Twitter to allow users to add BTC and ETH addresses to profiles: Screenshots

While the news is unofficial at this stage, Twitter’s product lead Kayvon Beykpour hinted that there could be an announcement soon.

Twitter appears to be developing functionality that enables users to add Bitcoin and Ethereum addresses to their profiles.

The latest update is believed to be a part of Twitter’s Tip Jar feature — which was introduced in May this year — and adds to reports which surfaced earlier this week that the firm would enable Bitcoin (BTC) tipping for content creators.

Italian mobile developer and self-described “leaker” Alessandro Paluzzi tweeted screenshots on Sept. 3 which showed BTC and Ethereum (ETH) wallet address options in the settings toolbar of the app version of Twitter.

While the news is unofficial at this stage, Twitter’s product lead Kayvon Beykpour retweeted Paluzzi’s Sept. 1 post about the BTC tipping feature with the lighting and “soon” arrow emoji.

Twitter CEO Jack Dorsey hinted in July that BTC tipping was a part of its broader plans to integrate that asset into the platform via avenues such as commerce and subscriptions.

An Aug. 31 report from MacRumours claimed that the BTC tipping feature will utilize Lightning Network payment platform Strike. However Paluzzi has suggested that “it is not necessary to link a Strike account” to add BTC addresses to user profiles.

Related: Ethereum alone not enough to disrupt Big Tech: Jack Dorsey

Dorsey’s Square Inc has outlined multiple BTC initiatives in 2021, including an assisted custody wallet and BTC-based DeFi services. The idea of digital gold being used to tip content creators on Twitter is unsurprising given that Dorsey is a BTC maximalist, however the inclusion of ETH appears to be uncharted territory for the tech leader who has notably refused to have anything to do with the second most popular cryptocurrency in the past.

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Bitcoin bulls target $50K as Friday’s $655M BTC options expiry approaches

$655 million in BTC options expire on Sept. 3, and data suggests bulls may be motivated to break the $50,000 resistance prior to the expiry.

Bitcoin (BTC) failed to break the critical $50,000 psychological barrier on Aug. 23 and has since then retested the $47,000 support. If historical data plays any role in Bitcoin price, the month of September presented negative performances in 4 of the previous 5 years.

Cointelegraph contributor and market analyst Michaël van de Poppe recently said that Ether’s (ETH) break above $3,500 could be a leading indicator for Bitcoin’s next bull run, and now that Ether trades at $3,700, traders anxiously await BTC’s next move.

Bulls could be excited for El Salvador’s Bitcoin Law, which is scheduled to take effect on Sept. 7. In addition, the recent $150 million Bitcoin Trust approval by the country’s Legislative Assembly is another potentially bullish development.

The money will be used to support the installation of government-backed crypto ATMs and to offer incentives that encourage the adoption of Chivo, the government-backed digital wallet.

This week, Coinbase also saw a large Bitcoin outflow after a relatively stable period. The move brought the exchange’s balance below 700,000 BTC, a figure last seen in December 2017. These movements are usually considered bullish because they signal that holders are less likely to sell coins in the short term.

Bitcoin options aggregate open interest for Sept. 3. Source: Bybt.com

The Sept. 3 expiry will be a test of strength for bulls because 93% of the $390 million call (buy) options have been placed at $48,000 or higher.

Moreover, these neutral-to-bullish instruments dominate the weekly expiry by 48% compared to the $265 million protective put options.

However, the 1.48 call-to-put ratio is deceiving because the excessive optimism seen from bulls could wipe out most of their bets if Bitcoin price remains below $48,000 at 8:00 am UTC on Friday. After all, what good is a right to acquire Bitcoin at $52,000 if it’s trading below that price?

Bears were also caught by surprise

Seventy-eight percent of the put options, where the buyer holds a right to sell Bitcoin at a preestablished price, have been placed at $46,000 or lower. These neutral-to-bearish instruments will become worthless if Bitcoin trades above that price on Friday morning.

Below are the four most likely scenarios that consider the current price levels. The imbalance favoring either side represents the potential profit from the expiry.

  • Between $45,000 and $46,000: 140 calls vs. 1,220 puts. The net result is $48 million favoring the protective put (bear) instruments.
  • Between $46,000 and $48,000: 590 calls vs. 735 puts. The net result is balanced between bears and bulls.
  • Between $48,000 and $50,000: 1,930 calls vs. 120 puts. The net result is $88 million favoring the call (bull) options.
  • Above $50,000: 3,310 calls vs. 0 puts. The net result is a complete dominance with $165-million worth of bullish instruments.

The above data shows how many contracts will be available on Friday, depending on the expiry price.

This crude estimate considers calls (buy) options being used in bullish strategies and put (sell) options exclusively in neutral-to-bearish trades. Unfortunately, real life is not that simple, because it’s possible that more complex investment strategies are being deployed.

For example, a trader could have sold a put option, effectively gaining a positive exposure to Bitcoin above a specific price. Still, there’s no easy way to measure this effect, so the simple analysis above is a best guess.

