As thy title implies, am I getting this wrong or things are not looking that great ? FOMC meeting Russia, I mean Putin Mobilization Dollar going nuts Bonds going up What else ? Not being bearish or whatever, just having a honest feelings about how things are lately and trying to figure out what the…
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There is no doubt that 2022 was a bad year for the cryptocurrency world and those that are associated with the industry in any shape or form. Whether you held virtual currency because you liked to use it as a preferred option on a bitcoin casino to play your favorite gambling games, for the future as a potential investment, or simply because you were interested in what the rage was all about, everyone has been impacted at some point by the news that had consistently been revealed. Why was 2022 a bad year for cryptocurrency? Naturally, when thinking about why something may have been bad for cryptocurrency, many will immediately think about its price. Indeed, one of the biggest things about virtual currency is the fact that it is highly volatile and that its value can tend to fluctuate at huge amounts. We saw this in the first half of the year, with the likes of Bitcoin and Ethereum both crashing by more than 50% from their all-time highs that had been experienced in the final stages of 2021. Since the height of that massive rally, it has been estimated that around $2 trillion had been lost in value between then and now. Naturally, with this in mind, it becomes extremely easy to begin to understand why 2022 has been described as a bad year for the cryptocurrency sector. Furthermore, the fact that Bitcoin had experienced its worse quarter in more than a decade has not helped its cause, either. According to figures, it lost around 58% of this value in the second quarter of this year; posting its worse performance for a quarter since 2011. Reasons to have been attributed to the decline include: Macroeconomic pressures – US Federal Reserve was aggressive with its monetary policy TerraUSD collapse Celsius decided to pause withdrawals Three Arrows Capital was liquidated CoinFlex-’Bitcoin Jesus’ argument Will 2023 be a better year for cryptocurrency? Given all of the trouble that cryptocurrency and the industry has gone through during the current calendar year, there will be many that will be wondering whether next year might see a return to the highs and glory days that virtual currency has been known to have. There is plenty of optimism surrounding Bitcoin holders at the moment, with the average crypto holder expecting the coin to reach levels of over $38,000 by the time 2023 begins. A survey found that holders are currently more optimistic than the general public about the potential price values that can be reached, with many of them consistently predicting it will be higher than what the predicted value is. Of course, it would be easy to suggest that the confidence in the price being able to return as high as predicted is because the people surveyed currently hold the coin themselves. However, they can also be considered to be the experts in this field and know more than the general public in regard to its analysis than those who may not be as educated on the topic of cryptocurrency. Indeed, the topic of cryptocurrency is one that continues to emerge with each year that passes as many more are becoming more accepting of it and its place in the world, which is perhaps why 2023 could also be a good year for it. More interest is likely to mean that more people start to learn more about how it works and what it does, which could then make the interest too significant to ignore by others, thus potentially having a knock-on effect on the price of Bitcoin and other virtual assets next year. Final Thoughts If you know anything about cryptocurrency, then it is probably the fact that digital assets such as Bitcoin and Ethereum are highly speculative and that the price of the coins can fluctuate immensely at any given rate. There is no denying that 2022 has been almost disastrous for virtual currency, with its price having dropped by over 50% for many, nonetheless, there still appears to be some confidence in some quarters that 2023 could be a year to look forward to, especially with many predicting that Bitcoin could reach over $38,000 by the time January comes around. Image by Sergei Tokmakov, Esq. Terms.Law from Pixabay
China’s central bank intends to enlarge the area covered by trials of its digital yuan currency in four regions of the country. A top representative of the monetary authority announced the move while highlighting that the People’s Bank has been stepping up digitalization efforts this year. Government to Increase Digital Yuan Coverage in 4 Provinces […]
Users can get a username through Coinbase Wallet’s browser extension and use it to send and receive crypto tokens instead of the traditional address.
Blockchain Expo Europe 2022 in Amsterdam highlights meaningful strides in enterprise-grade blockchain solutions driven by mainstream institutions.
