The altcoins in the crypto space have flipped slightly as the bears are slowly gaining their dominance back. The Bitcoin price after trading close to $24,000 has dropped significantly in the past few hours and plunged below $23,000. However, the other major altcoins like Ethereum, Cardano, XRP, etc have been displaying enough strength as they continue to sustain above their gained levels.
The market sentiments are changing gradually, as the FUD appears to have flushed out largely. Meanwhile, the fresh spike has raised the speculation of Bitcoin price soaring beyond $25,000 due to which the markets now appear to have become greedy. With the rise in the Fear and Greed indicator, the markets are believed to remain bullish for some time ahead.
The Fear and Greed Index is a tool that helps investors to understand the sentiment of the market. It indicates to what extent the markets can be fearful and greedy. Presently, the index points towards 51 which is within the range of being greedy. The levels have now marked a 14-month high after being within an extreme fear for over 9 months. The last time, the index pointed to greedy levels was just before the beginning of the bear market in November 2021.
Today, the Fear and Greed Index marked a high around 65, despite the fresh BTC price reversal. Therefore, it can be assumed that the market participants are still bullish on Bitcoin. Hence a notable upswing may prevail that may rise the price significantly toward the interim target of $25,000.
However, Bitcoin’s (BTC) price is priced at $38,000 lower than November 2021 levels and 65% below the current ATH. Therefore, the greed levels may rise in the coming days which could spark a notable rally ahead.
Bitcoin price was believed to mark the bottom somewhere by the mid of Q1 2023 as the bear held a strong grip over the market. However, the market quickly displayed a bullish divergence since the beginning of the year 2023, hinting at the beginning of a recovery phase.
Now that the crypto markets are being impacted by external events, the coming week is expected to be volatile as the FOMC is set to meet to announce the new Fed rate.
The FOMC meeting is scheduled to happen in the first few days of the week. Another couple of events are believed to take place that may not only impact the crypto space but also the traditional financial markets too. However, until the agenda of the meeting is not let out, the BTC price is believed to trade flat and spike high on the announcement as predicted by a popular analyst, Johnny Woo.
“Expecting to see something like this until FOMC. What will happen on Feb 1? Sharp increase, then, sharp decrease. It happens/ has happened every time on all FOMC days,”
Along with FOMC, GAFA financial results, US employment statistics, and big events like the earnings of Apple, Google and Amazon are to be announced. Therefore, a stage is assumed to have been set for the crypto space in the month of February wherein based on the earnings, the markets are believed to travel.
However, the speculation of a rise of 25bps or 50bps is hovering within the markets which may induce a significant bullish momentum within the crypto space. Therefore, the bears may not attempt to defend the $25,000 levels in the coming days and hence a significant breakout could be expected.
Therefore, after achieving the crucial $25,000, the bulls may undergo a sharp impulse to $27,500 to $28,000 may be expected. However, soon after achieving these levels, a massive correction may drag the price lower to $20,000 as suggested in the above chart. While the fresh rates are about to be announced, it is pretty difficult to analyze how markets may react but the volatility within the markets may rise high.
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Galaxy Digital Holdings CEO, Mike Novogratz, recently stated in an interview on the American business news program Squawk Box that despite the tension between Gemini and Digital Currency Group (DCG), there will not be a significant amount of selling. He also commented that despite recent negative news, the cryptocurrency market will pick up slowly and steadily.
Novogratz believes that the crypto market will not be greatly impacted by the current financial stress of DCG and Genesis. Furthermore, he stated that while 2022 was a difficult year for the crypto market, it will recover in 2023. He believes that the crypto winter has given rise to stricter regulations and norms, which will benefit investors by better controlling fraudulent activities.
On January 3rd, 2023, Arcane Research warned investors that the financial stress of DCG would have a severe impact on the crypto market, however, Novogratz’s opinion is in contrast to this research report. He also commended Coinbase for cutting 20% of its workforce to minimize operational costs.
The crisis at DCG began when FTX collapsed, leading to mass withdrawals by customers. DCG owns a number of crypto-related companies, including the crypto lender Genesis, the crypto media company CoinDesk, the crypto investment wing Grayscale, the crypto exchange Luna, and the crypto advisory firm Foundry.
As a result of the market turmoil, Genesis had to halt withdrawals, citing “unprecedented market turmoil.” Gemini, a crypto exchange, was severely impacted when Genesis, a lending partner in the Gemini Earn program, halted withdrawals. Genesis owes $900 million to Gemini, which has a fair business reputation. Cameron Winklevoss, the co-founder of Gemini, has written two open letters to DCG to solve the situation as soon as possible.
What Happened with DCG & Genesis: The Background Story
According to recent reports, Genesis, a subsidiary of Digital Currency Group (DCG), had lent $2.36 billion to Singapore-based hedge fund, Three Arrows Capital (3AC), which declared bankruptcy in June 2022. After liquidating collateral, Genesis was left with a loss of $1.2 billion.
Instead of providing capital to Genesis, DCG entered into a 10-year promissory note with a 1% interest rate, falsely reassuring investors that Genesis had sufficient funds. However, it is important to note that a promissory note with a maturity of 10 years cannot be treated as a current asset, but the DCG CEO allowed this to occur for personal gain.
