Interview: Demand Is Exceeding Our Capacities Thirtyfold — Aroosh Thillainathan

Northern Data AG is one of the leading players in the high-performance computing (HPC) market and is building the world’s largest HPC facility in Texas.

Based on contracts already signed, the stock-market-listed company (German Stock Exchange, XETRA: NB2, ISIN: DE000A0SMU87) has recently issued guidance for the year 2020, with sales expectations in the region of EUR 120 million to EUR 140 million, and EBITDA expectations from EUR 45 million to EUR 60 million. The tremendous upsurge in demand for HPC, which has been turbo-charged by the corona crisis, has accelerated Northern Data’s growth beyond precedent. We spoke with CEO Aroosh Thillainathan.

Q: Mr. Thillainathan, in a few days you will be commissioning the world’s largest data center in Texas. How does a comparatively unknown listed company from Germany come to own a data center like this, in the USA of all places – the home market of the IT giants?

Aroosh Thillainathan (AT): Our holding company is indeed based in Germany, but we are a truly international player. We have our roots in the blockchain business. Blockchain was the first commercial application of HPC and, over the past seven years, this niche market has given us valuable experience in how to scale the use of high-performance computers in a cost-effective and energy-efficient way. For example, the highly specialized chips needed for blockchain applications have extreme electricity and cooling requirements – we needed to address these challenges many years ago, while our competitors in the HPC sector are only uncovering them now. The reality is that, only three years ago, there were no large-scale applications for HPC outside of blockchain. Autonomous driving and artificial intelligence weren’t a significant market back then. So, while Amazon and Google might have deep pockets, they don’t have the same knowledge we do.

Q: You offer solutions for high-performance computing. What exactly does high-performance computing mean?

AT: High-performance computing (HPC) represents the future of computing. HPC offers many times the computing power that normal desktop PCs generate. We are talking about thousands of high-performance computers processing billions of units of data in real time. As a result, HPC can be used for tasks that would be impossible for regular computers or would take an impractically long time to complete. In recent years, HPC has mainly been used in scientific contexts to run complex models. Recently, however, more and more practical fields of application have been entering the market, making HPC a massive growth market. The application areas are exploding.

Q: What are the potential applications of HPC?

AT: These include artificial intelligence, autonomous driving, blockchain technologies and the life sciences sector. In the field of life sciences in particular, HPC and its immense computing power is revolutionizing the discovery and development of new drugs and therapies.

Q: Does this mean that you are benefiting from current issues, such as the coronavirus pandemic?

AT: In two respects, actually: First, due to time pressures, pharmaceutical companies and research institutions around the world are using HPC to perform epidemiological and bioinformatical calculations and simulations that would take months or even years on traditional platforms. What’s more, the COVID-19 pandemic is also causing a massive overload of existing data infrastructure. As a result of this, streaming services like Netflix and Amazon Prime have already been forced to significantly reduce their data rate – and thus transmission quality – in order to avoid overloading the networks. So, demand for our HPC solutions and capacities is skyrocketing.

Q: What are the particular challenges involved in HPC?

AT: Due to the extreme computing power, HPC systems require many times more electrical energy and cooling than current computer systems. This presents enormous challenges for the entire IT industry, since the existing infrastructure of conventional data centers is in no way prepared to meet this increased need for power and cooling. Today, data centers consume power in the low double-digit megawatt range and are usually located in locations where they compete with established industry for energy supplies. In Texas, we’re building a capacity of 1.0 gigawatt – or 1,000 megawatts – by the end of the year, and from there we will scale up to 3.6 gigawatts. By way of comparison: Frankfurt am Main is the leading data center location in Europe, with more than three dozen operators sharing the market. But the entire Frankfurt am Main metropolitan area – along with industry, including the chemical plants in Höchst and the international airport – weighs in at a peak load of around 800 megawatts. The network capacities in Frankfurt would not even be enough to realize HPC projects of our caliber. Not to mention that the cost of electricity in Frankfurt is several times higher than at our locations in Texas or Norway.

