Bitcoin on January 27: Green Weekend for BTC?

Audy Castañeda
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Bitcoin on January 27: Green Weekend for BTC?

The price once again exceeded $40,000 and the upward volatility allowed it to return to $42,000. The bulls regain control of the price this weekend.

Traders have been waiting for the approval of Bitcoin Spot ETFs and they are now validated. The next expected event for cryptocurrency enthusiasts is the Bitcoin halving, but some miners find themselves in a delicate situation. In fact, 11 miners would be below the profitability threshold. Despite waning enthusiasm, buyers are fighting to hold on to $40,000.

Bitcoin Price Rises 4% in 24 Hours

Buyers decided to wake up at the end of the week, much to the delight of cryptocurrency enthusiasts. In fact, the price of Bitcoin maintains the psychological round number of $40,000 and shows an increase of 4% in 24 hours.

In a week the course is back to balance. Despite everything, in one month, the course shows a drop of more than 3%. The BTC/ETH pair regains strength. she rises 2% in 24 hours from 10% in a week.

Bitcoin (BTC) is trading today, January 27, at US$41,744.43, according to the Live Coin Watch portal. This price positions it 104% compared to its value 24 hours ago and 100% compared to the same day last week. The token’s current dominance (market capitalization) is US$818,608,500,180.

Bitcoin Volatility Evolves Up Like During Bull Markets

Volatility is a very present element in the cryptocurrency sector. Some will say that cryptocurrencies are too volatile. Others will say that this volatility allows for very interesting action. Whatever happens, it is a factor to take into account in your trading or your investment.

Volatility showed a bearish dynamic (downhill troughs and peaks) since the end of the 2021 bull run and it seems that the situation is changing.

Historically, volatility tends to fall during bear market phases. We notice a drop in this metric in 2018 and 2022. On the contrary, volatility increases during bull markets. This phenomenon occurred especially in 2020-2021 or in 2017. Currently we can observe that the curve draws valleys and ascending peaks, a situation reminiscent of previous bull markets. These are good news a few months away from the Bitcoin Halving.

Bitcoin Price Could Hit $44,000 Resistance

BTC has managed to return to the range between $40,500 and $44,000 in 4H. Thus, the course has marked a deviation below the bottom of the range.

When the course of an asset marks a deviation and re-enters a range, it tends to go to the opposite terminal. In this case, the price could return to the resistance level at $44,000. This will require getting rid of the resistance at $42,000.

On the other hand, in case of rejection of $42,000, the price could return to the support level at $40,500. It will then be necessary to defend this support to avoid continuing the bearish momentum. The RSI bounces, but clear bullish momentum will need to be found so that buyers can take advantage of the momentum.

The price of Bitcoin is recovering volatility and the situation resembles the beginnings of bull markets. Technically, buyers were able to react to hold on to $40,000. In fact, the price is around $42,000.

From now on, we will have to break the resistance of $42,000 in order to find $44,000. The exchange token sector has suffered from the recent Bitcoin crash, but overall is showing solid momentum. They could take advantage of this to start rising again if BTC manages to hold $40,000.

By Audy Castaneda

Blockchain and Data Security: A Powerful Duo

Leonardo Perez
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Blockchain and Data Security: A Powerful Duo

Revealing the invincible alliance: Blockchain and data security, the perfect formula to protect your information.

In an increasingly digitalized world, many people seek to improve and simplify their daily activities. However, one of the main concerns that arise is related to mistrust when providing personal and confidential data online. It is in this context that Blockchain stands out by guaranteeing a completely reliable transfer of information through an advanced coding and encryption system.

Blockchain is a technology that revolutionizes the way information is shared and stored. Instead of relying on a centralized server, it uses decentralized networks to connect data to each other.

In other words, each new transaction is articulated in a block of data that, in turn, is connected to the previous ones, which collect information from previous operations. The data security of Blockchain is that each block collects the information of one transaction, but also of all previous ones. Thus, if one is modified, it would not match the rest. In addition, the participation of the different members of a network is needed for it to be validated.

