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BNB/USD forecast: a drop below $200 should trigger more weakness

  • Binance Coin gave up all the 2023 gains and some more
  • The bearish momentum is set to continue
  • All hopes are on Bitcoin and a reversal of the US dollar’s strength

The US dollar makes victims in the cryptocurrency market. One example is the Binance Coin or BNB. 

It gave up all its 2023 gains and some more, and the perspective remains bearish. 

The chart below tells much about what 2023 meant for the BNB/USD rate. It all started with Bitcoin rallying from $16k to $30k. 

Naturally, other coins followed as the enthusiasm in the cryptocurrency market grew by the day. 

However, Bitcoin met stiff resistance at $30k. It failed to overcome it and still consolidates around the area. 

But other coins did not consolidate levels. Instead, they declined sharply, falling to the dollar’s strength. 

A combo of the US dollar’s strength and loss of faith in most coins led to the sharp selloff. If Bitcoin, the last one standing, also gives up its gains for the year, then the cryptocurrency market is about to witness another major selloff. 

Hence, all hopes are in Bitcoin and a US dollar reversal. 

BNBUSD chart by TradingView

BNB/USD keeps forming bearish patterns

After it reached the $300 area while Bitcoin rallied, BNB/USD failed to hold the levels. Moreover, it formed a triangle that acted as a reversal pattern (in red on the chart above). 

Such triangles usually form at the end of complex corrections. Its nature suggested a full reversal of the 2023 move.

Furthermore, the drop to the $200 area saw no bounce at all. Instead, the market formed two continuation patterns. 

If the $200 level gives way, BNB/USD might see another leg lower, as the bearish patterns suggest. Only if Bitcoin rallies and/or the dollar reverses its gains should BNB/USD end the bearish momentum. 

The post BNB/USD forecast: a drop below $200 should trigger more weakness appeared first on CoinJournal.

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LDO token takes a hit after Lido DAO votes to end liquid staking on Solana

  • Lido DAO sunsets Solana project due to financial issues, backed by 92% community vote.
  • P2P team considered $1.5M funding or Solana exit due to $484,000 losses.
  • Solana staking to be halted by February 2024.

In a decisive move, Lido DAO has chosen to sunset the Lido on Solana project, following a resounding community vote in favour of this course of action. The decision has been attributed to the project’s financial constraints, leaving it unsustainable.

Following the move, the value of the LDO token, Lido DAO’s native cryptocurrency, has dropped by almost 4% in the past few hours.

Lido DAO (LDO) price chart

Sunsetting Lido on Solana

The Lido on Solana project will undergo a phased sunset process over the coming months. Notably, stSOL token holders will have until February 2024 to unstake their assets through the Lido on the Solana frontend.

This decision was reached after extensive deliberations and a community vote, with over 92% of Lido token holders endorsing the sunsetting of the Lido on Solana protocol. The alternative option, which garnered just over 7% support, involved providing additional funding to the project.

Financial considerations

The P2P validator team, responsible for Lido on Solana, presented two scenarios to the community. The first scenario was to infuse $1.5 million in funding to sustain the project, while the second was to exit the Solana blockchain.

The financial details revealed that the team invested approximately $700,000 into development and support, but their revenue amounted to only $220,000, resulting in a significant loss of $484,000. Should the community have chosen the sunsetting option, the P2P team would have relied on $20,000 per month in support from Lido DAO for technical maintenance over a period of five months, commencing from September 4, 2023.

The decision to wind down the Lido on Solana project, despite strong relationships across the Solana ecosystem, was deemed necessary for the broader success of the Lido protocol ecosystem.

This isn’t the first instance of Lido discontinuing its liquid staking solutions. Prior to this, Lido had already ceased liquid staking operations on Kusama and Polkadot. 

The sunsetting process on Solana will include an immediate halt to staking, voluntary off-boarding for node operators beginning on November 17, 2023, and a final date for stSOL token holders to unstake by February 4, 2024, via the Command Line Interface (CLI).

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Bitcoin ETF approvals to drive $1T crypto market surge: CryptoQuant

  • CryptoQuant forecasts Bitcoin’s market cap could hit $900 billion if Bitcoin spot ETFs are approved.
  • The report also forecasts that $1 trillion could be added to the entire crypto market.
  • The various spot Bitcoin ETFs may be approved by March 2024, signalling a new era of crypto adoption.

In a recent report, data analytics firm CryptoQuant revealed compelling insights into the potential impact of Bitcoin spot exchange-traded funds (ETFs) on the cryptocurrency market.

The report suggests that, if approved, these ETFs could trigger substantial growth in the crypto space, raising Bitcoin’s market capitalization to a staggering $900 billion and boosting the overall crypto market by a monumental $1 trillion.

Spot Bitcoin ETFs approval could be a game-changer

The first wave of institutional involvement in the cryptocurrency market, which occurred during 2020-2021, was characterized by institutions adding Bitcoin to their balance sheets.

CryptoQuant’s report highlights that the second wave of adoption may come from financial institutions enabling clients to access Bitcoin through spot ETFs. CryptoQuant believes that these ETFs present a significant opportunity for investors to gain exposure to the crypto market.

