Tue. Oct 20th, 2020
Woman holding a bitcoin

Crypto Recap: Bitcoin $10,000, Ethereum $230 — New Highs!

Bitcoin


The Chinese market reopened trading on Monday (Feb. 2) after being temporarily dormant since Jan. 23, and what ensued was a sell-off that pulled down the Shanghai Shenzhen CSI 300 Index to almost 10 percent.

Part of the Asian plunge was pinned on the market's reaction to the viral threat of the novel coronavirus, which seems to shut China out of the global economic picture.

Still, the main story at the start of the week is how capital flowed to the top crypto that pushed its price back to its October highs.

This was not the first time that the market saw Bitcoin go up amid a stressful situation. The tit for tat with the U.S. and Iran last month that resulted in an airstrike, and a missile attack caused BTC to trade higher.

In turn, many are starting to get convinced that Bitcoin is beginning to behave more like gold.

A 100K Bitcoin is unsubstantiated?

Also, on Monday, crypto YouTuber Keith Waring wrote on Cointelegraph that he doesn't believe that Bitcoin is heading for a $100,000 value this year, which contrasts what other crypto YouTubers expect of BTC in 2020.

According to Waring, a parabolic run could indeed happen, but not after months or even a year following the "halving." Waring also added that investors should look at BTC one week at a time, and before the week began, the immediate resistance was $10,000.

Crypto Banking App

I also covered a topic about a Bitcoin banking app on Tuesday called Mode, and its primary backer is Twitter co-founder Biz Stone. 

The app that's downloadable on iOS devices makes the process of owning the popular crypto easier as the time it takes to open an account is about a minute. 

It also addresses the issue of slow and costly transactions as well as concerns about security, especially when it comes to entrusting cryptos to exchanges.

Developments like this are seen as positive for cryptocurrencies in general, and I noted in my article that it's what billionaire venture capitalist Tim Draper thinks will boost BTC's price to $250,000 by 2023.

Mode - Bitcoin Banking App

$11,500

Bitcoin was already at its October 2019 highs on Monday but made its way to $9,700 on Wednesday afternoon. Notably, analyst Filb Filb estimates that BTC is on its way to $11,500 if price closes above the $9,500 on the weekly chart.

And by Saturday, the king of cryptos was finally seen flirting near $10,000 and had finally broken above that psychological level by Sunday. At the time of writing, BTC is now trading at $10,078 and looks to finish the week strong.

Bitcoin is up 8.1 percent this week, which is almost the same pace it accelerated the week before.

Ethereum


Ethereum log chart

Comparing gains between BTC and ETH is inevitable despite the two cryptos serving different purposes and are in no way in a race against each other. Still, it makes up for a good story, and that's what's pointed out by CryptoSlate on Tuesday through IntoTheBlock's data: Ethereum has overtaken Bitcoin not just in price (40 percent over Bitcoin's 30 in January) but also in transactions (ETH transactions grew 122 percent versus Bitcoin 73).

Ethereum also rekindled at $200 the next day after being away from that price level for almost five months. Analysts have pointed out how significant the month of February is for the top altcoin to kickoff a parabolic run.

In my articles with IB Times, I frequently cited trader Galaxy's prediction of ETH reaching $200 by February. So far, that prediction is on point, but it also comes with something extra -- Galaxy also forecasts ETH to reach $850.

Galaxy's weekly log chart shows a downward sloping multi-year trendline that extended from January 2018. Right now, that trendline is about to get shattered as ETH seems like it will finish Sunday on another positive note.

Ripple


Rounding out the cryptocurrencies I followed last week is Ripple. Ripple Labs, Inc., the company behind XRP hinted that their initial public offering (IPO) could take place this year.

Ripple CEO Brad Garlinghouse at the Davos World Economic Forum said, "In the next 12 months, you'll see IPOs in the crypto/blockchain space. We're not going to be the first and we're not going to be the last, but I expect us to be on the leading side… it's a natural evolution for our company."

If that happens -- even if the world of crypto getting integrated to traditional finance is a point of contention -- it is deemed to be good not just for the price of Ripple but for all other cryptocurrencies. After all, XRP is the third-largest crypto by market cap. I commented that XRP could be in the front line of other crypto companies with IPO aspirations. 


We publish crypto recaps like this every week. If you want to get notified every time there's a new update, you can sign up below. You can also email Ron Mendoza at ronmendoza@intellinvestors.com

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