The price of bitcoin has once again fallen below $22,000 once more. As expected, it has come with its own consequences for those in the crypto market. Most prominent have been in the liquidations, which have ballooned in the last 24 hours. With the most recent crash, more than 57,000 traders have seen their positions liquidated.
Bitcoin Dip Triggers $151
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In a market cycle full of uncertainty, correctly timing investment decisions becomes crucial for investors. The current cycle is making it even more tougher to gauge situation with companies running into losses. Although Bitcoin (BTC) maintained upside movement in the last one month, the past few days saw slight price correction. At its current range,
The post Experts Predict When Bitcoin (BTC) Short Rally Could End This Year appeared first on CoinGape.
Ghada Waly, executive director of the UN office on drugs and crime, has argued that restricting the usage of cryptocurrencies can help make the internet a bit safer. Controlling Crypto Will Keep Internet Safe On August 18, Waly emphasized that the focus should be on examining how digital assets are utilized unlawfully during a session […]
Bitcoin (BTC) and Ethereum (ETH) are currently leading the crypto markets out of the grip of the bears. Although met with a series of resistance along the way, the markets have rallied quite well so far. However, like all things, rallies come to an end, and the community is expecting this one to hit a
The post Analyst Who Accurately Predicted Crypto Crash Warns Investors; Here’s Why appeared first on CoinGape.
A new report from the Financial Times has shed more light on the downfall of the crypto lending company Celsius Network. Founded by Alex Mashinsky, the company has been affected by the downside trend in the sector and was forced to halt all operations, negatively impacting their clients, and filed for bankruptcy. Related Reading: Shiba Inu Trends Upwards Through Strong Whale Accumulations The report claims that Mashinsky took over the company’s trading strategy back in January 2022. At that time, the price of Bitcoin was hovering around $35,000 to $40,000, and the crypto market was coming out of a major downtrend to find support at these levels. The crypto market went on to trade sideways for over a month, and to move inside a tight range with Bitcoin bottoming at the mid area around $30,000. Aware of the company’s financial situation, and looking to make up for its losses, according to the report, Mashinsky was ready to make a significant bet on the price of Bitcoin. In January, the U.S. Federal Reserve (Fed) was about to announce its shift in monetary policy to slow down inflation. The financial institution hinted at an interest rate hike regime with a decrease on their balance sheet. Mashinsky was betting on the crypto market trending lower on the back of these announcements. Therefore, he sold “hundreds of millions of dollars’ worth of bitcoin” expecting to buy it back at a discount, but the market moved in the opposite direction. According to the Financial Times, Celsius was forced to purchase their crypto holdings at a loss when BTC and other assets rallied. The sector eventually saw significant losses, but Mashinsky and his team made wrong assumptions about the timing of the crypto crash, the report claims to cite multiple people familiar with the matter: He was ordering the traders to massively trade the book off of bad information. He was slugging around huge chunks of bitcoin. Celsius Lost Billions In Crypto By Trading These Products Mashinksy’s involvement in his trading department caused conflict among the staff, the Financial Times said. The company’s former Chief Investment Officer (CIO) Frank van Etten questioned Mashinsky’s trade and his participation in making investments decision. The executive left the company in February 2022, most likely due to his clashes with Mashinsky. The Financial Times claims that there was a span of two days between Celsius selling their Bitcoin and buying it again at a loss. If the company have waited longer, they could have profited from the crash in the crypto market, but as another person familiar with the matter said, Celsius was trading based on conjectures: It was not an irrational thought. There was a lot of speculation (…). Celsius was already dragging losses from 2021, the report said. By September 2021, Celsius was holding over 11 million shares or $400 million in the Grayscale Bitcoin Trust (GBTC). The investment product was trading at a premium compared to BTC’s spot price. This trend inverted and the GBTC began trading at a discount from Bitcoin. Mashinsky was offered a deal to mitigate their losses but passed on it, expecting the GBTC to reclaim its premium. The company’s losses were exacerbated by this decision and amount to over $100 million. Related Reading: XRP Sluggish At Resistance – Will It Break Out After 2 Months Of Vertigo? At the time of writing, the price of Bitcoin (BTC) trades at $23,800 with sideways movement over the past week.
Digital asset investment products experienced minor outflows last week amounting to $17 million, breaking a six-week streak of inflows.