Several major financial institutions in the United States have applied for regulatory approval to launch spot Bitcoin ETFs. These approvals could potentially be granted by March 2024 at the latest with some US lawmakers requesting the SEC to approve the applications. This marks a critical milestone in the evolution of cryptocurrency investment instruments.

Potential inflows and market impact

CryptoQuant’s analysis indicates that should the issuers of Bitcoin ETFs allocate just 1% of their Assets Under Management (AUM) to these ETFs, it could result in a remarkable influx of approximately $155 billion into the Bitcoin market. This influx, equivalent to nearly one-third of Bitcoin’s existing market capitalization, could potentially drive Bitcoin’s price into a range between $50,000 and $73,000.

The report also draws upon historical data, revealing that during previous bull markets, Bitcoin’s market capitalization typically expanded by a factor of 3 to 5 times more than its realized capitalization. This historical pattern suggests that for every $1 of new investment entering the Bitcoin market, the market’s capitalization could surge by $3 to $5, indicating substantial growth potential.

The market got a test after some false news about BlackRock Bitcoin ETF approval pushed Bitcoin to $30,000.

In general, the approval of Bitcoin spot ETFs holds the promise of attracting significant institutional investment and contributing to the cryptocurrency market’s expansion. Despite its volatile nature, this development could become a catalyst for further institutional involvement, bringing the crypto space closer to the $1 trillion milestone.

The post Bitcoin ETF approvals to drive $1T crypto market surge: CryptoQuant appeared first on CoinJournal.

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ESMA warned crypto investors on Tuesday: find out more

  • ESMA says MiCA will take time to be fully implemented.
  • Crypto investors, therefore, remain at risk in the meantime.
  • Bitcoin is trading well under the $29,000 level on Tuesday.

All eyes are on Bitcoin after ESMA – the European Securities & Markets Authority cautioned crypto investors on Tuesday.

MiCA will take time to be implemented

Earlier this year, the European Union approved an extensive set of regulations for crypto assets that it’s calling Markets in Crypto-Assets Regulation.

On Tuesday, however, ESMA warned crypto investors that it will likely take until December of 2024 for MiCA to be fully implemented.

It is also worth mentioning here that a bunch of crypto firms will be able to remain in business without an EU license in states that grant them a transitional period of 18 months – which means full protections in these EU states will not be available until July 2026.

At writing, Bitcoin is trading well under the $29,000 level.

ESMA says no cryptoassets is ‘safe’

ESMA did, however, confirm on Tuesday that it’s working closely with national regulators and is motivating them to apply Markets in Crypto-Assets Regulations rules as soon as possible.

Even with full protection, though, it recommended investors to be cautious when investing in cryptocurrencies. The EU watchdog’s statement reads:

Even with implementation of MiCA, retail investors must be aware that there will be no such thing as a safe cryptoassets.

Currently, crypto assets are unregulated under the rules laid out by the European Securities and Markets Authority. Regulating the crypto market has become a priority for ESMA ever since the collapse of FTX and Terra Luna.

The post ESMA warned crypto investors on Tuesday: find out more appeared first on CoinJournal.

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Apecoin price up as whale accumulates millions of APE

  • Apecoin price was up on Tuesday, trading more than 6% up at the time of writing.
  • The price gain comes amid increased APE purchases by a whale since August.
  • APE could break above a key technical hurdle if bullish sentiment continues.

The price of Apecoin (APE) was up 6% on Tuesday afternoon as Bitcoin held above $28k following the volatility witnessed in the crypto market on Monday. Despite a slowdown for several altcoins, APE price hovered above $1.12, with buyers looking to extend recent gains to double digits. CoinGecko data showed the cryptocurrency was up nearly 10% in the past week.

Whale gobbles up millions of APE

After taking advantage of recent dips to buy Apecoin, the latest on-chain data shows a whale has continued to signal bullishness for the token with fresh accumulation.

Data from Lookonchain posted on X on Tuesday shows that Machi Big Brother has been relentless over the past two or so months. 

On-chain data shows the whale has acquired APE coins worth $7.43 million since August 2. In total, the whale’s bullish stance has seen them purchase 4.73 million APE at the average cost of $1.57. His latest purchase was 2.24 million APE worth $2.94 million, with the transaction seeing him spend 1,761 Ether (ETH) valued at $2.89 million and 52,000 USDC.

What’s the Apecoin price outlook?

Apecoin price appears to have benefited from the whale’s transaction, with APE/USD touching an intraday high of $1.13. The token’s price gain since flipping from the one-week low of $1.01 was over 11% at the time of writing.

Apecoin price chart from TradingViewWith APE poised above the psychological $1.00 level, an uptick in broader market sentiment could help bulls target the supply wall around $1.29. A breakout from here might open up a path to mid-August highs of $2.08. The daily RSI and MACD indicators support this outlook, but a dip below the primary support level could shatter bulls’ short term plans.

The post Apecoin price up as whale accumulates millions of APE appeared first on CoinJournal.