Kategorie: Crypto News

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Top analyst: BTC at this level has historically offered ‘outsized ROI’ for investors

  • Bitcoin price could still drop to the 200-MA at $22,000, with possible downside wicks to $19,000 and then $15,500. 
  • Bounces off these levels have offered huge investment returns for long-term investors, says crypto analyst Rekt Capital.

Bitcoin (BTC) is tracking fresh losses below $30,000, with the broader crypto market seesawing in the red amid new downsides for stocks. BTC, which has tanked nearly 58% from its all-time high, could still see further selling to reach new multi-year lows.

But for investors looking to enter the market, this could come with a massive opportunity if prices ended up at a key historical support level.

Top crypto analyst Rekt Capital says this has been the case whenever BTC price hits or wicks below the 200-week moving average (the 200-MA).

“Since 2015, the 200-MA has been touched on 4 occasions to form generational bear market bottoms. And 3 out of 4 of those Bear Market bottoms ended with downside wicking,” Rekt noted in a Twitter thread on Tuesday.

The downside wicks have been between -14% and -28%, with the latter happening after the March 2020 market collapse. According to the analyst, Bitcoin’s current price means bears need to pull the flagship cryptocurrency’s value down by 28% to reach the 200-MA that currently sits at around $22,000.

Below this historical support level, a -14% to -28% return would bring BTC/USD to $19,000 and $15,500.

This means investors who likely missed the last bull market could have a chance for a low entry point at these levels.

However, while the analyst says downside wicks off the 200-MA have largely presented periods of “peak financial opportunity for long-term BTC investors,” the market at these times is usually at extreme fear and maximum pessimism.

The post Top analyst: BTC at this level has historically offered ‘outsized ROI’ for investors appeared first on Coin Journal.

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Mirror Protocol price prediction: Should you buy the MIR dip?

The Mirror Protocol has done relatively well in the past few days as investors rush to buy the dip. MIR, its natve token, is trading at $0.40, which is about 115% above the lowest level this month. As a result, its total market cap has risen to just $35 million.

Why is MIR rebounding?

The Mirror Protocol is an important decentralized platform built on the Terra ecosystem. The platform’s goal is to enable people to buy and sell synthetic assets like stocks, commodities, and forex. 

Like all platforms built on Terra’s network, the coin’s price declined sharply this month. At its lowest point this month, MIR was down by almost 100%. 

Now, the cryptocurrency is bouncing back as other Terra coins recover. For example, TerraUSD, the stablecoin that caused all this damage, has risen by more than 10% in the past 24 hours. Similarly, tokens like Anchor Protocol and LUNA have all done well as investors buy the dip.

Analysts believe that some platforms like Mirror and Anchor Protocol will rebuild, possibly in other chains like Ethereum and Solana. They will also likely change their business model to bring in more transparency an focus on other asset-backed stablecoins like USD Coin and Tether.

However, for now, it is relatively difficult to recommend Mirror Protocol as an investment because of the relatively high risks. Like other Terra platforms, it is hard to know whether the recovery plans proposed by the leaders will become successful.

Worse, Mirror Protocol developers have not communicated about how they plan to salvage the project. Their last tweet was on May 4th before the implosion happened.

Mirror Protocol price prediction

On the daily chart, we see that the MIR price has been in a spectacular decline in the past few months. The coin’s sell-off accelerated when it moved below the important support level at $1.090, which was the lowest level on February 25th. 

Mirror Protocol price also crashed below the 25-day and 50-day moving averages. Therefore, despite this rebound, there is a likelihood that the coin’s price will continue falling as bears target the next key support level at $0.19.

The post Mirror Protocol price prediction: Should you buy the MIR dip? appeared first on CoinJournal.

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Crypto’s growing integration in the financial sector poses financial stability risks, ECB says

The European Central Bank (ECB), in its Decrypting financial stability risks in crypto-asset markets report, observes that crypto assets, especially unbacked ones like Bitcoin (BTC), point to a growing threat to financial stability.

It’s all happening in crypto…

It’s been a downward trajectory for cryptocurrencies in the market, with prices of crypto assets plummeting since last November.

Bitcoin (BTC), for one, has seen its value against the US dollar decline by more than 50%. The entire crypto market has lost over $1.6 trillion in market capitalization. In a bear market, the losses could yet see another leg down.

But the massive losses across the sector seem not to have stemmed a key trend seen over the last couple of years – a growing interconnectedness and integration of crypto into the financial sector. The upward trajectory, in this case, relates to institutional investors’ increased investments into the space, as well as the integration of crypto into services across the financial sector.

Decentralized finance (DeFi) and the need to diversify portfolios are also among the major trends despite the falling prices.

Regulate crypto as it poses systemic risks

Not for the first time, the European Central Bank (ECB) says a global regulatory approach is needed- and fast.