Incentives are in place for bulls to try to break $50,000

These two competing forces will show their strength, and the bears will try to minimize the damage. On the other hand, the bulls have modest control over the situation if BTC price remains above $48,000.

The most important test will be the $50,000 level because bulls have significant incentives to obliterate every single protective put option and land a $165 million advantage.

The bears’ only hope resides in some surprise regulatory newsflow or a negative outcome for Bitcoin price coming from the U.S. jobless claims data on Sept. 2.

Even though there’s still room for additional volatility ahead of the expiry, the bulls seem to be better positioned.

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.

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3 reasons why Polkadot could be the next altcoin to hit a new all-time high

Rising trading volume, investor excitement over the upcoming parachain auctions and the success of KSM, have investors looking at DOT as the next altcoin to hit a new high.

Layer-1 smart contract platforms increased their market share throughout August after the Ethereum network London hard fork did little to solve the major issues of high transaction fees and network congestion. 

One top-10 protocol that has been gaining momentum, but has yet to experience a significant price breakout to new highs like some of its competitors is Polkadot (DOT), a multichain protocol focused on facilitating the creation of cross-chain bridges between separate blockchain networks.

Data from Cointelegraph Markets Pro and TradingView shows that after bottoming out at $10.36 on July 20, the price of DOT increased 205% to an intraday high at $31.70 on Aug. 31 as the chatter of an impending altseason begins to rise.

DOT/USDT 4-hour chart. Source: TradingView

Three reasons for the increasingly bullish outlook for DOT are its upcoming parachain auctions, a rapidly growing ecosystem of projects interested in launching on the network and a steady increase in daily trading volume.

Parachain auctions excite the community

One of the biggest drivers of momentum for the Polkadot ecosystem is the upcoming parachain auctions where projects vie for community votes to obtain one of the limited slots available to launch on the network.

Polkadot’s “wild cousin” Kusama has been in the process of conducting its auctions, with the first batch having been chosen at the end of July and the second batch of auctions scheduled to begin on Sep. 1.

As part of the parachain crowdloan process, users vote for projects by locking up DOT tokens for a designated term as a way to bootstrap funding for projects that are chosen to fill one of the limited slots.

This has the effect of reducing the circulating supply of tokens available adding pressure on the price of DOT. The Polkadot network will undergo its own parachain auctions once all auctions are complete on the Kusama network. The process has been fully audited and to date, the Kusama-bas parachains are running smoothly.

An entire ecosystem of projects are competing for a parachain slots

Another reason for the recent strength of DOT is the large number of projects interested in obtaining a parachain slot and launching on the network.

Polkadot ecosystem. Source: PolkaProject

As evidenced by the graphic above, the Polkadot ecosystem has seen extensive growth in terms of protocols and supporting infrastructure over the past year and this is outmatched by only a small number of competing networks in the space.

With the Polkadot parachain auctions expected, it’s likely that the ecosystem will continue to expand and welcome new projects and proof of this comes from the fact that the Kusama parachain process has thus far been a relatively smooth .

Related: Will Polkadot save decentralized finance from Ethereum’s scaling problems?

24-hour trading volume on the rise

A third reason for the bullish outlook for DOT has been its surging 24-hour trading volume which is now back at levels not seen since the market-wide sell-off in late May.

According to data from CoinMarketCap, DOT’s 24-hour trading volume surged more than 300% on Aug. 31 to a high of $5.41 billion as anticipation for the upcoming Kusama parachain auctions excited the Polkadot investors who view KSM’s success as a proxy of what can occur with DOT price.

If the Kusama network can continue the smooth rollout of its auction process and clear the way for the process to begin on the Polkadot network, the demand for DOT could rise and this could translate to higher prices for the asset. 

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.

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Fantom price gains 100% after launching a 370M FTM incentive program

FTM gained 500% in the past six weeks, and a newly launched $320 million incentive program could see the rally extend further.

The Ethereum network continues to enjoy being the top smart contract platform in the blockchain industry. However, the competition is slowly gaining market share because high costs and network congestion are still challenges for the protocol. 

One project that has been gaining traction in August is Fantom (FTM), a layer one smart contract platform that utilizes a directed acyclic graph architecture as a means to solving the problems of slow transaction speeds and high transaction fees.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.15 on July 20, the price of FTM rocketed 500% to an intraday high of $0.90 on Monday as its 24-hour trading volume exploded by 1,250% to a record $1.26 billion.

FTM/USDT 4-hour chart. Source: TradingView

Three reasons for the surging momentum in Fantom include the launch of a 370 million FTM incentive program, a significant growth in social media engagement and the continued increase in the amount of value locked on the protocol.

Fantom launches a liquidity incentive program

The biggest momentum boost for Fantom came on Monday with the announcement of a 370 million FTM — $320 million — incentive program, designed to attract new protocols and liquidity to the Fantom ecosystem.

Under the program, developers who launch on the Fantom network will be able to apply for rewards from the Fantom Foundation and will receive between 1 million to 5 million FTM depending on the total value locked (TVL) in the protocol in question.

