Kategorie: Crypto Analysis

Daily headlines and news about crypto analysis.

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Bitcoin price vs Tesla stock: Which is a better buy in 2023?

  • Bitcoin price outperformed Tesla in 2022.

  • The two assets faced numerous challenges during the year.

  • Bitcoin seems like a better investment in 2023.

Bitcoin price has had a terrible performance in 2022. It has crashed by 64% this year, making it one of its worst year on record. Tesla is doing much worse. Down by 74% in 2022, the company is having its worst year and quarter ever. Bitcoin’s market cap has crashed to about $320 billion while Tesla has moved from over $1 trillion to about $344 billion.

Bitcoin vs Tesla

Tesla and Bitcoin are two significantly different financial assets. Bitcoin is a cryptocurrency that wants to replace fiat currencies while Tesla is an automotive disruptor that wants to end internal combustion engines (ICE).

Yet the two assets have a lot of similarities. They are both disruptors in their respective industries and have a lot of fans internationally. Elon Musk loves the two assets. 

Further, they are both emblematic of what happens when interest rates are left low for so long. After the Global Financial Crisis (GFC), central banks, led by the Federal Reserve, embraced an easy-money policy in a bid to support the economy. But rates remained so low for so long, leading to an era of irrational exuberance, as we wrote here.

Another similarity between Bitcoin and Tesla is that they are both facing significant competition. There are now over 20,000 cryptocurrencies seeking to dethrone BTC. Similarly, the number of EV startups is growing remarkably, with most traditional EV companies shifting to the EV model.

Why BTC and Tesla collapsed

Bitcoin price collapsed because of high-interest rates and the challenges in the crypto industry. The biggest scandals in the industry were the collapse of Terra, which helped fuel the bankruptcy of Voyager Digital, FTX, and Celsius. 

Tesla, on the other hand, is facing serious competition while its CEO has been disrupted by his acquisition of Twitter. Analysts believe that his divided attention has played a significant role in the collapse of his net worth by more than $120 billion. 

Further, Tesla is facing significant competition while demand for its cars has declined significantly in the past few months. Soaring inflation has made car sales drop.

Better buy between TSLA and BTC in 2023

So, which is a better buy between Tesla and Bitcoin in 2023? As the economy faces a triple whammy of high-interest rates, slow growth, and elevated inflation, the two will likely struggle in 2023. However, because of valuation metrics and market share, I think Bitcoin is a better investment than Tesla. 

As Tesla moves from a growth company to a value stock, it will need to be priced much lower. For one, companies like General Motors and Ford are valued at under $50 billion. Bitcoin, on the other hand, has proven to be a market leader in its industry despite facing significant competition.

The post Bitcoin price vs Tesla stock: Which is a better buy in 2023? appeared first on CoinJournal.

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Filecoin price pumps but product concerns remain

  • Filecoin price went parabolic in thin trading volume.

  • There are concerns about the utility of the platform.

Filecoin price popped to the highest level since December 16 despite the rising risks of its utility. It rose to a high of $3.31, which was much higher than the year-to-date low of $2.3. Other storage tokens like Siacoin and Storj also rebounded.

Filecoin utility challenges

Filecoin is the biggest storage blockchain platform in the world. Like other storage platforms, its use case is relatively simple to grasp. Unlike centralized storage platforms like Google Cloud and Microsoft Azure, it uses decentralize storage platforms.

Anyone with a computer, smartphone, or data center can provide storage in its platform and then earn a reward when people use it. This data is safely stored in their network in a highly encrypted format. 

The benefit of using a decentralized platform is that it is highly scalable. For a person in Nairobi, they will access their data from a storage provider in the city. Similarly, for a person in Washington, they will store and access their data from someone in the city.

According to its data explorer, there are 3,920 active miners in the network who provide 19.069 EiB in its platform. This is a significant number that is more than 21.9 million terabytes.

Still, Filecoin faces several important challenges. First, the network is competing with well-established brands like Microsoft and Google. These centralized platforms work well and have a long track record of safety.

Second, it is clear that it has a significantly big capacity that is hard to use. One of its biggest use cases is in the storage of Non-Fungible Tokens (NFT) through its partnership with OpenSea. Recently, however, the volume of NFTs traded per month has dropped sharply. Therefore, without a clear use case, it will take a miracle for Filecoin to become a successful platform.

Filecoin price prediction

FILUSD chart by TradingView

The daily chart shows that the FIL price made a strong bullish breakout on Tuesday as investors bought the token’s dip. It moved slightly above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved to the overbought level. It has also formed what looks like an inverted head and shoulders pattern.

Therefore, despite the H&S pattern, Filecoin will likely resume the bearish trend as fundamentals disappoint. A move above the resistance at $3.50 will invalidate the bearish view.

How to buy Filecoin

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy FIL with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients‘ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy FIL with OKX today

The post Filecoin price pumps but product concerns remain appeared first on CoinJournal.

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Is Lido a good crypto to buy as it defies gravity?

  • Lido price has made a spectacular recovery recently. 

  • Its total value locked has held steady at $5 billion.

Lido price has defied gravity in the past few weeks as activity in its network holds steady. The LDO token was trading at $1.06 on Tuesday, which was the highest it has been since December 16. It has risen by more than 22% from the lowest level this year.

What is Lido?

Lido is a leading platform in decentralized finance (DeFi) that makes it possible for users to stake coins and earn rewards. It is the biggest liquid staking protocol, where it lets users stake coins like Solana, Ethereum, Polkadot, Kusama, and Polygon. 

