No, Jack Dorsey isn’t trolling ETH by making its logo the Ethiopian flag

“Great to see Jack and the crypto community supporting the #ETH athletes!” the Official Olympics account posted earlier today after Ethereum got a new ‘logo’.

Crypto Twitter was united in amusement today when the hashtag #eth began to automatically show the Ethiopian flag as the Ethereum ‘logo’.

Given Twitter CEO Jack Dorsey’s love of Bitcoin and the fact Bitcoin has its own Twitter icon many wondered if Dorsey was subtly trolling Ethereum (ETH). After all he’s a staunch Bitcoin (BTC) maximalist that has refused to consider buying into ETH and other altcoins on multiple occasions and has repeatedly stated that Bitcoin will become the internet’s native currency.

The Twitter and Square founder certainly saw the funny side of it, Tweeting “#eth”  which drew the attention of the official Olympics account which said it was “great to see Jack and the crypto community supporting the #ETH athletes!”

Twitter influencer Crypto Cobain also found the funny side and tweeted “HAHA” to his 403,400 followers that “this is perfect.”

NFL footballer Sean Culkin, who is converting his entire 2021 NFL salary into Bitcoin, wondered why so many people were “not realizing its a troll”

Bitcoiners such as “Bitcoin Meme Hub” jumped in the joke by posting fake Tweets from Ethereum co-founder Vitalik Buterin supposedly stating that “this is not funny Jack.”

Hashflags

In fact, the Ethiopian flag had nothing to do with Ethereum at all. The social media platform has been attaching flags to hashtags of nations competing in the 2021 Tokyo Olympics. The promotion is part of a ‘hashflags‘ campaign that the platform also did for the 2016 Olympics in Rio De Janeiro.

Related: Aave founder hints at developing ‘Twitter on Ethereum’

Interestingly the Twitter CEO used the Ethiopian flag to promote Bitcoin earlier this year, after he retweeted lobbying efforts from a group of Ethiopian-based entrepreneurs dubbed “Project Mano” who were urging their government to consider mining and hodling BTC.

Dorsey this week spoke at “The ₿ Word,” — a virtual Bitcoin event alongside Tesla CEO Elon Musk and Ark Invest CEO Cathie Wood. During the event, Dorsey outlined his hope that Bitcoin “creates world peace or helps create world peace.”

“We have all these monopolies off balance and the individual doesn’t have power and the amount of cost and distraction that comes from our monetary system today is real and it takes away attention from the bigger problems,” he said as he emphasized Bitcoin’s potential for solving financial inequality.

Continue reading

$31.5K Bitcoin price on track for lowest weekly close of 2021

Performance remains grimly sideways on the day of the largest GBTC unlocking event.

Bitcoin (BTC) was on track to lose nearly $3,000 this week as a weekend of mixed price behavior came to an end.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader hopes for last-minute BTC price volatility 

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD trading at just above $31,500 late Sunday — a potential -$2,800 weekly candle.

BTC/USD 1-week candle chart (Bitstamp). Source: TradingView

The weekend had produced little by way of surprises, with Bitcoin moving within a predictable range after seeing an initial brief spurt over $32,000 Friday.

Despite retaining $31,000 support and so far not retesting $30,000, Bitcoin was nonetheless on track to seal its lowest weekly close since December 2020.

While some traders and analysts expressed their lack of satisfaction with spot price action after two months of hovering in the same range, others were still mindful of potential disruption.

“Wouldn’t surprise me if we get a random move in the final 2-3 hours of this weekly candle on Bitcoin,” Michaël van de Poppe told Twitter followers.

Sunday marked the date of the largest in a series of unlockings at the Grayscale Bitcoin Trust ($GBTC). An event anticipated with nervousness by many, any obvious impact on price behavior had yet to be seen at the time of writing.

GBTC unlocking schedule. Source: Bybt

Altcoins set to lock in losses

Altcoins looked similarly lackluster on Sunday, with many of the top fifty cryptocurrencies by market cap lining up weekly losses akin to Bitcoin’s -8%.

