Bitcoin has remained relatively stable over the past week, struggling only a bit at the USD$7,400 pressure level. The momentum lost force 2 days back, which is a sign of reaching the end of the climbing curve. Since the price didn’t break through the pressure point at USD$7,400, it has started to recede.
The last supporting point shows between USD$6,750 and USD$6,800. Heavier price cuts are ahead if this price range doesn’t hold.
The next concerning supporting point is predicted to be between USD$5,600 and USD$5,800.
Cryptocurrency in relation to other markets
We selected some alternative investment markets to determine to what extent they correlate with the crypto markets. As we can tell, there was no significant correlation between BTC and other alternative investments. Correlation between BTC and stock market volatility is low this week.
Cryptocurrency Market Panic Index
Instead of using social media panic factors that are difficult to quantify, we calculate the BTC market panic index completely based on volatility. Based on the CBOE calculation method for the S&P VIX index, we use the near- and next-term put and call BTC options to calculate the VIX trend chart (The lower the VIX, the lower the market panic). As shown on both graphs, the correlation between BTC and ETH panic indexes is extremely low this week.
Digital currency prices (2020-04-13 UTC 12:00)
News of the week
With Bitcoin’s stagnation over the past week, as the stock market experienced a strong rebound: the S&P 500 index rose 12% from last Friday’s closing price despite the 6.6 million new unemployment benefits and the continued coronavirus outbreak in the United States.
Although no action has been taken, analysts are still bullish on BTC and other cryptocurrency markets. In fact, as NewsBTC previously reported, BitMEX CEO Arthur Hayes said that although he may see Bitcoin regaining $ 3,000, his year-end price target is still “targeting $ 20,000”. He listed the monetary and fiscal programs adopted by the government and the central bank to solve current problems:
“Everyone knows that we are changing, which is why central bankers and politicians put all their tools on this issue. I want to reiterate that this is inflation. During the transition to the new system, there are only two things worth holding, gold and bitcoin. ”
Layoffs in the crypto industry
As the economic situation deteriorates in nations across the world, Bitcoin.com fires staff and has decided to operate using a skeleton team. With the coronavirus pandemic raging through the world, these are definingly tough times to be in business.
In addition, Factom, one of the original encryption companies, is said to have gone bankrupt, although it has received millions of dollars in funding in the past five years and received funding from the US Department of Energy.
Bitcoin Cash and Bitcoin SV Block Reward Halving
Both Bitcoin Cash and Bitcoin SV have seen their block rewards halved in the past 72 hours. As a result, both networks saw their hash rate and difficulty decrease. The halving resulted in an immediate 50% reduction in the mining revenue of miners operating on the BCH and BSV chains, forcing operators to close their mining machines or switch to other networks. Fewer machines means fewer blocks of computer processing, resulting in slower transactions.
South Korea launched a digital currency project
Last Monday, the Bank of Korea revealed that it has launched a pilot program for testing digital won and plans to start operations in 2021. The bank said the plan will determine whether there are legal cases and sufficient technical capabilities to launch digital currencies in South Korea. Only six weeks after the South Korean National Assembly passed legislation, the legislation will provide a comprehensive framework for the supervision and legalization of cryptocurrency and bitcoin exchanges.
Fidelity interest in Bitcoin is rising
According to Frank Chaparro, News Director at industry outlet The Block, Fidelity Digital Assets — the crypto services division of Wall Street giant Fidelity Investments, a firm with trillions under management — has confirmed it has seen an uptick in interest.
A spokeswoman for Fidelity speaking to Chaparro said that “from a trading perspective, we continue to onboard new clients every month and are seeing significant pipeline growth. And in recent weeks, we have seen more momentum across our business.”