Blockchain News

Big Tech sell-off and rising Treasury yield pin Bitcoin price below $50K

img-ads

Bitcoin (BTC) continues to struggle below $50,000 on March 5 as a spike in the 10-year Treasury yield to 1.62%, its highest level in over a year, has taken a toll on global financial markets and hit risk-assets especially hard. 

At the time of writing the S&P 500 and Dow are up 0.46% and 0.64% but the tech sector sell off continues as companies like Apple and Tesla continue to slump further. 

Economists see rising bond yields as the result of improvements in the economy thanks to the Covid-19 vaccine rollout and the expectation that economic activity will ramp up as the rate of coronavirus infections drop. The rise in yields has led some to speculate that the Federal Reserve may institute yield curve control or take a more hawkish stance, but so far the central bank has refrained from altering its current plans. 

Data from Cointelegraph Markets and TradingView shows that Bitcoin bulls attempted to stage a rally during early trading hours on Friday, pushing the price up 5.25% from a low of $46,280 to an intraday high of $48,725. The $50,000 level has yet to be reclaimed as a firm support and traders are still looking for a daily close above $52,000 to confirm that bullish momentum has been restored.

BTC/USDT 4-hour chart. Source: TradingView

Despite this week’s pullback, optimism among investors remains high following February’s record-breaking month which saw Bitcoin reach a total market cap of $1 trillion and a new all-time high at $58,532. Ether (ETH) price has also been consolidating for the past two weeks after hitting a new high at $2,033 on put in a record high of $2,033 on Feb. 20.

After strong parabolic rallies, a cooling-off period of range-bound trading and lower support retests is customary and from a technical point of view, Bitcoin and Etheruem are in a consolidation phase.

Historical data shows Bitcoin struggles in March

2021 has seen Bitcoin put on its best yearly start since 2013, but historical data shows BTC price tends to struggle from mid-February to the end of March. A recent report from Delphi Digital highlighted this trend, which has also been applicable to Ether since 2018.

Bitcoin yearly performance. Source: Delphi Digital

According to analysts at Delphi Digital, Bitcoin’s volatility also increases in March, meaning that moving forward 20% price drawdowns should not come as an unexpected surprise.

Despite the most recent corrections below $50,000, Delphi Digital’s overall outlook remains optimistic and the analysts said there is “nothing in the data or charts giving us reason to believe the peak for BTC this cycle is behind us.”

The report said:

“Bitcoin’s breakout above $20,000 at the end of last year served as a strong confirmation for its uptrend and marked a significant milestone; zooming out the long-term chart for BTC/USD looks very promising.”

The analysts also suggested that Bitcoin could possibly overtake gold in the future as the precious metal’s 9.8% decline year-to-date has been its worst in more than 30 years.

This is possibly due to a divergence in fund flows between Bitcoin investment products and the world’s largest gold ETFs that has emerged in recent months and Delphi Digital hinted that the longer gold underperforms, “the more attention BTC is likely to garner.”

New all-time highs amidst the market sell-off

Daily cryptocurrency market performance. Source: Coin360

While Bitcoin and most major altcoins are in the red today, there are a few notable standouts for the week. 

 Theta (THETA), a blockchain-powered video streaming platform, saw its price surge to a new record high of $4.50 on March 4. SwissBorg (CHSB) price also rallied 13.04% to establish a new high at $1.16.

Ether experienced a 6.24% pullback earlier today, dropping to $1,481 and Polkadot (DOT) has been the hardest hit project in the top 10, down 10% and trading at $32.42.

The overall cryptocurrency market cap now stands at $1.44 trillion and Bitcoin’s dominance rate is 60.7%.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

img-ads

Leave a Comment

You may also like

Blockchain

‘Bizarre Cash Like DOGE & XRP Spike’- Galaxy Digital’s Mike Novogratz Advises of a Crypto Market ‘Washout’

single-image

Apr 16, 2021 10:49&nbspUTC

| Up to date:

Apr 16, 2021 at 10:49&nbspUTC

By&nbspClark

BTC bull & billionaire investor Mike Novogratz has suggested about cryptocurrency market volatility in a brand new interview stemming from the Barron’s & Marketwatch’s ‘Investing in Crypto’digital event collection. Usually, & over the prolonged time period, Novogratz is bullish about BTC & corporations like Coinbase residual rich.

Novogratz Advises of a Crypto Market ‘Washout’

Shares in Coinbase World, Inc. (Nasdaq: COIN) are presently down 5% in the meantime yesterday’s opening & all through the launch billionaire Mike Novogratz rod in regards to the San Francisco agency & the crypto-economy general. Novogratz has been a long-time follower of BTC  & different digital property like ETH as nicely. Simply currently, the crypto funding firm he originated, Galaxy Digital utilized with the U.S. Securities & Trade Fee to listing a BTC exchange-traded fund.

