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Bitcoin Expects to Hit $9,800 on Strong Retail Sales Data; Here’s Why

Bitcoin expects to extend its recovery rally towards $9,800 as the U.S. futures grows further. Both Bitcoin and the U.S. stocks have fallen and risen in tandem since the beginning of this week. Expectations of a strong retail sales report could push equities higher, assisting Bitcoin in logging similar upside moves towards $9,800. Bitcoin rallied […]

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  • Bitcoin expects to extend its recovery rally towards $9,800 as the U.S. futures grows further.
  • Both Bitcoin and the U.S. stocks have fallen and risen in tandem since the beginning of this week.
  • Expectations of a strong retail sales report could push equities higher, assisting Bitcoin in logging similar upside moves towards $9,800.

Bitcoin rallied Tuesday in sync with similar bullish moves in the U.S. futures market.

The benchmark cryptocurrency surged by 7.82 percent from its 24-hour low near $8,895. The move uphill took its price above $9,500, a psychological support level. At its intraday high, bitcoin was changing hands for $9,590.

bitcoin, btcusd, xbtusd, btcusdt, cryptocurrency, crypto

The local top prompted traders to take short-term profits, causing a minor price correction. Nevertheless, Bitcoin maintained a solid floor above $9,500 – despite slipping briefly below it. The move indicated that traders are waiting for the U.S. market to open and guide them for the next session’s bias.

The Correlation

Observers earlier noted Bitcoin and the U.S. benchmark S&P 500 moving in the same direction.

Both at the beginning of this week fell in tandem over investors’ growing fears of the second wave of virus infections. Nevertheless, the Federal Reserve’s commitment to purchase individual corporate bonds via additional stimulus sparked a recovery rally in the stock market. Bitcoin followed suit.

Given the correlation would continue after the New York opening bell Tuesday, Bitcoin expects to rise to its next resistance level target near $9,800. The upside zone pops on the cryptocurrency’s Fibonacci retracement graph between its swing low of $8,089 to high of $10,420.

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It is because the U.S. stocks are hinting at an optimistic start. Futures tied to the S&P 500 rose 1.79 percent, while that of the Dow Jones rallied 2.31 percent.

Optimistic Retail Data to Drive Bitcoin Upwards?

The upside sentiment came ahead of fresh data that would show how consumers behaved in May after easing of lockdown in the several U.S. states. Fox News reported that investors are anticipating a record rise in the retail sales data as 2.5 million Americans resumed employment.

A Reuter survey encompassing responses from economists found that they expect a 8 percent jump in the sales receipts. Nevertheless, the attractive bounce would cover only a quarter of sales drop incurred during the lockdown in March and April.

“What we’re monitoring really closely is everything related to consumption,” Luc Filip, head of private banking investments at SYZ Private Banking, told WSJ. “We consider that consumption will be the main driver for the recovery.”

On the flip side, Federal Reserve’s Chairman Jerome Powell will testify before the U.S. Congress at 10 am EDT. His pessimistic tone about the economy could offset a portion of optimism from the stock market, which may send Bitcoin lower, as well.

But overall, the cryptocurrency is eyeing a jump towards $9,800 as long as it can maintain a price floor above $9,500. An extended bullish action would bring it further closer to retesting the $10,000-resistance level.

Source: https://www.newsbtc.com/2020/06/16/bitcoin-eyes-9800-retest-on-expectations/?utm_source=rss&utm_medium=rss&utm_campaign=bitcoin-eyes-9800-retest-on-expectations

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Bitcoin Lacks Transparency and Integrity, Says Trump Ex-advisor

Former Goldman Sachs president and COO Gary Cohn said that Bitcoin’s system has no owner or transparency—and that’s a flaw.

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In brief

  • Former Goldman Sachs president Gary Cohn said that Bitcoin’s system has no integrity because no one owns it.
  • “For all the reasons it’s a strong developing asset class, it may fail,” he said.
  • At the same time, Cohn praised central banks’ digital currencies as the evolution of money.

Gary Cohn, former president and COO of Goldman Sachs—who also served as Donald Trump’s chief economic advisor between 2017–2018—said that Bitcoin could fall just easily as it rose since its system has no transparency and integrity, according to Bloomberg.

“For all the reasons it’s a strong developing asset class, it may fail,” Cohn stated in an interview, noting that Bitcoin “lacks some of the basic integrity of a real market.”

Cohn voiced his criticism of Bitcoin just as the crypto experiences its second major price rally. It has recently broken its previous all-time high price—for the first time since late 2017—although has since dropped back down to $18,700.

However, Bitcoin’s main long-term problem is that it is not owned by any entity, according to Cohn.

Bitcoin and cryptocurrencies are here to stay. Image: Shutterstock

“Part of the integrity of a system is knowing who owns it and knowing who has it and knowing why it’s being transferred. The Bitcoin system today has no transparency to it. So there are a lot of people that question, why would you need a system that does not have an audit trail,” he added.

Notably, Cohn expressed much warmer sentiment towards digital money in April, when he stated that, “The slow rise of digital currency has been given a gigantic boost by the pandemic.” However, it now looks like he actually meant only cryptocurrencies created by central banks.

