Comes every saturday, Hodler’s Digest helps you keep up with every major news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more – a week on Cointelegraph in one link.
Top stories this week
Shout if you want to go faster. The crypto markets have been on a rollercoaster ride this week – with the price of Bitcoin fall with more than $ 10,000 to lows of $ 30,549.60 on Monday.
Analysts claimed the correction was “healthy and necessary, ”The sharp sell-off resulted in the cryptocurrency’s total market capitalization by more than $ 200 billion.
ExoAlpha CIO David Lifchitz said the crash would “cleanse the excessive growth of the past 10 days, allowing Bitcoin to build a new base towards $ 50,000 and more.”
And indeed, Bitcoin refused to die. Just three days after the sudden downturn, BTC reached $ 40,000 on Coinbase again, amid new evidence of new major purchases on exchanges. Tyler Winklevoss had a clear message: “Don’t listen to the sound, stay focused.”
Unfortunately, it seems $ 40,000 now forms a hard nut to crack. Despite Joe Biden being a eye-catching stimulus package worth $ 1.9 trillion, there was no increase in the price of Bitcoin. BTC was indeed covered $ 35,000 at a given moment.
An email sent by eToro suggests the exchange is struggling to keep up with users who are clamoring to buy Bitcoin.
In a message to customers, it warned that “unprecedented demand for crypto coupled with limited liquidity” meant that limits on crypto buy orders must be enforced over the weekend.
It seems the company has fallen victim to its own success. The email came a day after eToro marketing manager Brad Michelson revealed it 380,000 users had opened accounts in the first 11 days of January – with crypto trading volume 25 times higher than last year.
Quantum Economics founder Mati Greenspan – formerly a market analyst for eToro – told Cointelegraph that the warning was “a symptom of a possible upcoming liquidity crisis” and advised against users trying to withdraw money from the platform.
An eToro spokesperson told Cointelegraph, “Our experience with the 2017 crypto rally means that we understand the potential consequences of extreme volatility in crypto markets. We want to make sure our customers fully understand the potential risks. ”
There have been some big movers as the crypto market rally resumes and Polkadot’s DOT token is one of them.
DOT has flipped Ripple’s XRP in terms of market cap after a massive 29% gain in the past 24 hours. This makes it the new fourth largest cryptocurrency, with a market cap of $ 15.6 billion at the moment of writing. In the past week, DOT is up an impressive 83.26%.
Polkadot is a fully interoperable platform that allows other blockchains to connect to the network, and it has been described as an “Ethereum killer” because of the way it can process thousands of transactions per second.
The most recent update, which may provide momentum, was the launch of the Rococo parachain testnet, which went live at the end of December.
Other factors driving the momentum are the issues with DeFi on Ethereum as the demand for scaling increases.
This week, two heartbreaking stories emerged, both with a similar theme.
A man told The New York Times that he has forgotten the password to hold a hard drive 7,002 BTC – a crypto haul that is overwhelmingly worth it $ 262 million at the moment of writing.
Stefan Thomas has only 10 guesses before the hard drive is forever encrypted … and so far he has used eight of these attempts in vain.
Meanwhile, on the other side of the Atlantic, a Welshman offers the city of Newport a dizzying one $ 72 million for help locating storage on a hard drive 7,500 BTC. There is only one problem: it was thrown away several years ago and is languishing in a landfill. Unfortunately for James Howells, the council has said it is unwilling to help with concerns that the search would harm the environment. That means he has a $ 280 million fortune.
Fortunately, it’s not all bad news. A college student has claimed they found private keys they accidentally used back in 2011, unlocking $ 4 million.
The president of the European Central Bank has doubled down on his call for global regulation of Bitcoin.
Christine Lagarde said at the Reuters Next conference: “[Bitcoin] is a highly speculative asset, which has led to some funny business and some interesting and totally reprehensible money laundering activities. “
During the interview, Lagarde reportedly did not refer to specific money laundering cases involving Bitcoin, but rather referred to her awareness of criminal investigations into illegal activities related to its use.
She told reporters: “There must be regulations. This must be applied and agreed […] on a global level, because if there is an escape, that escape will be used. “
Winners and Losers
At the end of the week, Bitcoin is up $ 37,271.25, Ether at $ 1,255.16 and XRP on $ 0.28. The total market capitalization has run out $ 1,038,320,969,138.