Q: What HPC solutions does Northern Data offer that other vendors do not? Or, more succinctly: what is your USP?

AT: We have a wide range of unique and leading hardware and software solutions for HPC. For example, we have modular high-tech data centers that can be deployed practically anywhere in the world, so we can go wherever energy is available in abundance and at low cost. In addition, as mentioned before, in Texas we are building the largest data center in the world, where we will be able to offer HPC on a whole new scale. We’re doing so with our proprietary software which uses AI to control and operate hundreds of thousands of high-performance computers in parallel. Large-scale HPC is incredibly complex to do reliably, but we have cracked it. This is one of the reasons why we have been signing contracts with large blue-chip corporations.

Q: How quickly can you scale your business?

AT: Very quickly – but not as quickly as demand is skyrocketing.

Q: Who are your customers?

AT: Our first customers for the Texas facility are large multi-billion-dollar corporations. Our customer pipeline is mostly comprised of very large corporates because – from the customer’s point of view – these projects involve total budgets in the triple-digit millions.

Q: How do you expect the HPC market to develop in future?

AT: The HPC market has been in its infancy for the past few years but is currently skyrocketing across a range of diverse application areas. The demand for HPC exceeds supply many times over. To give you a feeling for this: According to our calculations, in the next 18 to 24 months, the demand for HPC capacity in blockchain computing alone will be thirty times higher than the resources we can build up in a year. And there is no player on the market that is currently building more capacity than we are. The fact that the market is exploding in many different areas is also illustrated by a statement by Eric Yuan, CEO of Zoom Video Communications, in an interview last week. When asked if he ever expected that a pandemic could change the way people work digitally today, he replied, “If I had known that, we would have reserved a hundred times more capacity.” That hit the nail on the head. We live in data-intensive and CPU-intensive times; demand is quite simply exploding.

Q: How is this development reflected in your figures?

AT: Only a few days ago, we published our guidance for 2020. In the current year, we expect revenues of EUR 120 million to EUR 140 million with EBITDA of between EUR 45 million and EUR 60 million. This is a very conservative estimate because it just includes contracts we have already firmly concluded. So, this is just an initial flavor of what we can expect in the coming years. After all, our data center is only just going into operation, and the rest of the year will also be marked by the ramp-up of capacity. We plan to have completed 1 gigawatt of capacity in Texas by the end of 2020 and can expand to up to 3.6 gigawatts on the site. Preparations for expansion at other important locations in Canada and Scandinavia are in currently in full swing.

Q: How much turnover do you make per gigawatt?

AT: Between EUR 400 and 500 million with a gross profit margin of 40 to 50 percent. This is because we can achieve an unprecedented level of automation thanks to the proprietary artificial intelligence we programmed. Our software takes care of operation, control and maintenance activities for the hundreds of thousands of high-performance computers. This enables us to deploy just 20 full-time employees per gigawatt and keep our fixed costs extremely low.

Q: Where do you see your company in the years ahead?

AT: We are in an extremely fast-growing market and have the opportunity to further expand our leading position in the coming years. The tremendous demand from our blue-chip customers give us a solid basis and sufficient tailwind to build up a multi-billion-euro business in the HPC segment that will become a global leader in this emerging industry. This is what I have been working towards for years. Together with my colleagues, I have had to overcome many technical obstacles in recent years and solve many challenges that initially seemed quite unsurmountable. Our current successes show me that we are on the right track. My goal is to seize this opportunity with our team and let our shareholders join us on an unprecedented journey to success.

 

Bitcoin Leaps to Retest $7,000 But Risks a Major Bull Trap: Here’s Why

Bitcoin prices jumped overnight to retest $7,000 but risked falling into a bull trap as no sound catalyst justified its pump.

