Crypto News for Crypto Optimists #9: Digest of the Week
Bitcoin (BTC) Dynamics
BTC quotations have been flat all week. Last Friday, the cryptocurrency was trading between $36.000 and $37.000. During the week, it rose above $38.000 several times and even crossed the $39.000 mark briefly on Wednesday. However, this was followed by a decline below $37.000, and the first cryptocurrency is approaching the $38.000 mark again on Friday morning, February 4.
Analysts’ Opinions on Bitcoin Situation
Trader Peter Brandt noticed that most crypto enthusiasts, participants of the “laser eyes” flash mob, expect BTC to fall below $30.000 in the near future. He believes that such “bearish” sentiment may signal to buy the first cryptocurrency.
The BTC rise above $35.000 is more likely than a drop to $30.000, claims crypto analyst Justin Bennett. As an argument, he refers to the movement of the U.S. Dollar Index (DXY), which also plays a vital role in the crypto market. Its decline may indicate the growth of risky assets, including digital ones.
Crypto analyst Benjamin Cowen said that in the most optimistic scenario, Bitcoin has a chance to return to growth in about three weeks. The most important condition for this will be the recovery of the U.S. stock market. In addition, Cowen is referring to historical data, noting that after BTC falls below the support level of the bull market, on average, three to six months pass, after which the asset properly returns to the uptrend. The formation of the bull market support level is calculated with the help of a 20-week moving average (SMA) and a 21-week exponential moving average (EMA). As of the beginning of February, this level is in the range of $45.000 to $50.000.
Anthony Scaramucci, the head of SkyBridge, explained the recent fall of Bitcoin by its correlation with the stock market, which is in a downward movement. However, in an interview with Kitco News, he shared his confidence that Bitcoin will be worth $500.000 within four to five years. He argued that BTC is a full-fledged payment network with a constantly growing number of transactions and users. And the resource of this growth is enormous because Bitcoin is still far away from full adoption.
Bitcoin Revealing News
A revealing transaction on the Bitcoin network was recorded by the Bitcoin Block Bot service on January 31. An anonymous crypto investor transferred 46.600 BTC, the equivalent of $1.7 billion at the time of the transaction. The transaction took about a minute, and the fee was approximately $4.8. The news is significant as the ability to remain anonymous, the speed of transfers, and low online fees are some of Bitcoin’s main advantages over traditional payment systems.
NFT Market and OpenSea Successes
The OpenSea platform eliminated a bug that allowed NFTs to be bought at lower prices. Users received about $2 million in damages from the platform. As a reminder, OpenSea is still the leader in trading volume of non-fungible tokens. According to The Block, total NFT trading volume in January topped a record $6.8 billion, with OpenSea accounting for $4.2 billion of that.
Demand for Virtual Real Estate is Growing
Virtual real estate sales in the four largest metaverse platforms reached $501 million in 2021, according to MetaMetric Solutions. In January 2022, the volume of sales of virtual estates amounted to $85 million. Analysts predict that the total figure by the end of this year could exceed $1 billion.
Thousands of New Cryptocurrencies
About 1.000 new cryptocurrencies appeared in January, according to CoinMarketCap. Thus, the total number of cryptocurrencies by the beginning of February exceeded 17.200. Last year the number of cryptocurrencies almost doubled. If on January 1, 2021, their number was 8.100, on December 31, this figure already exceeded 16.200.
Note that this is not all the crypto news over the past week. More updates can be found on our website and social networks daily!