Zhao. During a recent interview, the CEO fronted a rather optimistic prediction for Bitcoin this year. He said BTC is a much better asset to hold value than fiat currency.

In his prediction, Zhao opined that Bitcoin has the potential to spike by between five times and 10 times by the end of 2021. That’s in addition to the currently established crypto bull run that took Bitcoin’s price to a new ATH of around $42k before the crypto drew back to trade at around $35k. Zhao backed up his views with a few strong points.

For one, governments have been printing a lot of fiat money during the Covid-19 pandemic. This is claimed as an effort to implement quantitative easing in hopes of reducing the economic effects caused by the outbreak.

As a result, fiat currencies are now losing value. CZ estimated that the US Dollar alone has been inflated by between 20-30%. That makes a strong case for people who want to preserve the value of their wealth to buy Bitcoin, thereby contributing to a rise in its demand and the subsequent Bitcoin price increase. CZ seems to have a lot of confidence in Bitcoin, as revealed by his recent tweets.

A lot of Bitcoin opponents have expressed pessimism about it, saying it’s highly volatile. However, according to Binance CEO, BTC is actually way less volatile than some other popular assets like Tesla’s stocks. That means owning Bitcoin is less risky than owning Tesla shares.

The rise of DeFi has been another development that has given Bitcoin a much-needed push to go mainstream. Many DeFi projects have been launched, but CZ has some bad news about them. According to him, it’s likely that a majority of the current such projects will not survive in the long run. Either way, there is a strong indication that Bitcoin price will continue its upward trend.

scale activity in the derivatives market.

Following the market frenzy on Thursday, BTC futures volume hit a peak at $100 billion. According to market data provider Skew, this value was never seen before and has been noting a volume above $75 billion for most of the new year – 2021.

The above chart provided deeper insight into the volume-driven Bitcoin market, especially since December 2020 and that Huobi and Kraken appeared to have been driving the trading volume.

Whereas, the options market has not been far behind in the race. Skew highlighted the open interest driving to a new high of $10 billion. Deribit has been the main exchange driving the interest in the BTC options market with $8.7 billion.

Just until a week back, the BTC value had hit an ATH at $28k, wherein it managed to surpass the market capitalization of Visa. Over the course of the past seven days, the value of BTC climbed higher almost every day and reported multiple ATHs.

As the price hit $40k, the market capitalization of BTC surpassed that of Tesla. The board member of BTC Foundation, Bobby Lee announced this milestone for the digital asset along with a promised giveaway.

— Bobby Lee – Ballet: World’s EASIEST crypto wallet! (@bobbyclee) January 7, 2021

As the market continued to celebrate the win over Tesla, its value transacted per second has now reached $859,375 per second.

With the new milestones being achieved almost every day, the digital asset has entered unchartered territory. Prominent chartist, Willy Woo on Twitter marked the levels for the digital asset using Fibonacci traces.

“When there’s no historic resistance levels, magic numbers in nature is all we have for support and resistance bands. #Bitcoin is in unrestrained price discovery in uncharted territory, literally.”

As the price of the digital asset moves along the price bar, there are new supports and resistances for BTC to form. While the market expects the price of BTC to undergo a correction, these levels might be guidelines to predict the movement of the digital asset.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

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Prominent crypto strategist and trader Michaël van de Poppe said that Bitcoin is gearing up for a run to $40,000 as it continues to register new all-time highs.

Here’s the tweet that he recently dropped.

When someone asked: “Are we gonna see alts moving anytime soon??” Poppe responded with the following message:

“Every 10 minutes, this question. Probably you’re invested with money that you’ve lent your family and went balls deep into altcoins through which you’re checking the charts every 5 minutes on Christmas. I’m expecting altcoins Q1 2021. Bottoming in this period. Nothing changed.”

Someone else posted this: “#Bitcoin Went up 7x in 289 days with no dips over 26%! Perhaps institutional buyers are happier to set limit orders padding the dips in ways that retail’s market buys do not. This run #BTC had only 5 dips, 4 of which were about 20%. Maybe $BTC won’t ever dip 40% again.”