Although talking positively in regards to…

View More Article
Blockchain

Liquity Protocol entices $1Billion TVL in simply Ten days

single-image

Apr 16, 2021 10:42&nbspUTC

| Up to date:

Apr 16, 2021 at 10:42&nbspUTC

By&nbspClark

The “interest-free loans” decentralized loaning protocol these days has a $1 billion worth of locked-up value after it launched on April 5.

The squad behind Liquity Protocol — a DeFi undertaking hurled on April 5 — has concerned $1 billion worth of locked-up worth rendering to statistics from Dune Analytics.

The Pantera Capital-backed Liquity is a Swiss-founded decentralized & governance-free loaning protocol that proposals interest-free loans in contradiction of ETH locked as collateral, with operators necessary to uphold the least collateral ratio of 110%.

Loans are remunerated out within the protocol’s algorithmic secure coin LUSD, which is connected to the price of USD at a one-to-one ratio. The protocol mechanically makes LUSD meet operator demand, & thus far has forged a provide of 480M secure cash, with extra cash being forged than burned apiece day.

The loans…

View More Article
Blockchain

Brian Brooks defends fintech constitution to take care of financial Companies Committee

single-image

Apr 16, 2021 09:27&nbspUTC

| Up to date:

Apr 16, 2021 at 09:28&nbspUTC

By&nbspClark

Brian Brooks has defended the fintech constitution he oversaw whereas heading the OCC, warning heavy-handed crypto legal guidelines might undermine U.S. struggle globally.

Brian Brooks has defended the fintech banking constitution launched whereas he served because the performing controller of the foreign money when legislative meeting Democrats took goal on the license on Th.

Brian appeared as a witness earlier than the Home financial Companies Committee’s fee on shopper Safety ANd financial institutions at an Apr 15 listening to titled, “Banking Innovation or regulative Evasion? Exploring Developments in monetary group Charters.”

The fintech constitution was launched by the office of the controller of the Forex, or OCC, and overseen by Brooks in 2020, allowing financial know-how companies in addition to cryptocurrency corporations to produce loaning and cost merchandise whereas not being overseen by state banking regulators,…

View More Article
Blockchain

Key Variations Between Hyperledger Aries and Hyperledger Material

single-image

This text will make clear Hyperledger Aries vs Material to grasp their fundamentals variations and attainable use case eventualities.

Hyperledger blockchain is without doubt one of the outstanding gamers within the blockchain markets, with 16 initiatives below its wing. Amongst them, Hyperledger Material is without doubt one of the broadly used blockchain platforms in varied enterprise implementations. Hyperledger Aries, however, was an ongoing challenge that turns into lively just lately. In line with Hyperledger, Aries is carefully related to their different 2 initiatives – Hyperledger Indy and Ursa.

Right here, we are going to focus on how Hyperledger Aries and Material are totally different from one another and also will perceive their use instances and key traits.

Enroll Now:Getting Began with Hyperledger Material Course

What’s Hyperledger Material?

Earlier than we evaluate each Hyperledger initiatives, we’ll briefly introduce the 2 initiatives and their traits. Let’s begin…

View More Article
Blockchain

Blockchain Initiative Uplifts Storytelling and Transparency of Honduran Espresso

single-image

Massimo Zanetti Beverage Group has achieved a singular feat by bringing within the “first blockchain espresso” from Honduras. The brand new ‘farm-to-cup’ beverage launched by the Massimo Zanetti Beverage Group is traceable. Now, shoppers might discover a QR code on the packs of “Segafredo Storia” for locating the kind of espresso within the pack, the place of cultivation, and identification of the farmers.

The brand new ‘farm-to-cup’ traceable beverage introduces new norms for transparency into the provide chain for espresso manufacturing. Massimo Zanetti Beverage Group has leveraged the software program capabilities of Farmer Join with the ability of IBM Blockchain for the brand new system. Now, the brand new beverage traceability system can present the journey of the espresso by way of a map created on the idea of encrypted blockchain knowledge. The origins of the map start…

View More Article
Blockchain

Lack of transparency downside in social buying and selling turns into solved

single-image

Apr 15, 2021 12:35&nbspUTC

| Up to date:

Apr 15, 2021 at 12:35&nbspUTC

By&nbspClark

Social buying and selling has been one of many go-to options for newcomers to the crypto buying and selling sector for some time now. Attracted by rising costs and elevated curiosity, lots of retail merchants rush in the direction of the chance to put money into crypto with out actually realizing find out how to commerce, apart from to purchase low and promote excessive.

Nevertheless, buying and selling is extra sophisticated than that, and requires endurance, self-discipline, a sound technique, and fixed vigilance. To not point out tons of analysis, dedication, trial and error, and extra. Since many imagine that the chance is now, and that they don’t have the time to take a protracted highway, they flip to copy-trading, which permits them to repeat high performers’ strikes, and hopefully obtain comparable outcomes.

Sadly,…

View More Article