It has come to light that Genesis did not have enough funds, and DCG officials repeatedly lied to investors about the company’s financial health and stability. The truth of the matter is that Genesis would have gotten away with this fraudulent activity if FTX had not collapsed in November 2022.
FTX’s collapse resulted in massive withdrawals from nearly all exchanges, and when Genesis halted withdrawals due to a lack of funds, users of the Gemini Earn program were also affected.
Cameron Winklevoss, the co-founder of Gemini, stated in an open letter that as long as Barry is the CEO of DCG, a solution to the current financial stress cannot be found. He further added that Barry is an unfit CEO who has allowed numerous unethical actions to occur under his leadership. Winklevoss also commented that with new leadership at DCG, he is willing to settle the issue out of court.
The crypto markets are greener as the positive market sentiments pile up ahead of the FOMC’s MoM. The FOMC meeting has been impacting the crypto space positively in recent times and hence the markets tend to rise expecting better rates. Previously, Bitcoin prices have been responding positively as they surged to some extent but again fall into the same bearish trap or maintain a stagnant consolidation.
After the gigantic fall in the second week of December 2022, the BTC price is maintaining a stagnant trend without being volatile. In the meantime, the fears of a minor pullback also haunt the rally as the price is failing to reach beyond $16,900. The price is constantly trading within a parallel channel, unable to break above the resistance of the pattern.
Presently, the selling volume has been intensifying due to which the price may witness an interim pullback, below the middle bands of the channel. In such cases, the BTC price is feared to drop back to $16,600 to $16,400 levels. On the contrary, if the BTC price manages to break above the channel, then the price may witness a new high for the day.
However, the uncertainty within the markets is believed to hinder the progress of the rally. The upcoming FOMC MoM is expected to uplift the markets to some extent, however, the bearish influence shall prevail. Only if the buyers intensify their grip over the Bitcoin (BTC) price, the token may rise high and surpass $17,000, else may continue to remain consolidated below $16,900.
A former executive at Meta and PayPal, and current CEO and creator of Bitcoin company Lightspark, David Marcus, has made some forecasts regarding the cryptocurrency market.
The Bitcoin enthusiast wrote in his blog on December 30 that the market won’t be able to recover from the mistreatment of unethical entities like FTX and Terra until at least 2024.
In his words:
“We won’t exit this ‘crypto winter’ in 2023, and probably not in 2024 either. It’ll take a couple of years for the market to recover from the abuse of unscrupulous players, and for responsible regulation to come through.”
In 2023, Marcus asserts, the development will boom. A lot of trust and stability was lost in 2022, but with devastation comes the chance to start again, and he believes that we will use technological breakthroughs to address humanity’s most pressing issues as we go forward.
The former Meta executive predicts that interest rates will rise during the first part of the year and that homeowners will have to adjust to mortgage rates not seen in two decades.
In addition, he said that the Lightning Network will begin to show promise as the most efficient open, interoperable, inexpensive, and real-time payments protocol next year.
After years of avarice in the crypto industry, we may finally see some useful uses emerge. Manufacturing a ton of money by making a token out of nothing is a thing of the past.
According to Marcus, the industry is back to its usual schedule of having to generate real value and solve real-world issues. He predicts significant progress in areas like payments, asset securitization, DeFi, zero-knowledge applications like proof of reserves and layer 1 scaling solutions, and a resurgence of development zeal and enthusiasm on the Bitcoin network.
Marcus is not the only industry expert who believes that the crypto winter will not end any time in the near future. There are a number of analysts who share this view, so it’s probably better to go into the new year without high expectations for the market, continue hoping for the best and never stop researching and keeping up with the latest news of the industry.
Crypto markets are trading within the same range as Bitcoin’s inability to rise over $17,000 has compelled the altcoins to remain within the consolidated regions. The altcoin, nowadays, appears to be preparing for gigantic price action and hence are accumulating gains. Moreover, a slight change in the market conditions may lead to a Bitcoin price rally which could be followed by an intensified AltSeason soon.
A well-known crypto analyst, Altcoin Sherpa believes that the crypto market could improve finely in 2023 and the worst of the economic troubles may end by December 2023. Moreover, the analyst also believes that more than 100% gains could be in store for some digital assets as well. However, to do so, the markets may undergo one more capitulation phase where the cryptos may remain choppy for some time ahead.
The analyst also has given the 2023 year-end projections, where-in the BTC price is believed to trade around $35,000.
“2023 is going to be an interesting year. I think the worst is behind us for the most part, but I think there is one last capitulation waiting. I do think we’ll have a lot of bear market rallies though, and liquidity will be fragmented hopping from sector to sector a la 2021.”
The analyst believes that the macroeconomic picture has historically improved in the fourth quarter of every year which has uplifted the crypto space to a large extent, specifically for the altcoins. Coming to Bitcoin, the Analyst says that the crypto may is likely to rise high early next year which may also include some pullbacks.
“ BTC: I think we will see a rally into Q1 and then more pain later. I think we likely see an overall range from between $15,000 to $30,000 for most of the year, with deviations on both ends,”
Considering Ethereum, analysts believe it is likely to outperform Bitcoin with a price forecast of $3200.