The benchmark cryptocurrency rose 9.67 percent in just four hours to $6,767 per token midnight Thursday. The move uphill injected about $7 billion into the bitcoin’s market cap, which topped near $121.97 billion ahead of the European morning session. Later into the day, the price pulled back by up to 2.3 percent.

bitcoin, cryptocurrency, btcusd, coronavirus

BTCUSD heads above $6,500-resistance to test $7,000 as its next upside target | Source: TradingView.com, Coinbase

The price jump – nevertheless – saw bitcoin breaking above a near-term support/resistance level near $6,500. That confirmed the cryptocurrency’s inclination to retest $7,000, a level it has attempted but failed to break since its pullback from the year-to-date low of $3,858 in March.

Offloading Bitcoin Risks

Bitcoin’s inability to pierce above the $7,000 price ceiling shows traders’ interim profit-taking behavior in a macro risky market. The fast-spreading of COVID-19 has led investors to withdraw their money from the market. That has left a huge dent on all the traditional markets, be it the Dow Jones, the S&P 500, or even Gold. Every asset is facing an extreme downside risk.

So far, there is no cure for the novel coronavirus. US President Donald Trump has warned Americans about “very, very rough two weeks” that has also prompted investors to seek safety in cash – the US dollar. The greenback is up 3.45 percent on a year-to-date timeframe owing to a similar safe-haven demand.

As a result, all the leading markets are choppy. They rise aggressively on an intraday basis but fail to build up a concrete upside momentum. Bitcoin is no different.

Staying Bullish

So it appears, the cryptocurrency could be entering yet another bull trap with its Wednesday pump. It shows no signs of continuing an uptrend based on the macroeconomic narrative. And even hardcore bulls within the bitcoin space believe it would not rise until the COVID-19 crisis settles.

Travis Kling, the founder of bitcoin-enabled Ikigai Asset Management, pitted the cryptocurrency against the ever-inflating mainstream economy, noting that the government’s response to an economic crisis is to inject trillions of unbacked dollars into the system. The strategy could help them near-term but hurt everybody’s savings in the long-run.

“After the dust settles, economic activity resumes and central banks and governments inject *many trillions* of new dollars into the world by increasing balance sheets and deficits. Off that bottom, there is no other asset on the planet that will move like Bitcoin,” said Mr. Kling.

As of now, bitcoin’s next potential price action is a retest of $7,000, followed by a pullback towards $6,500. In another scenario, the cryptocurrency’s uptrend could exhaust ahead of hitting $7,000, causing a rebound to or below $6,500. Both cases would see it dipping below $6,000.

On a brighter note, the area above $5,657 has protected bitcoin from extending its sell-off. Therefore, the cryptocurrency could bounce back from the said level to retest a breakout above $6,000.

Bitcoin Forming Another Bullish Breakout Pattern and It Could Rally To $7.2K

Bitcoin is up more than 4% and it broke the key $6,500 resistance area against the US Dollar. BTC price is forming a solid bullish trend and it could soon rally towards $7,000 or $7,200.

  • Bitcoin started a fresh increase after testing the $6,200 support area against the US Dollar.
  • The price is up close to 5% and it surpassed the $6,500 and $6,600 resistance levels.
  • There is a short term contracting triangle forming with resistance near $6,650 on the hourly chart of the BTC/USD pair (data feed from Kraken).
  • The pair is likely to continue higher above the $6,650 and $6,800 resistance levels in the near term.

Bitcoin Gaining Traction

Yesterday, we saw a few bullish signs above $6,200 for bitcoin against the US Dollar. BTC price corrected a few points from the $6,600 resistance area, but it remained well bid near the $6,200 support area.

It traded as low as $6,159 and recently started a fresh rally. The bulls gained strength and were able to push the price above the key $6,400 pivot area. More importantly, there was a break above yesterday’s highlighted bullish flag pattern with resistance near $6,370 on the hourly chart of the BTC/USD pair.

Bitcoin Price

Bitcoin Price

It opened the doors for more upsides and bitcoin rallied above the $6,500 and $6,600 resistance levels. The price is up more than 4% and it traded to a new weekly high at $6,714.

It is currently consolidating gains above $6,600 and it is well above the 100 hourly simple moving average. An initial support is near the $6,580 level or the 23.6% Fib retracement level of the recent rally from the $6,159 low to $6,714 high.

