Market Analysts Explain Why This Correction Is Good For Bitcoin

The recent bitcoin correction down from its all-time high has had the market in a panic in the past week. However, not everyone has seen it as a bad omen. The digital asset’s price had gone down below $60,000 causing investors to believe the bear market had arrived. Mostly, small-time investors had been hit the most by panic as sell-offs happened through the space. Nevertheless, the correction was bound to happen following the incredible run that bitcoin had. Market corrections are always normal and expected after a bull rally but market analysts have pointed out that this particular correction could have some positive implications for the digital asset going forward. Related Reading | Bitcoin Whale Wallet Containing 1,299 BTC Activates After Eight Years Be Grateful For The Slump Analysts at BOOX Research recently released their analysis of the market and shared thoughts surrounding current market conditions. The analysts explained that the correction was good for the digital asset. This type of slump is important for a “healthy” market and bulls should be grateful for it, the analysts said. The recent sell-off has not been bad for the market and although bears believe that bitcoin had already seen its top, this is not true. BOOX Research analysts further explained that the market is nowhere near the “crypto winter” despite its 20% downward retracement. Further stating that the fact that the digital asset had held above $50,000, which is an important psychological level for bitcoin, shows that it is still going strong. BTC dip continues | Source: BTCUSD on TradingView.com The analysts pointed out that a major pullback would have been witnessed if the price had broken below $50,000, leading to a $30,000 retest. However, it would take something impactful, like an “unforeseen major regulatory setback” for the asset to break below this level. Bitcoin Headed For $100,000 Analysts at BOOX Research have echoed a widely held prediction in the crypto space. That is, bitcoin at $100,000. The analysts put the digital asset at this price point in 2022 but not without a bit of a hurdle. In their report, they state that the digital asset would have to first break above $60,000, which would set it up for an all-time high retest. Additionally, the asset is expected to accelerate towards $75,000 until it touches $100,000 next year. “Bitcoin has made several key pivots around $50,000 going back to February of this year. We expect the bulls to put up a strong fight and hold that line if it gets down there, which could be a good spot to add to positions.” Related Reading | JPMorgan Lists Ethereum As A Better Investment Than Bitcoin For the pioneer digital asset, the pullback has done for good for it. Prices have stabilized somewhat – as stable as they can be for the highly volatile crypto market – setting the asset up for another bounce above $60,000. Bitcoin had recovered back up to $59,000 on Thursday and indicators point to a continuation of the bull rally. Featured image from Republic World, chart from TradingView.com

Whales Fill Up On Bitcoin While Broader Market Panics

Bitcoin has recorded multiple dips in recent weeks that have pushed its price below $60,000. The slump came as a result of sell-offs from investors who believe that the asset has reached its peak. Panic had spread like wildfire, triggering even more sell-offs but not everyone gave in. Whales have always been known to gobble up the bitcoins that small-time investors unload during periods of panic and this time has proven to be no different. While the broader market panic sold their holdings, bitcoin whales took advantage of the opportunity to pad up their holdings, snapping up billions in the digital asset during the dip. Related Reading | Reddit User Calls Out KuCoin Over ≈$50,000 Stuck On Exchange Whales Load Up On Bitcoin Data analytics firm Santiment recently published a report showing whale activity during the recent dip. In the report, the firm notes that while the sell-off was taking place, whales had significantly increased their holdings. These whale wallets containing 100 to 10,000 BTC took full advantage of the panic in the market and picked up about 59,000 BTC last week. 🐳 If you’ve been waiting for #Bitcoin whales to show signs of accumulation, our data indicates it’s happening once again. In the past week, a total 59k $BTC has been added to addresses that hold between 100 to 10k $BTC. This is 0.29% of the total supply. https://t.co/xbZms4GtKm pic.twitter.com/eeRrnrISRM — Santiment (@santimentfeed) November 25, 2021 BTC slumps to $54K | Source: BTCUSD on TradingView.com This figure shows that in one week alone, these whale wallets have accumulated about $3.3 billion worth of bitcoin, which amounts to an additional 0.29% of the circulating supply now controlled by the whales. It would seem with every downward correction, small-time investors lose even more hold on the market as whales remain at the ready to mop up the coins that investors dump in their panic. Crypto Market Dives Into Fear The panic that gripped the market after bitcoin began its downtrend was evident in the Fear & Greed Index. The index had remained in greed territory for the better part of last month but that change recently after the first signs of a market correction. Market sentiment had dropped so far into negative that in the space of a week, the index was back into neutral territory and then fear not too long after. Related Reading | Bitcoin Whale Wallet Containing 1,299 BTC Activates After Eight Years The Fear & Greed Index score continued to drop, hitting a new two-month low after dropping to 32 on Thursday. This puts the market in full panic mode leading to more sell-offs in the market. However, whales have taken full advantage of this for their benefit. Whales accumulating bitcoin has however always spelled good news for the market. Cumulatively, these high-volume addresses hold enough to have a certain sway over the market. Thus, as long as they refuse to sell and instead purchase more of the asset to increase their holdings, then the fewer coins are on exchanges to lead to a continued downtrend. Featured image from Bitcoin News, chart from TradingView.com