Moving ahead to Solana, Altcoin Sherpa believes the Ethereum Killer may get triggered at $35 but it all depends on the selling pressures led by the FTX or SBF’s latest happenings. About Chainlink, the analyst believes the price may maintain its dominance and rise up to $14.
Lastly, Sherpa hopes MATIC appears pretty strong as their collaborations and partnerships may enhance the user’s confidence in the project.
“MATIC: I think has good chances in 2023, their [Business Development] and partnerships seem good,”
As the Consumer Price Index for November was announced, the leading cryptocurrencies all surged upward to trade in the green. Due to the major reduction in US inflation statistics, the largest cryptocurrency- Bitcoin- witnessed a major upswing on Wednesday, reaching its highest level in a month. In the last twenty-four hours, Ether has also seen a positive trend as investors’ attention has shifted to the FOMC policy meeting.
The US inflation rate dropped to 7.1% in November, below analysts’ expectations of 7.3%, data showed on Tuesday. Since last December, this month’s inflation rate is the lowest it’s been all year.
The Federal Reserve is widely anticipated to increase the interest rates by a quarter of a percentage point at the conclusion of its two-day policy meeting on Wednesday, signifying a less aggressive stance from the central bank in light of recent data.
Ethereum To Surpass BTC Soon?
The current 24-hour volume of Ethereum trades is $8.3 billion at the $1,323 price. According to CoinMarketCap, Ethereum’s value has increased by about 4.5% in the last 24 hours, reaching a total market capitalization of $162 billion.
Ethereum’s price recently broke through the $1,305 resistance mark, breaking an ascending triangle pattern in the 4-hour time frame. This level is now acting as support. The relative strength index (RSI) and the moving average convergence/divergence (MACD) both indicate a positive outlook.
Smart Contracter, the pseudonymous analyst who accurately predicted Bitcoin’s (BTC) bottom in 2018, now says that Ethereum (ETH) will begin spectacular rallies in 2019 on its way to becoming the largest digital asset by market capitalization.
According to Smart Contracter’s tweets to his 216,700 followers, the value of the largest altcoin is likely to reach levels not seen in over five years. Smart Contracter adds that he anticipates that Ethereum will surpass Bitcoin in market capitalization during the upcoming bull market.
It’s worth noting that Smart Contracter is not the only one predicting a price surge for Ether. Mike McGlone, a commodities analyst at Bloomberg, pointed out that the fact that stablecoins make up four of the top five digital assets by volume shows how valuable Ethereum’s technology is. He explains how Ethereum’s technology facilitates instant, low-cost transactions in digital currencies.
Raoul Pal Chimes In
Raoul Pal, a former executive at Goldman Sachs, has shared his thoughts on the forecast and analysis of Ether. He claims that there is one chart of Ethereum’s value (ETH) that investors need to keep in mind.
In a recent article, Pal references a chart titled “Ethereum Today vs. 2017-2021 Analog chart”. This chart, if it were to be followed, would indicate that ETH is currently very close to the bottom of the bear market.
The expert is also looking at a chart that, according to him, shows how investors have become quite pessimistic about the stock market.
What Can You Expect In The Future?
The Federal Open Market Committee (FOMC) will have its last meeting of the year later today. As is customary, FED members will share their most recent projections for inflation and interest rates (dot plot) with the public after the meeting.
After the publication of the CPI data, the leading cryptocurrencies, including ETH, BTC, and the rest of the market, experienced an upward trend. It is possible that the same may happen after the FOMC meeting.
Bitcoin price witnessed a significant jump in the early trading hours that raised the price by nearly 6.5%. The price successfully trades above $16,500 after marking the monthly lows below $15,500, a couple of days before. While the market participants may be slightly relieved with a decent amount of accumulated buying volume, the revival of the bearish may be soon validated.
The long-term holders usually constantly accumulate the tokens without liquidating them at any point regardless of whether the market is bullish or bearish. Ever since the markets underwent a bull run in 2021, the number of long-term holders has kept on increasing. Moreover, their holdings remain unspent and untouched and hence called dormant.
In a recent update, such dormant addresses have been spreading out their BTC reserves constantly indicating a major bearish event is fast approaching.
According to the data from an on-chain data provider CryptoQuant, the Spent Output Age bands from the years 7 to 10 have peaked. Meaning, the longer-term holders who held BTC for more than 7 years have been selling their holdings heavily. Initially, during the August-September, a similar spiked was recorded but with lower intensity.
The recent price sell-off and the uncertain market trends could have compelled the long-term holders to liquidate their holdings. Nearly 10,000 BTC has been sold which are expected to flood into the market any time from now. Hence creating a fresh wave of bearish pressure that may deep dive the BTC price towards new lows.
Collectively, the BTC price continues to remain within bearish captivity as the holders including the miners are incurring extreme losses at the moment. Meanwhile, many analysts and influencers believe that the Bitcoin bottom has not yet reached and is believed to crash by more than 50% in the coming days.
The stagnant crypto markets have compelled traders to rethink the upcoming price trend. While the possibility of a fresh upswing has been rooted out for some time due to FTX-collapse, the traders now are shorting the top 2 cryptos. Due to this, the entire crypto market may be negatively impacted and may also mark new lows before the end of 2022, maybe by the end of November 2022.
Recently, the funding rates have gone extremely negative, which is enough to create a market depression before the possibility of any reversal. According to an on-chain data provider, Glassnode, Bitcoin is currently the second most shorted token, while Ethereum follows the leader and is the third on the list.