Lido has become highly popular among users in the past few months. It has become the biggest holder of Ethereum staking pool where it holds over 4.8 million ETH that provide an APR of 4.6%. It is also the biggest Polkadot pool operator witb over 2.47 million DOT valued at over $11 million with a yield of 14.3%.

Lido faced numerous challenges in 2022. The biggest one was the collapse of Terra and its ecosystem. Before the collapse, Lido was one of the biggest holders of Terra token. As a result, the total value locked (TVL) locked in its ecosystem plunged from over $20 billion to about $5.9 billion.

Lido’s performance, while weak, has been relatively stronger than other cryptocurrencies. This is likely because investors believe that its yield solution is better than those provided by centralized protocols. Some of the top centralized platforms that collapsed in 2022 were BlockFi and Celsius.

Another crypto news was Lido’s collaboration with SSV network to create a distributed validator technology. The developers launched the pilot test for the new solution in December.

Lido price forecast

LDO chart by TradingView

The four-hour chart shows that the LDO price has made a spectacular recovery in the past few days. As it rose, it managed to move above the important resistance point at $0.992, the lowest level on December 12. It also crossed the psychological level of $1.

The coin also moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved to the overbought point at 80. Therefore, the token will likely continue rising as buyers target the next key resistance at $1.2. A drop below the support at $0.992 will invalidate the bullish view.

The post Is Lido a good crypto to buy as it defies gravity? appeared first on CoinJournal.

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How will the rising Binance outflows affect BNB price?

  • Binance has had significant outflows in the past few months.

  • Customer assets in its ecosystem have fallen to about $55 billion.

Binance is in trouble as crypto investors flee. The company has seen its assets drop from over $70 billion in November to about $55 billion. In the same period, Binance Coin price has plunged from an all-time high of $708 to $250. 

Binance outflows continue

Binance is the biggest player in the cryptocurrency industry. At its peak, the company had more than 100 million customers from around the world. It provides numerous services, including a platform to buy and sell cryptocurrencies and one to do margin trading. The firm also has an investment platform where people can buy crypto and earn returns.

Binance has come into the spotlight in the past few weeks following the collapse of FTX and Voyager Digital. Their collapse have had a wake-up call in the crypto industry as regulators work to prevent another meltdown in the sector.

Crypto investors are also afraid about the health of their investments. As a result, many crypto holders have decided to withdraw their digital currencies. Data compiled by DeFi Llama shows that outflows in the crypto industry have been growing. 

Investors pulled $116 million from the exchange in the past 24 hours and $957 million in the past 7 days. The exchange have lost over $9.5 billion in the past 30 days. This is a sign that investors are losing confidence in the industry, as I wrote here.

The impact of rising outflows is dire for Binance Coin price. BNB has crashed by more than 65% from its highest level this year and is now hovering near its lowest level since June.

The coin has also imploded because of the falling activity in Binance platforms like decentralized finance (DeFi), metaverse, and non-fungible tokens (NFT). The total value locked in Binance’s DeFi ecosystem has dropped to about $5.8 billion.

BNB price prediction

BNB/USD chart by TradingView

The daily chart shows that Binance Coin’s price has been in a consolidation phase in the past few days. It has managed to move below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the oversold level.

Binance Coin has also moved below the important support level at $254.9, which was the lowest level on November 22. Therefore, there is a likelihood that the coin will have a bearish breakout in the coming days. If this happens, the next key level to watch will be at $200.

How to buy Binance Coin

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BNB with eToro today

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600. Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Buy BNB with Binance today

The post How will the rising Binance outflows affect BNB price? appeared first on CoinJournal.

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XRP tops $0.35 after Ripple Lab’s partnership with Palau

  • The Republic of Palau is working with Ripple Labs to explore the creation of a national stablecoin.

  • XRP is up by more than 5% today and could rally higher soon.

  • The total cryptocurrency market cap stands above $813 billion.

Ripple Labs partners with the Republic of Palau

Cryptocurrency journalist Wu Blockchain, reported a few hours ago that the Republic of Palau is working with Ripple Labs to explore the possibility of creating a national stablecoin. 

Palau is set to issue ID cards to its digital residents in the form of NFTs on the BNB Chain. This latest cryptocurrency news saw XRP, the native token of the Ripple ecosystem, surge by more than 5% today. 

At press time, the price of Ripple stands at $0.3686. After surpassing the $0.35 resistance level, XRP could surge higher in the near term.

The total cryptocurrency market cap stands above $813 billion, up by less than 1% in the last 24 hours. The Bitcoin price is also up by less than 1% today and is now trading close to the $17k resistance level. 

Key levels to watch

The XRP/USD 4-hour chart has turned bullish as XRP has been performing well over the last 24 hours. The technical indicators show that XRP is the best performer amongst the top 10 cryptocurrencies by market cap.

XRP/USD Chart By TradingView

 

The MACD line crossed into the positive zone a few hours ago, indicating that the bulls have taken control of the XRP market following the Palau partnership with Ripple Labs.

The 14-day RSI of 73 also shows that XRP could enter the overbought region if the rally continues.

With the bulls now in charge, XRP could surge past the first major resistance level at $0.3799 before the end of the day. With the support of the broader cryptocurrency market, XRP could trade above $0.411 for the first time since November. 

Where to buy XRP now

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy XRP with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients‘ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy XRP with OKX today

The post XRP tops $0.35 after Ripple Lab’s partnership with Palau appeared first on CoinJournal.