Kategorie: Bitcoin News

Key takeaways

• The cryptocurrency market is up by more than 2% today after underperforming for the best part of May.

• Bitcoin topped the $28k mark for the first time this month.

• The rally comes as President Biden and the House leadership reached an agreement on the debt ceiling.

Crypto Market Cap Reaches $1.16 Trillion

The cryptocurrency market performed well over the weekend, with most coins and tokens trading in the green zone.

For the first time this month, the total cryptocurrency market cap reached the $1.16 trillion threshold for the first time this month. 

The rally comes following an agreement between President Biden and the House leadership on United States’ debt ceiling. President Biden and congressional Republican Kevin McCarthy reached an agreement to suspend the federal government’s $31.4 trillion debt ceiling over the weekend. 

However, the deal still has to pass through Congress later this week. The vote is expected to take place on Wednesday before the United States runs out of money to pay its debts in early June.

The deal sparked optimism amongst investors that the United States would not default on its debt. If the US default on its debt, a recession would likely follow, and this could see the financial markets experience massive losses. 

Bitcoin Rallies To $28k 

Bitcoin, the world’s leading cryptocurrency by market cap, touched the $28k level for the first time in three weeks. Bitcoin started May trading above $29k per coin but plunged to a low of $26,008 last week. At press time, the price of Bitcoin stands at $27,953 per coin. 

The leading cryptocurrency is now slowly recovering, thanks to the positive news from the United States. 

Ether, the second-largest cryptocurrency in the world, also moved past the $1,900 level for the first time in weeks, adding more than 3% to its value in the last 24 hours. At press time, the price of Ether stands at $1,904. 

The post Why is the crypto market up today? Imminent debt ceiling vote boosts the market appeared first on CoinJournal.

• Bitcoin supply in loss has risen to 68%, with 6.67 million BTC under water water at current spot price.
• Indeed, on-chain data shows 2.71 million BTC has fallen into loss as Bitcoin price dropped from the $31k local top.
• With sell-side risk ratio approaching its all-time lows, Glassnode analyst James Check says BTC could see a big move to either side.

Bitcoin’s price has dropped about 14.6% since rejecting at the local top of $30.9k, and the result has been a sharp rise in the total amount of supply in loss.

The leading cryptocurrency’s current spot price is around $26.4k, after the week was spent in a tight range below the key resistance level of $27.6k. Although Bitcoin retested levels above $28k multiple times this month, the drawdown below $27k has bulls staring at a potential dip to support at $25k or lower.

But even as this outlook materializes, about 2.71 million BTC has drifted underwater. The BTC supply in loss, according to data shared by on-chain analytics platform Glassnode, is equivalent to about 14% of the benchmark crypto’s circulating supply.

“This raises the total supply in loss across the aforementioned period from 3.96M to 6.67M BTC, a 68.4% increase,” Glassnode noted.

$45k or $20k? Analysts weigh in on BTC price movement

Earlier this week, Glassnode lead analyst James Check said Bitcoin could see a “big move” in coming weeks amid seller exhaustion. Pointing to on-chain-data, Check explained:

“Bitcoin Sell-side Risk ratio is approaching all-time lows. This indicates that investors are reluctant to spend coins which are in profit, or loss within the current price range. This usually occurs when sellers are exhausted on both sides, suggesting big moves are coming.”

On Wednesday, JPMorgan lead strategist Nikolaos Panigirtzoglou said Bitcoin could rise 25% in the next 12 months. In a note to clients, Panigirtzoglou highlighted the price of gold rallying to a new multi-year high above $2k as the potential lead for BTC to hit $45k.

According to the analyst, Bitcoin and gold have often traded in sync. Bitcoin’s upcoming halving will also play a role in ticking up prices of the digital asset. Recently, analysts at Standard Chartered predicted a 70% gain for BTC price, outlining the $100k as a target.

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• Binance CEO Changpeng Zhao says China’s state TV crypto broadcast is “a big deal.” 
• He notes that previous coverage has historically been bullish for crypto.
• His comments come as Bitcoin price struggled to stay above $26k on Wednesday.

Binance CEO Changpeng Zhao, popularly known as CZ, says China broadcasting a crypto segment on state broadcaster China Central Television is “a big deal” and that such broadcasts have previously coincided with a subsequent uptick in crypto prices.

According to CZ, the broadcast has “Chinese speaking communities buzzing,” given how such coverage of Bitcoin have ended with crypto price rallying.

“It’s a big deal. The Chinese speaking communities are buzzing,” he tweeted on Wednesday. “Historically, coverages like these led to bull runs.”

He however, noted that his comments do not mean that the “past predicts the future.” The Binance CEO, who is one of the biggest crypto proponents in the world, added a disclaimer that his remarks did not constitute financial advice.

Bitcoin features in Chinese TV broadcast

The referenced broadcast shows a Bitcoin ATM in the increasingly crypto-friendly Hong Kong. The crypto teller machine also shows a bitcoin logo and a “Buy Bitcoins” inscription. The TV segment also featured commentary on NFTs.

But it should be remembered that China banned bitcoin (again) in 2021.

