’t help but feel sorry for the people who bought at .75c today. X R (I)P”.
Keith Waring, coin image marketer.
Predictions for the week
The CIO of BlockTower Capital estimates that there will be another 9 to 22 months of “bull run” in cryptocurrency.
With the new optimism surrounding the operation of Bitcoin, the question inevitably arises: how long will the bull last?
According to Ari Paul, Blocktower Capital’s Chief Information Officer, we have at least nine more months.
He said, “There is a continuous and dizzying rotation going on here. BTC omhoog, dan wanneer BTC een adempauze neemt, ETH en enkele grote kapitalisaties (en in die modus, DeFi blue chips), dan kleine kapitalisaties, flush en herhaal. Of course, you can add a 30-60% correction for fun”.
On the question of how Bitcoin will behave, Paul added, “In terms of price, I think BTC ends a bull run between $100,000 and $400,000 and the alts do better.”
FUD of the week.
The Guggenheim CIO is under fire for changing his position on BTC.
Scott Minerd’s apparent shift from bullish to bearish, and vice versa, on both sides of the Securities and Exchange Commission (SEC) filing regarding his $500 million investment in the BTC is raising eyebrows on social media.
Guggenheim’s CIO made headlines after stating that BTC would see a “complete correction to return to the $20,000 level” – later adding that there was insufficient institutional support to justify a price above $30,000.
A few days later, Minerd stated that bitcoin could reach $600,000 in the long run because of the scarcity and value of gold.
Some people on Twitter were not impressed. Economist Alex Krueger wrote, “Remember, Guggenheim wants you to sell #bitcoin so you can buy cheaper. They tried to scare the market into lowering the price to $20,000 when they think it’s worth $400,000.”
New class action lawsuit against Robinhood raises allegations of oligopolistic manipulation
It has been a full week since Robinhood, a stock trading application, took off following GameStop’s trading restrictions.
A class action lawsuit has been filed because this radical decision deprives customers of the opportunity to profit from the volatility of GME shares – by manipulating the share price.
Meanwhile, some reports have indicated that Robinhood is delaying its planned IPO to focus on fighting a public relations disaster. Other media outlets have questioned this claim and claimed that the IPO is proceeding as planned.
It is also reported that Robinhood CEO Vlad Tenev will testify before the Financial Services Committee of the U.S. House of Representatives about the company’s role in the recent volatility.
Robinhood, a stock exchange app that has been popular for millennials, is facing a new class action lawsuit after it recently temporarily suspended purchases from GameStop and other “gift stores” through its platform.
Polish crypto exchange employee in artificial coma after armed attack
An employee of a Polish crypto and gold exchange has been put into an artificial coma after an armed attack.
On January 22, the offices of FlyingAtom in the city of Olsztyn were attacked. The masked attacker managed to escape with gold worth about $120,000.
The suspect was subsequently arrested in connection with the incident, and police thanked him for his assistance.
The best features of money
Is it time to shine? Crypto should take a chance after the GameStop drama.
The GameStop pump could encourage some amateur investors to finally learn about DeFi and its benefits.
The only way to enable the execution of the blocking chain is to enter consciousness.
Inactive transactions can help keep the BeCeFi active so that the sector can continue to develop and increase its relevance.
R/ Wall Streetbets vs Wall Street: harbinger of the DeFi explosion?
Was the Robinhood stock market app the culprit in the GameStop saga? “In a decentralized trading market, no one would have that kind of power.”
eth price, cryptocurrency prices, bitcoin stock price, eth to usd
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