There is also a short term contracting triangle forming with resistance near $6,650 on the same chart. If there is an upside break above the triangle resistance and $6,700, the price is likely to rally again. The next major resistance is near $6,800, above which the bulls are likely to aim $7,000 or $7,200 in the near term.

Downside Correction?

If bitcoin fails to clear the triangle resistance and $6,650 or $6,700, it could extend its downside correction. The first key support is near the $6,435 level since it is near the 50% Fib retracement level of the recent rally from the $6,159 low to $6,714 high.

The next major support is near the $6,290 level and the 100 hourly SMA, where the bulls are likely to take a strong stand.

Technical indicators:

Hourly MACD – The MACD is currently moving nicely in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently well above the 60 level.

Major Support Levels – $6,580 followed by $6,435.

Major Resistance Levels – $6,650, $6,700 and $7,000.

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Ripple (XRP) Signaling Fresh Surge Similar to Bitcoin and Ethereum

Ripple is rising steadily from the $0.1680 support area against the US Dollar. XRP price is likely to rally 3%-4%, similar to the recent move in bitcoin and Ethereum.

  • Ripple price is slowly gaining bullish momentum above the $0.1720 level against the US dollar.
  • The bulls are likely aiming an upside break above the $0.1780 and $0.1800 resistance levels.
  • There is a key bearish trend line forming with resistance near $0.1760 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair could dip a few points, but it remains well supported near the $0.1720 level.

Ripple Price Could Rally Soon

Recently, there was a strong upward move in bitcoin and Ethereum, but ripple failed to follow in a similar fashion. XRP price traded as low as $0.1680 and climbed back above the 100 hourly simple moving average.

There was a steady rise above the $0.1720 resistance level. The bulls were able to surpass the 50% Fib retracement level of the recent decline from the $0.1784 high to $0.1680 low.

However, the price is still well below the $0.1780 weekly resistance area. There is also a key bearish trend line forming with resistance near $0.1760 on the hourly chart of the XRP/USD pair.

Ripple Price

Ripple Price

Ripple is currently testing the trend line resistance at $0.1760. The 76.4% Fib retracement level of the recent decline from the $0.1784 high to $0.1680 low is also acting as a hurdle.

If there is a clear break above the trend line resistance, the bulls are likely to make another attempt to clear the $0.1780 resistance area. If they succeed, XRP price is likely to surge above the $0.1880 and $0.1920 levels. The next major resistance is near the $0.2000 level.

Downside Correction?

If ripple fails again to climb above the $0.1780 resistance, it could correct lower. An initial support on the downside is near the $0.1720 level and the 100 hourly simple moving average.

A bearish break below the $0.1720 support and the 100 hourly SMA may perhaps push the price below $0.1700. The next major support is near the $0.1680 level, below which the bears are likely to aim a test of the $0.1620 support area in the near term.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is slowly gaining momentum in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is rising towards the 60 level.

Major Support Levels – $0.1720, $0.1700 and $0.1620.

Major Resistance Levels – $0.1760, $0.1780 and $0.1880.

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Ethereum Just Broke $135 and Primed To Test $150: Here’s Why

Ethereum is trading with a bullish angle and it recently surpassed the $135 resistance against the US Dollar. ETH price is likely to continue higher towards $145 and $150.

  • Ethereum is up more than 3% and it broke the main $135 resistance against the US Dollar.
  • The price is now trading in a bullish zone and it could continue higher towards $145 or $150.
  • There is a key bullish trend line forming with support near $131 on the hourly chart of ETH/USD (data feed via Kraken).
  • Bitcoin also gained traction and it rallied more than 5% to trade above $6,600.

Ethereum Price Gaining Bullish Momentum

This week, we discussed the importance of the $135 resistance for Ethereum against the US Dollar. ETH price made a few attempts to clear the $135 hurdle and it recently succeeded.

After trading as low as $128.85, the bulls came into the action. They pumped the price above the $135 resistance and the 100 hourly simple moving average. The upward move was strong and the price traded towards the $140 level.