In order to qualify for rewards, a protocol must maintain a TVL above a time-weighted average (TWA) of $5,000,000 or $100,000,000 for an extended period of time. If the TWA falls below the $5,000,000 minimum at any point, reward distribution will be paused until the TVL once again reaches the required minimum.

Social media engagements surge in August

Lunar Crush registered Fantom’s building momentum throughout August via social media metrics. The platform showed a 34% increase in social media mentions compared to July; social media engagements also shot up by nearly 96%.

On-chain data for the network also showed a steadily increasing engagement rate because the network now has 415,000 unique addresses conducting more than 300,000 transactions per day.

These numbers could significantly increase in the weeks and months ahead thanks to the release of the FTM incentive program, which has already lead to a new record high in the number of transactions on the Fantom bridge.

Fantom bridge transaction count. Source: Twitter

Related: This service is declaring that it’s “crypto altseason” again

Significant gains in DeFi

The third reason for Fantom’s explosive growth is the increasing TVL of its DeFi ecosystem, which is led by the SpookySwap exchange and its $192 million TVL.

According to data from DeFi Llama, the total value locked on the Fantom blockchain has now surpassed $657 million with a 19.52% increase coming over the last 24-hours.

Total value locked on Fantom. Source: DeFi Llama

As seen in the chart above, the launch of the Fantom Incentive Program helped spark a significant rally in the TVL on Fantom. However, the network was already seeing impressive gains in the metric even before the launch of the program.

Between Aug. 4 and Aug. 23, Fantom’s TVL grew from $269 million to a high of $510 million without any special incentives. This increase proves that interest in interacting with the platform has been on the rise for multiple weeks.

VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for FTM on Aug. 29, prior to the recent price rise. 

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™ Score (green) vs. FTM price. Source: Cointelegraph Markets Pro

As seen in the chart above, the VORTECS™ Score climbed into the green zone on Aug. 28 and reached a high of 70 on Aug. 29, around four hours before the price increased 80% over the next day.

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.

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Bitcoin weekly outlook: Why a $50K-retest is likely ahead of Friday’s US jobs data

Bitcoin bulls remain pressured under $50,000 in the week that would shed more light on the Federal Reserve’s taper outlook based on non-farm payroll numbers.

The heavy selling in the U.S. dollar market at the end of last week assisted Bitcoin (BTC) to climb above $49,000. However, BTC struggled to extend its climb above $50,000, a psychological resistance level, as investors remained cautious about the Federal Reserve’s taper timing

Bitcoin corrects after logging its week-to-date high of $49,667. Source: TradingView.com

In detail, the Fed chairman Jerome Powell delivered a mildly dovish outlook during his speech on Friday at the annual Jackson Hole symposium. At one point, he refrained from providing hints regarding when the Fed would start unwinding its $120 billion a month asset purchasing program.

Powell noted that they would begin tapering sometime by the end of 2021, albeit admitting that the fast-spreading Delta variant of the Covid-19 could play spoiler.

“We will be carefully assessing incoming data and the evolving risks,” he said.

“Timing and pace of taper will not be intended to carry a direct signal regarding the timing of interest rate liftoff.”

At the same time, the U.S. Bureau of Economic Analysis reported that annual Core Personal Consumption Expenditures (PCE) Price, which the Fed considers its preferred inflation metric, remained unchanged at 3.6%, about 1.6% higher than the central bank’s intended target.

Things to focus on next week

The first half of the week has no major macroeconomic events that could directly or indirectly impact Bitcoin and the rest of the crypto market.

But on Sep. 1,  the Automatic Data Processing (ADP) Research Institute will reveal August’s private sector employment data. Additionally, investors will likely watch the ISM Manufacturing PMI for its Prices Paid component. In doing so, they could gauge input price pressures in the manufacturing sector to determine inflation.

On Friday, the Non-farm Payroll (NFP) data expects to show that the U.S. economy added 763,000 jobs in August, about 19% lower than July’s print of 943,000. As a result, disappointing job data could delay the Fed’s decision to taper its asset purchase program and help boost the price of risk assets, including Bitcoin.

Technical setup

Technically, Bitcoin has been trending inside a short-term ascending channel, hinting at a move towards the lower trendline (near $47,000) for a potential pullback towards the upper trendline (above $50,000).

Bitcoin 4-hour price chart featuring ascending channel pattern. Source: TradingView.com

An extended sell-off below the Channel’s lower trendline could risk crashing the BTC/USD exchange rates towards the 200-4H exponential moving average (200-4H EMA; the yellow wave) at near $44,600.

Related: Bitcoin in line for ‘phenomenal’ weekly close if BTC price holds $49K

The downside target appears closer to the one visible on the weekly chart.

Bitcoin weekly price chart setup. Source: TradingView.com

The BTC/USD exchange rate has been testing the 0.786-line (near $50,779) of the Fibonacci retracement graph following a 75.36% bullish move. As a result, an extended pullback move from the said price ceiling brings Bitcoin’s next downside target near the 0.618-Fib line (around $43,886).

Conversely, a neutral RSI reading (below 70) may assist the bulls to reclaim $50,000 for a bullish breakout move. In doing so, they could target levels near $60,000 as their next upside target.

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.

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