He also pointed out the fact that this bull cycle is different.

A commenter said: “I think this bull run will be one of a kind. what’s happening right now with $BTC has never happened before. surpassing the old ATH by far before January.”

Another follower posted this: “The total market cap of crypto is still about $100 billion shy of where it was at its peak the last cycle. We will be hitting $1 trillion this round no problem.”

a bullish outlook given its current dip to lows of $900. Although the cryptocurrency’s all-time excessive (ATH) of $1,432 stays elusive, some analysts are actually saying that the subsequent bullish impulse for Ethereum could see ETH/USD worth greater than double.

This is the view of one analyst, who says ETH could bounce to $3k inside weeks of breaking its ATH. Another skilled has pointed to hodlers technique of not promoting within the quick time period as bullish for the coin and has predicted ETH targets of $5k, $10okay, and even $20okay in the long run.

According to the CEO of Nugget News Alex Saunders, ETH reserves on exchanges have plunged massively in the previous couple of days, and “exchanges could be out of ETH inside 48 hours“. As such, demand for Ether is rocketing, however there appear to be only a few individuals wanting to promote quick time period.

The identical view is shared by Byzantine General, one other extremely revered crypto analyst and dealer who says the above state of affairs is making a sell-side liquidity disaster for Ether.

Saunders says the info factors to an imminent explosion in ETH price.

“We all know what occurred when demand outstripped the provision of $BTC. It quadrupled in 90 days.”

Chart exhibiting ETH all-exchange reserves. Source: Alex Saunders

“I’m not gonna share all the info, I’m simply gonna let you know what you want to know. There is an excessive $ETH sell-side liquidity disaster“, the analyst teased.

Simply put, it seems buyers are Ethereum as an intrinsically worthwhile asset to maintain for the long run and are thus transferring belongings off exchanges presumably for hodling.  This is creating huge demand for ETH, main to a spike in shopping for strain.

ETH/USD 1-hour chart. Source: TradingView

ETH/USD has climbed to highs of $1,230 up to now hour. However, bulls are going through resistance at this degree, which coincides with the barrier supplied by the center line of an ascending parallel channel. Buyers want an upside to the higher boundary that extends to costs above $1,300.

If they handle it, a breakout above the channel’s apex line could see bulls retest current resistance ranges round $1,350 and probably hit a brand new all-time excessive above $1,500. Ether in price discovery mode could rocket to $2k, $3k, or larger within the subsequent 1—three months.

On the flip facet, a decline beneath $1,200 could see costs fall to the 100 hourly easy transferring common at $1,105. From right here, sellers can goal current lows of $900.

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during the bull run in late 2017, which saw a significant amount of interest from retail traders.

Many have postulated that this bull run is vastly different than that of 2017, which was largely driven by retail traders making speculative bets on the cryptocurrency.

This bull run is said to be institutionally driven, with large financial institutions including Guggenheim and Fidelity, taking positions in the market-leading cryptocurrency.

In fact, for most retail investors and traders, being a whole-coiner is largely out of reach, given the fact that Bitcoin is now trading at above $40,700.

The presence of these institutions doesn’t necessarily mean that there is no room for retail traders, however, as the sharp uptick in the number of active addresses indicates that some amount of retail FOMO buying is still taking place despite the current price levels.

On-chain analyst Willy Woo suggests that while the narrative is institutional money, it’s the institutional narrative that’s given Bitcoin the validation to encourage bigger retail investors to make large bets.

Willy Woo goes on to say that “Now we have family offices serving the wealthy rushing in needing exposure. There’s a lot of requests for $1m+ buys happening.”

This is evidenced by the fact that the number of addresses holding over 1k worth of Bitcoin has been continuously increasing. Woo explains that this is also the reason why the price has gone vertical, as when many buyers compete against each other for coins, the price premium runs up.

The current bull run is only accelerating, as Bitcoin climbed from $20k to $25k in 10 days, but climbed from $35k to $40k in only 2 days.

