Monat: September 2023

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Bitcoin holds steady as DXY advance hurts stocks

  • Bitcoin rose to $26,820 on Wednesday, trading in the opposite direction to stocks as the Dollar Index hit a 10-month high.
  • An easing for the DXY could see Bitcoin price strengthen above the $26k base.

Bitcoin (BTC) defied a surge for the Dollar Index (DXY) on Wednesday, spiking to above $26,820 in early US trading hours. The gains for the benchmark cryptocurrency buoyed the altcoin market, with several tokens seeing decent moves to push the total market cap up by about 1.5%.

But as the DXY, which measures the greenback’s strength against a basket of other major currencies, hit highs of 106.83 for its highest level since November 2022, stocks moved lower. Alongside the dollar’s strength has been rising yields, with the benchmark 10-year US Treasury yield soaring to a 16-year high of 4.64%. The two-year US yield rose to 5.15%

It’s a scenario that sees the stock market compound weakness seen over the past week, including Tuesday’s Dow slump that was the biggest in a single day since March.

US dollar index (DXY) chart from TradingView

BTC price outlook

The US dollar index’s upside has historically signaled a bearish outlook for stocks and other risk assets, including crypto. Market intelligence platform says the negative correlation between the dollar index and Bitcoin and S&P 500 has particularly been evident since 2021.

That should be the perspective, though Bitcoin is showing a resilience above $26k. According to crypto investor Scott Melker, Bitcoin’s performance shows it “has its own life.”

Meanwhile, Santiment analysts say BTC could see a breakout if the DXY begins to cool off.

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Uniswap Foundation requests $62.37M to fund ecosytem growth

  • Uniswap Foundation is requesting for $62.37 million to support growth of the Uniswap ecosytem.
  • An on-chain vote on the foundation’s proposal will be taken on Wednesday, October 4, 2023.

The Uniswap Foundation has submitted a governance proposal requesting for $62.37 million funding as it looks to continue supporting the Uniswap’s ecosystem growth.

Uniswap Foundation eyes $62.37 million funding

Today’s proposal follows last year’s request that asked for $74 million in funding to create the Uniswap Foundation. A governance vote granted the proposal, with funds split in two tranches as had been requested. 

At the time, the idea was that the second of the tranches would be requested via an on-chain vote – which is what the UF has done.

“The reason for breaking our funding into two tranches was to allow for the UF to finalize the completion of its legal entity, and to formally receive non-profit 501(c)4 status from the IRS (and thus receive clarity on tax implications), prior to receiving the larger portion of funds. We are pleased to have received that status in Spring of this year,” said Devin Walsh, Executive Director and co-founder of Uniswap Foundation.

10% more funds to mitigate price risks

The initial proposal had the UF receiving $20 million in the first tranche, with 2,547,002 UNI tokens requested. However, a 13.7% dip in the price of UNI after the request – from $8.14 to $7.05 – saw the group receive only $17.3 million.

To mitigate any potential price volatility, the foundation wants the final share of the funding to have a 10% buffer. This means adding an extra $5.67 million to the $56.7 million that remained from the $74 million granted. The UF has thus asked for $62.37 million, setting a one week on-chain vote for the proposal on Wednesday, October 4.

According to Walsh, the Uniswap Foundation plans to use the money to support the Uniswap ecosystem, splitting the $56.7 million into two categories – operations and grants. The funds will be used in employee compensation packages, developer support, providing a 6-month runway in cash and investment in low-risk yield bearing assets.

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U.S. lawmakers want SEC to ‘immediately’ approve applications for a Spot Bitcoin ETF

  • Four House Reps. wrote a letter to SEC Chair Gary Gensler on Wednesday.
  • They dubbed Spot Bitcoin ETF “indistinguishable” from Crypto Futures ETF.
  • Bitcoin is still trading around the $26,000 level at writing on Wednesday.

All eyes are on Bitcoin today after the U.S. lawmakers urged the Securities & Exchange Commission to “immediately” approve applications it has received for a Spot Bitcoin ETF.

House Reps. wrote a letter to Gary Gensler today

On Wednesday, four members of the House Financial Services Committee wrote a letter to Gary Gensler in which they argued that a Spot Bitcoin ETF is not particularly different from a Crypto Futures ETF that the regulator has already approved.

And so, they urged Chair of the SEC in their letter to allow the likes of BlackRock, Fidelity and several others to list a Spot Bitcoin ETF.

SEC’s current posture is untenable moving forward … there is no reason to continue to deny such applications under inconsistent and discriminatory standards.

Chair Gary Gensler is scheduled to testify before the U.S. Congress today.

Grayscale recently secured a victory against the SEC

Last month, the U.S Court of Appeals for the DC Circuit ruled that the Securities & Exchange Commission did not have an adequate reason to not let Grayscale convert its flagship bitcoin trust into an exchange-traded fund (find out more).

That ruling, as per the lawmakers, should be sufficient for Chair Gensler to get onboard with a Spot Bitcoin ETF. Their letter also read:

A regulated spot bitcoin ETP would provide increased protection for investors by making access to bitcoin safer and more transparent.

Members that wrote the letter on Wednesday include Reps. Mike Flood, Wiley Nickel, Tom Emmer, and Ritchie Torres. Bitcoin is still trading around the $26,000 level at writing.

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Riot Platforms stock price analysis: Here comes the death cross

Riot Platforms (NASDAQ: RIOT) stock price continued its sell-off even as Bitcoin and other cryptocurrencies held steady. The shares plunged to a low of $8.90 on Tuesday, the lowest level since April 6th. It has retreated by more than 56% from its highest point this year, meaning it is in a deep bear zone.