Related: Bitcoin sees second-longest bull market drawdown with BTC price ‘stuck’ at $30K

Ether (ETH) hovered at $1,900, still clear of a support zone around $100 lower, while Amp (AMP) managed daily gains of 12%.

ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView

The overall cryptocurrency market cap stood at $1.294 trillion, with Bitcoin’s share at 45.9%, a touch lower versus Friday.

Continue reading

Embracing decentralization at Coinbase

The cryptoeconomy is still in its early stages, but it is clear that every year more and more economic activity will take place on crypto rails. Coinbase is the trusted bridge to the cryptoeconomy today, but we need to become the place people also go to actually participate in the cryptoeconomy.

We’re seeing crypto quickly mature from its initial use case of trading bitcoin to the trading of thousands of new assets, and the adoption of new use cases like Decentralized Finance (DeFi), NFTs, smart contracts, Decentralized Autonomous Organizations (DAOs), and more. Much of this is relatively new and there are challenges to using it, but I see it as the future of where this industry is going. In the same way we helped people access Bitcoin for the first time in a trusted, easy way — we need to do the same for the decentralized cryptoeconomy.

The uses cases are here

For years, people at conferences and journalists would ask me, “Where are the use cases?” We’re finally seeing a wide range of emergent applications and products get traction. From NFTs, to a broad array of new dApps (decentralized apps), the cryptoeconomy is growing at an incredible pace, and I think this will continue to accelerate. Like the internet, or the mobile app stores, we’re seeing developers rush into the space to use these new tools to develop innovative use cases that we couldn’t have imagined before.

The opportunity for Coinbase

Our centralized (CeFi) products will continue to play a critical role in the growth of the cryptoeconomy. But the decentralized cryptoeconomy will also be a major area of growth. With all of this new innovation coming to crypto, we have a massive opportunity to give our customers access to these new products and features. Here are some of the ways we’re going to tackle this:

  1. Bring more assets to Coinbase, faster: A few years ago we developed a rigorous process for evaluating new assets to list on our exchange (analyzing legal, security, compliance, and other risks). This process has been essential to responsibly growing our offering to date. But we need to move faster. We need to treat asset issuers as the very important customers they are, rolling out the red carpet, and courting them, and promptly responding to their inquiries. The goal is to list all legal assets and empower users to make their own risk-adjusted decisions.
  2. Crypto is global, and we need to be too: Coinbase was founded in the US in 2012. We’re now a global company, with our products offered in >100 countries. We need to move from shipping products that cater only to the US (or UK/EU) to shipping products that work globally. This will increase the number of people who have access to our products and further our mission of increasing economic freedom in the world.
  3. Build the crypto app store: Apple didn’t attempt to build every app for the iPhone, it empowered developers and gave mobile users an easy way to access new innovative apps. We need to do the same in crypto. There is now 10s of billions of dollars of economic activity running on dApps, and a new trend coming out every three months. We’ll work to give our users easy access to all of this from the main Coinbase product.

Here are our next steps

Improve our asset addition process

  1. Reduce the burden on asset issuers: We’re simplifying inputs onto our legal review from 70 questions to 12 questions that get at what most raises concerns under the law. We’re also working through optimizing our Compliance and Security reviews.
  2. Create an “experimental” zone for new assets: We need to be able to support new assets, but there may be additional risks for these networks (e.g. low liquidity, bugs in the code, etc). Because these assets often come with more risk than long standing and tested assets like Bitcoin, we need to make sure we are disclosing these risks to our customers appropriately, and enabling them to make educated decisions.
  3. Move towards approving most assets for store/send/receive: We may not be able to trade every asset on our centralized exchange (for regulatory reasons), but we believe we can enable access to most assets for basic wallet functionality

Have an International-first mindset

We put a huge amount of effort into working with regulators in the US, UK, EU, etc. which has generated an enormous amount of value for customers in these regions, but it can also lead to products that are hyper focused on the western world. We’re going to flip this approach on its head by shipping more products in international markets on day one, while still partnering with regulators in more established markets to ensure our products are compliant with their local rules. This is also better aligned from a mission point of view, because sometimes international markets are even more in need of the economic freedom that crypto can provide.