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Bitcoin may be aiming for another retest of a crucial price level that prevents the digital gold from entering another bear cycle, which appears to be the next logical objective given that the first cryptocurrency was unable to break through $25,000, according to the cryptocurrency’s daily chart. Bitcoin May Fall If It Goes Below This Level After falling below $20,000 in June, Bitcoin has been trading in a rising wedge for more than a month. Since then, the value of the king cryptocurrency has increased by over 25%, with occasional jumps to a 30% price increase. BTC/USD trades at $24k. Source: TradingView Sadly, one pattern—the decreasing volume profile—kept the market as a whole cautious and signaled that traders and investors are not supporting the current direction. When the market once again experiences intense selling pressure, it can eventually finish with downward volatility. A dip below the wedge’s lower border at roughly $23,400 would mark the precise start of the reversal. Fortunately, the threshold coincides with the crucial 50-day moving average support level, which frequently serves as a guideline for trending assets. Related Reading: Skybridge CEO Lists Factors To Spur Crypto Market Recovery Peter Schiff Says Bitcoin May Go Below $10k The economist and ardent opponent of Bitcoin, Peter Schiff, has reaffirmed his gloomy outlook for the price of Bitcoin (BTC/USD), speculating that the benchmark cryptocurrency may go below $10,000. Putting Bitcoin’s “rally into perspective” demonstrates that bears are still firmly in control, according to Peter Schiff. Just to put the #Bitcoin rally into perspective, take a look at this chart. The pattern remains very bearish. There’s both a double top and a head and shoulders top. There’s a rising wedge forming below the neckline. At a minimum support will be tested below $10K. Look out below! pic.twitter.com/OHNhwsgxxs — Peter Schiff (@PeterSchiff) August 14, 2022 In June, Bitcoin hit a low of $17,600 as the bear market deepened and the wider cryptocurrency market experienced instability. Bitcoin’s recent climb to highs of $25,000 and retest of support were mentioned in Schiff’s tweets on Monday, in which he reiterated his previous prediction that BTC will reach $0. However, despite the gold advocate’s dire predictions for BTC, Michael Saylor of MicroStrategy insists that “Bitcoin is hope.” According to Saylor, the devaluation of fiat currencies amid runaway inflation in countries such as Argentina leaves BTC as the best alternative for the people. The cryptocurrency thus offers more than an investment. He tweeted: “This week the benchmark interest rate reached 69.5% in Argentina. It has increased 1750bp in two weeks. The official inflation rate has surged to 71%. It is expected to exceed 90% by year-end. Bitcoin is more than an investment. Bitcoin is hope.” Related Reading: Bitcoin Price Gears Up For Another Rally After Testing $25,000 Featured image from Shutterstock, chart from TradingView.com
Bitcoin NUPL data suggests that the crypto’s cycles are getting less sharper with time as profit tops and loss bottoms aren’t following a horizontal line. Bitcoin NUPL Didn’t Exceed The 0.75 “Greed” Mark During This Cycle As explained by an analyst in a CryptoQuant post, the BTC profit and loss cycles shouldn’t be treated with horizontal lines. The “Net Unrealized Profit and Loss” (or the NUPL in brief) is an indicator that tells us whether the market as a whole is holding a net profit or a net loss right now. The metric’s value is calculated by taking the difference between the market cap and the realized cap, and dividing it by the market cap. NUPL = (Market Cap – Realized Cap) ÷ Market Cap When the value of this indicator is greater than zero, it means the average investor is currently holding some profits. On the other hand, negative NUPL values imply the overall market is holding a net amount of unrealized loss at the moment. Related Reading: Ethereum Market Observes Pileup Of Leverage As ETH Breaks $2k Now, here is a chart that shows the trend in the Bitcoin NUPL over the course of the history of the crypto: Looks like the value of the metric has surged up and turned positive again recently | Source: CryptoQuant As you can see in the above graph, the quant has marked the relevant zones of trend for the Bitcoin NUPL indicator. In the past, many traders used to believe that cycle tops form whenever the metric’s value surges above 0.75, entering into the “greed” zone. Similarly, bottoms were thought to take place when the indicator went below the -0.4 mark, reaching into the “fear” region. Related Reading: Bitcoin Bearish Signal: Whales With 1k-10k BTC Depositing To Exchanges However, the analyst from the post argues that horizontal lines like these shouldn’t be used to mark these cycle tops and bottoms. During the previous two cycles, the top that came after was lower than the one before. In the current cycle, the metric never crossed into the greed zone and topped out just around the 0.75 level. This could mean that tops are getting lower and lower with each cycle. Similarly, the last two bottoms also had descending loss amounts. Just a while ago, the NUPL’s value sharply dropped off into negative and subsequently rebounded back up into positive values after forming a potential bottom. However, this low was far from the conventional 0.4 mark. If this low was truly the bottom for this cycle, then it would add further credence to the idea that profit and loss fluctuations in the market are getting less drastic with time. BTC Price At the time of writing, Bitcoin’s price floats around $24.4k, up 5% in the past week. The value of the crypto seems to have been moving sideways recently | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com