Among the top 100 cryptocurrencies are the top three altcoin gainers of the week HedgeTrade, Voyager token and IOST. The top three altcoin losers of the week are Bitcoin SV, EOS and Verge.
To learn more about crypto pricing, read Market analysis from Cointelegraph.
Most memorable quotes
They said #Bitcoin passed away on Monday, but now it’s over 37k. Don’t listen to the sound, stay focused. “
Tyler Winklevoss, Co-founder of Gemini
“Did nocoiners really think #Bitcoin wouldn’t bounce back? This is the year of the Metal Bull. $ 100,000 is inevitable. “
Samson Mow, Blockstream CSO
This whole idea of being your own bank – let me put it this way: do you make your own shoes? The reason we have banks is that we don’t want to deal with all the things that banks do. “
Stefan Thomas, excluded from 7,002 BTC
“Unprecedented demand for crypto, coupled with limited liquidity, is challenging our ability to support BUY orders over the weekend.”
“[Bitcoin] is a highly speculative asset, which has led to some funny business and some interesting and totally reprehensible money laundering activities. “
Christine Lagarde, President of the European Central Bank
“I’m looking at the asset value of Bitcoin versus the asset value of all things traded and Bitcoin is still a nothing-citizen – a giant nothing-citizen.”
Kevin O’Leary, businessman
Forecast of the week
Dan Morehead has maintained his bullish forecast for 2021, with Pantera Capital CEO claiming Bitcoin is on track to rise 800% by August and hit $ 115,000.
The director initially made this prediction in August 2020, when Bitcoin was trading at approx $ 11,600. At the time of writing it is now worth it $ 37,000.
He explained why Bitcoin has a lot of room for growth and added: Is Bitcoin Overvalued? I would say no. […] Bitcoin has spent three years below the long-term compound annual growth trend line, it is still below it, and while Bitcoin has risen a lot in the last six months, I think it is fairly appreciated. “
FUD of the week
An experienced financial adviser has called on the UK government to ban crypto transactions.
Neil Liversidge started a petition urging local financial authorities to stop Bitcoin payments in the UK.
He argued that digital assets have no intrinsic value, adding that they can have a “destabilizing impact on society and are often used for criminal activity.”
In an interview with professional adviser, Liversidge urged retail investors to pay out immediately, adding, “If the UK government takes the lead in banning transactions on cryptos as my petition calls for, it will cause a chain reaction,” where cryptos crash overnight. “
Liversidge needs 10,000 signatures for a response from the government. At the time of writing, he is correct 112.
Ledger users are receiving threatening emails in the wake of the hardware wallet manufacturer reporting that 20,000 more of its customers have been affected by another massive data breach.
One Reddit user said his father, who owns a Ledger wallet, received a message with his name, home address, and phone number. The blackmailer demanded 0.3 BTC or 10 ETH, worth about $ 12,000 or he would face physical violence.
The Redditor wrote, “I know those scammers who send hundreds of emails try their luck by creating fear, but when it comes to the safety of your family, it’s a different story.”
In another email, the scammer wrote, “Can you imagine all the possible consequences that could happen to you and your loved ones? I hope you don’t ruin everything for yourself by making the wrong choice. “
Stephen Colbert, the charismatic host of CBS ‘The Late Show, doesn’t hold back his punches or jokes when it comes to Bitcoin.
He referred to a recent Vice report that revealed how hackers controlled internet-connected chastity devices – devices worn by men to keep them from engaging in any form of sexual activity – and demanded that Bitcoin unlock them.
With a wry smile he said: “Getting paid in Bitcoin? That’s the second stupid idea I’ve heard. “
Colbert first covered Bitcoin on his show in April 2014 when Bitcoin fluctuated between $ 50 and $ 300. Since then, BTC has increased by more than 40,000%.
Best Cointelegraph Features
Cassio Gusson claims Bitcoin promised to create a new normal in finance, but it turned out to be nothing more than the old normal with a new face.
In this article by Benjamin Pirus, experts discuss the most important events from 2020 that most affected the price of Bitcoin.
The volatility of the Bitcoin market is deterring new institutional investors, but meanwhile, the old ones keep buying up the BTC dips. Here is Shiraz Jagati.