Encryption in the Blockchain era: Guaranteeing information security

Encryption is the process of encoding readable text into a secure code, with the main purpose of protecting information from being viewed by people with unauthorized access. This is especially important for people and organizations whose private data is especially sensitive or confidential.

Encryption prevents personal information from being manipulated. In a digital age that lacks trust, encryption can give the impression that the information being sent and received is authentic. Improving the integrity and authenticity of data is another of the main advantages of encryption.

Encryption is, then, a basic characteristic of Blockchain technology to protect information, but it is only a more evolved system compared to others used in the past.

Three Blockchain Features that Preserve Data Integrity

Through its inherent characteristics and internal mechanisms, blockchain establishes itself as a reliable protector of the security of stored data.

Immutability. It refers to the inability to change or alter transactions once they have been recorded in a block and added to the chain. This property is achieved through the use of hash functions and the chained block structure. This property ensures that past transactions remain unchanged, creating a reliable and tamper-proof historical record.

Consensus. It requires that a majority of nodes on the network agree on the legitimacy of a transaction before it is added to the blockchain. This is achieved through consensus algorithms, such as Proof of Work. Consensus ensures that the information recorded on the chain is accurate and can be verified by the community at large.

Cryptography. It uses mathematical techniques to encrypt information and protect it from unauthorized access. Additionally, cryptography is used to authenticate transactions and generate digital signatures that verify the identity of the parties involved. These elements ensure that transactions are legitimate and that only authorized parties can access the information on the chain.

Need for This Technology to Store Data

Today, Blockchain solves the main problem, centralization, while offering several desirable features, such as a high-security encryption system that makes it difficult for any malicious user to access the data.

Ultimately, its benefits include the ability to ensure data integrity, improve threat detection and response, decentralize security management, and provide an additional layer of protection through the use of advanced cryptography. It is a promising tool to address present and future cybersecurity challenges, and to build trust in an increasingly complex digital environment.

By Leonardo Perez

Ethereum Price to Defend $2k Support as Whales Buy ETH ETF Rumor

Audy Castañeda
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Ethereum Price to Defend $2k Support as Whales Buy ETH ETF Rumor

Ethereum (ETH) price has managed to hold above the $2,200 support as the cryptocurrency market slowdown intensified this week. On-chain signals highlight growing demand for whales on the Ethereum network, despite market-wide sell-offs. Following the approval of the Bitcoin Spot ETF, Ethereum appears to be next on the agenda of the Fund’s sponsors and the US Securities and Exchange Commission (SEC).

Ethereum (ETH) price is currently trading around $2,200, down 5% on the weekly period. However, a closer look at market trends shows that ETH has had a more resilient performance this week compared to the broader industry average.

On January 22, the cryptocurrency market suffered a major drop as Bitcoin (BTC) prices faltered below $40,000 for the first time in 50 days. By January 26, the global crypto market capitalization had dropped by 7%, with a valuation of $108.5 billion wiped out in the weekly timeframe.

However, by losing 5%, Ethereum price has maintained a relatively more resilient performance than the industry average between January 22 and 24.

Whales Continue Buying ETH Despite Market Crash

The Ethereum price has managed to keep losses below the 5% threshold this week, while Bitcoin and the global crypto market capitalization declined by as much as 7% respectively before seeing a slight rebound.

On-chain data trends suggest that increasing whale trading activity by corporate entities seeking to advance a potential approval of an ETH ETF has been instrumental to ETH’s resilient price performance this week.

On January 23, Ethereum’s whale transaction count surpassed 1,190. A closer look at the chart below shows that this was the highest recorded since the ETH price hit a 20-month high of $2,690 on January 11. January.

