The aggressive crypto rally which took place in the early hours yesterday may have lost some of its steam but the upside bias remains intact. As a result, the cryptocurrency market remains well bid, with Bitcoin trading up around 6% at the $5,000 level, while Ethereum’s price is up over 10% at $168. As to be expected, there are plenty of theories and conspiracies being attributed to the movement.
Reuters is attributing all the movement to a major order by an anonymous buyer which set off a frenzy of computer-driven crypto trading. The said order, worth about $100 million, was spread across U.S.-based exchanges Coinbase and Kraken and Bitstamp. Elsewhere, The Block focused on the momentum shift in the market, citing a number of initial exchange offerings and token raises sponsored by crypto exchanges. Specifically, VeriBlock wrapped up its IEO on U.S.-based exchange Bittrex in 10 seconds, according to a tweet. While, Huobi and Binance have in recent weeks rolled out their own Initial Exchange Offering (IEO) platforms, selling tens of millions of dollars-worth of new token issuances.
As alluded to yesterday, the cryptocurrency market is very unpredictable and the recent price volatility is a testament to that; one thing is for sure – you should not underestimate the power of FOMO. Still, the crypto rally may have a somewhat shaky foundation but the market looks more bullish, the open interest in 6,000 strike (calls) has now risen to 2351.2 vs 2342.9 yesterday and the delta now stands at 0.32 vs 0.23 yesterday.
In other developments, Coinbase recently announced the launch of staking support for Tezos (XTZ) as well as governance support for MakerDAO for their Coinbase Custody clients. Focusing on MakerDAO, not only is this a huge boost for the credit ecosystem and DAI coin, but it also suggests that Coinbase does NOT believe that the SEC poses a material risk to MakerDAO or the stablecoin DAI. This is a very bullish development for Ethereum and the credit ecosystem in general.
Finally, as reported by Cointelegraph, during an interview on CNBC’s “Futures Now” show, Brian Kelly - the founder and CEO of digital currency investment firm BKCM LLC, stated that “probably a reasonable target [for Bitcoin] is close to $6,000 for this move.” Kelly’s statement comes in the wake of a cryptocurrency price surge when the leading coin skyrocketed by over 15% and broke the $5,000 price mark for the first time since last November. Kelly suggested that the cryptocurrency market is finding its bottom.
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