As highlighted here on Tuesday, Bitcoin price rose briefly to touch the $27,500 resistance area as Hong Kong announced retail investors would from 1 June be able to buy and trade bitcoin and Ethereum on regulated exchanges.

Experts hailed Hong Kong’s Securities and Futures Commission (SFC)’s announcement as a potential game changer for crypto adoption. The framework comes as Hong Kong looks to position itself as a leading crypto and blockchain hub, while at the same time offering guidelines and rules that target greater protection for consumers.

Bitcoin has not had a major reaction to the latest China related news, and was struggling to remain above $26k as at 1:50 pm ET on Wednesday. According to data from CoinGecko, BTC was perched at $26,300, down 3.2% in the past 24 hours. 

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• Bitcoin could see a volatile phase within the $40k and $22k price range, James Check, lead on-chain analyst at Glassnode says.
• BTC’s sell-side risk ratio is approaching an all-time low, with traders on both sides showing exhaustion after recent price action.
• The flagship crypto traded at $26,400 on Wednesday, about 3% down in the past 24 hours.

On-chain metrics for Bitcoin suggests the flagship cryptocurrency could be looking at massive price moves in the short term.

After struggling to break the $27,600 resistance level following dips from above $28,000, crypto experts have opined BTC could flip to new support. On the other hand, fresh impetus could catapult the asset past its year-to-date high of $31,000.

The outlook is down to on-chain data suggesting traders on both sides are exhausted, Glassnode lead analyst James Check says.

Also going by the pseudonym “Checkmate” on Twitter, the analyst noted:

“Bitcoin Sell-side Risk ratio is approaching all-time lows. This indicates that investors are reluctant to spend coins which are in profit, or loss within the current price range. This usually occurs when sellers are exhausted on both sides, suggesting big moves are coming.”

Realized Profit and Loss metrics are literal #Bitcoin analysis super powers.

The provide X-ray vision into the sentiment, capital flows, and behaviour patterns of $BTC holders.

We have several Profit/Loss dashboards covering this topic live @glassnodehttps://t.co/oDKFmSo2io

— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) May 24, 2023

What next for Bitcoin price?

Realized Profit and Loss metrics provide somewhat an understanding of the Bitcoin market, according to the analyst. It is these indicators that offer BTC price outlook from the point of holders’ sentiment, capital flows and behaviour patterns.

That’s what currently suggests Bitcoin price could be setting up for a prolonged reaccumulation phase.

“Bitcoin usually has a 12ish month reaccumulation period after a bottom (if that is indeed what is in place),” Check tweeted.

According to him, Bitcoin price could see some volatile action between the $40k and $22k range. For traders looking for a definite signal, the analyst says it’s largely “directionless.” Checkmate said:

“This is somewhat directionless, it suggests volatility is coming. Note that Nov 2018 also saw a very low value. [It] indicates traders are exhausted in this price range, and doesn’t tell us which price range they want to move towards.”

Bitcoin was trading around $26,400 on Wednesday morning 9:53 am ET, and was about 3% down in the past 24 hours. 

The post Bitcoin on-chain metric suggests “big move” is incoming, expert says appeared first on CoinJournal.

Key takeaways

• Cathie Wood has stated that she believes the United States is losing the Bitcoin movement due to the regulatory system. 

• She stated that the collapse of FTX proved the concept of Bitcoin.

• Cathie Wood’s Ark Invest is one of the major investors of Coinbase.

US is being left behind, says Cathie Wood

Cathie Wood, the founder of Ark Invest, has stated that the United States is behind the Bitcoin movement due to the regulatory system. She mentioned this while speaking at Fortune’s Most Powerful Next Gen conference last week.

According to the Ark Invest founder, the centre of gravity of cryptocurrency is moving away from the United States. She cited the example of Coinbase receiving its licence to operate in Bermuda while also expanding its operations in Singapore. She stated that;

“It would be nice if the U.S. were leading this movement, but we’re losing it, and we’re losing it because of our regulatory system.” 

The Securities and Exchange Commission (SEC) has been clamping down on cryptocurrency companies in recent months. The regulatory agency issued a Wells Notice to Coinbase, indicating that it is looking into the activities of the crypto exchange. 

Ark Invest continues to invest in Coinbase despite the regulatory climate in the United States. The investment management firm bought $8.6 million worth of Coinbase stocks last month after the crypto exchange sued the SEC. 

FTX’s collapse proved the concept of Bitcoin

FTX’s collapse last year was one of the biggest in the history of the cryptocurrency space. The collapse resulted in regulatory agencies like SEC focusing more of their attention on the crypto market. 

The SEC maintains that the existing securities laws cover the crypto market, and there is no need for a new regulatory framework for the industry. 

According to Cathie Wood, the collapse of FTX last year proved the concept of Bitcoin, similar to how the banking crisis this year did. She stated that the collapses indicate the dangers of centralisation in the financial system. She stated that;  

“The reason it’s adopted is, first of all, many people like the idea of a decentralized, transparent, auditable monetary system. It was born out of the 2008/2009 crisis when people just lost all trust in financial services. And very interestingly, it took another two crises within the last year to prove the concept. FTX failed because it was centralized, opaque, and not auditable.”

Bitcoin is up by more than 50% since the start of the year and is currently trading above $26k per coin.

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