In its latest review report of cryptocurrencies and their potential to increase financial stability risks, the ECB notes that contagion from crypto’s volatility so far remains significantly small.

However, “systemic risk increases in line with the level of interconnectedness between the financial sector and the crypto-asset market, the use of leverage and lending activity,” the bank said. 

“If current growth and market integration trends persist, then crypto-assets will pose a risk to financial stability,” the bank noted, urging regulators to work towards closing gaps and arbitrage possibilities. 

According to the ECB, crypto is a global market that presents a global issue, and which therefore requires the efforts of all regulatory players across the world.

Attention towards cryptocurrencies is likely to be amplified across the regulatory landscape following this month’s dramatic collapse of Terra (LUNA) and the algorithmic stablecoin TerraUSD (UST).

The post Crypto’s growing integration in the financial sector poses financial stability risks, ECB says appeared first on Coin Journal.

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Coinbase becomes the first crypto company to join the list of Fortune 500 companies

Leading US-based crypto exchange, Coinbase has become the first crypto company to make it to the list of the Fortune 500 companies, an annual list of America’s largest companies by revenue. Coinbase ranks at position 437 in the Fortune 500 companies for 2022.

The development comes despite the current challenges facing Coinbase that have largely been brought about by a bearish market. The Fortune ranked companies based on their 2021 revenue when Coinbase performed quite well.

The revenue threshold for the 2022 Fortune 500 list was $6.4 billion and Coinbase’s revenue for 2021 was $7.8 billion. The threshold was 16% higher compared to the previous year’s limit.

2022 Coinbase performance

2022 has so far not been very rosy for Coinbase. It has posted net revenue of $1.16 billion in its first quarter with a net loss of $430 million. In comparison, Coinbase had posted a revenue of $2.49 billion in the fourth quarter of 2021.

The poor performance of Coinbase in the first fiscal quarter is because of a drop in the trading volumes across crypto exchanges because of the recent crypto price plunge.

As a result Mizuho Securities recently revised its estimates for Coinbase’s full-year 2022 revenue downwards to $5.6 billion from a previous estimate of $6.7 billion.

Coinbase shares are currently trading close to all-time lows at $66 and they have dropped to as low as $40 this month. They have dropped by over 88% from their debut price which was above $328.

As a result of the current turbulent market, Coinbase’s CEO and president, Emilie Choi, recently pointed out that the company will slow hiring.

Choi said:

“Heading into this year, we planned to triple the size of the company. Given current market conditions, we feel it’s prudent to slow hiring and reassess our headcount needs against our highest-priority business goals,”

Choi however assured investors that Coinbase has a strong position and its balance sheet was solid noting that Coinbase has been through several market downturns and emerged stronger every time.

It will be interesting to watch how the crypto exchange performs this year and whether it will make it to the Fortune 500 list in 2023.

The post Coinbase becomes the first crypto company to join the list of Fortune 500 companies appeared first on Coin Journal.

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Here is why TRX is up by more than 4% today

The cryptocurrency market has lost nearly 4% of its value in the last 24 hours.

The broader cryptocurrency market has shed the profits it recorded over the weekend. The total cryptocurrency market cap stands at around $1.255 trillion, down from the $1.3 trillion recorded yesterday.

Bitcoin is trading below the $30k resistance level again after losing 3.9% of its value in the last 24 hours. Ether is down by 5% so far today and currently trades at $1,963 per coin.

However, TRX, the native token of the Terra ecosystem, is currently trading in the green. TRX is up by more than 4% over the last 24 hours, making it the best performer amongst the top 20 cryptocurrencies by market cap.

At press time, TRX is the only cryptocurrency amongst the top 20 trading in the green zone. 

The catalyst behind TRX’s ongoing positive performance is the announcement that Fireblocks now supports TRX and TRC20-based tokens. 

Fireblocks is an enterprise-grade platform known for delivering a secure infrastructure for moving, storing, and issuing digital assets. It provides services to institutional investors. 

THE Tron team said Fireblocks had added support for TRX and all TRC20-based tokens of the TRON DAO blockchain on its digital asset platform.

Key levels to watch

The TRX/USDT 4-hour chart is bullish at the moment, thanks to Tron’s ongoing positive performance. TRX is currently one of the best performers in the market over the last seven days.

The MACD line is within the positive zone, indicating bullish momentum. The 14-day relative strength index of 64 shows that TRX could enter the overbought region if the positive momentum is maintained.

At press time, TRX is trading at $0.08082 per coin. If the rally continues, TRX could surge past the first major resistance level at $0.08272 before the end of the day.

In the event of an extended rally, TRX could move past $0.0852 for the second time this month. 

The post Here is why TRX is up by more than 4% today appeared first on Coin Journal.