Despite the overall market slowdown this week, corporate entities continue to accumulate substantial volumes of ETH. This accumulation trend can be attributed to investors and fund sponsors positioning themselves to acquire Ethereum in anticipation of an impending ETH spot ETF decision.

In periods of market decline, an increase in whale transactions positively influences the price of a cryptocurrency in two significant ways. Firstly, it improves market liquidity, facilitating favorable trade execution for panic sellers. Secondly, it increases confidence among small retailers.

These factors have been instrumental as ETH struggles to maintain its position above the $2,200 support level amid widespread sell-offs in the market this week.

ETH Price Prediction: Can Ethereum Price Stay Above $2000?

As speculation surrounding the approval of Ethereum ETH proliferates, liquidity and investor confidence remain relatively high. This appears to have slowed Ethereum’s sales momentum this week, especially compared to the broader altcoin market. Coupled with the steady increase in whale transactions, Ethereum price is well positioned to defend the $2,000 level.

Money entry/exit price data from IntoTheBlock, which ranks all existing ETH holders based on their entry prices, also supports this view. It reveals that the largest group of ETH holders, comprising 8.3 million addresses, accumulated 46.5 million ETH at the highest price of $2,078.

In the event that the price of Ethereum falls towards $2,100, these holders could make quick purchases to avoid falling into net loss positions and safeguard their positions. This could potentially trigger an immediate rally in Ethereum price.

Ethereum bulls could counter the bearish pressure if they can reclaim the $2,500 level. However, given current market dynamics, this seems unlikely. As observed, a significant group of 3.7 million addresses obtained 7.1 million ETH at an average price of $2,400.

By Audy Castaneda

Google Will Allow Ads on Bitcoin and Cryptocurrencies Starting January 29, 2024

Leonardo Perez
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Google Will Allow Ads on Bitcoin and Cryptocurrencies Starting January 29, 2024

Initially, the publication will be limited to the United States, but a later global expansion is expected.

Starting January 29, 2024, Google will allow relevant Bitcoin and cryptocurrency ads to be served. Notably, the first set of ads will only launch in the United States.

As anticipated, according to Google’s most recent policy regarding cryptocurrencies, starting January 29, 2024, ads on Bitcoin ETFs will be allowed. In December 2023, Google had already made changes to its advertising policy. In fact, the company had announced its intention to review the directives relating to cryptocurrencies and related assets in January 2024, with the main objective of clarifying the parameters and guidelines for the promotion of Coin Trust related to cryptocurrencies.

According to the new policy, Bitcoin ETF ads will be officially published as part of Google ads starting January 29, 2024. When targeting any advertising area, the technology company requires all advertisers to comply with local regulations.

What Will Change When Google Opens the Doors to Cryptocurrency and Bitcoin Ads?

Advertising, in all its forms, is a powerful vehicle for communicating with a specific audience. Thanks to Google, this reach is greatly amplified. It is no coincidence that, globally, Google Ads reaches 90% of the population.

Considering Google websites and apps on the Play Store, the audience reach extends to several billion people. For example, ads placed at the top of searches show an average click-through rate of 7.94%.

Audiences can be integrated into ad groups for more precise targeting based on demographics, interests, habits, recent searches, and past interactions with the business.

By leveraging activities such as using apps, watching videos, or browsing online, audiences increase the effectiveness of advertising campaigns.

With this broad reach and ever-present audience, awareness of Bitcoin ETFs will grow significantly. This will result in greater familiarity not only among traders and investors, but also among the general public, opening up new opportunities for exposure to spot ETFs.

Outlook for Bitcoin in 2024

Although they do not anticipate a rapid rise, crypto industry analysts suggest that Bitcoin could attract greater interest during 2024.

Major European asset manager CoinShares’ annual report highlights positive macroeconomic signs for cryptocurrencies, particularly as the Federal Reserve considers rate cuts and investors feel more confident exploring digital assets.

The report suggests that with the US Federal Reserve expected to cut interest rates in the first half of 2024, Bitcoin and gold could become more attractive to investors.

