{"id":6683,"date":"2021-02-06T13:37:25","date_gmt":"2021-02-06T18:37:25","guid":{"rendered":"https:\/\/cointelegraph.com\/magazine\/?p=6683"},"modified":"2021-02-06T13:46:03","modified_gmt":"2021-02-06T18:46:03","slug":"btc-bounce-eth-crisis-musk-doge-0206","status":"publish","type":"post","link":"https:\/\/cointelegraph.com\/magazine\/2021\/02\/06\/btc-bounce-eth-crisis-musk-doge-0206","title":{"rendered":"BTC bounceback, ETH\u2019s \u2018legit crisis,\u2019 Elon Musk\u2019s DOGE stunt: Hodler\u2019s Digest, Jan. 31\u2013Feb. 6"},"content":{"rendered":"

Coming every Saturday, <\/i><\/b>Hodler\u2019s Digest<\/i><\/b><\/a> will help you track every single important news story that happened this week. The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 a week on Cointelegraph in one link.<\/i><\/b><\/p>\n

Top Stories This Week<\/b><\/h2>\n

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Bitcoin eyes $50K less than a month after BTC price broke its 2017 all-time high<\/b><\/a><\/h3>\n

Bitcoin is showing signs of a newfound rally after breaking the <\/span>$40,000 <\/b>resistance area, fueling hope that we might be about to see a new all-time high.<\/span><\/p>\n

It\u2019ll be critical for Bitcoin to stay above this level in the foreseeable future. <\/b>The uptick came days after MicroStrategy pitched Bitcoin to more than 1,400 companies.<\/span><\/p>\n

Cointelegraph Markets analyst Micha\u00ebl van de Poppe says BTC\u2019s strength means its market dominance is rebounding at the expense of most altcoins.<\/span><\/p>\n

He added:<\/span> \u201cAn apparent breakout above the all-time high above $42,000 however, should propel Bitcoin\u2019s price to $50,000.\u201d<\/b><\/p>\n

This is the first time that Bitcoin has surged above <\/span>$40,000 <\/b>for 23 days, but this time around, market sentiment is a lot calmer, and the derivatives market isn\u2019t as overheated.<\/span><\/p>\n

Some institutions have used this week\u2019s surge to take some money off the table, with Ruffer Investment <\/span>booking <\/span>$650 million <\/b>in profits<\/span><\/a> after doubling its cash in just two months.<\/span><\/p>\n

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Ether price breakout to $1,750 sees Ethereum network fees hit all-time high<\/b><\/a><\/h3>\n

ETH has been building on recent all-time highs this week, climbing ever closer to <\/span>$2,000<\/b>.<\/span><\/p>\n

After hitting <\/span>$1,756.51<\/b>, the world\u2019s second-largest cryptocurrency took a little bit of a tumble, falling back to <\/span>$1,672.99 <\/b>at the time of writing.<\/span><\/p>\n

The record high came off the back of <\/span>intense trading interest<\/span><\/a> in DeFi coins, many of which use the Ethereum network as their basis. <\/span>Anticipation has also been building<\/b><\/a> over the launch of Ether futures from CME Group.<\/b><\/p>\n

There\u2019s just one problem: Gas fees are rising. <\/span>At one point this week, transaction costs surged so high that some exchanges were <\/b>forced to halt withdrawals<\/b><\/a> altogether.<\/b><\/p>\n

Amid fears this could affect the smooth running of DeFi protocols, Blockstream developer Grubles warned:<\/span> \u201cThis is a legit crisis. Going to have to stock up on popcorn to see how Ethereum digs its way out of this.\u201d<\/b><\/p>\n

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\u201cUr welcome\u201d \u2014 DOGE soars after Elon Musk returns to Twitter\u2026 to shill Dogecoin<\/b><\/a><\/h3>\n

To an extent, the surge in crypto prices could be attributed to Elon Musk. <\/span>For reasons beyond understanding, the world\u2019s richest man is obsessed with Dogecoin.<\/b><\/p>\n