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Samyuktha is a full-time journalist at AMBCrypto. Currently pursuing her Masters in Finance and Business Analytics, she is interested in cryptocurrencies, fintech, and blockchain technology adoption across various sectors.

Coinmarketcap, which indicates that the market had seen a 10% increase in the last 24 hours.

This means that the crypto industry is now a tenth of the gold market cap that stands at $10 trillion. The crypto industry has kept growing in leaps and bounds since the beginning of the year. Bitcoin and other crypto-assets have kept performing well, with many of them reaching new all-time highs (ATHs).

According to the available data, Bitcoin contributes a major quota in the market cap of the industry. This leading crypto-asset has over $720 billion in its market cap, while the closest challenger, Ethereum also has over $140 billion in its capitalization.

Other crypto assets like Tether, XRP, Litecoin, Cardano, Bitcoin Cash and others also contributed their quota into making the crypto market cap rising to its new ATH.

Erik Voorhees of ShapeShift has predicted that the crypto market cap would get to $2 Trillion in the space of the next six months. According to him, though it took the industry ten years to get to the current level, it will take considerably less time for the market to hit its next trillion.

Josh Rager, a crypto analyst, noted that there is still the possibility of the market cap moving up, especially as more people begin to adopt Bitcoin and other crypto-assets.

The two analysts might have taken into consideration the increased level of institutional adoption of crypto-assets which helps to keep pushing the price of these assets higher.

Bitcoin alone in 2021 has broken countless numbers of its ATH. At the time of writing, the asset has broken the $39k level, and analysts are already predicting that the coin’s value will reach $43k.

crosses $ 40,000.

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Coinbase, Binance, Kraken and Gemini, were all victims of technical problems on January 7, 2021, while Bitcoin passed the 40,000 USD mark.

Coinbase seems to have been the most affected. The assistance service of Coinbase indicated that the team had identified connectivity issues and was working to resolve them as quickly as possible on the platforms Coinbase and Coinbase Pro available from web and mobile applications.

On the side of Binance, Changpeng Zhao stated that this new ATH from Bitcoin was accompanied by an ATH in trading volumes. According to him, the platform system encountered a web socket problem.

Kraken also acknowledged that their system was experiencing loading issues.

The exchange’s support page indicates that these issues are resolved, for now. Earlier, Kraken had been forced to limit certain types of transactions.

The website of Gemini indicated that the platform’s systems were experiencing performance issues and that their technical team continued to seek solutions.

A spokesperson for Gemini had mentioned that the exchange had not suffered a shutdown or breakdown; however, during peak periods, users may experience some slowness in the process.

He added that Gemini increased its capacities to cope with the increase in traffic and demand; the exchange will do the same in the future if necessary.

Should we expect a general shutdown of all exchanges when BTC reaches (soon) USD 50,000? The bulls are putting the major crypto players under pressure: miners fail to generate enough BTC with the gargantuan appetite of institutional investors, thus creating a supply shortage of BTC; the exchange servers let go with a Bitcoin crossing 40,000 USD. With an Ether (ETH) approaching its ATH and which is also now attracting the attention of institutions, exchanges will have to quickly put in place solutions to scale the processing capacities of their platform.

Litecoin, welcome in the Silver Age

cryptocurrency has surged over 35% year-to-date.

The digital asset has been in the overbought zone for a while. With the existing CME gaps, BTC has been awaiting a steep correction. As the asset rallied higher, the fear of correction rises in the market.

As the price of the largest cryptocurrency rallies, the altcoin market also noted a surge. Ethereum [ETH], the second-largest digital asset has witnessed 1.41% surge, while Litecoin [LTC] was up by 1.37%, in the past 24 hours.

Bitcoin closed 2020 with a year-to-date profit of 304% to the investors. While institutional interest in the digital asset skyrocketed, Grayscale Trust is currently one of the major ways for traditional institutions to get into bitcoin. On 4 January, Three Arrows Capital disclosed a $1 billion position in the Grayscale Bitcoin Trust, while SkyBridge Capital also announced a $300M bitcoin position and the launch of a new bitcoin fund for accredited investors, on the same day.