However, not everyone is so optimistic. Craig Erlam, market analyst at Oanda, maintains a pragmatic approach and says that it has been a long time since the last round of rate cuts and that we must wait to assess the effect.

The CoinShares report also analyzes Bitcoin’s correlations with the US dollar and other assets, suggesting a possible temporal correlation. positive correlation during monetary policy changes and market tensions.

The current year has seen a decline in the price of Bitcoin coinciding with a spike in the DXY index, which measures the strength of the dollar against other currencies. While Bitcoin’s historical correlation with gold is almost unprecedented today, Erlam remains skeptical of the vision of Bitcoin as digital gold or a hedge against inflation.

The CoinShares report highlights the importance of the US market in legitimizing Bitcoin ETFs globally, indicating that while spot Bitcoin ETPs are popular in Europe, the US market continues to have greater influence.

The approval of Bitcoin ETFs has generated bullish momentum in the markets, but it remains uncertain whether this will be enough to sustain a long-term bullish trend.

By Leonardo Perez

Chinese Traders Turn to Bitcoin in the Face of Local Stock Market Fall

Audy Castañeda
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Chinese Traders Turn to Bitcoin in the Face of Local Stock Market Fall

In a declining stock market, Chinese investors are increasingly turning to Bitcoin and other cryptocurrencies. Despite China’s ban on cryptocurrency trading and mining, traders are finding creative ways to invest in digital assets. A report highlights the increase in the volume of cryptocurrency trading between individuals in China, indicating the existence of a thriving underground market.

As the Chinese stock market faces a recession, a new investment trend is emerging among its traders. Bitcoin and other cryptocurrencies are gaining popularity as alternative investment havens that offer stability during economic uncertainty.

This change comes despite the country’s strict ban on cryptocurrency trading and mining, demonstrating the resilience and adaptability of Chinese investors.

Evading China’s Cryptocurrency Ban

Dylan Run, a Shanghai-based financial industry executive, epitomizes this trend. In early 2023, when the Chinese economy was showing signs of crisis, Run began to diversify its cryptocurrency investments. This move came despite the ban on cryptocurrency trading and mining in China since 2021.

Run got around the restrictions by using bank cards from small rural commercial banks and conducting gray market transactions. His strategy was to limit each purchase to $6,978 to avoid detection. He now has approximately $141,024 in cryptocurrency, which represents half of his investment portfolio.

Compared to the faltering Chinese stock market, Run’s cryptocurrency investments have soared 45%, leading him to claim: “Bitcoin is a safe haven, like gold.”

This turn to cryptocurrencies is not unique to Run. Many Chinese investors are looking for creative ways to invest in digital assets. Cryptocurrencies are perceived as more stable than their country’s volatile stock and real estate markets.

In fact, investors like Charlie Wong, a buy-side analyst, have turned to platforms like the Hashkey exchange in Hong Kong to buy Bitcoin.

“It is difficult to find opportunities in traditional sectors. “Chinese stocks and other assets are performing poorly… The economy is going through a crucial transition,” says Wong.

These moves indicate widespread sentiment among Chinese investors seeking alternatives to struggling domestic markets.

Although mainland China bans cryptocurrencies, trading platforms such as OKX and Binance continue to serve Chinese clients through over-the-counter channels and other means. Additionally, offshore bank accounts and Hong Kong’s relatively more favorable stance toward digital assets may also help circumvent restrictions.

China: Bitcoin is the Safe Haven

Although operating in a gray area, China’s underground cryptocurrency market is thriving. Cryptocurrency data platform Chainalysis noted a significant increase in China’s peer-to-peer cryptocurrency trading volume, with the country climbing to 13th place globally in 2023 from 144th place in 2022.

Despite the official ban, the Chinese cryptocurrency market witnessed a staggering transaction volume of $86.4 billion between July 2022 and June 2023.

