Global financial markets rout plunged Bitcoin, the world’s most dominant cryptocurrency, by $10,000 to $47,000 a coin, according to the data obtained from Coindesk.
Bitcoin was trading at slightly above $57,000 a coin on Friday before falling by 17 percent or $10,000 to $47,000 within 24 hours to further highlight the state of the global financial markets amid growing concerns over the Omicron COVID variant spread.
Ether, the second most capitalised cryptocurrency, also sheds 10.26 percent to $4,047.96 a coin while Solana, XRP, Terra (Luna), Cardano and Stellar dropped 10.19 percent, 17.54 percent, 11.96 percent, 13.95 percent and 16.74 percent to $204.67, $0.796952, $60.85, $1.40 and $0.292059, respectively.
There is no clear reason as to why bitcoin and other cryptocurrencies are falling besides rising global uncertainty surrounding the fast-spreading Omicron covid variant.
Selling pressure in the Bitcoin spot market seems to have dragged on the entire cryptocurrency before triggering huge stop losses in the derivative markets.
“The evidence points to this being yet another derivative-induced selling event,” wrote J.C. Parets, chief market strategist for All Star Charts technical research, in a note Saturday morning. “The September flash crash had the same drivers as this selloff — leverage was flushed from the system in a violent fashion, which later enabled the market to eventually move higher toward a new all-time high in October.”
Despite the uncertainty surrounding financial assets, El Salvador, the first country to accept Bitcoin as a legal tender, announced it has bought the dip. President Nayib Bukele acquired 150 Bitcoin for about $48,700 a coin.
Tether (USDT), the largest stablecoin by market value, moved away from its 1:1 peg against the US Dollar to $1.025, largely because of its usage as a hedge against market uncertainty. Traders usually move their cryptocurrency to USDT during high market uncertainty.
“Our expectation for the coming days/weeks is sideways choppy price action. A contraction and basing process is likely to take place after such a violent move and we want to treat sharp upward rallies suspiciously right now,” added Parets.
Dogecoin Gains 20% After Musk Announces Tesla Now Accept the Meme Coin as Payment
Moments after Tesla and SpaceX CEO, Elon Musk tweeted that Dogecoin can be used to purchase Tesla’s merchandise, the digital currency’s value surged by 20 percent.
Musk, in a tweet, stated that the Electric Vehicle (EV) company Tesla from today, will accept the popular token as payment for some of its merchandise, such as belt buckles, chargers, and other merchandise.
Tesla merch buyable with Dogecoin
— Elon Musk (@elonmusk) January 14, 2022
Tesla’s online store displayed the prices for some of the merch in US dollars and Doge. The items include a whistle inspired by its highly anticipated Cybertruck model (300 DOGE), an electric quad bike for children ($12,020) and a belt buckle ($835).
After making the announcement, the token, which began originally as a joke from a meme, rose in value by 20 percent. CoinDesk data puts it that Dogecoin topped $0.20 a coin.
This isn’t the first time Elon Musk’s tweets have incredibly influenced the fall and rise of popular assets within the financial markets, especially cryptocurrencies. Last year, Dogecoin went from being just an ordinary altcoin originating from the Shibu dog meme to one of the world’s most valuable cryptocurrencies after Musk had tweeted that he was investing in the asset. In May 2021, after Musk’s statement, the token’s price peaked at nearly 70 cents. Its market capitalization also grew to a peak of approximately $90 billion.
According to CoinGecko, Dogecoin is currently the 11th most valuable token and has a market capitalization of over $26 billion.
It should be recalled that the EV maker in 2021 briefly accepted bitcoin, the world’s most valuable cryptocurrency by market cap, as payment for its electric vehicles. However, after citing concerns over Bitcoin’s high energy usage, Tesla noted that it would no longer accept the token as payment.
The Bitcoin network, through a process called mining, uses large amounts of energy. The announcement also impacted Bitcoin, plummeting its value.
As Dogecoin uses significantly less energy, Musk in December, last year mentioned that he would work with dogecoin developers to improve the efficiency of transactions. He had also revealed that plans to accept Dogecoin as payment had been in the works for a while.
The SpaceX Founder in December had tweeted that “Tesla will make some merch buyable with Doge & see how it goes.” The announcement also surged the price of the token by 20 percent last month.
New Analysis from AI Company Identifies Daily Bitcoin Volatility Peaks
Bitcoin volatility peaks at 3pm before the New York Stock Exchange closes as well as spiking at 3am Eastern Standard Time, according to new analysis from GNY, the leading blockchain-based machine learning business.
