Skip to main content

MLB Team Washington Nationals Partners With Terra Blockchain Community, Ballpark Plans to Accept UST

On February 9, the American professional baseball team based in Washington, D.C., the Washington Nationals, announced the team has partnered with Terra, the open-source blockchain platform and decentralized autonomous organization (DAO). The Washington Nationals detail that the team is a “leading innovator” and is “consistently introducing new technologies to enhance the fan experience.” Washington Nationals Ink Long-Term Deal With Terra Major League Baseball (MLB) team the Washington Nationals has partnered with the blockchain platform and DAO Terra, according to an announcement published by the team on Wednesday. The deal with Terra follows a slew of sports-related deals with crypto firms, but the MLB team will be the first to partner with an open-source blockchain project. In addition to the partnership, the algorithmic stablecoin UST that’s issued on the Terra blockchain will be “accepted as a payment method at Nationals Park as early as next season.” “The Nationals continue t...
Post a Comment

Ethereum price spikes to $1,161 for the first time in three years: What’s next?

Ether, the native cryptocurrency of Ethereum, rose to $1,161 but immediately corrected thereafter.

The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain, achieved $1,161 for the first time since January 2018. Immediately after it hit a new three-year high, ETH corrected to below $900.

Ether rallied due to the momentum of Bitcoin. Historically, following a strong BTC rally, altcoins saw a swift uptrend. Traders usually call this “altseason” because many altcoins tend to increase in tandem.

Why did Ether correct and what happens next?

Ether rose following Bitcoin’s rally, but on-chain data also showed that there was a sell-side liquidity crisis.

Throughout 2020, the reserves of ETH on exchanges declined to historic lows. This means that there has been a lower number of ETH that could be sold on exchanges. Ki Young Ju, the CEO of CryptoQuant, explained:

“It seems the sell-side liquidity crunch started to hit $ETH just like the $BTC market. For $BTC, all exchanges' reserves decreased by 31% compared to Feb 2020. For $ETH, all exchanges' reserves decreased by 20% compared to May 2020.”

However, despite the strong rally to levels unseen since January 2018, Ether swiftly pulled back. There are two main reasons behind its correction: high funding and heavy sell orders at a key resistance level.

According to data from Glassnode, the futures funding rate of Ethereum is averaging 0.2% across major exchanges.

Normally, the funding rate stays at around 0.01% when the futures market is not overheated. Analysts at Glassnode said:

“Ethereum funding rates are at a record high, breaking an average of 0.2% across major exchanges. #BitMEX is leading the pack with a funding rate above 0.4%.”
Ethereum futures funding rate. Source: Glassnode

When the market is overwhelmingly swayed to buyers or long contract holders, the probability of a long squeeze rise.

The term long squeeze refers to a scenario during which long contract holders are forced to liquidate their positions when the price of Bitcoin drops. This leads the selling pressure on BTC to intensify in a short period.

Where traders see Ethereum going next

A pseudonymous trader known as “Mayne” said Ethereum rejected from the weekly supply level, which is where the price of ETH was at when the weekly candle opened on Monday. The trader said:

“Rejected from weekly supply EQ for now. Predicted funding going ham, seems like apes are mashing the leverage long green button. I'm out of leveraged longs for now.”

Market and on-chain data generally suggest that late buyers are being squeezed out by aggressive sellers. As soon as ETH surpassed $1,100, the spot market saw an increase in sell orders.

Alex Wice, one of the top-performing traders on the FTX leaderboard, shared a short position on both Ethereum and Bitcoin on social media.

The trader also similarly expressed concerns regarding the high funding rate of Ethereum and suggested that they would have to reset.

https://ift.tt/359RNlf
Labels:

Comments

Post a Comment

Popular posts from this blog

Blockchain Software Firm Consensys Acquires Mycrypto Ethereum Wallet

On February 1, the blockchain infrastructure firm Consensys has revealed it has acquired the Ethereum-based wallet Mycrypto and plans to merge the wallet into Metamask. The price Consensys paid for Mycrypto was not disclosed but the announcement notes that the acquisition will “further improve the security of all the products.” Consensys Obtains Mycrypto Ethereum Wallet, Plans to Merge With Metamask in the Future Consensys has acquired the Ethereum-based wallet Mycrypto for an undisclosed sum according to an announcement released on Tuesday. The deal aims to strengthen the company’s Ethereum wallet Metamask and “enhance Web3 experiences.” The eventual merger between the two Ethereum interfaces will “provide users with a heightened experience that is even more extensive and secure,” according to Consensys. Consensys is an Ethereum software company led by one of the Ethereum co-founders Joseph Lubin. The Web3 wallet Metamask, with 21 million monthly active users (MAUs) is owned by C...
Post a Comment
Read more

The Congolese Mountain of Gold: Surprise Discovery in Africa Shows Metal’s Scarcity Is Hard to Prove

A myriad of gold bugs like to compliment the yellow precious metal for its ostensible scarcity, as estimates say only 2,500 to 3,000 tons of new gold is produced annually. While new gold discoveries have seemingly slowed, investigative studies also show that in some areas, gold is being smuggled into the economy by the ton, and often never accounted for as far as per annum issuance estimates. Recently, reports show a whole mountain of gold was discovered in the Congo, as the Democratic Republic of the Congo is well known for being a region that sees tons of smuggled gold filtered into the global financial system unreported. Surprise Gold Deposits Continue to Crack the Precious Metal’s Scarcity Proposition It has always been said that the precious metal gold (Au) is scarce, and some reports even say that gold mining on earth will end by the year 2050 . Additionally, estimates also show that there’s roughly 2,500 to 3,000 tons of new gold that is accounted for and enters into the fin...
Post a Comment
Read more

Bitcoin Legal Tender in 3 Days but Survey Shows 7 Out of 10 Salvadorans Want Bitcoin Law Repealed

Bitcoin is becoming legal tender in El Salvador in three days. However, a nationwide survey conducted by the University Institute of Public Opinion (Iudop) shows that seven out of 10 Salvadorans want the government to repeal the Bitcoin Law. El Salvador’s Bitcoin Law Goes Into Effect in 3 Days The University Institute of Public Opinion (Iudop) in El Salvador conducted a study between Aug. 13 and Aug. 20 of how the public views the country’s upcoming Bitcoin Law. The institute is a research center of the José Simeón Cañas Central American University (UCA). El Salvador’s Bitcoin Law is set to go into effect on Sept. 7 , when BTC will be legal tender in the country alongside the U.S. dollar. A total of 1,281 respondents ages 18 and over participated in this national survey that “represents the entire adult population residing in the country,” according to the institute. Out of all the respondents, 62.4% said they were aware of the approval of the Bitcoin Law by the deputies of the ...
Post a Comment
Read more