Embrace third-party interfaces and self-custody

Soon any app built on decentralized crypto rails will be accessible to users of the Coinbase app. Our customer’s wallet and identity should seamlessly integrate into any of these apps. Part of this change will be embracing new wallet technologies, including those that allow for safe and easy self custody. In the future you will have the option to do self-custody of your crypto, right in the main Coinbase app.

Conclusion

The crypto industry is changing rapidly. The products that the most crypto-forward people are using today will be used by mainstream customers in a year, and by institutions a few years after that. We need to start integrating them today. Coinbase has shown that it can be a great crypto 1.0 company. Our next step is to show that we can be a great crypto 2.0 company.

This effort all ties back to our mission, which is to increase economic freedom in the world. Many of the most innovative use cases in crypto are being created in decentralized apps. By fully embracing this trend we can put crypto in the hands of more people around the world and thereby increase their economic freedom.

If these challenges excite you, please join our amazing team and come help build the cryptoeconomy.


Embracing decentralization at Coinbase was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

Continue reading

Top 5 cryptocurrencies to watch this week: BTC, ADA, SOL, MATIC, KLAY

Bitcoin’s consolidation in the current range could create trading opportunities for ADA, SOL, MATIC and KLAY over the coming days.

The U.S. core personal consumption expenditure (PCE) price index increased 0.5% in May, below market estimates of 0.6%. However, when compared year-over-year, the PCE index surged to 3.4% recording its largest gain since 1991.

While the U.S. Federal Reserve expects inflation to be transitory, analysts at BofA differ in their estimation. The bank anticipates U.S. inflation to remain high, in the 2% to 4% range, for the next two to four years and believes the Fed will hike rates in the next six months, barring a financial market crash.

Crypto market data daily view. Source: Coin360

If inflation remains elevated, investors are again likely to focus on Bitcoin (BTC) to hedge their portfolios. A CoinShares report published on June 21 said it was unsure of inflation in the next five years but believed “adding Bitcoin and other real assets as a prudent measure to protect portfolios from the tail-risk of out-of-control inflation.”

Although near-term risk remains, select cryptocurrencies could offer short-term trading opportunities to traders. During a bear phase, traders may focus on booking profits at regular intervals instead of waiting for windfall rallies. Let’s study the charts of the top-5 cryptocurrencies that may turn short-term bullish in the next few days.

BTC/USDT

Bitcoin dropped to the $28,000 to $31,000 support zone on June 26 but the positive sign is that the bulls again bought this dip. This suggests that buyers are accumulating at lower levels.

BTC/USDT daily chart. Source: TradingView

The bulls will now try to push the price above the 20-day exponential moving average ($35,148). If they manage to do that, it will suggest that the selling pressure may be reducing. The positive divergence on the relative strength index (RSI) is also pointing to a possible relief rally.

A break above the 20-day EMA could open the doors for a move to the stiff overhead resistance zone at $40,000 to $42,451.67. The 200-day simple moving average ($43,505) is just above this zone, hence the bulls may find it difficult to climb above it.

This points to a possible consolidation between $28,000 and $42,451.67 for the next few days. The longer the price trades in this range, the stronger will be the next breakout from it. The trend will favor the bears if they can sink and sustain the price below $28,000.

BTC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bulls are attempting to form a higher bottom at $30,000. The 20-EMA has flattened out and the RSI is near the midpoint, suggesting that the sellers are losing their grip.

If the bulls sustain the price above the 20-EMA, the BTC/USDT pair could rally to the 200-SMA. A breakout of this resistance could attract further buying that may push the price to $40,527. This bullish view will invalidate if the bears sink the price below $30,000.

ADA/USDT

Cardano (ADA) rebounded off the $1 support on June 22, indicating strong accumulation near this level. However, the bulls could not push the price above the 20-day EMA ($1.39) on June 24 and 25, suggesting that bears are defending the resistance.

