Bitcoin falls below $ 8500
The strong correction that has shaken the encryption market since February 23 continued until February 27, as the price of Bitcoin (BTC) fell almost 8% to a daily low of $ 8531.
The price of Bitcoin has dropped 10.08% during the week and
is about to return all the accumulated winnings in the rally of 26
January from $ 8,336 to $ 10,500.
For weeks, countless analysts and investors had emphasized the importance of Bitcoin having more than $ 9,000 and the 200-day moving average at ($ 8,800). Both broke earlier today, however, operators are struggling to keep the price above the $ 8,500 support.
Bitcoin reduced half of the income of the Square cash application in the fourth quarter
The Jack Dorsey payments company reported Bitcoin earnings (BTC) as part of its income results for the fourth quarter of 2020, in a letter to shareholders published Wednesday. Reported Bitcoin revenue of $ 178 million between November 1 and December 31, with earnings of $ 3 million, 50% more than in the previous two quarters.
Non-Bitcoin revenue in the Cash application in the fourth quarter was $ 183 million.
The company reported a year-end profit of $ 8 million in $ 516 million in annual Bitcoin revenue.
In Wednesday’s investor call, Dorsey said a redesign of the Cash application made it easier for new users to discover other services.
“The peer transfer network continues to be our best acquisition channel,” Dorsey said. “Those new to the application then discover Bitcoin” and other products integrated into the application, he said.
Later in the call, CFO Amrita Ahuja said that once a Cash user starts using the Bitcoin or investment features of the application, they tend to generate revenue from two to three times the revenue of regular users.
Vitalik Buterin analyzes Bitcoin price forecasts
The co-founder of Ethereum (ETH), Vitalik Buterin, does not believe that the popular stock-to-flow model is useful for predicting the price of Bitcoin (BTC).
In a debate on Twitter on February 27, Buterin became the second known figure to criticize the stock-to-flow, which “demands” that BTC / USD be traded at an average of $ 100,000 between 2021 and 2024.
The model has historically been accurate in predicting the
Bitcoin growth and currently demands an average of around $ 8,606.
After trading at more than 20% more, Bitcoin this week fell to less than $
200 of that goal.
For Buterin, however, stock-to-flow is a prediction model
like any other.
When discussing press articles that attribute events
specific to the growth of Bitcoin prices, said the large
most were “rationalized post-hoc nonsense.”
“Your daily reminder that more than 95% of the articles in the form” event X will make crypto go (up-down) “are rationalized post-hoc nonsense,” he wrote.
SEC rejects the latest Bitcoin ETF offer
The United States Securities and Exchange Commission (SEC) rejected Wilshire Phoenix’s offer for a publicly traded fund (ETF) based on Bitcoin.
In a presentation published on Wednesday, the securities regulator wrote that Wilshire Phoenix, based in New York, had not shown that the Bitcoin (BTC) market is sufficiently resistant to market manipulation. Wilshire, a newcomer to the financial services industry, first applied for the ETF last summer with NYSE Arca.
“The Commission concludes that NYSE Arca has not fulfilled its burden under the Exchange Law and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of Section 6 (b) (5) of the Law on Exchange and, in particular, the requirement that the rules of a national stock exchange be ‘designed to avoid fraudulent and manipulative acts and practices’ and ‘to protect investors and the public interest,’ ”said the presentation.
SEC commissioner Hester Peirce, known as “crypto mom” in space, published a dissent, writing that the agency applies a “high standard” to Bitcoin products.
As an example, he said that the SEC had not required surveillance exchange agreements with markets of significant size, an argument that the agency described in its rejection of the Bitwise Bitcoin ETF application.
Venezuelan, student of the last semester of Social Communication. Attracted by the new technologies and development that they offer to humanity.