Its analysis of trading data throughout 2021 found 3pm in the US – or 8pm in the UK – is the time to avoid for Bitcoin traders wanting to minimize volatility while 3am in the US – 1.30pm in India – is also a time for high volatility.
GNY’s analysis of 25 input data features found that trading data – whether volumes are high or low on average or whether Bitcoin prices are seeing major positive or negative moves – is the only mathematical relationship with volatility.
Factors such as LIBOR, gold prices, the Federal Funds rate or US inflation have no mathematical relationship with Bitcoin volatility.
GNY analysis reveals daily average Bitcoin volatility was 4.1% last year with daily volatility ranging between 4% and 10% when trading volume is above average and between 2% and 5% when volumes are below average.
GNY’s analysis of the most volatile days for Bitcoin trading in 2021 found August 2nd was the most volatile day with average daily volatility of 18.79% followed by May 19th with 13.83% and January 21st with 13.28%.
Its own research (2) shows one in five (22%) Bitcoin traders who trade at least $1,000 a month in the cryptocurrency expect the level of volatility to increase dramatically in 2022, and further 57% say it will increase slightly. Only 18% expect it to fall or stay the same.
Cosmas Wong, CEO GNY said: “Our mission at GNY is to bring machine learning tools to the crypto community to facilitate smarter business and trading decisions. Predicting Bitcoin volatility is the most impactful metric in blockchain right now.
“Our research has helped us understand the time based fluctuations in price and volume, as well as the patterns generated by market activity. Our nuanced machine learning models allow us to create a superior BTC prediction model.”
GNY recently launched the BTC Range Report, providing some of the most accurate forecasts around Bitcoin volatility of any platform or service available today. Extensive testing of BTC Range Report has delivered a mean absolute percentage error (MAPE) of between 3% and 7% making it one of the most powerful BTC prediction tools in the market. The average of the majority of competitor BTC prediction tools tested by GNY was 10%, but it was as high as 17% for some platforms.
GNY believes that today’s altcoin traders will be tomorrow’s bitcoin traders. So to launch the BTC Range Report GNY entered into an exclusive partnership with CoinSniper which is widely regarded as the #1 source for the best new cryptocurrency projects. Subscribers to the CoinSniper GNY newsletter providers traders with exclusive content and previews to measure the Range Report’s accuracy for themselves.
The BTC Range Report is available every Tuesday at 9am EST and spans a seven-day period. For the price of just $10, it can be purchased with ETH or GNY tokens, and access is provided directly through the user’s Metamask wallet. Version 1 of the GNY BTC Range Report offers:
- GNY’s daily projected volatility range for BTC as a graph and a table
- a forecast of which day will hold the weekly high and the weekly low
- forecast of daily volumes
- historical daily high and low prediction graph for the last two weeks VS BTC Actuals
- mean absolute percentage error (MAPE) for GNY historical daily high and low predictions VS BTC Actuals for the previous two weeks
Rumors of Robinhood Listing Surged Shiba Inu by 13% in 24 Hours
In the early hours of Thursday, Shiba Inu’s (SHIB) price surge by 13 percent amid rumors of Robinhood listing the meme coin by February.
“Shiba Inu Robinhood listing said to come as early as Feb,” a tweet by business news handle ZeroHedge read.
Over the past few months, some Crypto exchange platforms like Kraken, Indian Exchange Koinbazar and others added SHIB trading on their platform, however, the Shiba Inu community awaits Robinhood to join the list of Crypto exchanges supporting Shiba Inu trading.
Despite over 500,000 petitions signed by the SHIB community, the U.S. leading exchange platform, Robinhood is yet to support the trading of Shiba Inu on its platform. As previously reported on Investors King in one of our articles, the COO of Robinhood, Christine Brown said the trading platform prioritizes safety over the “short term gain” of listing new coins.
He said, “our strategy is different than a lot of the other players out there who are racing to list as many assets as possible right now. We think that the short-term gain to us is not worth the long-term trade-off for our users.”
In an interview with CNBC in October 2021, Vlad Tenev, Robinhood CEO said, “it goes back to safety first, right. So we’re not generally going to be the first to add any new asset. We want to make sure that it goes through a stringent set of criteria”.
Following Robinhood’s rumored listing, data from kuCoin showed that the price of Shiba Inu coin (SHIB) surged to $0.00003293 before dropping to $0.00003145 on the four-hour candlestick.
The surge has placed SHIB on the 13 spots of the digital assets by capitalization at $17,645,625,231. At the time of writing, Shiba Inu coin is trading at $0.00003214 or a 12.06 percent gain in 24 hours.
It is uncertain if the rumor will turn out true or another fire without smoke plans to pump Shiba Inu coin price.
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