ADA/USDT daily chart. Source: TradingView

The gradually downsloping 20-day EMA and the RSI in the negative zone suggest that bears have the upper hand. The ADA/USDT pair may witness a long liquidation if the bears sink and sustain the price below $1. That could pull the price down to $0.68 and then to $0.40.

Conversely, if the bulls can thrust the price above the 20-day EMA, it will suggest that the short-term trend has tilted in favor of the bulls. The pair could then rise to $1.60 and then to the stiff overhead resistance at $1.94.

ADA/USDT 4-hour chart. Source: TradingView

The moving averages on the 4-hour chart have flattened out and the RSI near the midpoint suggest that the selling pressure is reducing. If the bulls push the price above $1.40, it will indicate the possibility of a short-term bottom formation. The pair could then attempt to rally to $1.60 and then to $1.88.

Contrary to this assumption, if the price turns down from the current level or $1.40 and plummets below $1.20, it will suggest a lack of buyers at higher levels. The pair may then drop to the critical support at $1.

SOL/USDT

The long tail on Solana’s (SOL) June 22 candlestick shows that traders are aggressively defending the 200-day SMA ($20). However, the relief rally could not scale above the 20-day EMA ($33), indicating that bears are selling on rallies.

SOL/USDT daily chart. Source: TradingView

The buyers are currently attempting to form a higher low at $26.65. If they can push and sustain the price above the 20-day EMA, the SOL/USDT pair could pick up momentum and move up to the downtrend line and then to $44.

However, the downsloping 20-day EMA and the RSI in the negative territory suggest that bears will have other plans. They will try to defend the 20-day EMA and sink the price below $26.65. If this support cracks, the pair may drop to $21.10.

A strong rebound off this support will suggest that bulls are accumulating on dips. The pair could then consolidate between $21.10 and $44 for the next few days.

SOL/USDT 4-hour chart. Source: TradingView

The 20-EMA on the 4-hour chart has flattened out and the RSI is near the midpoint, indicating a balance between buyers and sellers. This balance may tilt in favor of the bulls if they push and sustain the price above $33.

Such a move could clear the path for a move to the downtrend line and then to $42. On the other hand, if the price turns down from the current level or $33, The bears will try to break the support at $26.65. If that happens, the advantage may tilt in favor of the bears.

MATIC/USDT

Polygon (MATIC) has been trading below the 20-day EMA ($1.29) for the past few days but the positive sign is that the bulls have not allowed the price to dip to the May 23 low at $0.74. This suggests a lack of sellers at current levels.

MATIC/USDT daily chart. Source: TradingView

If the bulls regroup and push the price above the downtrend line, it will indicate that the correction may be over. The MATIC/USDT pair could then rise to $1.71 and later to the psychological resistance at $2.

However, the bears may have other plans. The downsloping 20-day EMA and the RSI in the negative zone suggest that sellers have the upper hand. If they sink the price below $0.92, the pair may drop to the $0.74 to $0.68 support zone.

The bulls are likely to defend this zone aggressively. A strong bounce will suggest accumulation at lower levels and the bulls may then try to push the price above the downtrend line.

MATIC/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows that the bears are aggressively defending the downtrend line. The downsloping 20-EMA and the RSI in the negative zone indicate advantage to the bears. If they sink the price below $1, the pair may drop to $0.92.

Conversely, if the price rebounds off $1, the bulls will make one more attempt to drive the price above the downtrend line. If they succeed, it will suggest that bulls are trying to make a comeback. The pair may pick up momentum on a breakout and close above $1.25.

Related: ‘Absolutely right’ to think of Bitcoin as the new gold — Mexico’s 3rd richest man

KLAY/USDT

Klaytn (KLAY) has been trading below the 20-day EMA ($1.02) for the past many days but the RSI is showing a positive divergence. This indicates that the sellers may be losing their grip.