It has to be noted that throughout the bull run in 2021, the funding rate was highly positive but slashed as the bear market kicked off. The current bear market has invited huge negative interest, which indicates the market participants believe the BTC price is prepared for a fresh rally towards the south. This rise in the negative funding rates is the second highest since January 2020.
On the other hand, Ethereum’s funding rate has also turned extremely negative, mainly after the recent market crash. The funding rate had been extremely negative, recently in September, after the merge event, marking the highest levels. Meanwhile, since then the rates remained largely negative with a couple of minor recoveries also noticed.
But the current drop in rates has also dragged huge volume, meaning a huge chuck of traders has joined the short-army.
Presently, the deepest drop in the funding rate is witnessed within the top 2 cryptos in history. However, the bulls usually jump in at the bottoms, and this is when the short positions are reversed and also liquidated. Therefore, these negative funding rates are expected to prevail for a long time, which may further attract many more strong hands to uplift the rally ahead.
FTX’s Domino Affect Still Underway-Crypto Markets Including Bitcoin May Remain Bearish Indefinitely!
The FTX crisis is not believed to stop right away, as the contagion is likely to spread wider, trapping more institutions or platforms. The Bitcoin price is currently trading between the interim resistance & support levels that appear to be decisive but may carry huge possibilities of a massive pullback in the coming days.
The recent addition to the fallout, Blockfi, has fueled bearish sentiments within the crypto space. Meanwhile, the CEO has cleared all the rumours surrounding the liquidity crisis, but still, the ripple effect of FTX continues to prevail. However, the BTC price is expected to be deeply impacted by the fallout, which has been experiencing high exchange outflows in recent times.
However, in the coming days, the BTC price is expected to head towards the final capitulation phase and drop heavily below $15,000.
The SMA or Simple moving average acts as alternative resistance levels and a cross-over between 20-day SMA and 50-day MA is being witnessed which is largely considered as bearish. The RSI, MACD, StochasticRSI, etc are extremely bearish in the short-term & long-term, hence nullifying the possibilities of a rebound in the near future.
However, the final capitulation phase is expected to begin any moment now as the markets appear to have been more or less stagnant for over a week. The bearish volume is expected to kick in at any time and hamper the progress of the rally by extending the recovery phase indefinitely. Therefore, a popular analyst who rightly predicted the 2022 crash advises his followers to exit all the markets right away.
The analyst here is hinting towards the upcoming bearish action that may pull the crypto space towards the next support zone. Meanwhile, traders are expected to keep a close watch over the entire crypto space, especially the Bitcoin(BTC) price movements.
Fears of a contagion, sparked by concerns about the liquidity of FTX and Alameda Research, caused the cryptocurrency market to plummet massively, and huge sums of money were liquidated.
Kevin O’Leary, popular as a Shark Tank investor, has put forward his opinion about a possible liquidation that is looming around the corner.
O’Leary has pointed out how the FTX collapse has negatively impacted the markets and even his own investments.
Why the sudden collapse? A Look Within
In a recent interview with Crypto Banter, O’Leary explains that he found his FTX holdings to be zero when he logged in on Monday morning.
“In our operational company, we must do a mark-to-market every 12 hours… So, on Monday at nine o’clock, we did a mark-to-market, declaring that all of our assets had vanished and that we had lost all of our money invested in FTX International and FTX USA. A challenging day indeed. That’s going to be very popular.”
The investor and analyst didn’t just stop at mentioning FTX; he also indicated he has additional investments that are suffering. They enforce rules that make it so that institutions and workplaces are more open to different perspectives and backgrounds. They, therefore, do not have full control over all of their FTX cryptocurrency holdings.
“We don’t do that since it’s not in line with us and our rules for running our business”
Moving forward, O’Leary stated that communication with the auditors was the next major worry facing the cryptocurrency space. He doesn’t know where to put them, but for now, Canada will be the safe option.
In the upcoming days or weeks, according to O’Leary, more dominoes will fall as a result of the collateral harm caused by FTX’s collapse.
The bottom line
As predicted by him, there will be several “forced” liquidations in 10 days. As a solution, he proposes the need for repositioning and informed that he had had an interesting chat about this with the auditors yesterday. Kevin stated that he will treat this investment loss as a tax loss.
Since this is the first year that the IRS and other tax officials across the world are considering this asset in the same way they treat stocks, he stated that he won’t re-establish his positions until 31 days have passed.
All in all, if the investor’s analysis holds any weight, it’s safe to assume that there will be a lot of selling from now till mid-December.
After a gigantic bull run, the crypto space undergoes an extended correction phase where-in assets plunge heavily by more than 80%. Meanwhile, the current phase also reflected a similar trend until the markets collapsed in May led by the fall of the Terra ecosystem. Since then the crypto assets have been trading under the heavy influence of the bears as Terra’s fall create ripples of fallouts later.
Recently, one of the most popular exchanges, FTX faced an $8 billion shortfall and is heading towards bankruptcy. This has led to a bloodbath on the streets of satoshi nakamoto satoshi nakamoto satoshi nakamoto Developer/Programmer Followers : 0 View profile , and moreover, the drop is expected to intensify very soon, dragging Bitcoin & altcoins to their bottoms.