The Tesla CEO raised eyebrows this week when he shared a doctored photo of himself masquerading as Rafiki from <\/span>The Lion King<\/span><\/i>, with a shiba inu superimposed onto Simba\u2019s face in the famous scene where the lion cub is held aloft on Pride Rock.<\/span><\/p>\n

Musk helped DOGE surge this week, but remarks he made on Bitcoin during a Clubhouse discussion failed to have as much of an impact as last Friday when BTC leaped up by thousands of dollars because Musk added #bitcoin to his Twitter bio.<\/b><\/p>\n

During the Clubhouse chat<\/span><\/a>, the billionaire was quoted as saying: \u201cI am late to the party but I am a supporter of Bitcoin.\u201d<\/span><\/p>\n

New research this week examined six times when Musk had <\/span>tweeted about BTC or DOGE<\/span><\/a>, finding that his remarks caused price surges and a \u201csignificant increase\u201d in trading volumes.<\/span><\/p>\n

But the paper from Blockchain Research Lab warned: <\/span>\u201cWhile Musk\u2019s behavior and communication can be deemed positive or funny in nature (and therefore arguably uncritical), similar research has already revealed that negative tweets can also have a negative impact on financial returns.\u201d<\/b><\/p>\n

 <\/p>\n

Reddit rage as XRP price crashes 50% hours after hitting two-week highs<\/b><\/a><\/h3>\n

XRP was the subject of a <\/span>trading frenzy<\/span><\/a> last week, enjoying an 86% breakout after becoming the new coin of focus in r\/Satoshistreetbets, a spin-off of r\/Wallstreetbets.<\/span><\/p>\n

The pump came despite the fact that XRP\u2019s legal woes have shown no sign of going away, with the SEC set to face off against Ripple later this month.<\/b><\/p>\n

Telegram and Discord chats had encouraged people to buy XRP en masse on Feb.1 at 8.30 am ET, but as you might expect, the pump ended in tears. <\/span>Within two hours, the altcoin crashed by almost 50%… burning new investors in the process.<\/b><\/p>\n

Cointelegraph Markets contributor Keith Wareing tweeted: \u201cEven though the $XRP army get aggressive when you warn them about the escrow shaped elephant in the room, I still can\u2019t help but feel sorry for those that bought at 0.75c today. X R (I)P.\u201d<\/span><\/p>\n

 <\/p>\n

PayPal to offer crypto payments for merchants, limited trading on Venmo<\/b><\/a><\/h3>\n

PayPal has revealed that its crypto trading service has \u201cexceeded expectations\u201d since its limited launch in the United States.<\/span><\/p>\n

The payments giant is now set to double down on crypto, blockchain and digital currencies in 2021, with \u201csignificant\u201d investment in a new unit. <\/span>According to the company, those who bought Bitcoin ended up logging in twice as much as they did before.<\/b><\/p>\n

Following on from the \u201cexceptional response,\u201d CEO Dan Schulman said that crypto will be offered as a funding source when users shop at any of PayPal\u2019s 29 million merchants later this quarter, and an \u201cextensive roadmap\u201d of new services is going to follow.<\/span><\/p>\n

In November, PayPal took a major step toward the adoption of digital assets by allowing its U.S. users to purchase crypto directly through the app. <\/span>Customers based in the United States are limited to trading $20,000 per week.<\/b> Since that time, crypto trading volume on the platform has reached record highs, peaking at $242 million in transactions on Jan. 11.<\/span><\/p>\n

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Winners and Losers<\/b><\/h2>\n

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At the end of the week, Bitcoin is at <\/span>$40,776.40<\/b>, Ether at <\/span>$1,676.86 <\/b>and XRP at <\/span>$0.44<\/b>. The total market cap is at <\/span>$1,218,786,711,013<\/b>.<\/span><\/p>\n

Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are <\/span>UMA<\/b>, <\/span>0x<\/b> and <\/span>PancakeSwap<\/b>. The top three altcoin losers of the week are <\/span>HedgeTrade, ThorChain <\/b>and <\/span>Fantom<\/b>.<\/span><\/p>\n