KLAY/USDT daily chart. Source: TradingView

If the bulls push and sustain the price above the 20-day EMA, it will be an indication that a trend change is possible. However, the bears are unlikely to give up easily. They will try to stall the recovery in the $1.24 to $1.29 zone.

If the price turns down from the overhead zone but does not dip below the 20-day EMA, it will indicate that the bulls are trying to make a comeback. A breakout of the resistance zone could attract buyers who may then challenge the 200-day SMA ($1.51).

A breakout and close above the 200-day SMA will indicate that the downtrend may be over in the short term. This positive view will invalidate if the bears sink the price below $0.72.

KLAY/USDT 4-hour chart. Source: TradingView

The 4-hour chart shows the KLAY/USDT pair is trading inside a descending channel. The bulls had pushed the price above the channel and the 200-SMA but they could not sustain the higher levels.

If the bulls push and sustain the price above the 20-EMA, the pair may again try to rise above the channel and the 200-SMA. If that happens, the pair may start a new uptrend that could reach $1.62.

Contrary to this assumption, if the pair breaks below $0.86, the decline could extend to $0.72.

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

Continue reading

Data suggests the strong US dollar makes Bitcoin weaker argument is flawed

Analysts and traders are linking Bitcoin’s bearish turn with the growing strength of the U.S. dollar, but data suggests otherwise.

At the moment, there seems to be a general assumption that when the U.S. dollar value increases against other global major currencies, as measured by the DXY index, the impact on Bitcoin (BTC) is negative.

For the past few weeks, analysts and influencers have been issuing alerts about this inverse correlation, which held true until March 2021.

However, no matter if you track a 20-day or 60-day correlation, the situation reversed over the past three months.

Dollar Index DXY (blue) vs. Bitcoin (orange, logarithmic). Source: TradingView

The correlation indicator (red) has been ranging above 50% since mid-March, indicating that both DXY and Bitcoin have generally followed a similar trend.

The dollar strengthened after the Fed speech

As Cointelegraph reported, May’s Consumer Price Index (CPI) report showed inflation hitting a 13-year high, and Federal Reserve Chair Jerome Powell acknowledged that inflation could run higher than planned in the short term. Still, he clarified that “longer-term inflation expectations are anchored at a place that is consistent with our goal.”

The market gave the Fed a ‘vote of confidence,’ causing the U.S. dollar to appreciate versus major global currencies. Meanwhile, Bitcoin dropped 8% to a $35,300 low on June 18, further reinforcing the inverse correlation thesis.

Related: Forget Elon, here’s why Bitcoin traders should be watching the U.S. Dollar Index instead

Correlation is a longer-term indicator, not an intraday metric

Even though pundits and influencers love to dissect those events and extrapolate 1-day movements, one should analyze a more extended timeframe to understand the potential impacts of the DXY index on the Bitcoin price.

Dollar Index DXY (blue) vs. Bitcoin (orange, logarithmic). Source: TradingView

Notice how both markers weakened during May, after a relatively flat period in late April. It seems premature, at least, to call the recent decoupling an inverse correlation. Multiple forces could be behind Bitcoin’s failure to sustain a $40,000 support on June 16 and the subsequent price correction.

For starters, Liu He, Vice Premier of China and a member of the all-powerful eight-person politburo, led a meeting on preventing and controlling financial risks on May 24. Among the decisions was a crackdown on Bitcoin mining and trading activities.

Bitcoin’s hash rate dropped to the lowest level since November 2020 as miners are starting to move away from China. Huobi temporarily suspended futures trading to Chinese users, while Futures platform Bybit revealed it would have closed accounts registered with Chinese phone numbers.

Furthermore, on May 26, the United States Securities and Exchange Commission Chair Gary Gensler said the regulators are looking forward to working with fellow regulators and Congress to fill gaps in investor protection in crypto markets.

Therefore, the potential U.S. regulation and the current China crackdown on mining and trading activities seem vital to Bitcoin’s recent underperformance. Once those issues are no longer threats, the gap that has been created from DXY’s positive move could fade away.

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

Continue reading