“If central banks around the world created digital currencies, each person could have a segregated account. This idea is gathering steam,” Cohn wrote in April, adding, “If that happened, all banking would happen through a digital backbone and wallet. ATMs and bank branches, which are already closing at a rapid rate, would become obsolete. Earnings would deposit directly into an individual’s wallet and be spent directly out of it.”

So, basically, the same as Bitcoin but without the “fatal flaw” of not being owned by banks? Right.

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Canaan Sees Over 75% Decline in Net Revenue in Q3 as Bitcoin’s Price Surge

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Chinese Bitcoin mining firm Canaan has recorded a loss in yet another quarter but is showing positive signs of a recovery as share price and market capitalization spikes. Following a disappointing initial public offering (IPO) last year and declining inventory sales, the company has seen the balance of power shift considerably to major competitors MicroBT and Bitmain.

$12.7 Million Loss for Q3 2020

Bitcoin miner maker Canaan has reported a 75.7% year-on-year (YOY) decline in net revenue as part of its Q3 2020 financials published on Nov. 30. In the report, Canaan revealed that its net revenue for the period was $24 million, which also amounts to an 8.5% reduction from the earnings recorded in the previous quarter.

Following the significant drop in quarter-on-quarter (QOQ) net revenue, it is unsurprising to see Canaan post another quarterly net loss in 2020. According to its Q3 2020 financials, the bitcoin mining chip maker recorded a net loss of $12.7 million, compared to a $2.5 million loss in Q2 2020 and $14.3 million in Q3 2019.

Commenting on the firm’s Q3 financial performance, Nangeng Zhang, Canaan’s CEO and Chairman said:

“During the third quarter of 2020, we remained undeterred by the pandemic to strengthen our research and development capabilities, expand our AI business, and execute new business initiatives. By leveraging our enhanced R&D capabilities in the third quarter, we launched our A1246 product series, which continues to lead the industry with its energy efficiency, computing power, and unit cost.”

Canaan Market Cap on the Rise

Net loss aside, Canaan has been recording some positives in the latter part of 2020. Indeed, the company’s market capitalization has more than tripled from $300 million in September to about $900.8 million as of press time.

Canaan’s share price has also been on a tear in recent months, rising over 200% within the same period. With one-third of Q4 remaining, the company’s stock has risen over 170%. Maintaining the current price action could see the Bitcoin miner manufacturer’s stock price challenge its IPO float price of $9, which incidentally is its all-time high share price.

Tweeting on Canaan’s Q3 performance, @WuBlockchain identified rising inventory sales and the release of the company’s A1246 miners are contributing factors to the firm’s recent resurgence.

Canaan was also among a group of Chinese mining hopefuls looking to float IPOs in the last couple of years. However, Canaan’s offerings fell short of the mark, failing to even realize a quarter of the $400 million estimate.

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Source: https://cryptopotato.com/canaan-sees-over-75-decline-in-net-revenue-in-q3-as-bitcoins-price-surge/

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Ethereum Prices Return to $620 Resistance on ETH 2.0 Launch Day

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Today marks the long-awaited genesis of Phase 0 in the Ethereum 2.0 upgrade roadmap which stretches ahead for the next couple of years. According to the Beacon Chain countdown, there is now less than seven hours to go before the genesis event spawns the first block on the new chain.

The Beacon Chain explorer reports that there is currently 872,000 ETH staked which equates to approximately $525,000 at today’s prices.

No Native Scaling For a Year

The excitement over the launch is palpable but many are still unaware that the new blockchain will not actually function as anything other than providing staking rewards to validators. All of the smart contracts, dApps, and transactions will continue as usual on the original ETH 1.0 chain.

Researchers at Messari Crypto pointed out;

“When the Beacon Chain launches tomorrow, outside of bootstrapping a network of proof of stake validators, it will have little functionality.”

This also means that there will still be issues with high gas prices when the existing network comes under heavy load which is bound to happen over the next year if DeFi momentum continues and the space evolves even more.

Phase 1 will introduce scaling through sharding, which will introduce 64 parallel side chains to take the load off the main chain and increase throughput. This is unlikely to occur for at least another year from today, and even then ETH 1.0 and 2.0 will operate independently until Phase 1.5 merges them together sometime in 2022.

Either way, the Ethereum community is hyped up over the event which is the culmination of five years of research and development for the world’s largest smart contract and decentralized application network. In his latest Bankless newsletter, David Hoffman aptly said;

“We were born too late to explore the globe, too early to explore the galaxy, but we were born at the perfect moment to explore the infinite whitespace of Ethereum 2.0.”

Ethereum Prices at Resistance

Ethereum prices have returned to their June 2018 price high of $620 just hours before the launch. This level appears to have formed a double top and heavy resistance zone as it did in early 2018. A next leg up could take prices to $800 where further resistance lies, but on the downside, support can be found at around $520.

At the time of press, ETH prices had retreated a little to trade at $605 but the momentum and potential is still with it.

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Source: https://cryptopotato.com/ethereum-prices-return-to-620-resistance-on-eth-2-0-launch-day/

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