For more info on crypto prices, make sure to read <\/span>Cointelegraph\u2019s market analysis<\/span><\/a>.\u00a0<\/span><\/p>\n

 <\/p>\n

Most Memorable Quotations<\/b><\/h2>\n

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\u201cAfter a record-breaking year in 2020 that saw it jump more than 300%, Bitcoin looks to stay strong in 2021 as more retail \u2014 and big-name institutional buyers \u2014 enter the market.\u201d<\/span><\/p><\/blockquote>\n

Jesse Cohen<\/b><\/a>, Investing.com senior financial analyst<\/b><\/p>\n

 <\/p>\n

\u201cWhile Musk\u2019s behavior and communication can be deemed positive or funny in nature (and therefore arguably uncritical), similar research has already revealed that negative tweets can also have a negative impact on financial returns.\u201d<\/span><\/p><\/blockquote>\n

Lennart Ante<\/b><\/a>, Blockchain Research Lab co-founder<\/b><\/p>\n

 <\/p>\n

\u201cIf a single tweet can potentially lead to an increase of $111 billion in Bitcoin\u2019s market capitalization, a different tweet could also wipe out a similar value.\u201d<\/span><\/p><\/blockquote>\n

Lennart Ante<\/b><\/a>, Blockchain Research Lab co-founder<\/b><\/p>\n

 <\/p>\n

\u201cur welcome\u201d<\/span><\/p><\/blockquote>\n

Elon Musk<\/b><\/a>, Tesla CEO\u00a0<\/b><\/p>\n

 <\/p>\n

\u201cWe also saw an exceptional response from our crypto launch […] The volume of crypto traded on our platform greatly exceeded our expectations.\u201d<\/span><\/p><\/blockquote>\n

Dan Schulman<\/b><\/a>, PayPal CEO<\/b><\/p>\n

 <\/p>\n

\u201cThe economic environment for Bitcoin right now could not be better.\u201d<\/span><\/p><\/blockquote>\n

Duncan MacInnes<\/b><\/a>, Ruffer co-manager<\/b><\/p>\n

 <\/p>\n

\u201cEven though the $XRP army get aggressive when you warn them about the escrow shaped elephant in the room, I still can\u2019t help but feel sorry for those that bought at 0.75c today. X R (I)P.\u201d<\/span><\/p><\/blockquote>\n

Keith Wareing<\/b><\/a>, Cointelegraph Markets contributor<\/b><\/p>\n

 <\/p>\n

Prediction of the Week<\/b><\/h2>\n

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BlockTower Capital CIO estimates another 9\u201322 months of bull run for crypto<\/b><\/a><\/h3>\n

With renewed optimism around how Bitcoin is performing, the inevitable question is this: How long will the bull run last?<\/span><\/p>\n

Well, according to BlockTower Capital\u2019s chief information officer Ari Paul, we\u2019ve got at least nine more months to look forward to.<\/b><\/p>\n

He said: \u201cThis is where we get ongoing, dizzying rotation. BTC up, then when BTC takes a breather, ETH and some large caps (and in this regime, DeFi blue chips), then small caps, rinse and repeat. Of course, throw in some 30-60% retracements for fun.\u201d<\/span><\/p>\n

In terms of how Bitcoin will perform, Paul added: <\/span>\u201cPrice wise \u2014 my guess is BTC ends the bull run between $100k-$400k and alts do better.\u201d<\/b><\/p>\n

 <\/p>\n

FUD of the Week\u00a0<\/b><\/h2>\n

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Guggenheim CIO under fire for the timing of his changing BTC sentiment\u00a0<\/b><\/a><\/h3>\n

Scott Minerd\u2019s apparent shift from bullish to bearish and back again on either side of an SEC filing related to a $500-million investment in BTC has been raising eyebrows on social media.<\/span><\/p>\n

The Guggenheim CIO had hit the headlines after claiming that BTC would see a \u201cfull retracement back towards the $20,000 level\u201d \u2014 later adding there wasn\u2019t enough institutional support to warrant a price above $30,000.<\/b><\/p>\n

