bear markets
Federal Reserve’s Plans to Hike Interest Rates Spooks Traders into Selling Crypto – Blockchain News, Opinion, TV and Jobs
Published
2 years agoon
By
adminBitcoin is crashing again, temporarily plunging it to below $20,200 earlier today, as spooked traders have frantically been selling off the cryptocurrency before the US Federal Reserve is expected to do something it hasn’t done in 28 years — increase interest rates by three-quarters of a percentage point.
In response to soaring inflation and volatile financial markets, the central bank will hike the rate that banks charge each other for overnight borrowing to a range of 1.5%-1.75%.
BTC and ETH has fallen to trade just above $20,000 and $1,000, respectively, as the selloff across broader crypto markets continued. This means the total value locked (TVL) of tokens across all blockchains declined by over 8% in the past 24 hours.
Mikkel Morch, Executive Director at crypto/digital asset hedge fund ARK36, is closely following the price movements, he says, “Bitcoin has been really caught in the crossfire these past few days. There is still a huge gap between nominal rates and real rates so there is much more room for the Fed and other central banks to hike in the months to come. Investors can’t realistically expect risk assets to have a more sustained uptrend until the Fed pivots.
Additionally, some parts of the broader crypto ecosystem are facing a rather harsh reckoning. As the reality of the bear market starts to settle in, the hidden leverages and structural weaknesses of projects that only worked when the prices went up are finally brought to light. In the long term, tokens with strong use cases and utility will survive – as they did in the previous bear markets. But some companies within the space have had unsustainable business models and now present a contagion risk.
So Bitcoin is hit with a double whammy and it is more than likely that we are going to see sub-$20K prices soon. Some are calling for $12K – and while this can happen, we think that this price tag has a relatively low probability for now. Today, all is in the hands of the Fed. A 75 basis point rate hike would likely take us to $16-18K. On the other hand, a 50 basis point rate hike could result in a substantial bounce – likely to the $24K resistance levels.”
Source link
You may like
Insight Into The Timing And Factors
Bitcoin About To ‘Blow Higher’ Despite This Week’s Pullback, According to Glassnode Co-Founders – Here’s Why
Azuro and Chiliz Working Together to Boost Adoption of Onchain Sport Prediction Markets – Blockchain News, Opinion, TV and Jobs
Robinhood Bleeds 164 Million Dogecoin
AIGOLD Goes Live, Introducing the First Gold Backed Crypto Project – Blockchain News, Opinion, TV and Jobs
Analyst Benjamin Cowen Warns Ethereum ‘Still Facing Headwinds,’ Says ETH Will Only Go Up if Bitcoin Does This
bear markets
A Bear of Historic Proportions – Blockchain News, Opinion, TV and Jobs
Published
2 years agoon
June 29, 2022By
adminBy Marcus Sotiriou, Analyst at the UK based digital asset broker GlobalBlock
Bitcoin fell below $20,000 briefly this morning, whilst the total crypto market cap fell to below $900 billion, from a high of $3 trillion last year. A new report from Glassnode Insights claims that the current bear market is “a bear of historic proportions,” and highlights that “it can reasonably be argued that 2022 is the most significant bear market in digital asset history.”
Glassnode data such as the market value and realized value oscillator (MVRV, which is a ratio between Market Value and Realised Value) can give us an insight into how this bear market compares to previous bear markets. With the MVRV, we can view the relative monthly capital inflow/outflow into Bitcoin. As this indicator has reached -2.73 standard deviations (SD) from the mean, we can see that Bitcoin is currently experiencing the largest capital outflow event in history.
As mentioned previously, the industry needs regulatory clarity for the next wave of institutional money to enter. British Parliament Member Matt Hancock has called for “liberal” cryptocurrency regulation, claiming that no country can stop the crypto revolution. Hancock said, “I hate the patronizing idea of regulators telling people what they can and can’t do with their money.” Hancock touched on the Terra fiasco serving as an example of the “maturing of the market,” whilst highlighting how there are stable coins with less risk. His claims align with the notion that the UK has the power to choose whether the “crypto revolution” starts in the UK elsewhere.
I agree with Hancock’s line of thought and that we should compare this period in the crypto space to the internet in 2001 – despite the dot-com bubble crashing in 2001, the internet was never discredited as a technology.
Source link
Insight Into The Timing And Factors
Bitcoin About To ‘Blow Higher’ Despite This Week’s Pullback, According to Glassnode Co-Founders – Here’s Why
Azuro and Chiliz Working Together to Boost Adoption of Onchain Sport Prediction Markets – Blockchain News, Opinion, TV and Jobs
Robinhood Bleeds 164 Million Dogecoin
AIGOLD Goes Live, Introducing the First Gold Backed Crypto Project – Blockchain News, Opinion, TV and Jobs
Analyst Benjamin Cowen Warns Ethereum ‘Still Facing Headwinds,’ Says ETH Will Only Go Up if Bitcoin Does This
Tron Price Prediction: TRX Outperforms Bitcoin, Can It Hit $0.132?
Ethereum-Based Altcoin Leads Real-World Assets Sector in Development Activity, According to Santiment
Here’s Why This Analyst Is Predicting A Rise To $360
Hackers With $182,000,000 Stolen From Poloniex Starts Moving Funds to Tornado Cash
Cardano Faces Make-Or-Break Price Level For Bullish Revival
A Premier Crypto Exchange Tailored for Seasoned Traders – Blockchain News, Opinion, TV and Jobs
Crypto Whale Withdraws $75.8 Million in USDC From Coinbase To Invest In Ethereum’s Biggest Presale – Blockchain News, Opinion, TV and Jobs
CFTC Chair Says ‘Another Cycle of Enforcement Actions’ Coming As Crypto Enters New Phase of Asset Appreciation
Spectral Labs Joins Hugging Face’s ESP Program to advance the Onchain x Open-Source AI Community – Blockchain News, Opinion, TV and Jobs
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
BNM DAO Token Airdrop
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
New Minting Services
Block News Media Live Stream
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs
Friends or Enemies? – Blockchain News, Opinion, TV and Jobs
Enjoy frictionless crypto purchases with Apple Pay and Google Pay | by Jim | @blockchain | Jun, 2022
Block News Media Live Stream
How Web3 can prevent Hollywood strikes
Block News Media Live Stream
XRP Explodes With 1,300% Surge In Trading Volume As crypto Exchanges Jump On Board
Block News Media Live Stream
Trending
- Altcoins2 years ago
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
- Binance2 years ago
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
- Uncategorized2 years ago
BNM DAO Token Airdrop
- BTC1 year ago
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
- Uncategorized3 years ago
New Minting Services
- Video2 years ago
Block News Media Live Stream
- Bitcoin miners2 years ago
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
- Bitcoin1 year ago
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs