Beyond $44,000: Market Moves with Bitcoin, HBAR Ecosystem, and DeFi's Growth Prospects
Bitcoin Greed Peaks: Examining Market Sentiment and Potential Risks
Bitcoin has experienced a "Up Only" trend this week, surging past $40,000 and currently resting at almost $44,000 for one BTC!
As evident from the chart below, EngineeringRobo has ceased providing sell signals, indicating a continuous upward movement since around $24,000. While a $20,000 jump with no retracements is plausible for Bitcoin, historical bull cycles suggest that retracements are essential for a healthy market.
I anticipate some form of sell-off before December 31st, attributed in part to tax harvesting and the relatively high level of greed at present (see below).
Even if Bitcoin's ascent persists, the majority of the upward movement has already occurred, with Bitcoin registering a growth of over 160% throughout 2023. Any additional 5-10% gains in the final month would constitute only marginal gain.
On the Bitcoin Fear and Greed Index, Bitcoiners are showing relatively high greed in the market. With a Greed level of 72, this is the most greedy BTC has been all year.
The saying "buy when there's fear, and sell when there's greed" works well for patient investors. Making high-leverage plays is certainly a risky move. While Bitcoin could ascend to as high as 47-48k, or even 50k in a blow-off top scenario, it's also very possible that a BTC red candle occurs, causing a drop of 8-10k in one day, resetting the greed index. It has happened before and will likely happen again; it's just a matter of when.
So Bitcoin price is doing amazing! But how are the fundamentals of the underlying Bitcoin network? After some further research, they are doing just as well!
It’s important to understand more on how the Bitcoin network works, the decentralization, energy usage, hashrate and competitiveness of the network, especially if you are holding a lot of BTC, as it would not exist without it’s network!
I sat down with Rajiv Khemani of Auradine, who, along with his team, is building better infrastructure for the Bitcoin network. Rajiv has already made three Billion dollar exits in Silicon valley over his 30n year career, and now chooses to focus on strengthening the Bitcoin network.
We discussed all the factors contributing to the strength of the Bitcoin network, such as improving decentralization, current energy efficiency, and the plan for more USA-built BTC Miners from to compete with China. I highly recommend listening to this enlightening discussion from such a Silicon Valley veteran.
Will the Bitcoin ETF be all positive? Expert Analysis:
In my latest analysis for Techopedia, I explained that regulatory bodies will likely respond to the ETFs with increased scrutiny of crypto. Like all regulated markets, their focus is on protecting investors and mitigating risk, especially when introducing new asset classes like crypto into the mix.
Overall, there will be many benefits to launching a Bitcoin ETF, but Bitcoin will also be taking one step closer to traditional assets and regulation. Take a moment to read my detailed thoughts and those of some other expert friends in the field in the latest Techopedia article here.
Minterest DeFi Partners with Mantle Network - The first L2!
Minterest is the first decentralized money market protocol designed with both self-sustaining tokenomics and the ability to deliver the highest long-term yields for suppliers and the lowest borrowing costs, enabling users to capture up to 5X greater fees distributed 100% back to them. Learn more about them and watch for our updates prior to their Public Launch in Q1 2024.
I have been following Minterest since 2021 and have done many videos with them in the past. I am pleased to see that very soon, in the next quarter, they will be launching the next version of their DeFi application.
In my latest conversation with Kyn, the CEO of Minterest, we discussed the properties of a good Decentralized Finance platform, how to have proper decentralized governance, and ensuring that the users of the platform receive the maximum benefit possible when they either lend or borrow funds through DeFi.
Take a look at the current TVL (Total Value Locked) inside of DeFi. As of December 2023, it's hovering around $50 Billion. Not bad! However, during the craze of 2021, the DeFi TVL was as high as $180 Billion.
Chances are, once altcoins start moving, DeFi will move back up there pretty quickly. The chart already looks like it has bottomed out, and once we rise past 60-70B, likely in 2024, then TVL will have a strong trajectory upwards.
This is why it's especially important to be following the DeFi sector and looking for strong DeFi platforms that are launching, like Minterest, right at the bottom, because we will likely experience exponential growth as the market turns around.
One factor that's holding back DeFi from growing faster is the isolated DeFi ecosystems on different blockchains that aren't connected with each other. For example, most of the Value Locked in the Ethereum ecosystem cannot connect to DeFi TVL locked in on Solana.
Minterest DeFi is being built as a multichain holistic ecosystem, where users will be able to deposit and borrow funds from different chains seamlessly. For example, users could deposit their ETH from the Ethereum Chain and then borrow assets on Mantle or Solana blockchain without having to bridge crypto or trade any assets at all.
Once Minterest's platform is connected to multiple Layer 2 blockchains, they will be connecting fragmented liquidity from dozens of chains that barely any other platforms are able to connect. Bullish!
Minterest just announced the first Layer 2 ecosystem they are connecting into, Mantle Network! Mantle is a $2 billion ecosystem that is poised to be one of the cornerstone’s of DeFi as it grows throughout this next bull run. I think it’s a great first Layer 2 to connect to.
Hedera HBAR Ecosystem & CLXY Heating up!
The top Hedera ecosystem DEX @SaucerSwapLabs has launched the new improved V2 Liquidity Pools. I have my eyes on the new CLXY / HBAR Liquidity Pool.
Pretty decent starting APY and earns fees in both CLXY and HBAR, Plus this cool NFT sits. in your wallet if you contribute to the Liquidity Pool.
The Hedera (#HBAR) ecosystem is growing rapidly, and CLXY is one of the top coins in the ecosystem currently.
Just take a look at the current partners in the Hedera governing council. Some of the biggest cmopanies in the world including Google, IBM, Boeing, Chainlink, LG, DELL, and many more.
And the Hedera network has now processed over 32 Billion transactions, with a staggering 2400 transactions per second. It is one of the distributed networks with the highest amount of transactions since inception.
HBAR ecosystem is on the verge of taking off and frankly the fundamentals and partners behind the ecosystem are way ahead of where the token is supposed to be.
Looking at the markets, EngineeringRobo is showing a buy signal on all time frames (even high time frame 1D and 2D chart) and if BTC continues to move sideways we could see a run from altcoins. Some of the potential short term targets for HBAR are shown in the charts below.
Other Crypto News:
President of Colombia met with Samson Mow and Jan3 to discuss how Colombia can adopt Bitcoin
BBC tries to FUD Bitcoin: Every Bitcoin payment 'uses a swimming pool of water'
Fantom Foundation Launches Accelerator Program with Andre Cronje as a Mentor.
Michael Saylor's Bitcoin investment is now at a $2,300,000,000 unrealized profit.
CNBC: Bitcoin (BTC) is the First Asset 'More Scarce Than Gold'
Bloomberg says this is the start of a fresh crypto supercycle that will push #Bitcoin above $500,000.
El Salvador's Bitcoin Investment now at 3.6 Million Profit
As BlackRock continues to vow for their Bitcoin ETF, it’s good to note that BlackRock's ETF approval record with the SEC is 575-1.
Ethereum scaling startup Versatus raises seed round at $50 million valuation
Now is a great time to pay attention. If Bitcoin doesn’t drop but moves into a sideways chop, it could be a huge altseason ahead, but keep your eyes peeled, as if that year end sell-off does happen, Altcoins will be highly volatile.
Thanks for reading!
-Ashton Addison, CEO of Crypto Coin Show