Though volatility is a core attribute of cryptocurrency, the swing is quite excessive for Ethereum. The price movement for Ether was progressive from the beginning of the second of the year. ETH gradually surged over the $1,800 level before the Merge. To some reasonable extent, the positive sentiment surrounding Ethereum’s transition from PoW to PoS contributed to the surge. As a result, several participants in the crypto industry tilted towards the second largest crypto asset by market cap. Related Reading: Ethereum Price Is Declining Following The Merge, Vital Trading Levels To Follow The token recorded a huge increase in its trading volume and other Ethereum derivatives over the period. However, the launch seems to come with a bearish trend for Ethereum. Just some hours following the Merge, ETH started a southward movement. The increasing selling pressure depleted the value gradually as the price kept decreasing. Through the past weekend, Ether plummeted below $1,300 as it lost sustainability on some supportive levels. Is Another Ethereum Correction Underway? There’s a hint for a more bearish pattern from the Ethereum technical chart. This implies the possibility of another correction of 25% from its current price, which hovers around the $1,350 region. So, ETH might dip further to $1,000. Based on the last report for the US CPI data for August, there’s an indication of a rise in the inflation rate. However, the response from the crypto assets has been very unfavorable. The FOMC (the Federal Reverse System’s monetary policymaking body) has scheduled its meeting for Wednesday, 21, 2022. But the entire crypto market is already feeling aggressive selling pressure before the outcome of the FOMC meeting. The analysis of the Ethereum price charts indicates a drastic drop below the token’s standard deviation. On the higher side, the price of ETH could not cross the hurdle at the $1,800 region. Also, the downtrend shows that Ether went beyond its critical support of $1,340. Hence, the overall technical implication is that the deviation from support levels has the risk of a downtrend. Related Reading: Bitcoin Dominance Reaches All-Time Lows As The Merge Nears This is primarily because Ethereum’s deviation is below the regression channel from the lows as of June. The token is now exposed to the third deviation retreat of $1,250. With that, ETH could hit the next possible support level of $1,000. ETH Derivatives And Liquidations According to data from Deribit, the number of Ethereum put, and call contracts has skyrocketed. Its open interest ranges between $1,000 and $2,000, with expiration by the end of September. The range could mark the possible trading value for Ether. There have been more liquidated positions as the price of Ether increases. As of yesterday, the entire crypto market recorded over $400 million in liquidations. At the time of writing, data from Coinglass shows that Ethereum has over $58 million in liquidated positions within the past 24 hours. Featured image from Pixabay, Chart: TradingView.com
The non-fungible token (NFT) space has been used to innovate across multiple sectors, but the gaming and entertainment industry has seen the biggest benefits. These digital assets have allowed companies to create new universes and models for fans to connect with their favorite artists, or for players to earn real-world rewards while playing their favorite games. However, as more people jump into Web3 and NFT gaming, more projects try to copy-paste others and the sector loses innovation, creativity, and the features that attracted users in the first place. Mummy.io is a blockchain-based massively multiplayer online role-playing game (MMORPG) looking to change the status quo. The game will put players in a rich world based on ancient Egypt, built with Unreal Engine 5, Mummy.io will be like nothing users have seen in the past. The main complaint for NFT gaming has been its little attention to detail, mechanics, and graphics, Mummy.io will disrupt all of that. According to the project’s Whitepaper, this is how Mummy.io will revolutionize the sector, the experience will be like that of titles created by major gaming studios: The player has endless freedom to make choices during the game – whether to embark upon a sidequest, the parts of the world they choose to explore, how they engage with NPCs, and much more. The Mummy world is also rich in lore, environmental storytelling and intricate relationships between memorable NPCs for those who delight in exploring fantasy worlds, finding hidden meanings and layers. Mummy.io Achieves Milestone Towards Ultimate Goal, Partnership With Polkastarter Created by a team of people with decades of experience in the gaming industry, from major companies like Square Enix and Ubisoft, Mummy.io