“China and Hong Kong also show unique breakdowns in the types of most used cryptocurrency platforms, although these figures should be taken with caution given anecdotal evidence that much of the cryptocurrency activity in both countries takes place over OTC. or through informal peer-to-peer gray market businesses,” the report reads.

The rise of Bitcoin and other cryptocurrencies comes as traditional Chinese investments are underperforming. The real estate crackdown and the ongoing economic transition have made traditional investment avenues such as stocks and real estate less attractive.

Cryptocurrencies are emerging as an alternative, offering a semblance of stable growth amid the turbulence of the Chinese economy. The rise of cryptocurrency investments by Chinese traders is a telling sign of the times, reflecting a strategic shift in response to a changing economic and regulatory environment.

By Audy Castaneda

Bitcoin Adoption Vs. Fiat Currencies: Current Trends

Leonardo Perez
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Bitcoin Adoption Vs. Fiat Currencies: Current Trends

Bitcoin adoption is growing at a rapid pace and displacing fiat currencies as a financial alternative.

Although various companies and people currently see Bitcoin (BTC) as a means to preserve their savings, for hundreds of years, gold and silver turned out to be the preferred material for people and institutions to preserve their wealth, and use it as a means of payment.

However, after World War II, United States politicians decided that the US dollar should have a fixed exchange rate with gold and all other currencies in circulation shifted towards the US dollar, putting everyone under a “gold standard.” This changed in 1971, when US President Richard Nixon ended this agreement. Therefore, since then, all the world’s currencies have been fiat currencies.

Many have criticized fiat currencies for being prone to abuse by irresponsible governments and central banks. Bitcoin is the exact opposite, as no government, central bank or company is in control and the rules that govern its operation are encoded in software. The supply of BTC is limited to 21 million units, making it a limited asset similar to gold or silver.

Bitcoin, Response to the 2008 Financial Crisis and Anonymity Tool

Cryptocurrencies were created in response to the 2008 financial crisis, with the aim of establishing a new financial system that is open, transparent and free from the control of central banks.

While a transaction can be traced to a specific Blockchain address, the identity of the owner of that address is generally unknown. This contrasts with fiat currency transactions, where a bank or financial institution can identify the sender and recipient of a transaction.

Thus, users can enjoy greater privacy and protection from government or institutional surveillance. This is particularly relevant in countries where there is political unrest or economic instability or where citizens are subject to oppressive governments.

A Stable Monetary Policy, Security and Transparency

Cryptocurrencies, such as BTC, have a predetermined algorithm that controls the money supply, this algorithm avoids centralized control of the token and ensures that its supply is finite, thus reducing the potential for inflation.

Another benefit of Bitcoin is the high level of security achieved through Blockchain technology. The inability to reverse or alter transactions on the Blockchain network reduces the risk of activities such as fraudulent refunds.

With the high level of security provided by Bitcoin technology, people can rest assured that their transactions are secure and their personal information is protected.

Fast and Cheap Bitcoin Transactions

Bitcoin transactions have been identified as a faster and cheaper alternative to traditional fiat currency transactions. BTC transactions avoid the participation of intermediaries and the value date mechanism, validating and confirming each transaction in real time, ensuring immediate accreditation.

Bitcoin Adoption: Opportunity or Threat?

The potential consequences of cryptocurrencies like Bitcoin replacing fiat currencies are very significant. This is because there would be no more physical bills and payments would only be made through digital wallets.

However, in the event that Bitcoin replaces fiat currencies, there could be a negative impact on global economic stability, because cryptocurrencies are very volatile and lack regulation, exposing users to a high risk that could cause significant losses in the assets of people or investors.

As Blockchain technology advances, the relationship between fiat currencies and BTC will continue to be shaped by our ever-evolving understanding of what money can and should be. The key is to understand their fundamental differences and how each one fits into one’s financial, personal or business strategy.

By Leonardo Perez

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