Keep in mind how markets work. Whether it's stocks, or crypto. Markets speculate on future value. Hence the famous phrase "buy the rumor, sell the news". So even if we're in a recession, the market only cares about what's next, not what's happening now. Also, keep in mind the difference between Wall Street vs Main…
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On Thursday, Foundry Digital LLC, the mining company and subsidiary of Digital Currency Group (DCG), announced the launch of Foundry Logistics in order to advance standards in the cryptocurrency mining industry. The newly launched arm of the company plans to “bridge the gap between hardware manufacturers and buyers by providing an all-in-one solution for mining […]
Key differences in the use and development of cryptocurrencies come to the fore as Blockchain Economy Istanbul continues to focus on emerging markets.
The crypto market is trading in the green with Bitcoin and Ethereum pushing beyond critical resistance levels. The first and second cryptocurrencies by market capitalization record a 10% and 15% profit in the last day and seem poised for more profits during today’s trading session. Related Reading | Bitcoin Makes Surprise Climb As Fed Discloses 0.75 Point Rate Bump In order to get more clarity in terms of direction, Bitcoin must close the daily candle above $23,000 and Ethereum above $1,700. Data from Material Indicators records a thing order book on the sell side if BTC’s price can push above its current levels with high probabilities of hitting $28,000 in the short term. If this rally can push past $25k, then $28k comes into focus very quickly. If you are long, don’t forget to take profits along the way. When the bear wakes up from hibernation he’s going to be hangry. pic.twitter.com/YGe4Swu3wT — Material Indicators (@MI_Algos) July 28, 2022 In longer timeframes, macro-economic conditions will remain an obstacle to any sustainable rally. In that sense, Tobian Adrian, Director of Monetary and Capital Market for the International Monetary Fund (IMF) predicted more losses in the nascent asset class. In an interview with Yahoo Finance, Adrian spoke of the risk for the crypto market and risk-on assets, like stocks. For digital assets, Adrian believes that the collapse of a stablecoin could fuel another leg down. The IMF official said: There could be further failures of some of the coin offerings — in particular, some of the algorithmic stablecoins that have been hit most hard, and there are others that could fail. The IMF official referred to the collapse of the Terra (LUNA) ecosystem. This event led to the downfall of Three Arrows Capital, Celsius, and other companies in the crypto industry. Thus, contributing to the crash in the price of Bitcoin and other cryptocurrencies. Adrian claims digital assets might face another similar event but doesn’t mention a specific project with the size of Terra that could trigger it. The IMF official believes stablecoins might add to the selling pressure in the nascent industry due to the alleged vulnerabilities in its collateral: There’s some vulnerability there, because they’re not backed one to one. [Some fiat-backed stablecoins] are backed by somewhat risky assets…it is certainly a vulnerability that some of the stablecoins are not fully backed by cash-like assets. Will The Crypto Market Collapse If There Is A 2008 Like Recession? In addition to the alleged risk from stablecoins, the IMF official spoke about the potential risk of economic recession. The U.S. recently reported its second consecutive quarter with a negative GDP, which should technically spell economic recession. However, Adrian ruled out that the global market would see something like in 2008. At that time the financial sector was exposed to “shadow banking”, to assets hidden from the banks’ balance sheets which collapse worsening the economic crisis. Cryptocurrencies could face a bigger obstacle from international regulators. The IMF official claimed that these entities should enforce securities laws to the 40,000 he claims comprised the sector. He added: Regulating the coins themselves is going to be difficult but regulating the entry points such as exchanges and wallet providers to invest in those coins, that’s something that is very concrete and very feasible. The U.S. Securities and Exchange Commission (SEC) seems to be following this approach. The Commission has entered into legal battles with major players in the sector, including payment solutions company Ripple and crypto exchange Coinbase. SEC Chairman Gary Gensler already stated that he is willing to acknowledge that only Bitcoin is out of their jurisdiction. If the Commission turns more aggressive, the crypto market could suffer as crypto projects scramble to meet regulations requirements. Related Reading | Bitcoin Bounces Off Consolidation Range, What Lies In Store? This is probably one of the biggest obstacles for the nascent asset class in the coming months along with macro-economic conditions. In that sense, the IMF official might be on point, but cryptocurrencies have been facing regulatory hostilities since their inception.
BTC bears aim for a $360 million profit in July 29’s $1.76 billion monthly options expiry, but the FOMC interest rate decision could play a decisive factor.
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Bitcoin has been on a steady increase over the last two weeks. It has not been on the uptrend for all of this time, but the majority of the time, the digital asset has maintained this upward trajectory. This has seen it touch above $24,000 at one point after bouncing off its strong consolidation point. Now, as the digital asset trails $23,000, a couple of technical levels have begun to form beneath it. Bitcoin Begins To Form Support Bitcoin has broken above $23,000 once more, and support has begun to form. After previously losing its footing and falling to $21,000, the digital asset had seen support pushed down to $19,000, but this would change soon after. As bitcoin continues its uptrend, it is now looking at support at $21,000, much stronger than previously established. Related Reading | Bullish Sentiment Spills Over To Institutional Investors As Ethereum Inflows Balloons However, for the digital asset to continue on this bull rally, it would need to break some important technical levels. The first would be the $25,000 range, where the most resistance is currently being mounted. A widespread accumulation trend would be the only likely fuel to break through this level. After which, the nearest resistance would be formed at $28,000 due to it being the lowest point for the 2021 cycle. BTC continues recovery trend | Source: BTCUSD on TradingView.com On the other side of this, the digital asset still has some potential to fall back down. This would put it in the direct path of the $21,000 support, but this is unlikely to hold for the long term. The next significant support level would fall to $19,700, which represents the peak of the 2018 bull cycle. Hence, the support put up here would be strengthened compared to that at $19,000. But if this fails to hold, $17,600 would present to be the next important level due to being the current cycle low. Related Reading | Ripple (XRP) Is Up 190% From Cycle Low, But Will It Ever Reach $3? For now, as bitcoin climbs up, it is still expected to meet resistance at $24,000, which was the point it failed to beat last week. This makes it the most immediate threat for bulls in the quest to retake $30,000. This point determines if bitcoin would be able to break above the 50-day moving average, which would determine a bearish or bullish trend for the short term. Sell-offs remain the major thing that is pulling back the value of bitcoin, though. While the short term is beginning to turn in favor of buy, the long-term outlook still poses a sell for investors. These sell-offs, which are yet to reach a fatigue point, are most likely the culprit behind bitcoin’s inability to breach $24,000 successfully. Featured image from The Financial Express, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
PRESS RELEASE. Sango, the Central African Republic’s crypto-initiative, has set off a wave of excitement in the crypto space, fuelling curiosity and anticipation. Supported by a comprehensive Legal Framework, Sango will enable the creation of both the digital and physical infrastructure that would aid its development. SANGO will be partially backed by Bitcoin, meaning that […]
