Monat: Juni 2022

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Tether treasury: Celsius’ crisis won’t impact USDT reserves

Tether has announced that the USDT reserves “hold strongly” even as cryptocurrency lending provider Celsius (CEL) feels the heat of crypto volatility.

The stablecoin issuer, in a statement to this effect released on Monday, said the events wont have an impact on the stablecoin’s reserves.  

And going by events of not so long ago involving the collapse of TerraUSD (USD), Tether must have felt the need to issue a clarifying note.

“The recent events impacting the Celsius lending platform and its native token CEL are an unfortunate result of market volatility and extreme market conditions,” Tether noted. 

No correlation with USDT

According to the company, while its portfolio holds an investment in Celsius, it is but a “minimal part” of its shareholders equity. Notably, Tether said its investment in the crypto lender has no correlation to its USDT reserves.

Additionally, the lending activity between Tether and Celsius “has always been overcollateralized,” adding to the overall assertion that none of what’s happened with Celsius has an impact on the stablecoin issuer’s reserves. 

On Monday, Celsius announced a pause to all withdrawals, transfers and swaps as it tried to navigate massive volatility.

“We are taking this action today to put Celsius in a better position to honor, over time, its withdrawal obligations,” Celsius said in a message to the community.

The platform has not resumed the operations as at the time of writing. Meanwhile, the native CEL token is down 21% in the past 24 hours and nearly 96% down since its all-time high reached in January last year.

The post Tether treasury: Celsius’ crisis won’t impact USDT reserves appeared first on CoinJournal.

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Solana sees more weakness as bears push for $20

The weakness in the crypto market over the past week is taking a heavy toll on altcoins. Solana has not been spared. The coin is now in a bear market trend, and sellers could well push it towards $20 in the coming weeks. This will represent a fall of over 50% in less than 7 days. Here are some other notable facts to note:

  • SOL is trading between weekly support of $24.52 and weekly resistance of $47.43

  • The coin is currently slightly above support after a 16% plunge in 24 hours

  • If this support is lost, SOL will revisit $19 before any upward momentum

Data Source: TradingView 

Solana price analysis and prediction

As noted above, over the past two weeks, SOL has seen massive volatility. Although there were times when the coin showed some decent bullish signs, its uptrend has often been limited to the $47.43 support. As a result, the altcoin has established a weekly range between support and resistance. 

However, after plunging by nearly 16% over the last 24 hours and by a whopping 40% in seven days, SOL is now dangerously close to the $24.52 support than the $47.43 resistance. The downtrend is also quite strong since it is aligned with broader sentiment in the market.

For this reason, we expect weakness to continue, and eventually, SOL will likely lose $24.52. If this happens, a decisive fall toward $19 will be more or less inevitable. This analysis will however become null and void if SOL can push above the $47.43 resistance. We don’t think this will happen.

What next for SOL

Investors are taking a wait-and-see attitude when it comes to crypto. So, for the time being, We are not going to see so much buying activity for SOL and other altcoins. 

It would be best to give it a month and see how the price action plays out. But if we remain suppressed below $20 for long, things could get harder for SOL bulls in the near term.

The post Solana sees more weakness as bears push for $20 appeared first on CoinJournal.

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Crypto news: BlockFi cuts headcount by 20% amid price meltdown

BlockFi says its intention is to remain profitable amid the tough market conditions.

Crypto platform BlockFi has announced that it is cutting its employee numbers by 20%, following in the footsteps of other major companies in the industry.

The platform, which has seen significant growth over the past four+ years following the debut of its crypto-backed loan feature, says the job cuts will impact “every team at the company.”

According to a blog announcement from founders Zac Prince and Flori Marquez, the decision to let go of so  many of the platform’s staff is down to prevailing  macroeconomic conditions. The company says the move will be followed by a review of its strategic priorities. 

Cutting jobs to ensure company remains profitable

BlockFi’s employee count jumped from 150 at the end of 2020 to over 850 in 2022, with the massive increase coming on the back of greater growth underpinned by cryptocurrency’s incredible growth in 2021. It will now have 600+ employees.

The company, like most others in the crypto sector, experienced the pain of the ongoing bear market.

According to Zac and Flori, the staff reduction is part of wider measures undertaken over the past several months as they seek to remain profitable. The firm has reduced marketing spend, eliminated non-critical vendors and cut executive compensation. It also slowed down its hiring.

The company expects no material disruption to its services or products or services, the co-founders said in the blog post.

Other major companies to announce job cuts are crypto exchanges Coinbase and Gemini. Bitcoin and the broader crypto market has been in a downward trend since last November.

The post Crypto news: BlockFi cuts headcount by 20% amid price meltdown appeared first on CoinJournal.

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Bank of America: 90% of survey respondents plan to purchase crypto in next 6 months

Despite the bear market sentiment, most crypto holders have plans to purchase “some amount of crypto” before the end of the year.

A new survey by the Bank of America shows interest in cryptocurrencies remains high among Americans, with over 90% of respondents saying they planned to buy crypto over the next six months.

According to Jason Kupferberg, an analyst at Bank of America, the survey was conducted on 1 June, coming in the aftermath of the Terra Luna collapse. The sample size was 1,000 US adults.

In an interview with CNBC’s ‘TechCheck’, Kupferberg added that the percentage of respondents looking to buy crypto was similar to the number that said they bought during the first six months of 2022.

Bitcoin adoption and payments

On the use of Bitcoin and other cryptocurrencies, the bank says adoption is not very much pronounced.

However, with increased movement towards crypto-linked payment like Coinbase’ Visa card, the connection to merchants and users is much seamless and helpful towards new momentum in the sector.

Bank of America also says the crypto market is likely not seeing a major shift in global adoption to too many cryptocurrencies and crypto exchanges. Likening it to the dotcom era, Kupferberg says some of the projects are most likely going to fade away, before those that survive see greater adoption.

BTC and stocks price correlation

The BofA analyst also noted that Bitcoin continues to correlate highly with stocks, especially high growth tech stocks. This lockstep trading has a BTC price tank alongside downturns in the market, trending in a bear market as major stocks sold-off.

On Monday, Bitcoin price fell nearly 18% as negative headlines around Celsius Network compounded the downside pressure. BTC/USD fell to a 24-hour low of $22,725. 

The post Bank of America: 90% of survey respondents plan to purchase crypto in next 6 months appeared first on CoinJournal.