Bitcoin Closes in on $3,500 Mark as Altcoins Start Recovering

Bitcoin, the flagship cryptocurrency, has recently started to rise and is quickly closing in on the $3,500 mark as most altcoins are currently up in the last 24-hour period. Despite the positive performance, analysts suggest we’re still in a support area and could see it go lower.

According to CryptoCompare data, bitcoin is currently trading at about $3,480 after rising 2.8%. Despite its recent rise, BTC is still down by about 6.3% in the last two weeks. In the past 30 days, it’s lost nearly 46% of its value.

Bitcoin's price performance in the last 24-hour period

Notably, the cryptocurrency bear market that has been lasting for nearly a year now has seemingly been failing to stop adoption from growing. As CryptoGlobe covered, 1,500 restaurants in Denmark have recently restarted accepting bitcoin payments through an online food takeaway portal.

Moreover, research has shown nearly 40% of freelancers are using cryptocurrencies, as they are appealing because of the lack of intermediaries and ease of use for international transactions.

The price drop has seemingly also not affected those in the cryptocurrency space. As covered, Morgan Creek Digital recently made a “Buffett Bet 2.0,” as it bet naysayers $1 million cryptos will outperform the S&P 500 over the next decade. Some have also suggested that the best time to buy bitcoin is now, as we’re approaching a halving event in 2020.

Speaking to CyptoGlobe Mati Greenspan, senior analyst at eToro, revealed the $3,500-$3,000 zone is a considered a support for the cryptocurrency. He added, however, that it’s possible BTC will still go to $3,000, or even below it. Greenspan added:

Charting analysis only gives us last data, which can tell us which price levels are relevant to watch for. However, past performance is not an indication of future results.

The cryptocurrency’s price drop saw various miners shut down their operations as they started being unable to cope with the costs associated with them. This saw the hashrate plummet from its high in August, leading to a drop in mining difficulty. According to F2Pool founder Mao Shixing, this drop lowered some ASIC machines’ ‘shutdown price’ to $3,260.

Altcoins Start Recovering

Despite bitcoin’s growth, it isn’t the best performing cryptocurrency in the last 24-hour period. Ethereum’s ether and the XRP token are both currently up by over 2.5%, while Zcash, DASH, and NEO have all risen little over 5%.

Notably, Bitcoin Cash has risen over 8.4% in said period, and is currently trading at $106.5. BSV, which was outperforming BCH this week, has fallen 7.5% to $95.6. Privacy-centric cryptocurrency monero (XMR) has interestingly only risen 0.9%.

These positive price performances have seen the crypto market add about $4 billion.

Crypto Market-Maker Altonomy Receives $7 Million in Funding from Polychain Capital

Altonomy, a New York-based cryptoasset trading, advisory, and asset management company, has completed a $7 million fundraising round from Polychain Capital, a leading hedge fund and venture capital firm.

Co-founded by Ricky Li, a former Manager of Research and Product at the CME Group, Altonomy has also received funding from 7 Blocks.

Additional Capital Will Allow Altonomy to Have More Inventory

Commenting on how the additional capital could help Altonomy’s business operations, Li said: 

As a liquidity provider for altcoins, more funding will allow us to have more inventory, taking larger exposure and managing risk more effectively.

Li added that the extra funding would allow Altonomy’s trading desk to provide better services - as the platform would not need to “put constraints” on customers at settlement.

Funds May Be Used to “Source Liquidity for Customers”

Olaf Carlson-Wee, the Founder and CEO at Polychain Capital, remarked:

As a long-time user of Altonomy’s trading services, it was an easy decision for us to invest in their business when the opportunity became available.

Carlson-Wee, a former Product Manager and Head of Risk at Coinbase, also mentioned that the additional funding would help “source liquidity for customers, regardless of token type, order size, market cap, or whether the asset trades on centralized or decentralized exchanges.”

According to Coindesk, Li had suggested to investors in January 2019 that they “liquidate enough ETH so they would have at least two years of runway.” However, Li is now anticipating that cryptocurrency prices may continue to recover - after enduring a long bear market that lasted throughout 2018.

Altonomy Introduces Cloud Service for Crypto Mining

In addition to providing crypto trading and asset management services, Altonomy introduced a new product last year, called the AltMiner. According to Li, AltMiner’s cloud service allows Altonomy’s bigger investors to mine various cryptocurrencies.

Altonomy’s management claims that the AltMiner has a “superior return profile” with the “newest generation of miners, low electricity costs and a secure hosting site.”

During an interview with CryptoGlobe in May 2019, Lee explained how Altonomy’s crypto trading services were developed and their potential benefits.

One of Altonomy’s main services, called electronic execution, allows mining firms, investment companies and crypto exchanges to “enter and exit positions as an outsourced execution desk.”

As a high-frequency market-maker, Altonomy also provides liquidity for various tokens to several crypto spot and derivatives trading platforms.