wants to bring back the fun for blockchain and NFT gaming. In that sense, they partnered with Polkastarter Gaming, a Web3 launchpad, and accelerator company, that will act as an advisor in the project’s development journey. The partners share a common vision: Web3 gaming should be as fun as traditional games, and their collaboration will materialize it. Polkastarter wants to pave the path to the future of gaming, starting today. In addition to Mummy.io, the company has partnered with BK Time, Mecha Morphung, Wasted Lands, Cyball, Mobland, Wonderhere, Undead Blocks, Aether Games, and other well-known projects in the sector. The team of Mummy added the following on the project’s vision, one that they share with their recent partner: Our ambition is to be at the forefront of innovation in the gaming industry. We are excited about the long and challenging journey ahead of us and are passionate about the process of bringing our vision to life. Standing Out In A Crowded Sector, Mummy.io Breaks The Mold Beyond its beautiful graphics, rich universe, RPG elements, and advanced combat mechanics, Mummy.io will introduce an in-game economy design to incentivize players to collect loot and build a community of friends and factions rooted in intricate human connections. In addition, Mummy.io is working with Machinations.io to create and offer players a unique in-game economy. The game will integrate with the Machinations’ Game Economy Health Monitoring Service to mitigate any possible issues with Mummy.io’s economy. The game’s first demo, “Battle of Ankahur the Fallen” will soon be available for players looking to get a taste of Mummy.io. Right now, players can connect their crypto wallets and be whitelisted for the project’s Stela NFT airdrop and earn a fragment of an in-game item called Tear of Aaru artifact. See more about the demo “Battle of Ankahur the Fallen” below. The demo will be divided into chapters with each installment containing one Stela NFT. If a player obtains 3 of these digital assets, they will complete the “Tear of Aaru” artifact.
The offshore exchange rate of China’s fiat currency versus the U.S. dollar recently breached the 7:1 mark for the first time in over two years, after it touched a new 2022 low of 7.0188 yuan for every dollar on September 15. Similar to other global currencies that have depreciated in 2022, the yuan’s decline is […]
Before the Ethereum merge event, some experts and investors predicted a fall in the price of Ethereum and hence traded cautiously. Popular analysts referred to the merge hype as a buy the rumor, sell the news scenario. The Feds reserves tightening and other market factors added to the volatility recorded in the valuations of ETH, BTC, and other Altcoins. After the merge event, analysts’ predictions proved right as the ETH price crashed below the support level. As a result, several ETH investments got withdrawn, and a few additions were recorded after the merge. Related Reading: ETH Backpedals After Hitting $1,800 Ahead Of Merge Last Week According to reports, ETH investments were reduced by $15.4 million, while BTC investments increased by $17.4 million. The data could imply that investors pulled out from Ethereum to Bitcoin. Contrary to the hype that followed the Ethereum merge, the ETH price has plummeted seriously. Earlier in September, the merge supporters believed that Ethereum would receive more investments after the merge. However, the reverse seems to be the case with the number of outflows recorded last week despite a smooth transition. Ethereum Price Drop Taking track of ETH price from the time before the merge till today, ETH price crashed from $1,800 to $1,300. This kind of record can only imply that several investors who previously held onto their ETH holdings have sold the same. Such a price drop is critical for Ethereum as experts have forecasted a further fall to $1,000 if ETH breaks below $1,250. In the early hours of September 15, ETH/BTC exchange price was at 0.0817BTC on Binance. ETH value dropped hours later to 0.0746 BTC and continued to decline. ETH price didn’t only fall against BTC; ETH/USD exchange value dropped too. Although ETH holders were not pleased with the price drop, the majority are looking forward to recovery with time. Among the optimistic investors is Matthew Sigel, head of digital assets research at VanEck. Sigel compared the post-merge ETH/USD performance to what BTC experienced after significant changes. He believes ETH would stabilize but is unsure about the time. Proof-Of-Stake Cryptocurrencies May Be Considered Securities, Says SEC Last week, the Chairman of the Securities and Exchange Commission, Gary Gensler, commented on staked cryptocurrencies. The regulator said in a Wall Street Journal edition that staked cryptocurrencies