A high is formed near $139 and the price is currently correcting gains. It broke the 23.6% Fib retracement level of the recent rally from the $129 swing low to $139 high. On the downside, the previous resistance near the $135 level is now likely to act as a major support area for Ethereum in the near term.

There is also a key bullish trend line forming with support near $131 on the hourly chart of ETH/USD. An intermediate support is the 50% Fib retracement level of the recent rally from the $129 swing low to $139 high.

Ethereum Price

Ethereum Price

The current price action is positive and it seems like the price is likely to continue higher above the $138 and $140 levels. The first major resistance is near the $142 level, above which the bulls are likely to aim a test of $145 or even $150.

Dips Remain Supported

If Ethereum corrects lower, it is likely to remain well bid near the $135 support zone. The main support below the $135 level is near the $130 range area.

As long as there is no daily close below $130, the bulls are likely to remain in control in the coming sessions.

Technical Indicators

Hourly MACDThe MACD for ETH/USD is now moving nicely in the bullish zone.

Hourly RSIThe RSI for ETH/USD is currently well above the 60 level.

Major Support Level – $132

Major Resistance Level – $140

Take advantage of the trading opportunities with Plus500

Risk disclaimer: 76.4% of retail CFD accounts lose money.

Bitcoin Rips to $6,750 In Move Reminiscent of Last Year’s 25% April Fool’s Rally

Since NewsBTC’s last market update, Bitcoin has continued to rip higher, recently hitting $6,750. With this, the cryptocurrency is up nearly 9% from the daily lows around $6,200, and up over 16% from the weekend lows at $5,800.

Although not on the same magnitude, many have likened Bitcoin’s recent price action to the 25% surge seen on April Fool’s and April 2nd last year, which was a move that kickstarted a rally from the $4,000s to $14,000 by mid-June.

Analysts believe that the cryptocurrency could continue higher.

Could Bitcoin Continue Even Higher?

Prominent cryptocurrency trader Flood, who called Bitcoin’s weekend move under $6,200, recently wrote that the cryptocurrency next’s stop is likely $8,000. His charts show $8,000 as a key resistance and $7,000 to $8,000 as no man’s land from a volume profile perspective.

Also, according to Bloomberg, the recent price action has allowed a key buy signal to appear: the Bloomberg Galaxy Crypto Index (an index of the top digital assets that includes Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, and EOS) recently printed a buy signal, according to a trend indicator, the GTI Vera Convergence Divergence Indicator

A buy signal was last seen early on in January, when Bitcoin was trading in the mid-$7,000s. And a sell signal was seen near the end of February, when BTC was trading in the mid-$9,000s prior to the infamous March 12th capitulation, which has since been dubbed “Black Thursday.”

Featured Image from Shutterstock

This Indicator Shows Bitcoin May Soon See a Massive Influx of Buy Orders

After a period of facing some downwards pressure, Bitcoin bulls have been able to step up and lead the crypto higher, pushing it back into the mid-$6,000 region.

This recent price action seems to indicate that both bulls and bears have reached an impasse, as neither have been able to garner any decisive momentum in the time following BTC’s rejection at $6,900.

Importantly, one fundamental indicator is suggesting that bulls may soon gain the upper hand over bears, as the amount of capital that is currently sidelined within stablecoins could suggest that bulls have a massive war chest to fuel an intense upwards movement.

Bitcoin Consolidates as Bulls and Bears Struggle to Garner Momentum 

At the time of writing, Bitcoin is trading down just over 1% at its current price of $6,350, which marks a slight rebound from daily lows of $6,200, and a decline from highs of nearly $6,500.

This current bout of sideways trading marks a significant extension of that which Bitcoin has been facing after breaking above $6,000 last week, with bulls and bears forming a large trading range between roughly $5,800 and $6,900.

This consolidation has had a ripple effect spanning across the entire cryptocurrency market, with virtually all major altcoins seeing similar price action throughout the past several days.

In the near-term, which direction Bitcoin trends next will likely be largely dependent on whether it breaks above the lower or upper boundaries of its trading range.

