Bitcoin (BTC) was higher for a second day, staying over the past two weeks between about $ 34,000 and $ 40,000.
“This consolidation phase is building a solid foundation, giving those who wish to sell bitcoin plenty of time,” according to cryptocurrency exchange company Diginex.
Ether (ETH), the second-largest cryptocurrency, rose Tuesday to an all-time high of $ 1,499.33, reaching price levels not seen since early 2018. The LINK token is from Chainlink, which provides a price feed to trading systems and devolved lending built on top. blockchain networks, also set a record price.
Read More: Ethereum Ether Cryptocurrency Sets New Price Record on Major Exchanges
With the bitcoin market trading sideways, some investors could be rotating into so-called alternative cryptocurrencies for faster returns, Edward Moya, senior market analyst for foreign exchange broker Oanda, said in comments by email.
“The cryptoverse is growing again, and many cryptocurrency traders are currently diversifying into other coins,” said Moya.
In traditional markets, Asian and European shares rose and the future of US stock pointed to a higher opening ahead of the confirmation hearing of Treasury Secretary nominee Janet Yellen. The former chairman of the Federal Reserve is expected to call on the government to “take big action” on stimulating borrowing and spending, to aid the economic recovery.
Gold strengthened 0.2% to $ 1,845 per ounce.
Moving the Market
With bitcoin prices up 26% so far in January after quadrupling in 2020 and doubling the year before, a trader may be forgiven for trying to take some profit.
But based on data extracted from the underlying blockchain network, investors seem willing to sit tight, betting a new rally could probably take the cryptocurrency to fresh highs at all times.
Delphi Digital, a cryptocurrency analytics firm, noted last week in a report that bitcoin balances on cryptocurrency exchanges have fallen to about 2.3 million from 2.4 million over the past month as prices rise. Often, when prices rise, the balances increase, as more investors transfer bitcoins to the exchange for liquidation.
“The net outflow this time can be indicative of the long-term nature of recent investors,” according to Delphi analysts Yan Liberman and Kevin Kelly.
The exchange outflow is in line with other blockchain data showing more bitcoin is being hijacked by investors for the long term, known as crypto-industry jargon as HODLing.
Analysts for Glassnode, a blockchain data company, on Monday reported that the number of bitcoins held in “pooling addresses” has climbed 17% over the past year to more than 2.7 million. These are addresses that have never received bitcoin and never spent them.
“This increase highlights the huge supply constraint that is occurring in the BTC market, with almost 15% of total supply at these addresses,” according to the company.
About 14.6 million out of the 18.6 million bitcoins mined over the blockchain network’s 12-year history “are either lost or long-term HODLed,” said Glassnode. That means new incoming buyers, such as large investors or companies looking to use the cryptocurrency as a hedge against potential inflation, would have to compete for the remaining 4 million which is still in circulation.
“Combined with the overall decline in bitcoin’s liquid supply and the number of coins lost, this results in an even more restricted supply, which helps BTC maintain its highest ever prices,” the analysts wrote.
Bitcoin remains locked in a narrow price range despite rising institutional demand.
Top cryptocurrency has charted a symmetrical triangle over the past few days, as seen on the hourly chart. It signals that buyers and sellers are not ready to lead the pricing process.
Grayscale Bitcoin Trust (GBTC), the largest publicly traded crypto investment trust, buy a total of 16,244 BTC ($ 607 million) on Monday, drawing 18 times more supply from the market than miners added. This was after the trust reopened last week following a month-long break and quickly collected another 4,700 BTCs. (Grayscale is owned by Digital Currency Group, the parent company of CoinDesk.)
However, the cryptocurrency is struggling to gather upside traction. The bulls appear to be taking a hiatus, having engineered a rally of more than 200% over the past three months.
Digital asset traders appear to have moved towards alternative cryptocurrencies like ether, the second-largest cryptocurrency, which rose to a new record high early Tuesday.
The focus could shift back to bitcoin if the largest cryptocurrency breaks out of its hourly chart triangle pattern. That would suggest a resumption of the broader trend and put $ 50,000 on the map, as stated by Vinny Lingham, investor and founder of crypto wallet and identity checking company Civic.
Read More: Bitcoin Becomes Bank of America’s Most Overwhelming Trade Survey After Passing ‘Tech Long’
Enjin (ENJ): Enjin Coin becomes the first white-listed gaming cryptocurrency to be used in Japan (CoinDesk)
Tie (USDT): An anonymous columnist questions whether Tether’s true beg is distorted by promotional awards (Medium)
Celsius (CEL): Alex Mashinsky, CEO of crypto lender Celsius, says in an interview that the company filed an SEC exemption form on CEL tickets “because the regulations are unclear” (CoinDesk)
XRP (XRP): Kraken exchange becomes latest to stop XRP trading for US residents after SEC suit against Ripple Labs (CoinDesk)
Apparently Goldman Sachs is planning to enter the crypto market soon with play in custody (CoinDesk)
Huobi Global links to European banking system through UK BCB Group (CoinDesk)
Coinbase cryptocurrency exchange, overshadowed by snarky social media comments about reliability, plans infrastructure improvements (CoinDesk)
CoinShares starts bitcoin exchange traded products (Bloomberg)
MetLife’s investment arm predicts that “it seems unlikely that the true launch of central bank digital currency among Western countries will happen anytime soon” (CoinDesk)
Bitcoin takes over as “most crowded trade” in Bank of America survey after passing “tech long” (CoinDesk)
“No, bitcoin is not in a bubble,” CoinDesk Research Director Noelle Acheson writes in the Crypto Long & Short (CoinDesk) newsletter
JPMorgan analysts see $ 40,000 as key bitcoin price threshold before bullish uptrend continues, Bloomberg reports (CoinDesk)
Former Canadian Prime Minister Stephen Harper, in an interview, lists bitcoin among US dollar alternatives that could make progress as an international reserve asset (CoinDesk)
Wall Street chief financial officers (CFO) are more wary of putting companies’ money into bitcoin after plummeting 30% prices last week (CoinDesk)
Bitcoin is “two bets in one: a solid, unachievable financial protocol and the reserve asset for a rapidly expanding crypto-financial network,” writes Castle Island Ventures’ Nic Carter (New York Magazine)
South Korea’s Dunamu launches its own bitcoin “fear and greed” index (CoinDesk):
Update on traditional economy and finance
Biden’s Treasury secretary nominee (and former Federal Reserve Chair Janet Yellen) says in prepared remarks for Tuesday’s confirmation hearing that “with interest rates at historic lows, the smartest thing we can do is act big” (FT)
Jamie Dimon says JPMorgan Chase should be “scared s – less” about threat from fintech rivals, names PayPal, Square, Stripe, Ant Financial, Amazon, Apple, Google (CNBC)
Farle US bank, Wells Fargo, is targeting $ 8B in cost savings over three years, including job cuts, and is considering options for asset management businesses and outgoing corporate trust (Pensions and Investments)
Foreign investors expect US dollar to remain weak under Biden (WSJ)
US corporate bond spreads are shrinking to a narrowest 0.93 percentage points since January 2020, partly reflecting investor confidence in continued economic stimulus and easy money from the Federal Reserve (WSJ)
The Australian Reserve Bank could close a quantitative easing program in April (Australian Financial Review)
China’s GDP grew 2.3% in 2020, the lowest one in 44 years (Nikkei Asia Review)
Taiwanese chip maker start-up Kneron looks at global expansion, aiming for 8x growth in 2021 as US blacklists hit Chinese competitors (Nikkei Asia Review)
A Southeast Asian grab company, Grab, considers the US IPO to be $ 2B (Reuters).