Bitcoin is approaching $ 60,000 again, but it could skate according to some analyzes. In the altcoin market, some upgrades will be important. Check out what you need to know about bitcoin and other cryptocurrencies this week:
More stablecoins on the market indicate positive scenario
The SSR is a proportion of the total value of all bitcoins versus stablecoins. This metric drops either when the price of bitcoin decreases or when the number of stablecoins increases.
In the past few days we have seen the number of currencies matched to the dollar rising on exchanges, mainly due to the increase in USDC supply.
This is a possible positive effect of Coinbase's entry into the stock market, as the broker is part of the consortium that issues USDC. Stablecoin came out of a $ 400 million marketcap at the beginning of the year and is now over $ 10 billion.
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The increase in the number of stablecoins issued is a strong sign of pre-discharge, it could mean that more users are entering the market – mainly institutional ones.
“The crypto market is improving in terms of supply / demand. “
said CryptoQuant analyst Ki Young Ju.
Analysis shows risk of fall to US $ 48 thousand and “ping-pong”
Bitcoin's strong momentum continues in the past few days, but the cryptocurrency fails to break through the $ 60,000. Ping-pong between $ 50 and $ 60,000 continues, with the possibility of falling below the strong support of $ 52,000, according to analysis by Bo Williams.
While bitcoin definitely does not exceed 60 thousand, many traders take the time to buy on low days and resell with good profits on the subsequent high. I call this the “ping-pong” strategy.
(embed) https://www.youtube.com/watch?v=nTdww-d7SwA (/ embed)
Cardano (ADA) dump coming?
As we talked about in the Bits Weekly podcast, ADA will update this Wednesday. For the first time in history, the cryptocurrency will be completely decentralized in the generation of new blocks.
Generally when a major upgrade and improvement happens, the realization of profits comes together. Of course, there is still a chance that bitcoin will skyrocket or some big buy-in will happen and the price will go up, but generally the drop is likely.
Despite this, the news is great for ADA in the long run. If the fall happens I will buy it.
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Biden to launch yet another stimulus program
According to Bloomberg, Joe Biden will launch yet another economic stimulus program. The president wants to launch a program to improve American infrastructure and provide more health benefits to citizens.
Management is likely to propose a $ 3 trillion boost in long-standing investments on Wednesday. Unlike the last package, it is possible for Republicans to align themselves with Biden in terms of improving infrastructure, according to Bloomberg.
What does this mean for Bitcoin? It is yet another brick in the narrative of the reserve of value and protection against monumental spending by current governments. For many analysts, the US government's debt is priceless without resulting in a crisis or hyperinflation.
We can describe the situation in an image:
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(embed) https://www.youtube.com/watch?v=jlSsskmy_YM (/ embed)