The moment bulls have been waiting for arrived today as Bitcoin unexpectedly rocketed from $7,450 to $8,300 in less than 15 minutes today. Over the next hour, the digital asset managed to top the $8,600 resistance and Bitcoin even took a quick swipe at $8,800 before dropping to $8,500 to cool off from the high volume breakout.
Various media reported that $150 million worth of BitMEX longs were liquidated by the suprise move and the rally couldn’t have occurred at a better time. Prior to the breakout, Bitcoin price was sitting on the bottom arm of a descending wedge pattern at $7,400 and a drop below this point would have open the door for a correction to $6,500.
Sentiment within the crypto community is now much improved and analysts are beginning to ponder whether or not a bullish trend reversal is in the making. Let’s take a look at today’s events which could have influenced the massive rally.
China’s President, Xi Jinping, has called for an acceleration development of blockchain technology. Speaking at the Politburo on October 24th, Xi said that the distributed ledger technology is a core innovation.
Xi noted that the application of the technology has permeated into sectors like the Internet of Things (IoT), intelligent manufacturing and supply chain management, among others.
Bakkt Bitcoin Futures on the Verge of Setting a New Record Volume
Bakkt’s Bitcoin futures have been posting some impressive figures lately. On Wednesday the volume on futures contracts reached a new all-time high and it appears that Bakkt could repeat this feat today. The Bakkt Volume Bot (@BakktBot) reported that more than 286 physically-settled Bitcoin futures contracts were traded on Friday.
Volume sustaining, this means a total of 1,506 Bitcoin contracts will trade on Friday. This shows a massive increase as on Oct. 23 640 contracts were traded, meaning today’s volume is a 653% increase. Interestingly, as Bakkt’s volume surges, Bitcoin also rallied 13% today and reached a new weekly high at $8,600.
Brave Browser Activates Its Privacy-Focused Ads in 20 More Countries
Brave browser has activated its privacy-centric advertisements which allow browsers to earn Basic Attention Token (BAT) is 20 new countries. Austria, Switzerland, Denmark, Italy, Venezuela, and Argentina are a few of the countries added to the update.
The vo.70 update improves support for a number of privacy-related features. Users can now choose to be rewarded for receiving notifications from advertisers and 70% of the revenue goes to users. Recently Brave creator Brendan Eich said that Brave’s privacy-focused ad system could be extended to other browsers in the future.
IRS to Intensify Audits of Crypto Holders and Traders
The IRS intends to send out audit notes to cryptocurrency traders and holders. This is according to Judith McNamara, an IRS agent running a public-facing Twitter handle. It would be a second time that the tax collection agency focused on these industry players after it sent out 10,000 similar letters in August.
The previous audit letters sought cashflow information from traders. Failure to answer the questions honestly would be a criminal offense, according to the IRS. Per the tweet, cryptocurreny holders might be at risk of the same audit process.