However, the Altcoins presently may certainly not behave in a similar way it did post-2017 bull run. The top ALTS in 2018 were totally different from the top 100 ALTS now and hence a popular analyst warns his 117,900 followers to be very careful of the majority of Altcoins.
The market collapse led by FTX blew out nearly $200 billion in market capitalization in just a couple of days. Meanwhile, a steeper plunge is yet to happen, and with this, a sharp decline in Bitcoin, Ethereum, & the major altcoins are expected.
A well-known analyst, il capo of crypto il capo of crypto cryptocapo TraderMarket Analyst Followers : 0 View profile , rightly predicted the recent crash much before it occurred and believes that the last leg of the current capitulation phase is yet to occur. Bitcoin prices are expected to drop by 16% to 20%, Ethereum‘s price by 36% to 40%, and altcoins could crash by 40% to 45% very soon.
Hence, in the coming days, the major crypto assets are expected to find new bottoms and close the yearly trade on a bearish note.
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Binance & FTX Turn Hawkish, Causing Crypto to Crash! This Could Be the Point at Which Markets Recover!
In recent times, the crypto markets have been responding widely to external factors like the US rates, Elon Musk’s moves & mentions, and now the Binance and FTX brawl. The markets that ignited the November trade on a bullish note trembled heavily and dropped hard in minutes. The Bitcoin price, which sustained hard above $20,000, slumped below the levels, while the Ethereum price slashed below $1500.
What Went Wrong?
CEO of FTX, Sam Bankman-Fried (SBF), who was considered the king of crypto, has landed in deep trouble as Alameda Research & FTX are presumed to be on the brink of insolvency. A popular exchange, Binance, which had millions of FTT tokens, announced its plans to liquidate all of them. Very soon, the FTT price dropped hard by more than 30% to drop below $16.
On the other hand, the FTX’s Ethereum balance plummeted heavily from more than 300K to as low as 32K in just a couple of days.
Moreover, the outflow of the ETH wallet was recording huge withdrawals of nearly 500 ETH per minute. This created a huge FUD within the crypto space with a speculation of a LUNA-UST-like crash to be fast approaching.
The fear within the market continues as Alameda Research, a leading principal trading firm, founded by SBF, could dump all its tokens soon. Besides the major tokens like USDC, ETH, & BTC, the platform also holds other assets like UNI, MATIC, SHIB, RNDR, ORBS, etc. Out of these, MATIC holdings have already dropped by 80% in a single day.
Meanwhile, the latest activity suggests countless outflows of ETH, USDT, and USDC have been recorded while, 1300 UNI, 612K MATIC, & 48K LINK 4.63M BIT. These huge transfers have created a huge amount of FUD within the markets that may result in steep corrections in the coming times. However, a bearish wave much like that during the LUNA-UST crash may be expected in the coming days, which may wipe out the previous gains.
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Bitcoin prices were deeply impacted by the resurgence of the bearish market trend that caused the price to plunge by more than 3.6% from the monthly highs. Meanwhile, the ongoing tussle between Binance CEO, Changpeng Zhao (CZ) and FTX CEO Sam Bankman Fried (SBF) has led the bearish wave within the crypto space. While some believe this could be an interim pullback, market participants may also expect a notable price drop ahead.
The star crypto managed to leap long beyond $21,000 as the release of the fresh CPI rates uplifted the price considerably. Meanwhile, the Bitconniers expected a continued bullish trend ahead that could have led to an upswing beyond the crucial resistance at $22,500. But the fresh market plunge dragged the price lower and is also expected to lose the $20,000 mark very soon.
Bitcoin’s price previously flashed a sell signal at the crucial levels around $20,800, and as expected, the star crypto faced rejection. Therefore, the BTC price may either reclaim $20,700 and hold the upper target to continue to surge beyond $21,000 again or else remain within a consolidated range for some more time.
Meanwhile, the BTC price in the short-term is flashing notable bullish signals, as the number of BTC supply in loss reaches a month low while the supply in profit hit a monthly high. Additionally, the BTC miner revenue also reached a monthly high of around $1.8 million to $1.85 million. Moreover, the daily active address is fluctuating between 1M & 85K indicating a nominal activity over the platform.
However, the crypto markets are expected to become more volatile in the next couple of days as some events may have a large impact. like the US midterm elections on Tuesday, U.S. CPI inflation data on Thursday, and U.S. consumer sentiment data on Friday. Hence, the market participants may also expect Bitcoin prices to form a new monthly bottom, probably below $20,000 very soon.
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JP Morgan: Highlighting The Red Indicators
Recent opinions by expert analysts have noted the rapid depletion of venture capital in the cryptocurrency market. JPMorgan Chase & Co. strategist Nikolaos Panigirtzoglou said on Thursday that annual funding for the cryptocurrency industry is at the $10 billion mark, which is only a third of the previous year’s rate.
Venture capital funding for cryptocurrencies hit a record low of $4.4 billion during the third quarter of this year. As a result of macro variables like monetary tightening, investors have lost interest in risky assets because they do not want to lose more money than they already have.
The JPMorgan team published the following report:
The current weakness in crypto markets is likely to persist if this trend continues, as it demonstrates a reluctance by VC funds to commit resources to the digital-asset area.
