- Twitter and Square CEO Jack Dorsey has yet again reinstated his support for Bitcoin.
- Bitcoin options open interest is hovering at around 134,000 contracts.
- Crypto Bitlord accused Ripple of not doing anything to improve the price of XRP.
Bitcoin
Bitcoin is probably the best native currency of the internet, Twitter CEO
In a recent interview with Reuters, Jack Dorsey, the CEO of Twitter and Square, said that Bitcoin is “probably the best” native currency of the Internet as it is consensus-driven and “built by everyone.”
The interview comes shortly after Dorsey’s Square invited other cryptocurrency companies to join an “‘alliance” that will pool patents and preserve its open-source spirit. The group is called “Cryptocurrency Open Patent Alliance” (COPA).
We believe there needs to be a global native currency for the internet. Just as everyone should be able to participate in the economy and have access to the same tools and services, so too should everyone be able to participate in cryptocurrencies and have access to its underlying innovation.
With many major firms filing and holding many patents, the number of US cryptocurrency and blockchain-related patents have doubled between 2016 and 2017. Regardless of whether it has patents or not, any digital asset company will be eligible to join COPA.
Dorsey has endorsed Bitcoin several times in the past few years. Earlier, he had also claimed that the coin could become the world’s sole currency by 2030. In the recent interview with Reuters, Dorsey said:
I think the internet wants a native currency and I think bitcoin is probably the best manifestation of that so far.
However, Dorsey thinks that there is still work to be done before Bitcoin and other cryptocurrencies achieve mainstream adoption. According to him, “transaction times and efficiency” and ease of use need improvement.
We have to build bitcoin in such a way that it as intuitive, it’s as fast and it’s efficient as what exists today and goes beyond that too.
Bitcoin options open interest on the rise
The open interest of Bitcoin is surging again, pointing to a potentially large price movement soon. The rise in BTC’s recent price volatility coincides with the imminent expiration of 77,000 BTC options contracts. Deribit data reveals that the BTC options open interest is hovering at around 134,000 contracts, indicating that a surge in volatility in October is becoming more likely.
Open interest is growing again, 134k $BTC contracts outstanding which is ~74% of total market. Next is CME with around 25k contracts outstanding. The biggest OI is held in the Sept ’20 expiry, a total ~77k of which ~59K is held at Deribit. pic.twitter.com/xgeWDaeVAg
— Deribit (@DeribitExchange) September 16, 2020
Whether this expected volatility will lead to a Bitcoin rejection or cause the bull market to resume remains unclear. If the flagship coin follows the previous post-halving cycle, it will likely achieve a new all-time high 15 months after the recent halving (mid-2021).
As the accumulation phase continues, BTC could remain in the $9000-$12,000 range in the near term. Once the September expiration occurs (occurs on the last Friday of every month), Bitcoin is likely to move in a particular direction. For now, the continuous rejection of $12,000 and $11,100 makes a longer consolidation phase probable.
A few traders believe that the recent Bitcoin rejection was a take-profit pullback. Technical analysts are anticipating a minor price drop in the near term. A pseudonymous trader is known as “Byzantine General” took to Twitter to share their thoughts.
BTC/USD daily chart
BTC is consolidating in an ascending triangle pattern and is currently testing the $10,960 resistance line. The 20-day Bollinger jaw is constricting, which shows decreasing price volatility. Over the last three days, the bulls and bears have canceled each other out, so the RSI…
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