One factor that investors should consider is that the traditional markets are beginning to see a continuance of their March capitulation, with all of the benchmark stock indices shedding nearly 5% of their value today.

Could Stablecoin Holdings Tip the Scale in BTC Bull’s Favor?

One factor that could bolster bulls eventually is the fact that the Stablecoin Supply Ratio is currently nearing an all-time low, showing that the current stablecoin supply has significant buying power and could bolster BTC.

“Stablecoin Supply Ratio (SSR) is near its ATL. Low SSR means the current stablecoin supply has strong buying power to purchase BTC and push the price up. USDT (ERC20) exchange balances at an ATH indicates that those coins are waiting on the sidelines,” Glassnode noted in a recent tweet.

Just because there exists a significant amount of capital currently sidelined within the crypto market doesn’t mean that it will necessarily be deployed anytime soon, as these investors may be waiting for Bitcoin to reach lower price regions before they reenter positions.

In the long-term, however, this is certainly a bullish sign that suggests BTC’s outlook is bright.

Featured image from Shutterstock.

Bitcoin Surges to $6,600: What Do Analysts Think Is Next?

After plunging towards $6,200 after the monthly candle close, Bitcoin has rallied hard, gaining 5% in the past two hours alone ahead of the daily close arriving in approximately 90 minutes. As of the time of writing this article, the cryptocurrency sits at $6,575, just a smidgen shy from $6,600.

What are analysts thinking about this move?

Bitcoin Could Continue Higher

According to crypto trader RektProof, the recent price action fulfills a three-part schematic he has been tracking, which is made up by an accumulation in a tight range, a short bout of “price manipulation below the day open,” then a period of expansion to reclaim the range traded in during the first step.

As it stands, Bitcoin is entering the third phase of this schematic, which should see it retest $6,700 in the near future, RektProof’s chart suggests. 

The call for more upside has been echoed by Bloomberg.

According to Bloomberg, the recent price action has allowed a key buy signal to appear: the Bloomberg Galaxy Crypto Index (an index of the top digital assets that includes Bitcoin, Ethereum, XRP, Bitcoin Cash, Litecoin, and EOS) recently printed a buy signal, according to a trend indicator, the GTI Vera Convergence Divergence Indicator.

A buy signal was last seen early on in January, when Bitcoin was trading in the mid-$7,000s. And a sell signal was seen near the end of February, when BTC was trading in the mid-$9,000s prior to the infamous March 12th capitulation, which has since been dubbed “Black Thursday.”

Surge In Crypto Demand

This surge comes as exchanges have registered a large increase in retail demand for cryptocurrency.

The U.S.-based Kraken corroborated this narrative, writing in a recent tweet that the exchange “recorded an 83% rise in signups, and a 300% increase in verifications” over the past few weeks.

Furthermore, Coinbase wrote in an extensive report that during the now-infamous “Black Thursday” crash, it saw an increase in Bitcoin buyers on the retail end of things:

“But beyond just a rush, two things are clear: customers of our retail brokerage were buyers during the drop, and Bitcoin was the clear favorite. Our customers typically buy 60% more than they sell but during the crash this jumped to 67%, taking advantage of market troughs and representing strong demand for crypto assets even during extreme volatility.”

Featured Image from Shutterstock

Two Crypto Tokens Beat Bitcoin in Q1 after Jointly Surging 450%

The first quarter left bitcoin under stress as it gave up all its early yearly gains to the fast-spreading Coronavirus pandemic. As of March 31, 23:59 UTC, the cryptocurrency was down by 10.53 percent to $6,424.35 on Coinbase crypto exchange.

While bitcoin did not behave like a safe-haven in times of extreme market stress, two underdog tokens emerged as winners. They not only surpassed the top cryptocurrency but outsmarted the global market, including stocks, currencies, and commodities, by returning a combined 450 percent gains to their investors.

