Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro.
- Markets continue to see green probably due to short covering
- Tether and ICE back in news to spread some positivity
- Vitalik helps an Ethereum Dev Team by donating 1000 ETH
All Green for cryptos as shorts covers and positive news flow in
Well, the greenery continues on the crypto street as we head to the holiday season. Reasons still unknown but in likelihood, it’s the short positions that are covering up due to this sudden spike in markets. Especially after the short squeeze, that was seen on Monday, today’s action is simply a continuation of that. Markets are made of people and it’s likely that most people will be looking to reduce their exposure before the holidays. Over the last few weeks, there have been a lot of high leveraged short positions building up and when those sell positions are closed, it creates upward pressure on market prices.
The evidence of this is clear if one looks at how Bitcoin Cash, which has probably been the most controversial of coins and many have blamed for the recent slide, is up about double of what the rest of the market has done today.
Other positive news on the street points that ICE seems to be all set for its January 24th (pending regulatory approval). The update is from a week ago, but the timing and dates in the note seem to line up with the market movements quite nicely. Another news that could relieve a few crypto enthusiasts is that according to Bloomberg, the controversial Tether Stablecoin seems to be all backed up.
Vitalik rescues ETH dev team
According to the recent tweet put forward by Preston Van Loon of Ethereum Dev Team, Prysmatic Labs, all is not good with the startups that are building projects and Dapp over Ethereum. The tweet states the hardships a Dev team faces due to lack of capital, forcing them to do other jobs for survival. This tweet caught the eyes of Vitalik who was swift enough to help his Dev Team. Granting wish of Preston, Vitalik transferred 1000 ETH as help to Prysmatic Labs.
While this sparked quite a reaction from Vitalik’s followers and trollers who were apt to point out Vitalik’s nickname… “Non-giver of Ether what Vitalik did was not a giveaway but strategic investment in the network to support the much-needed efforts to scale the Ethereum blockchain.
Also, Vitalik tweet gave a link which got backtracked to his Ethereum wallet allowing an insight on Ethereum founder’s holding. The most notable ones include Maker, Kyber, and OMG. His Spank balance is near empty but he does have one digital kitten.
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Mati Greenspan is the Senior Market Analyst at eToro, a global social trading and investment platform. Mati is a licensed portfolio manager in the European Union and his main focus is on macroeconomic analysis, portfolio diversification and cryptocurrencies. Follow him on Twitter at @matigreenspan