Reddit User Calls Out KuCoin Over ≈$50,000 Stuck On Exchange

The heat has been on crypto exchange KuCoin recently after a Reddit user called them out on Reddit regarding funds being held on the exchange. The user had first taken to Reddit to vent their frustrations in an open letter to CEO Johnny Lyu after making no progress with its customer support representatives. According to the user’s statements, the exchange was withholding ≈$50K worth of crypto on the exchange. The user explained that KuCoin had announced that they would be supporting a new BCH fork, eCash (XEC), leading them and many others to invest in the asset on the exchange. Problems arose when the exchange had run out of liquidity for the cryptocurrency. KuCoin users realize that they could not sell their holdings without doing so at a significant loss (selling for cents to the dollar). Related Reading | Kraken Is Delisting Top Privacy Coin Monero (XMR) For UK Users However, a much sinister issue arose when they found out they could not transfer the coins out either. Since then, the user claimed that they have had ≈$50,000 worth of crypto being withheld by the exchange for over six months and still have not been allowed to move their coins. Open Letter To KuCoin CEO The Reddit user who goes by the username u/BCHcain had first drawn attention to the issue when they posted an open letter to CEO Johnny Lyu about four days ago. In the open letter, they include screenshots of their communications with the support staff dating back at least six months. The user explained that KuCoin had been giving them the runaround with no real indication of solving the issue and had ‘receipts’ to back this up. CEO Johnny Lyu had responded to this open letter about three days after posting, giving what could be described as a low-effort response to a clearly distressed user. “Thanks for bringing it up. The upgrade is underway, and since it’s not just a simple rename or rebrand, we still need some time to complete it. Thanks for your patience and understanding,” Lyu wrote. Reddit users had called out the CEO over the response, pointing out that the answer proved everything that the user had claimed in their post; that the exchange did not seem interested in solving their issue. Calling On The Community Four days after the open letter had been posted, the u/BCHcain had once again posted to Reddit. This time calling on the community to help amplify the issue, pointing out that if it could happen to them, then it could happen to anyone. This follow-up post garnered considerably more attention than the open letter. The issue has raised concerns over the power centralized exchanges have over the funds of users. In a way, these centralized exchanges control user funds the same way as banks, something that the crypto enthusiasts are fervently trying to do away with. Related Reading | Bitcoin Whale Wallet Containing 1,299 BTC Activates After Eight Years The crypto exchange had also been called out on the same platform by another user who claimed that KuCoin was using Cloudfare to deny access to the platform during bull rallies in order to force users to liquidate and then profit from these liquidations. KuCoin is yet to respond to the second post. However, it continues to spark conversations around issues with KuCoin and CEXes in general. As of the time of writing, the post has received 5.3K upvotes and has 1.6K comments. Featured image from CoinDesk, chart from TradingView.com

Why This Crypto Billionaire Abandoned Ethereum

Ethereum which is the second-largest cryptocurrency project in the globe has enjoyed the support of major and big-time investors in recent years. Its growth over the last year has helped to further reinforce why investors tend to choose the altcoin over Bitcoin. One of those who have supported Ethereum openly and majorly in the past has been Su Zhu, CEO, and CIO of Three Arrows Capital, a Singapore-based fund management firm. Zhu who has supported Ethereum for a while recently announced that he was leaving the digital asset behind. This came as a shock but Zhu’s reasons for making this move have proven to have some merit to it and has got some in the space wondering about the future of the blockchain. Related Reading | Famed Psychologist Jordan Peterson Says “Inflation Be Damned” As He Buys More Bitcoin Zhu Exits Ethereum In a series of tweets posted to Twitter, the CEO outlined his reasons for exiting the second-largest cryptocurrency in the market. According to Zhu, the barriers to entry for Ethereum had become too high for it to be a feasible investment for newcomers. He explained that just as he has abandoned the project, so has the project abandoned its users. Yes I have abandoned Ethereum despite supporting it in the past. Yes Ethereum has abandoned its users despite supporting them in the past. The idea of sitting around jerking off watching the burn and concocting purity tests, while zero newcomers can afford the chain, is gross. — Zhu Su 🔺 (@zhusu) November 21, 2021 Related Reading | Kraken Is Delisting Top Privacy Coin Monero (XMR) For UK Users Zhu explained that Ethereum had gotten too big to care for what the blockchain had set out to do in the beginning, implying that the project had lost its way. He had then suggested that it needed a reminder in the way of a bear market to set it back on track again. On the flip side of that, the CEO had also suggested that maybe migrating to a new blockchain may be the next best thing. Going further, Zhu had addressed the negative feedback that his initial tweets had gotten from the Ethereum community. He pointed to the exorbitantly high fees that are now required to transact on the Ethereum network, stating that “users are livid that they’re promised a vision of the future, then told that they have to pay $100-1k per tx to enjoy it, and then get told some tales about how they should’ve been smart enough to buy ETH at $10.” Looking Forward To A New Blockchain Zhu’s tweets come after his fund management firm, Three Arrows Capital, had been disclosed to be invested in Ethereum’s rival blockchain, Avalanche. It was revealed that the firm had been a contributor of Blizzard, which finances developers that are building on the Avalanche blockchain. Blizzard hosts a $200 million fund that is specifically targeted for this purpose. ETH trending at $4,151 | Source: ETHUSD on TradingView.com In addition, a wallet that was said to be attached to Three Arrows Capital had moved a significant amount of Ethereum to the FTX crypto exchange. It is speculated that the approximately $77 million worth of ETH had been moved to the platform to be sold. Featured image from Analytics Insight, chart from TradingView.com