Crypto Tokens Beat Coronavirus Fears

Streamr, a data-sharing startup, saw the price of its blockchain’s native token DATA exploding by 211 percent in the first quarter. The DATA-to-dollar exchange rate opened the three-month period at approx $0.0137 but closed it at a high of $0.043. At its quarterly top, the pair was trading at $0.049.

data, steamr, cryptocurrency, crypto, datausd

DATA/USD rate surged by over 200 percent despite Coronavirus crisis | Source: TradingView.com, Binance

DATA also performed exceptionally well against Bitcoin. Its rate against the benchmark cryptocurrency surged by circa 250 percent – from 191 sats to 680 sats – in the first quarter.

The same timeframe saw NMR delivering humongous gains in both the dollar- and bitcoin-enabled markets. The blockchain-based hedge fund crypto closed Q1 at $16.19, up 157 percent from its January 1’s opening rate. Against bitcoin, NMR surged by 196 percent, rising from 87,735 sats to 252,221 sats.

NMR, bitcoin, cryptocurrency, crypto

NMR/BTC beats market odds to deliver a spectacular 183 percent return in Q1 | Source: TradingView.com, Binance

The gains, nevertheless, accompanied meager daily volumes, suggesting that only a limited number of traders supported the said bull runs. The market caps of both NMR and DATA were also less compared to bitcoin, standing at just $41 million and $31.7 million at their quarterly tops.

Market Fundamentals

Despite its lackluster metrics, both NMR and DATA gained momentum owing to strong fundamentals. Data aggregator platform Messari wrote in one of its daily feeds that both the projects were in the middle of major product releases, stating that such events typically have a positive impact on the prices.

“Streamr,” the feed read, “is close to releasing the first stable version of its product, a decentralized marketplace for data streams. “Numerai, the project behind the asset Numeraire, launched its long-awaited marketplace for information, called Erasure Bay, on March 10.”

The feed added that Numeraire is an illiquid token, noting its real 24 volume to be just around $200,000 at the time of publication.

“Therefore, modest market movements can have an outsized impact on price, at least compared to most large and mid-cap crypto assets,” it clarified.

Here’s Why Bitcoin’s Bullish Monthly Close Isn’t Enough to Thwart a Massive Selloff

Following Bitcoin’s bout of consolidation within the mid-$6,000 region, the benchmark cryptocurrency has seen a slight decline that has led it down towards the support that has been established around $6,000.

This decline today has come about against a backdrop of bearishness in the equities market, with virtually all of the benchmark indices seeing some notable losses.

Analysts believe that this could create a downwards tailwind that also leads BTC to decline, which could invalidate all of the bullishness stemming from its recent monthly close.

Trader: Bitcoin Likely to See Further Downside Despite Bullish Monthly Close 

At the time of writing, Bitcoin is trading down just over 3% at its current price of $6,250, which marks a notable decline from daily highs of over $6,500 that were set yesterday during its bout of sideways trading.

Over a weekly period, BTC has been trading sideways in a relatively large trading range between $5,800 and $6,800 – with the crypto finding some hints of stability within the middle of this trading range.

It is important to note that the crypto was able to close its monthly candle at around $6,500 yesterday, which analysts consider to be bullish.

George, a popular cryptocurrency trader on Twitter, explained in a recent tweet that he still thinks BTC is poised for some near-term downside in spite of its strong monthly close, noting that he is watching for a movement to $5,500.

“BTC: Monthly closed bullish, but I think we see some downside first before heading higher. First target for our shorts around 5.5k,” he noted.

Will Economic Turbulence Continue Leading BTC Lower?

There’s no question the pandemic-related selloff seen within the equities market throughout the past few weeks has created a downwards tailwind that put pressure on Bitcoin and other cryptocurrencies.

Chase – another popular crypto analyst – explained in a tweet that although BTC could see a “scam wick” to clean out liquidity, he believes it will soon see significantly further downside.

“BTC: Typically when price re-enters an old range, it breaks down almost immediately. I expected a quick retest of range high then a sharp move to 6055 (especially with SPX dumping hard). Something feels off to me. Think we may get a scam wick to clean out liquidity up there,” he explained.

How Bitcoin trends as the traditional markets continue declining should offer insight into where the entire cryptocurrency market will head throughout the coming month.

Featured image from Shutterstock.