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September 2005

Bitcoin Suddenly Crashes 8% as Momentum Fades After the Recent Rally

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Bitcoin

Bitcoin

The crypto space can be highly volatile for traders, and over the years, Bitcoin (BTC) has proven to be among the more volatile cryptocurrencies. Over the past few days, the world’s biggest cryptocurrency by market cap had managed to make a comeback of sorts, but the volatility returned once again today. Such volatility was last seen back in November 2019.

Key Drivers

At around 5 in the morning Hong Kong time, the cryptocurrency plunged by as much as 8% within a matter of 45 minutes, dropping down to $9,320 per coin.

While the meltdown in Bitcoin did come as a surprise for many in the market, the cryptocurrency clawed back from those levels and eventually hit $9,598 a coin some hours later. Emmanuel Goh, who is in charge of the crypto derivative tracking company Skew, stated that the dramatic plunge in BTC was possibly a technical move, which may have been triggered after highly leveraged derivative positions had been called in.

Despite the dramatic fall, it should be noted that BTC is still up by as much as 20% so far this year. At this point last year, the coin had been in the middle of a remarkable rally.

>> Tezos (XTZ) Outperforms in 2020: Here are the Key Drivers

The surge in Bitcoin over the course of the year so far is possibly due to the fact that many now see it as a legitimate hedge against the turmoil in the financial markets. The outbreak of the coronavirus epidemic in China has spooked markets all over the world, as fears continue about the shutdown of many factories in the country.

In such a situation, BTC has become the preferred hedge for some investors as they look to protect their capital. Investors could keep an eye on the Bitcoin price action over the coming days.

What do you think?

Featured image: DepositPhotos © KostyaKlimenko

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TRON (TRX) to Release Version 1.0 of the Sun Network on August 10

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TRON

TRON

According to TRON (TRX) founder Justin Sun, the company is planning to launch Version 1.0 of the Sun Network on August 10. The founder took to Twitter to make the revelations, indicating the Sun Network was one of the 100X scalability solutions of TRON. The network is expected to be optimized on September 15.

Scalability Solution to Enhance Transfers

The Sun Network is a fast blockchain solution for smart contracts, distributed apps, and cross-chain activity. Justin Sun indicated that the solution will also include the DappChain that will allow developers to use the 1.0 code in creating a sidechain system that enhances the speed of distributed apps.

Equally, it is expected that the chain will use DPoS mechanism, which will ensure there is quick verification of transactions. User security and fluidity of transfer of tokens between chains will be enhanced through the smart contracts on the sidechain and main chain. Also, another amazing feature about the Sun Network is its ability to support costless transactions.

However, despite this positive news, TRX price did not change, and it remained rooted around $0.022, trading even lower against Bitcoin.

>> Facebook Libra Faces Another Setback from Global Regulators

TRON Continues to Perform Poorly

It, therefore, remains to be seen whether the launch of the Sun Network will turn fortunes for TRX. Prior to the announcement, anticipations for the launch failed to enhance interest for the altcoin following the plunge of altcoins in recent Bitcoin surges.

Currently, the TRON Network has been working on the implementation of Tether (USDT) on its platform while providing a special incentive plan for holding onto TRON-based USDT. The incentives are relatively limited because the amount of TRON-based USDT that is held in user wallets is limited.

TRON also felt the effects of the recent Binance IEO, WINk, and it dropped immediately and has since been hovering around 3 Satoshis with very minimal activity. The project has raised skepticism because of its unusually large staking rewards and the possibility of breaking monitoring restrictions.

Featured image: DepositPhotos © giggswalk

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Facebook Libra to Be Pegged to Multiple Currencies as Stablecoin

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Libra

Libra

One of the biggest disruptions to the crypto space this year has been the announcement of Libra from the tech giant Facebook (NASDAQ:FB) back in July. The white paper published by the company about its cryptocurrency resulted in a lot of chaos and eventually led to turmoil in the crypto market as lawmakers expressed their doubts about Libra quite vehemently.

Key Updates

The company was asked to clarify several aspects of the Libra project to United States senators. In a report by one of the leading business publications, the company told Senators yesterday that the token is going to be a form of stablecoin. Unlike a traditional cryptocurrency, it is going to be backed by an algorithm, a currency, or even a commodity.

According to reports, the currencies that are going to be used to back Libra are going to consist of major currencies. Some of the currencies that will be backing Facebook Libra are the Singapore Dollar, the United States Dollar, the Euro, and the Japanese Yen, among others. The inquiry was put in place by Mark Werner, the Democratic Senator from Virginia. The company apparently put forward the list of fiat currencies that are going to back up its cryptocurrency.

>> Bitcoin Could Fall Below $10,000 Mark as Altcoins Gain

That being said, Facebook did eventually clarify that the final list of currencies that are going to back Libra is going to be finalized by the Libra Association. The Libra Association is made up of a range of entities and companies that are part of the entire project. That being said, the company went on to state that the digital currency is only going to be offered in regions after all regulatory concerns with regards to the digital currency have been cleared. It went on to state that Libra will only be offered after appropriate permission has been awarded by those in charge of the region.

Featured image: DepositPhotos © BrianAJackson

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Bitcoin Could Fall Below $10,000 Mark As Altcoins Gain

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Bitcoin

Bitcoin

Bitcoin’s value risks falling below the $10,000 USD psychological mark this week after making some strong gains last week.

Bitcoin Dropped to $10,060 Today

The world’s top cryptocurrency dropped to $10,060 this morning, which is the lowest valuation since September 2. Momentum last week saw BTC recover from falling below the $10,000 mark at the end of August, as excited analysts abandoned their bearish sentiments. However, analysts now await an external event to assess Bitcoin’s current performance against, and this could come with the launch of Bakkt later this month.

Eagerly Awaited Launch of Bakkt

Filb Filb, a prominent crypto trader, said, “A lot of people are hoping to get bids filled below $9k; the market rarely gets what it wants and I wouldn’t be surprised if they are forced to buy higher. But let’s see what happens with the launch of Bakkt.” Bakkt is a highly anticipated Bitcoin futures exchange and digital assets platform that is backed by the Intercontinental Exchange, the company that operates the New York Stock Exchange and is considered a major gateway to bring wealthy investors into the world of cryptocurrency.

>> Apple Watching Cryptocurrencies, Says Vice President Bailey

Decline in Bitcoin’s Market Dominance

With Bitcoin’s drop off today, its market dominance over altcoins also dipped below a milestone marker of 70%. Bad news for Bitcoin often represents good news for altcoins, which have been languishing in recent months. Over the last few days, some major altcoins have made some considerable gains, such as EOS, which is up 18.4% in the last week and Etherum, Bitcoin’s closest competitor, gaining over 5%.

Bitcoin’s market dominance fell from 71.2% to 69.7%, which may seem like a reasonably inconsequential loss; however, some analysts are predicting that this could signal an upturn in fortunes for altcoins. The rally in altcoins, which many analysts refer to as altcoin season, has led some people to believe that the crypto market is due for another boom similar to 2017.

Featured Image: DepositPhotos © spaxiax

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