Bitcoin Price Rally Runs out of Steam, LTC Keeps Surging

Bitcoin, the flagship cryptocurrency, has recently seen its price drop to little over $3,900, as the rally that saw it rise well over 10% in a few days has seemingly started stalling. Some analysts believe remaining at this level would still be a bullish sign.

According to CryptoCompare data, BTC has recently managed to surpass the $4,000 mark for the first time in six weeks, but its price started dropping soon after. At press time, BTC is trading at $3,950 after losing 0.6% of its value in the last 24-hour period.

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

Other cryptocurrencies, including Litecoin, EOS, Bitcoin Cash, and Ethereum, have also seen their prices rise this week. What exactly was behind the crypto market’s rally is unclear. Some have claimed mainstream investors are entering the market, while others have pointed to JP Morgan’s JPM Coin as a reason for the rally, claiming it was a delayed reaction.

Institutional investors are believed to enter the market once a bitcoin ETF is approved. Currently, the SEC has two proposals on the table. The rally, however, is noticeably stalling, as most cryptos are down for the day, with the exception of a few, including Binance Coin, thanks to the launch of the Binance DEX’s public testnet.

Litecoin, a cryptocurrency seen as the silver to bitcoin’s gold, is notably up over 6% in the same period. Behind its rise appear to be groups on Chinese social media platform WeChat, which have reportedly been constructing a narrative around Litecoin’s halving event, expected to arrive in 168 days.

Although the crypto market rally is losing steam, most appear to remain bullish. According to a poll conducted by eToro senior market analyst Mati Greenspan, out of 355 respondents 30% believe cryptocurrencies will continue surging, while only 14% see it sustain current levels.

About 27% claimed the crypto market will retrace back to its lows, while 29% admitted they don’t know what’s going on, or just voted to see the results. Speaking to CryptoGlobe, Greenspan noted he also isn’t sure where the market is going.

Nevertheless, he noted that a retracement would be normal after such a price rise, although sustaining current levels for a few days would be a “very bullish sign.”

After this type of price move a retracement would certainly be normal, but if it even just sustains these levels for a few days it would be a very bullish sign indeed.

Despite the recent pullback, positive news have kept on coming. Elon Musk, a co-founder of PayPal and the CEO of Tesla and SpaceX, has recently revealed he believes bitcoin is “quite brilliant,” and also gave Ethereum some merit. Bitcoin’s rally has seen it get on track to record the first green monthly candle in over six months.

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.