Bitcoin has continued to set new ATHs over the course of 2021; it all began with the asset breaching $35,000 on 6 January. This is much more than what Bitcoin cost in March 2020 which was around $3800. Many in the crypto economy believe that this year might see BTC touching a six-digit number.

Moreover, on-chain market intelligence firm Glassnode has put forward a projection that suggests Bitcoin could rally to much bigger figures. The firm based its projections on the BTC MVRV-Z score, which indicates that Bitcoin has climbed to its highest level in about three years. Glassnode found that the last time the MVRV-Z metric suggested a similar trend was in 2017 when the digital asset increased tenfold in the next six months.

Additionally, Paolo Ardoino, CTO at Bitfinex expects the bull market to continue. In a release shared with AMBCrypto, he noted that Bitcoin’s market capitalization has soared past the $600 billion mark. If the trend continues, the CTO believed that the asset could surpass the market caps of Apple, Google and, Facebook.

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Namrata is a full-time journalist at AMBCrypto covering the US and Indian market. A graduate in Mass communication, while majoring in Journalism, she writes mainly about regulations and its impact with a focus on technological advancements in the crypto space.

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shows how much popularity Ethereum is gaining, the figure has shown how much interest people have in the coin in place of Bitcoin (BTC), the coin whose growth has impacted on the other coins in the cryptosphere.

The google trend for Bitcoin is short of its ATH of 100% set in December 2017, the point where Bitcoin hit its first significant all-time high. The trend result now is 62% against that of Ethereum at 100%

Mainstream Media Coverage Not Impacting Bitcoin’s Google Searches

Bitcoin has seen a significant uptick in mainstream media coverage in the past month following its meteoric rise to a new all-time high at $40,000 for the first time in its 12 year history. The activities that resulted in Bitcoin reaching this milestone which includes the pumping of cash by Institutional investors have consistently made headlines putting BTC at the forefront of investors’ interests.

Despite this reality, however, new interests in BTC as depicted by the Google trend searches still paled behind that of Ethereum. This can be attributed to the fact that Bitcoin is redefining the concept of “Overbought” and investors are seeking alternatives and solace in the next best coin. 

retracement down to $28,000 the following day.

However, the crash was short-lived, with BTC quickly recovering, and pressing into new all-time highs above $35,800 around 4.30am (UTC).

Bitcoin has now gained roughly 80% since breaking into new highs on Dec. 16, and is up 22% in seven days.

The new record was posted one day after the U.S. Office of the Comptroller of the Currency published guidance greenlighting federally chartered banks to use stablecoins and public blockchains for settlement

Ethereum has also pushed back above $1,100 alongside BTC’s latest push, and has gained 44% over the past week.

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soon. By surging nearer $1000 per day, BTC price is expected to hit $31K by the end of 2020.

One of the analysts and the partner at The Spartan Group, Spartan Black has predicted about the major cryptos and the defi space for 2021. According to Mr Spartan Bitcoin will hit $100K in 2021 and Ethereum Price will surpass its current all-time high within next 6 months.

Moreover, he says that the DeFi’s total value locked (TVL) will also exceed $100M in 2021 with at least 10 tokens will have more than $10 billion market capitalization. 

Ethereum, the world’s second largest cryptocurrency according to market capitalization has yet once again crossed $700 following the Bitcoin bull run. The price currently is around the yearly highs at $732 with a growth of 13.12 percent in the last 24 hours. 

Despite Ethereum’s spike of nearly 13 percent for the first time since 2018, the miners’ balance and the supply on exchanges remain low as recorded by an on-chain analytic platform Santiment.

Therefore showcasing a strong projection of an Ethereum bull run which will form a new ATH very soon. Collectively, bitcoin and ethereum price volatility is quite stable for the past two years, climbing steadily eliminating huge spikes.

According to the CSO of Blockstream, Samsom Mow, the bitcoin price volatility will be still less in the coming years as the institutional and hedge funds continue to buy Bitcoin at every dip.

which is only a few hundred dollars away from $30,000.