Days later, Minerd claimed Bitcoin has the potential to reach <\/span>$600,000 <\/b>in the long run based on its scarcity and the value of gold.<\/span><\/p>\n

Some on Twitter were not impressed. Economist Alex Kr\u00fcger wrote: \u201c<\/span>Remember Guggenheim wants you to sell #bitcoin so they may buy lower.<\/b> Been trying to scare the market into thinking price will crash to $20,000, even though they think it\u2019s worth $400,000.\u201d<\/span><\/p>\n

 <\/p>\n

New class action against Robinhood alleges oligopoly manipulation<\/b><\/a><\/h3>\n

It\u2019s been quite a week from Robinhood, the stock trading app that\u2019s continuing to reel from the backlash it suffered after restricting trading in GameStop.<\/b><\/p>\n

A class-action lawsuit has been filed that the drastic move denied customers a chance to profit from volatility in GME shares \u2014 manipulating the course of the stocks.<\/span><\/p>\n

Meanwhile, <\/span>some reports suggested<\/span><\/a> that Robinhood was planning on postponing its planned IPO as it tries to focus on tackling the PR disaster. <\/span>Other outlets have cast doubt on this, saying a stock market debut is going ahead as intended.<\/b><\/p>\n

It\u2019s also been claimed that Robinhood\u2019s CEO, Vlad Tenev, <\/span>is going to testify<\/span><\/a> before the U.S. House Financial Services Committee over the firm\u2019s role in recent volatility.<\/span><\/p>\n

Robinhood, the stock trading app formerly popular with millennials, is facing another class-action suit, following its recent temporary suspension of purchases of GameStop and other \u201cmeme-stocks\u201d through its platform.<\/span><\/p>\n

 <\/p>\n

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Polish crypto exchange employee in induced coma after armed attack<\/b><\/a>
\n<\/b><\/a><\/h3>\n

A member of staff at a Polish crypto and gold exchange has been placed into an induced coma after an armed attack.<\/span>
\n<\/b><\/a><\/p>\n

The offices of FlyingAtom, in the city of Olsztyn, were targeted on Jan. 22. <\/b>The masked attacker managed to escape with gold worth approximately $120,000.<\/span>
\n<\/b><\/a><\/p>\n

A suspect was subsequently detained in connection with the incident, with the exchange thanking the police for their help.<\/span><\/p>\n

 <\/p>\n

Best Cointelegraph Features<\/b><\/h2>\n

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Time to shine? Crypto should be given a chance after GameStop drama<\/b><\/a><\/h3>\n

The GameStop pump may lead a number of amateur investors to finally learn about DeFi and the advantages it puts forth.<\/span><\/p>\n

<\/h4>\n

Going feeless is the only way to enable blockchain adoption<\/b><\/a><\/h3>\n

Feeless transactions can play a role in enabling DeFi, allowing the sector to further develop and grow in importance.<\/span><\/p>\n

<\/h4>\n

r\/Wallstreetbets vs. Wall Street: A prelude to DeFi bursting onto the scene?<\/b><\/a><\/h3>\n

Was stock trading app Robinhood the villain in the GameStop saga? \u201cIn a decentralized trading market, no one would have that power.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The best (and worst) quotes, adoption and regulation highlights, leading coins, predictions and much more \u2014 one week on Cointelegraph in one link!<\/p>\n","protected":false},"author":15,"featured_media":6685,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"mc4wp_mailchimp_campaign":[],"_links_to":"","_links_to_target":""},"categories":[35,2413],"tags":[2722,2724,2795,2796,2736,2733],"yst_prominent_words":[225],"_links":{"self":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/6683"}],"collection":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/comments?post=6683"}],"version-history":[{"count":1,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/6683\/revisions"}],"predecessor-version":[{"id":6689,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/posts\/6683\/revisions\/6689"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/media\/6685"}],"wp:attachment":[{"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/media?parent=6683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/categories?post=6683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/tags?post=6683"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/cointelegraph.com\/magazine\/wp-json\/wp\/v2\/yst_prominent_words?post=6683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}