Bitcoin is holding really well

Riot Platforms is a major company in the Bitcoin mining industry. The company runs some of the biggest mining rigs in the world. For example, its Rockdale facility is the biggest mining and hosting facility in North America. It has a deployed hash rate of 10.7 EH/s. 

Riot Platforms and other mining companies like Marathon Digital, Cipher Mining, and Argo Blockchain tend to do well when Bitcoin price is rising. This explains why the shares jumped to a high of over $20.6  when Bitcoin surged to the year-to-date high of $32,000.

Therefore, it is quite surprising that the Riot Platforms share price has plunged even as Bitcoin has done well in the past few weeks. Bitcoin has remained above $26,200 even as the fear and greed index has dropped to the extreme fear zone of 25. The Dow Jones, Nasdaq 100, and S&P 500 have also slipped sharply recently.

I believe that Riot Platforms and Marathon Digital are good speculative buys. For one, I believe that Bitcoin will be much higher than where it is today. Bitcoin halving is coming in 2024, which will likely push its price higher.

Further, I suspect that the Securities and Exchange Commission (SEC) will approve a spot Bitcoin ETF. Besides, the leading applicants are some of the biggest companies in the industry like Blackrock, Fidelity, and WisdomTree.

Most importantly, Bitcoin has held quite well even as the Federal Reserve has hiked interest rates to the highest point in more than two decades.

Riot Platforms stock price forecast

The daily chart shows that the RIOT share price has been in a strong bearish trend in the past few months. It recently crashed below the key support at $14.45, the highest point in April this year.  The stock has dropped below the key support at $10.07, the lowest point on August 25th. 

Most importantly, the 50-day and 200-day weighted moving averages (WMA) are about to form a death cross. Therefore, the stock will likely remain underwater for a while. If this happens, the next level to watch will be at $8.

The post Riot Platforms stock price analysis: Here comes the death cross appeared first on CoinJournal.

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Crypto price outlook: Bitcoin, Maker, Shiba Memu

  • Bitcoin (BTC) and Ether (ETH) broke higher today, trading above $26,650 and $1,620.
  • Maker (MKR) hit a yearly high near $1,470 amid fresh buy pressure.
  • Meanwhile, Shiba Memu has raised over $3.3 million in its presale as SHMU price jumps to $0.030025. 

Cryptocurrency’s total market cap was up 1.3% on Wednesday morning, with the top coins Bitcoin (BTC) and Ether (ETH) breaking above $26,650 and $1,620 respectively.

The uptick in crypto prices came as the industry looked past SEC’s latest delay of a spot Bitcoin ETF and Chase Bank’s ban on crypto payments for its UK customers. Digital asset prices were also ticking higher as US futures rose after Tuesday’s brutal sell-off that saw the Dow Jones Industrial Average book its biggest single-day loss since March.

Here is the price prediction for Bitcoin (BTC) and Maker (MKR), and an overview of the new crypto project Shiba Memu (SHMU).

What is Shiba Memu?

Shiba Memu is the new kid on the block in the meme coin neighbourhood. Its a new project that sits at the intersection of crypto and artificial intelligence (AI), bringing a novel approach to market traction that’s so crucial to meme coin adoption.

Unlike most meme tokens that gain traction in the community thanks to human effort, Shiba Memu looks to leverage the power of AI to create a marketing powerhouse. AI will do all the heavy duty work needed to sustain interest in the coin, and reward holders of the native token SHMU for their input and feedback.

Learn more here.

Bitcoin price prediction

Bitcoin has not moved much in the past week, down 1.6% as of writing as investor jitters suppressed buyers amid the uncertainty that gripped the market after Fed’s recent “higher for longer” interest rates outlook.

With regulation still a big talking point, analysts have predicted a potential setback for bulls before prices steadily climb with a new bull cycle. In the short term, the upcoming $3 billion options expiry on September 29 could provide fresh fuel for downward pressure. At $26,770 at the time of writing, BTC suggests new attempts at the key $28,300 zone are possible. However, a flip in sentiment in the risk asset market could mean a retest of support around $25k. The $20k area is a target for the bears.

Maker price prediction

Maker has outperformed most top altcoins in the past week, with MKR up nearly 10% in the past 24 hours. The cryptocurrency is trading above $1,450, the highest price level in a year that came after a breakout above the key horizontal resistance line of $1,250.

Bullish indicators strewn all over the MKR charts suggest an upside to above $1,600 is possible. However, an unexpected turn of events resulting in downside momentum could mean retreat to support around $1,350.

Shiba Memu price prediction: Will SHMU reach $1 in 2024?

Shiba Memu does not trade in the secondary market yet, given the token is still in presale. However, with interest in this meme coin rocketing amid a broader optimism for the AI space, it is possible the price of SHMU could skyrocket when trading goes live on major exchanges.

At the moment, investors who bought Shiba Memu at the first stage presale price of $0.011125 have watched the value rise more than 169%. This is because of SHMU token price having jumped to $0.030025 as investors have poured over $3.3 million into this promising project.

What price factors could help Shiba Memu?

Shiba Memu’s roadmap highlights Q1, 2024 for the launch of its revolutionary AI dashboard, while strategic partnerships and ecosystem development will continue in the second quarter.

In Q3, 2024, Shiba Memu will explode on global exchanges, bringing demand for SHMU to a whole new level. If the coin lives to the hype that currently surrounds it, and mirrors explosive entries into the market such as seen with Pepe (PEPE) and other coins, the fourth quarter could be a great period for SHMU holders.

A final presale price of $0.0379 suggests upside momentum amid FOMO buying ahead of crypto’s expected bull market could quickly push SHMU to the $0.05 and then $0.1 levels. That could see targets at 50 cents and the $1 come into view.

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