The cryptocurrency exchange Coinbase also released its quarterly numbers on November 3rd, revealing a net loss of $545 million. The company reported that macro headwinds, as well as the correction in the crypto market, had a significant impact on their transaction revenue.
Besides that, Coinbase also added that it does not anticipate a rapid recovery of the cryptocurrency market from present levels. Thursday’s trading session saw the price of COIN shares down another 8% to a final value of $55.80. The COIN share price has dropped by around 85% from the past year.
JPMorgan’s Approach to Consumer Safety
In addition, JPMorgan stated that banks must put safety and compliance first when experimenting with cryptocurrencies. Recently, banks have been getting closer to the crypto business to improve the accessibility and efficiency of their financial services and bridge the gap between traditional financial institutions and new-age assets.
That being said, adequate safety measures are crucial to protect investors from cyber threats. Umar Farooq, CEO of JPMorgan’s blockchain unit Onyx, made the following remarks this week at the Singapore Fintech Festival 2022:
“From both a regulatory and a customer’s perspective, it is essential that banks take measures to safeguard their clients’ financial information. We can’t afford to waste any of their capital”
The financial behemoth is working on this via verified collections technology, which would reside in the client’s blockchain wallet. Each time a user transacts over the protocol, their identity is checked.
The bottom line
While in conversation with CNBC, Farooq said, “He can’t imagine people being able to send money across borders if no one checks and no one knows who’s giving money to who, because sooner or later they will be in a money laundering issue.”
Given the state of the world, it’s safe to say that the cryptocurrency community as a whole is reevaluating whether or not altcoins represent a secure investment. This could prove beneficial for investors who put their hard-earned money in such assets with the hope of impressive returns but often end up losing it.
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The Bitcoin price, after marking recent highs beyond $21,000, has yet again dropped due to the intensifying bearish action
Meanwhile, the crypto markets appear to be preparing for a massive run ahead as the fractals are rising above the bearish captivity
The crypto market cap has risen above $1 trillion amid the recent price action that propelled the levels after a prolonged consolidation. Meanwhile, the Bitcoin price is slashing notably and dropping below $20.500 but sustaining firmly along the pivotal support zone, indicating the revival of the bulls very soon.
In the middle of the bearish clouds continue to prevail, bullish flags continue to flatter over the crypto space. The market capitalization has been forming a double bottom pattern which is largely considered as bullish and hence a remarkable price action is speculated to be fast approaching.
A well-known analyst, Micheal van de Poppe points the market cap has never been below the 200-Week MA while the Bitcoin & Ethereum prices did. While the market capitalization continued to hover around the 200-Week MA and the markets dropped by more than 70%. Now when the levels are trying to reclaim their positions above these levels, then a remarkable upswing may be fast approaching.
However, the crucial resistance lies around $1.193 trillion, clearing which may lead to a significant upswing towards $2 trillion as predicted by the analyst. Therefore, if the market cap begins its bull run, Bitcoin price & Ethereum prices are also expected to explode very soon. Hence a firm upswing beyond their respective resistance appears to be imminent.
Dogecoin price is surging in the past few hours after rebounding from the daily lows at around $0.1138. The popular memecoin surged massively in the recent past which elevated the prices from $0.0743 to as high as $0.15, reclaiming the levels it traded before the May 2022 market collapse.
Meanwhile, the crypto whales have begun to accumulate some altcoins which displayed the possibility of a bullish action amid the DOGE price rally.
A popular crypto influencer, Ran Neuner lists 3 altcoins which could go parabolic very soon following the Dogecoin rally.
The analyst pointed out a couple of altcoins including Chainlink that he believes to be highly undervalued at the moment & also suggested that it could be a good time to accumulate some. Further, he says that DOGE’s price is also looking great in terms of growth prospects amid Twitter’s acquisition by Elon Musk.
Moreover, be believes DOGE may also be integrated into Twitter’s various use cases. Along with Chainlink & Dogecoin, analyst foresees huge potential in popular NFT, Chiliz (CHZ). As the FIFA World Cup is around the corner, the possibility of pumping CHZ price is making huge rounds. Presently, CHZ’s price is trading at $0.21 after plunging by 2.04% in the past 24 hours after surging by 14.01% in the past 7 days.
Therefore, the market sentiments appear to have flipped a bit with many positive factors attempting to propel the popular crypto assets in the market. Therefore, finding some stability in the top cryptos, the altcoins are also expected to follow and thrive hard.
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Ever since the impact of the 2021 bull run has faded, crypto markets have deep-dived into a steep descending trend. Meanwhile, multiple factors, let it be within the crypto space or not, have adversely impacted the markets. However, Q4 was expected to be pretty bullish, but October appears to close on a bearish note.
Some analysts still believe the bullish trend could be revived in the next couple of months. Bitcoin & other altcoins were speculated to undergo a notable upswing to begin the yearly trade of 2023 on a bullish note.
However, the markets are expected to remain heavily consolidated, while Bitcoin prices could tank down hard in the coming days. As per a popular analyst, Micheal van de Poppe, the FED may continue to hike rates until February 2023 which may keep the crypto markets consolidated.
Poppe believes that the FED may hike another 75 bps in November & December and 25 bps in February 2023. The FED Chain Jerome Powell had earlier said that the agency may take more stringent measures to combat the rising inflation.