might be subject to regulations. He further explained that Staked crypto might be seen as securities. Following Gensler’s comment, there may be regulatory uncertainties surrounding the new Ethereum proof-of-stake Token. As a result, corporate investors may not want to dive into ETH investment because of regulatory uncertainty. According to the Journal, Ethereum’s proof-of-stake caught SEC’s attention. He further noted that proof-of-stake coins have contract attributes and will require SEC regulations. Gensler’s comments came out hours after the completion of the Ethereum merge. Related Reading: Ethereum Proof Of Work (ETHW) Gains 30%, Is More Upside Coming? Although Gary didn’t categorically point at Ethereum, his comment might have contributed to the fall in Ether price last week. Featured image from Pixabay, Chart: TradingView.com
We’re in a post-merge world, and the lessons keep arriving. As it turns out, the mythical Merge was a sell-the-news event for Ethereum. Technically, the event was a success and Ethereum kept a 100% uptime as optimistically predicted. Economically, the asset has been bleeding for the whole post-merge season. As a result, Ethereum lost ground against bitcoin, and bitcoin dominance is back up. Related Reading: Ethereum Price Is Declining Following The Merge, Vital Trading Levels To Follow Let’s go to Arcane Research’s The Weekly Update for the exact stats and numbers: “Since the merge, Ether (ETH) is down 17% in USD and down 13% compared to BTC, with ETHBTC currently trading at 0.07. ETH has found support at 0.07 ETHBTC, which represents the average ETHBTC price over the last 365 days.” Will this become a tendency or are these just the post-merge jitters? The Post-Merge Post-Mortem For a rational analysis, let’s quote The Weekly Update: “Ether traded idly after the merge, and volatility remained low until U.S. markets opened down. The ETH blow was related to a correlated environment to risk assets, but excess leverage from long traders contributed to exacerbating Ether’s relative underperformance versus BTC.” And the fact of the matter is that the old adage “buy the rumor, sell the news” applies perfectly here. Fuelled by hype, Ethereum’s price ballooned before the event. It was still far away from its all-time high of around $4,8K, but $1.7K was great for the market we’re in. The asset outperformed bitcoin and threatened its dominance. It was overbought, though. Post-merge, people sold and ETH is now in a downtrend. Textbook behavior that shouldn’t surprise a soul. The chart to watch, though, is that of Ethereum’s issuance. The main difference between the post-merge Ethereum and its predecessor is that the new coin will be much more scarce. And that could affect the price tremendously. ETH price chart for 09/21/2022 on Bittrex | Source: ETH/USD on TradingView.com State Of The Ethereum Forks One of the drivers of the pre-merge rally was the expectation that there might be forks and there might be airdrops. Two brand new Ethereum forks emerged from the messy situation. Those two suffered the most during this post-merge period. Back to The Weekly Update: “Ether has not struggled in isolation, Ether forks have experienced severe headwinds, and both ETHW and Poloniex’s competitor fork EthereumFair (ETF) have seen more than two-thirds of their valuation slashed since launch.” This brutal smackdown was to be expected. All forks generate something akin to an airdrop, as people received the equivalent to the ETH they had in ETHW and ETF. Users exchanged that free money for harder currencies pretty fast. And now it’s time for those forks, who the all-powerful stablecoins don’t support, to prove their worth. Related Reading: Bitcoin Dominance Reaches All-Time Lows As The Merge Nears An older fork was also in the news because of the merge and has been struggling as much as its cousins. “Ethereum Classic has also underperformed versus ETH. Amid the merge, many miners migrated to ETC, leading ETC’s hashrate to peak at 300 TH/s. However, as the difficulty has increased in ETC, the hashrate in ETC has declined to 186 TH/s” Some people thought that Ethereum Classic, who remains a Proof-Of-Work blockchain, was going to thrive post-merge. So far, they’ve been proven wrong. But we’re in the early innings and things might drastically change for old reliable Ethereum Classic. ETHBTC price chart on Binance | Source: The Weekly Update Conclusions Apparently, the merge was a success but the price didn’t hear the news. However, we should take into account that September is usually a bad month for cryptocurrencies in general. That, mixed with the classic “buy the rumor, sell the news” behavior have ETH against the ropes. For now. Featured Image by Gerd Altmann from Pixabay | Charts by TradingView and The Weekly Update