Many people are reacting differently to the current condition of Bitcoin and the global economy. In the past two consecutive quarters, the US has posted negative GDP, leading to a rate spike by the Feds. Though some individuals are stating that there is yet no inflation, its impact is gradually manifesting. The President and CEO of Franklin Templeton, Jenny Johnson, has aired view on the current global economic condition. Johnson stated that while the financial condition is in a sad state, Bitcoin remains its best distraction. CEO Johnson related her opinions during a recent interview. She mentioned that the prevailing economic situation is acting as a disruption. Related Reading: Will Ethereum Breach $2,000 Before The Merge? In her terms, it’s the best to happen to financial providers at the moment. Though several see Bitcoin as digital gold and an asset that could create a hedge against inflation, Johnson has a different stance. To her, BTC is just consumers’ distraction from all prevailing financial problems. Also, the CEO has no belief that governments could make Bitcoin a dominant asset for foreign exchange. She said that it was beyond typical confidence for that to happen as numerous arguments would erupt. When it comes to blockchain technology, the CEO has an impressive option concerning that. She called it the sports change, stating that it will bring a positive difference possibly to all industries. Johnson maintained that Franklin Templeton still offers cryptocurrency services to its clients. Also, the company is not planning to stop such service options now. Franklin Templeton is an American multinational holding firm. It boasts several subsidiaries. It functions as a global investment company and was founded in 1947 in New York City. Global Destructive Outplay But Bitcoin Gained Momentum Over the past few years, the entire global system had a devastating impact from the spread of COVID-19. This remained one of the great world pandemics that claimed millions of people from different countries. With the invasion and effect of the pandemic came a distortion in various aspects of life, especially social life. The overall impact on the financial system was quite massive. Related Reading: Market Sentiment Shoots Up As Bitcoin Eyes $25,000 To maintain the float of the economy during the crisis, some countries central banks, especially the US Federal Reserve, printed more fiat currency. However, such a process is taking a negative pull after two years. The world is generally battling a rising inflation rate with other factors. Russia and its president, Vladimir Putin, received the blame from the Western world, pioneered by the US. They further cut off financial connections with Russia. Also, Russia has taken the top as the most sanctioned country globally. But Russia decided to make its retribute by stopping gas deliveries to some European states. Most of the states have no alternative source and have become stranded. This action conversely hiked electricity costs, leading to an increase in price for all goods. The entire outplay of events is becoming more destructive. Featured image from Pixabay, chart from TradingView.com
BlackRock has launched a spot bitcoin private trust open to institutional inventions in the United States, the world’s largest asset manager said in a release on its website.
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Bitcoin valuation has come a long way since the asset’s inception. The asset’s valuation reached a milestone in November of last year when it climbed to $1.27T. The market capitalization has since then dropped below expected margins as unfavorable market conditions persist. Since June, BTC’s market cap has remained below the $470M mark due to
The post Bitcoin Mcap Hits 2-Month Peak As Asset Breaks $24k Resistance appeared first on CoinGape.
The “Bitcoin Family” have been in the headlines ever since they put everything that they had into bitcoin back in 2016. By then, the digital asset was only trading at around $900, and the family had become bitcoin millionaires with the most recent run-up. However, like everyone else, the Bitcoin Family has been hit hard […]
Bitcoin miners have borne the brunt of the bear trend since it began. They watched cash flow plummet on their machines, forcing them to look to other ways to finance their operations. The natural response to this was for public miners to dip into their bitcoin reserves and begin selling off BTC to keep their operations going. For a time, it seemed miners would stop selling due to the recovery in price, but this is proving not to be the case. Miners Offload More BTC Bitcoin miners had sold off more bitcoin than they had mined for the first time in May. The same trend then continued into June, when miners had sold thousands of BTC to cover operational and other costs. It seems this trend did not end in the month of June either, as the miners continued to sell off coins. Related Reading: CEL Rallies To $2 As Bankruptcy Proceedings Continue, But Rally May Just Be Starting Data shows that bitcoin miners had actually sold 5,700 BTC in the month of July alone, the largest sale so far. These bitcoin miners had once again sold more BTC than they had actually produced. In total, it was reported that 3,470 BTC was produced for the month, meaning they sold 50% more bitcoin than they mined. These bitcoin miners had sold more during a month when some had to shut off operations due to rising temperatures. However, one of those miners had been able to turn it around by making more money from selling energy credits to the Texas government than they would mining. The largest sellers were ousted to be CoreScientific with 1,970 BTC and BitFarms with 1,600 BTC. BTC recovers above $24,000 | Source: BTCUSD on TradingView.com Bear Trend For Bitcoin Bitcoin miners are often among the largest whales in the market. This means that whatever actions they take in regards to their portfolios can often have an impact on the market. It is evident when miners are not forced to sell their BTC that the price of the digital asset continues to rise, and the reverse is the case when they dump their coins. Related Reading: Billionaire Mike Novogratz Says Bitcoin At $30,000 Is Unlikely The sell-offs have all come due to the reduced revenue realized on a daily basis, and with no significant rise in miner revenues, it is expected that miners are going to have to keep selling. Daily miner revenues for the last week were muted with only a 1.58% growth, seeing them bring in $21.89 million. If there is to be any reversal in this selling trend, bitcoin miners would have to see more cash flow from their mining activities. However, as the price remains low, these miners are realizing less, dollar-wise, compared to a few months ago, while expenses such as electricity and machines remain the same or even higher in some cases. Featured image from Analytics Insight, chart from TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet…
Data shows while the Bitcoin market sentiment is on the verge of entering into “greed,” the investors have remained unconfident. Bitcoin Fear And Greed Index Still Shows A Fearful Sentiment According to the latest weekly report from Arcane Research, the BTC fear and greed index has now reached the highest value since April of this […]
Bitcoin is sometimes too valuable to let go. In fact, many people – and in this case we call them “koalas” because they love to cling on and never let go – hold on to their precious crypto even when everything else seems hopeless. Predictability may be a vague word especially in an extremely volatile […]