The inflation rates, from the past 6 months have been at a record high above 8%, highest in June with 9.1%. Meanwhile, Bitcoin also remained heavily consolidated at the same time. Therefore, if the rates keep on elevating, the BTC price could eventually find new lows in the near future.
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The decentralized cryptocurrency exchange (DEX) Mango Markets, which had an exploit earlier this month, will shortly begin repaying the $114 million the funds stolen
The DEX had previously declared that its decentralized autonomous organization (DAO), which are organization owned and run by its members without the need for a central authority, would decide how to restore the funds to users.
Mango Labs co-founder, Daffy Durairaj, said “The program for depositors to recover funds is in audit and should be ready to go by tomorrow morning. Much thanks to all the Mango contributors working tirelessly to make this happen,”.
The post Mango Markets DAO Approves a $47M Bounty for a Hacker appeared first on Coinpedia Fintech News
Following the Oct. 12 Mango Markets attack, the hacker presented a proposal to the project, requesting that it utilize up to $70 million from its treasury to cover certain outstanding debts. He committed to repaying the cash if his stipulations were met.
the project team produced a proposal in an attempt to reach an agreement with the hacker the same day. according to the plan, the hacker will return up to $67M and keep the rest $47M as a bug bounty.
The message to the hacker reads:
“As a demonstration of good faith, you must return the assets other than MNGO, MSOL, USDC, and SOL within 12 hours of the proposal opening.”
The post LBRY vs. SEC: Kauffman Claims That SEC Is Out To Destroy The Crypto Markets appeared first on Coinpedia Fintech News
In March 2021, the SEC charged LBRY with selling unregistered securities. Now, LBRY CEO Jeremy Kauffman is seen calling out the Securities and Exchange Commission (SEC). The regulator took issue with the $11 million in funding raised through the sale of LBRY Credits. The SEC actually considered LBRY Credits as investment contracts.
Kauffman exclaimed that the company has been “fighting the SEC for coming up on five years.” He said they soon expect a federal judge to weigh in with a ruling on whether a full trial is required. He expressed his frustration saying “The SEC has very much demonstrated that they are out to damage or destroy the cryptocurrency industry in the United States.”
Moreover, Kauffman is stepping into the political realm and if he’s elected this year, his top priority will be bringing more attention to the cryptocurrency scene.
The crypto space is expected to be in dire straits as the top crypto, Bitcoin is currently switching above and below $19,000. The shaky environment could be due to the strengthening of the USD as the DXY index is surging high and marking a new 20-year high. Presently, the index has jumped above $113, making a new yearly ATH.
In the times when DXY Index is marking new highs, the crypto space has been impacted negatively. On the brighter side, the index is closer to dropping significantly close to $112 or below, but may soon rise above $114.
As per the above chart, the DXY index is assumed to drop as it did before in 2015-16. Here the DXY underwent a parabolic recovery from wave 1 to 3 after rebounding from wave 2. Further, the rally dropped to hit the 4 and later rebounded to wave 5. A similar trend is expected to repeat in recent times and may drop to $112 and later rise back beyond $114.
Therefore, a minor bounce may be expected with Bitcoin & entire crypto space. But as the index rises, the crypto markets may fall apart. Presently, the BTC price is again dropping back towards the demand zone between $18,277 and $18,928. If the asset fails to rebound from these levels, the price may witness a huge bearish trend in the coming days.
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The post Crypto Markets Remain Heavily Consolidated, While Some Altcoins Preparing for a Breakout! appeared first on Coinpedia Fintech News
The broader crypto markets are experiencing a huge bearish pressure ahead of the FOMC meeting. The global market cap which had recovered above $1trillion again dropped below the levels while the trading volume also dropped nearly 4% majorly holding the buying volume. In a deep red sea, some altcoins manage to remain greener!
- Ripple price, recently, broke out of the descending parallel channel and ranged beyond $0.42 in no time. However, the bears quickly attempted to drag the price lower, yet the bulls managed to close the previous day’s trade above $0.4
- While the price is undergoing a minor correction as the bulls seem to have exhausted. However, the buying pressure continues to squeeze the bears and hence after a brief consolidation, the price may rise high
- Therefore, with a daily close above the resistance of the channel, the price may further hit the pivotal levels above $0.5 and secure the positions at $0.52
- If the XRP price successfully withstands the bearish pressure at these levels, then a rally beyond $0.65 could be imminent
Lido DAO Token
- Lido DAO token appears to have been trading within a bullish falling wedge & looking for a breakout soon
- While the FOMC meeting is underway, the asset appears to be gearing up to break above the crucial resistance levels.
- Additionally, the price is also formed a huge bull flag & heading towards the peak of the consolidation which could further result in a major breakout in the coming days
- With a breakout, the probabilities of the price reaching the August highs are fewer but may make it beyond $2.2 or $2.4.
How Have The Markets Been Impacted By The ETH Merger? – Coinpedia – Fintech & Cryptocurreny News Media
Once again, the crypto market opened the week on a bearish note as the world’s first cryptocurrency, Bitcoin, went down by more than 7% in the last 24hrs and is trading at around $18,500. This move has also pulled down most of the other cryptocurrencies, including Ethereum.