Last year, Bitcoin price almost quadrupled after it had sold for less than $6000 as of last March. However, since then, especially during December, the value of the coin has appreciated massively as it kept breaking its own record.

To put this in perspective, the coin price surged by over 300% within 2020 alone.

One of the reasons attributed to this massive rise in price of the digital asset is the role institutional investors played in a broader and wider acceptance of BTC as a viable means of investment and also a valid store of wealth.

In 2020, the economy suffered due to the outbreak of the pandemic that grounded almost all human activities. To cushion the economic effect of the virus, some governments like that of the United States decided to pump a stimulus package into the economy which is the same thing as printing more money. This led to fear among economic analysts who believed this would lead to massive devaluation.

So, in response to this, institutional investors like Grayscale, Microstrategy, Square etc began to buy BTC as a store of wealth and as an investment tool.

PayPal entrance into the crypto market also played a role. The entrance of the financial institution opened the crypto industry to over 300 million active users who can now trade in crypto assets like Bitcoin too.

Presently, Bitcoin market capitalisation is above $500 billion, placing it above huge financial institutions like Visa and MasterCard.

At the current rate, the coin could also be able to usurp other huge institutions like Alibaba, Tencent, Berkshire Hathaway etc on the ranking.

on Christmas eve but soon rebounded to the $24,500 level. However, BTC managed to break the resistance today with its bullish momentum.

Bitcoin’s market dominance has scaled above 70% thus making it quite difficult for altcoins to enjoy the benefits of the bull run. The top cryptocurrency has managed to almost triple its price since the bitcoin halving in May this year.

Bitcoin started to climb the price ladders by the end of October rising from $13,000 to over $25,000 within two months’ time. The strong bitcoin momentum defying many fears of a market correction and price crash post record highs owing to the influx of institutional players buying bitcoin in loads. The 2017 bull rally was primarily carried by retail players and that is why bitcoin could not hold on to its price post breaching $19,000, while the current institutional Fomo has led bitcoin to breach new highs and also retain the gains.

Many belive the Christmas eve rally which saw Bitcoin breach key resistance of $24.7K, $24.8K, and $25K in a single day was the job of retail players rather than institutions. Adam Back, co-founder of Blockstream pointed towards the fact that yesterday’s bullish rally was carried by retail players rather than big institutions.

This is evident from the stoppage of inventory depletion in the spot market which means the spot market has started to see the rise of funds inflow pointing towards the entry of retail players, as they generally store more of their coins on exchanges, unlike institutions. On-Chain analysts Willy Woo pointed towards the re-accumulation phase.

The entry of retail could also help altcoins finally come to the party just like 2017 when most of the altcoins pumped to their ATH. Woo noted,

To keep track of DeFi updates in real time, check out our DeFi news feed Here.

27% growth.

One of the technical analysts, Kong, Ethereum currently is trying to flip the previous key resistance area. A successful filp will rally the price back to $1280 and an unsuccessful one will drag the price close to $1050.

The trading volume increased immensely giving a great boost to the ethereum price which rallied above $1000. As per analysts, George, Ethereum may outperform all the other assets in the coming days, while BTC price may range sideways.

Also Read: 2021 Expected to Be the Year of Ethereum, Will It Hit $10,000 by the End?

Ethereum price was heading strongly towards the ATH and the crypto space expected the asset to form new highs very soon. But suddenly, the ETH price experienced a drastic drain dipping out nearly 32% of the price in less than 24 hours.

It was considered as a small correction phase which was successfully completed with a huge boost to the price which rallied more than 26% in the early hours of trading. Currently, it is mandatory for the ETH price to break the resistance level $1150 to rally further to test the resistance levels at $1346. 

Once these resistance levels are broken the target would be to form new highs above $1432. However, the strong support levels are formed at $1038 and in case the price breaks down this level, the price may even slip below $1000 to touch the support levels at $970.

Also Read: Ethereum Price in the Decisive Phase, A Major Breakout is Mandatory!