Welcome to the Daily General Discussion thread. Please read the disclaimer and rules before participating. Disclaimer: Consider all information posted here with several liberal heaps of salt, and always cross check any information you may read on this thread with known sources. Any trade information posted in this open thread may be highly misleading,…
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The second quarter of the year was dramatically bloody for Bitcoin. The coin ended Q2 down by 56% with the price dropping from $45,000 to $19,900, experiencing its worst quarter since Q3 2011. Bitcoin is now playing with its $20k level, a key zone. A Historic Decline For Bitcoin Bitcoin had a 37% decline during June. But it is not just the numbers that have been gloomy. June was also the month of the unsurprising rejection of Bitwise and Grayscale’s spot-based bitcoin ETF applications –immediately followed by Grayscale’s promised lawsuit–. Moreover, the effects of the Terraform Lab’s UST stablecoin and Three Arrows Capital collapses seem to have turned into something contagious amongst crypto firms: another crypto lender and trading platform, Vauld, suspended all withdrawals, trading, and deposits quoting the “financial challenges” of current market conditions. During 2022’s second quarter, Bitcoin opened at $45,000 and declined to below $20,000, managing to recover its key $20k price level just in time to close June above it. As NewsBTC reported recently, the coin “needs to break above $20,500 and continue above $22,000 to clear out any potential short-term downside risk.” Overall, the latest Arcane Research weekly report notes that this decline “marked a historic quarter for the bitcoin price, and we have to go back 11 years to find a more brutal quarter. Bitcoin ended the quarter just below $20,000, dropping 56%.” Related Reading | Bitcoin Reserve Risk Falls To 2015 Levels, What Happened To BTC’s Price That Year? What To Expect However, the BTC price action could see more positive times soon. Analyst Michaël van de Poppe thinks that the coin could soon flip the $20K-20.4K key level and then “go towards $23K and the summer relief rally.” He added today that the coin is “sustaining” and “looking ready for a big move relatively soon.” As Arcane Research shared, Bitcoin’s $20k level marks the peak of its last bull run, adding that “Technically speaking, the close of the monthly candle was positive”, with June’s closing price being above the 2017 peak. The report also points to a possible support/resistance flip “where previous resistance will act as support.” However, macroeconomic factors could be the ones to flip positive expectations later on. Global uncertainty keeps increasing pressure. S&P 500 is down by 20% from its January high, which also reflects on Bitcoin. Deutsche Bank AG Chief Executive Christian Sewing thinks there is a 50% chance of a global recession, other large banks see it coming as well. An economical decline that size could last for several quarters. Bloomberg reported about the current effects of inflation rates and noted that “The gauge for the US is already 12.2%, similar to levels witnessed at the start of the pandemic and in the wake of the 2008 financial crisis.” Anna Wong, the chief US economist at Bloomberg Economics, wrote that “The risk of a self-fulfilling recession—and one that can happen as soon as early next year—is higher than before. Even though household and business balance sheets are strong, worries about the future could cause consumers to pull back, which in turn would lead businesses to hire and invest less.” Likewise, said feared self-fulfilled recession could also paint a grim picture for the crypto market. High-risk assets are expected to suffer investors’ retraction during economic declines, which can lead to panic selling and more gloomy prices. Related Reading | Institutional Investors Remain Bearish As Short Bitcoin Sees Record Inflows
That is right the Beijing doesn't want cryptocurrency anywhere near its borders, but blockchain, they can't have enough of it. Now if you are thinking well crypto is based on blockchain if they don't trust the technology why would they use it inside of their courts (and yes their supreme court uses a blockchain based…
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submitted by /u/sandygws [link] [comments]
As the title states, wondering if a government for example could transition to blockchain technology without having to manage / distribute / issue coin or alt fiat. Yes this would certainly make it centralized – which is not the debate at hand here. I guess if a government wanted to upgrade its technology with a…
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BTC bulls are holding $20,000, but most traders are confident that the price will remain range-bound for at least six more months.
With the approvals of futures bitcoin ETFs, firms have taken it one step further and have applied with the Securities and Exchanges Commission (SEC) for spot-based bitcoin ETFs. However, unlike their futures and short counterparts, the spot ETFs have not found favor in the eyes of the regulatory watchdog. And as more spot-based bitcoin ETF applications are declined by the SEC, questions have arisen about whether the market will see one anytime soon. Grayscale And Bitwise Applications Rejected Over the last month, anticipation had built up regarding spot-based Bitcoin ETF filings by both Grayscale and Bitwise. Grayscale had filed its application last year, with the SEC postponing its decision multiple times, but the firm had remained steadfast in its resolve to try to get approval for a spot bitcoin ETF. The final decision had come last week and it was indeed negative as experts had forecasted. Grayscale had received a rejection on its application but it was not the only one. Bitwise had also made a filing for a spot BTC ETF and the SEC had also put a stamp of rejection on it too. The latter had filed to convert its popular Grayscale Bitcoin Trust (GBTC) to a spot-based ETF. The fund which has $12.35 billion is the largest bitcoin trust and is looking to move to the next level. Related Reading | Mounting Support For Bitcoin At $19,000 As Market Ushers In A New Week At the rejection, Grayscale had swiftly filed a lawsuit against the SEC alleging that the regulatory body has no reason to actually deny its application. Michael Sonnenshein, CEO of Grayscale, lamented the fact that the SEC had green-lighted four futures bitcoin ETFs in less than one year but had refused to approve any spot-based BTC ETF, accusing them of “acting arbitrary and capricious.” Grayscale discount grows | Source: Arcane Research However, the SEC has said that the rejection was due to fears about market manipulations in the bitcoin spot markets, the role that the stablecoin Tether will play in this, and the overall lack of regulated exchanges and surveillance in the bitcoin market. Bitwise on the other hand has not made any move following the rejection and seems to be taking this one on the chin. Is A Spot-Based Bitcoin ETF Coming? With the rejection, the reality of a spot-based bitcoin ETF coming to the market has been pushed back once more. Given the time frame that it took for the SEC to make a decision on these ETFs, it is expected that filing and getting a decision on another spot-based ETF could take almost two years or about 18 months. This means that it is unlikely that the market will see a spot-based BTC ETF this year contrary to what was forecasted by market analysts in 2021. BTC holding shakily above $20,000 | Source: BTCUSD on TradingView.com Nevertheless, Grayscale has not backed down on its mission to turn the GBTC into a spot-based ETF. The lawsuit is still in its early stages but the CEO has expressed hope that they would receive a decision in the next year. Related Reading | Institutional Investors Remain Bearish As Short Bitcoin Sees Record Inflows Grayscale’s GBTC still continues to trade at a heavy discount and the firm’s annual management fee is firmly at 2%. This means that if its filing to convert to a spot-based ETF is not approved in the next two decades and fails to remain close-ended, it would be unable to justify the discount at which it is currently trading. However, with the firm’s drive to gain approval from the SEC, it is not a stretch to think that it would get it in the next 20 years. Featured image from Coincu News, charts from Arcane Research and TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Despite raising capital from Tier 1 VCs such as Union Square Ventures, Andreessen Horozwitz, Atelier Ventures (now part of Variant Fund) the platform seems to be dying a slow death. Whilst Mirror got off to a great start with $WRITE RACE driving FOMO and onboarding some of the most respected names in crypto including Jarrod…
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