ETH has lost more than 25% in the last 7 days and more than 10% in the last 24hrs after it tumbled to the $1300 level. The successful merger didn’t seem to impact the Ethereum price, on the contrary, the situation worsened.
Moreover, the ETH/BTC ratio has dropped nearly 15%.
The Impact Of The Ethereum Merge
However, as per VivekVentures, crypto and Ethereum influencer, the present trade setup displayed by Ethereum is just a short-term noise as the Bitcoin proponents are escaping FUD about Ethereum and the merger.
Furthermore, he also claims that issuance around the lead altcoin has plunged by 95% since the time the merge event started, which indicates that the Ethereum network should circulate 95% lesser coins without any security drop-off. Hence, just after 3 days of the merge, there was an issuance of only 3000 tokens but if it was in proof-of-work, Ethereum would have circulated 40,000 currencies.
There is also a difference in selling pressure and the expert asserts that the proof-of-stake has comparatively less selling pressure than proof-of-work. In the PoS mechanism, Ethereum validators are not allowed to sell their block rewards for 6 to 12 months, which is why the current ETH selling pressure is almost zero.
Additionally, Vivek explains that the present gas fee is more than 15 gwei, hence, there is an increase in buying pressure on Ethereum because of the merge’s deflationary effect.
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The second-largest crypto faced a huge correction soon after the Merger was successfully implemented. At the press time, the ETH price is trading below $1500, at around $1472. Ethereum tried very hard to surpass the crucial resistance place around 50-day MA levels at $1676 after the Merger but eventually resulted in a huge drop of over $100 in no time.
However, the crypto asset continues to plunge down heavily as the bulls appear to have exhausted completely. Therefore, in such a case, will the price rise over the bearish influence before the end of 2022, or the ETH price will mark a bearish yearly close below $1200?
Ethereum has been bouncing well after each correction since June 2022, while multiple catalysts fuel the rebound. Woefully, the global macros have largely impacted the broader crypto market and hence the price remains unaltered after the much-awaited Merger.
The recent rejection compelled the price to slice through the lower support and break the symmetrical triangle. The bearish trend may continue for some more time until the asset validates a firm rebound after hitting the lower support zone between $1425 and $1399. In the worst cases, if the [price fails to hold at these levels, then the price could revisit the levels around $1200 or below.
On the brighter side, after Ethereum Merger, the upcoming triple halving could help the price to escape the bearish trap and propel highs.
The analyst here believes that during each cycle, the bull run begins from the regression band and also ends at these levels. However, the Ethereum (ETH) price is yet to enter the band and hence a notable drop may be expected that may induce a catapult action to ignite the next bull run in the future.
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Ethereum Merger Done & Dusted! Crypto Markets Now Prepare for a Gigantic Plunge – Coinpedia – Fintech & Cryptocurreny News Media
The strength of the crypto space has reduced to a large extent as the intensity of the upswings has depleted heavily. Therefore, the recovery phase does not prevail for a long time, due to which, the bears continue to dominate the markets. While many market participants believe the Q4 trades could be somewhat profitable, the markets are set to drop more than 50% during the same time.
The global market cap continues to hover below $1 trillion for the 3rd consecutive day with a huge drop in the trading volume, specifically buying volume. The global market cap from the past couple of days was trading along the lower trend line which was pierced in the early trading day. Therefore a huge plunge is feared to drag the crypto space by 50% to 80% as predicted by a popular analyst.
The analyst predicted the plunge quite a long time ago, as the market cap was trading within a bearish pattern from the time since the markets began to rise. Now when the trend is approaching the apex of the rising wedge, a steep fall could be imminent.
Therefore, if the market cap witnesses a steep drop, it may eventually land up shedding more than 50% to hit levels below $400 billion. Presently, Bitcoin on the whole shares more than $350 billion market cap, if the market cap plunges as frames, BTC price may shed below $10,000 in the coming days.
In such a case, the markets may require more than a couple of years to recover and get back to normal.
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Bitcoin price is displaying acute strength despite the crypto markets including Ethereum price tumbling down. The growing strength within the star crypto may be an outcome of the US dollar becoming fragile. Ahead of the crucial CPI announcement, the DXY Index is plunging hard to reach the levels below $108 that have induced a significant momentum within the BTC price.
However, the conditions are expected to flip shortly as both the assets, Bitcoin & DXY Index appear to have stuck up in a trap!
On the other hand, the Ethereum platform is all set to undergo a Merger in less than 36 hours but the markets continue to remain uncertain. It appears that the impact of the event has faded over time. Nevertheless, the BTC price is believed to be at the peak of the bull trap and a significant drop may make its way out soon.
A popular analyst Bloodgood believes that the BTC price is primed to hit the lower support at $20,000 while the ETH price may fall prey to a “buy the rumor, sell on news”.
Conversely, the DXY Index seems to be preparing for the next leg up which may break the previous highs at around $110.78 and reach $112 in the next 24 to 48 hours. Hence flashing significant bearish signals for the BTC price at the same time.
Collectively, Bitcoin & DXY Index has been displaying a huge correlation, inversely, of-let. While the CPI figures are expected to drop slightly from the recent figures at 8.5% to 8.1%, the USD may gain notable strength ahead, challenging the BTC price & the entire crypto space.