Schlagwort: crypto business

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Elrond (EGLD) Is Sliding Down the Crypto Ranking – Here Is Why the Trend Will Continue

Elrond (EGLD) has been sliding down the crypto pecking order. The pressure on the price has pushed the market cap lower. Even though Elrond (EGLD) is still in the top 50, the coin could fall out soon if the current downtrend continues. We think that the downward pressure is far from over but first, some highlights here below:

  • After hitting all-time highs of $560 last year, Elrond (EGLD) has spiralled downwards by over 60%.

  • Although we saw some recovery at the tail end of 2021, the general trend for the coin has been downwards.

  • A look at technical indicators shows that this pressure is not about to end anytime soon.

Data Source: Tradingview.com 

Elrond (EGLD) – Price prediction and analysis

At the time of writing, Elrond (EGLD) was trading at $214.74. The token is up about 5% for the day, but it’s still about 13% down over the last 7 days. Although EGLD has managed to sustain gains above the psychologically important $200 mark, it is still trading lower than its 25- and 50-day moving averages. 

We also noted that the price is lower than the 61.8% Fibonacci retracement. With this in mind, the bearish trend appears to be well in force. Unless the coin is able to rally and break above $245, it is likely that the price action will remain in the red in the near term.

Should you buy Elrond (EGLD)

Well, right now is probably not the best time to buy Elrond (EGLD). But don’t take this the wrong way. This is a very decent coin with the potential to really deliver value for investors in the long run. 

But since we expect the price to remain bearish, it would be best to wait for a further dip and get in on a better discount. Elrond (EGLD) is also ripe for short-term plays, especially for people who want to bet on improved crypto market sentiment.

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Forget about the 2022 crypto slump: These are still the best altcoins to buy now

The broader crypto market is rebounding today after a choppy start to 2022. As investor sentiment starts to improve, we are likely to see prices recover, consolidate, and surge in the near term. So, what are some of the altcoins to buy? Well, here is some criterion to follow:

  • It helps if the coins are backed by strong long-term fundamentals and not hype and speculation.

  • These tokens also have a relatively low market cap, suggesting the potential for growth is high.

  • Also, the altcoins must be doing great things that will ultimately help increase their value in the long run.

Well, even with the 2022 slump, we still think that the three altcoins below are perfect buys for the year.

Aave (AAVE)

Aave (AAVE) is one of the most promising decentralised finance protocols. The platform is designed to help people lend and borrow crypto assets. At press time, the native token AAVE was trading at around $215.30, up about 6.5% in intraday trading. 

Data Source: Tradingview.com 

AAVE also has a market cap of around $2.9 billion, something that suggests there is enough upside there for more growth in the future.

Cosmos (ATOM)

Cosmos (ATOM) markets itself as an alternative to traditional blockchain networks designed to offer faster speeds, low costs, and scalability. It is one of the most highly rated blockchain projects this year and its native token ATOM is also surging. At the time of writing, ATOM was selling for $39.94, up nearly 8% in 24 hours.

Serum (SRM)

Serum (SRM) is the main decentralised exchange or DEX on Solana. It strives to offer users safe, fast, and secure transactions by leveraging the scalability of the Solana chain. Serum is currently trading at $3.11 with a market cap of $414 million. This makes it a very prime option for investors who would love to unlock its long-term potential.

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Bitcoin’s growing correlation with stocks raises risk of contagion across markets, says IMF

  • The IMF says Bitcoin’s high correlation with stocks means it’s more of a risk asset.

  • The financial institution calls for greater global regulation of the ecosystem to reduce potential risks to the rest of the market.

Bitcoin has outperformed the S&P 500 since 2017, with little to no correlation to the stock indexes before 2019 when the Covid-19 pandemic hit.

Since then, Bitcoin and other cryptocurrencies have largely moved in sync with the major stocks on Wall Street.

After plummeting in March 2020, crypto and equities began to surge as investors returned to risky assets, a scenario that now sees the International Monetary Fund (IMF) say could pose contagion risks to the broader financial markets.

“The correlation coefficient of their daily moves was just 0.01[before 2020], but that measure jumped to 0.36 for 2020–21 as the assets moved more in lockstep, rising together or falling together,” the Washington DC-based financial institution said.

Chart showing a correlation between Bitcoin and the S&P 500. Source: IMF blog

 While the IMF report published on 11 January states that cryptocurrencies “are no longer on the fringe of the financial system,” it takes a negative view of the correlation with stocks.

The report claims that Bitcoin’s increased adoption and the rising correlation it’s showing with stocks limits the supposed “risk diversification benefits” that see many investors opting for it over traditional safe have assets such as gold.

The correlation between Bitcoin and the S&P 500 is shown to be way higher than seen between stocks and gold and major global currencies.

And the IMF says the lockstep trading seen with the stock market suggests Bitcoin is more of a risky asset and not a hedge asset.

According to the IMF, this puts the markets at risk- specifically saying it threatens “contagion across financial markets.”

In its assessment, the institution says any sharp declines across the Bitcoin market threaten risk aversion among investors. This, it adds, might see investors aver from investing in stocks.

“Spillovers in the reverse direction—that is, from the S&P 500 to Bitcoin—are on average of a similar magnitude, suggesting that sentiment in one market is transmitted to the other in a nontrivial way,“ the report added.

Pointing to systemic concerns, IMF suggests the adoption of a global regulatory framework targeted at oversight and potentially helping to stem risks to the financial system.

In December, CNBC’s “Fast Money” trader Brian Kelly said Bitcoin and Nasdaq were trading in lockstep. He pointed to the 30-day correlation as having been around 47% at the time, with Bitcoin usually a leading indicator for the stocks index.

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Market highlights January 12: Cryptos in the green, US stocks rise as investors await CPI data

The crypto market was higher over the past 24 hours, as the majority of top 10 cryptos were in the green at time of writing. US stocks marched higher yesterday after Federal Reserve chairman Jerome Powell reiterated his warning that rates will have to rise this year.

The confirmation that the Fed is serious about tackling inflation was well received by investors, with the NASDAQ100 (+1.47%), SPX500 (+0.92%) and DJ30 (+0.51%) all finishing higher yesterday.

Energy stocks dominated the SPX500’s risers table following a sharp increase in the price of oil.

Investors will be closely following the monthly Consumer Price Index (CPI) and Core CPI data, set to be released today at 13:30 GMT.

Top cryptos

Bitcoin climbed around 1%, trading above $42,000 at time of writing. Ethereum was up around 4%, and Cardano and XRP registered gains of around 5% and 2%, respectively. Closing out the top 10 list was Polkadot, which registered gains of around 10%.

Avalanche, the 11th biggest coin in the ranking, has gained 11% today, trading for just over $90. It surpassed both Dogecoin and Shiba Inu by market cap and looks set to pass $100 soon.

NEAR Protocol’s native token NEAR is the biggest winner in the top 20 this week. The 19th ranking coin gained 7% in the last 7 days, more than every other coin in the top 20, and added 10% to its value just today.

Top movers

After correcting the recent pullback, Fantom has embarked on a relentless bullish trend thanks to a list of recent events. First, it was the news of Movr Network integrated Fantom into FundMovr and then the currently ongoing FantomLive IDO on DAOStarter. It has gained 20% in the last 24 h.

Oasis Network (ROSE), a privacy-focused layer 1 blockchain built for open finance and a responsible data economy using the Cosmos SDK, is up 19%.

Secret is the native coin of Secret Network, a blockchain with data privacy for smart contracts by default, allowing you to build and use applications that are both permissionless and privacy-preserving. 

This functionality protects users, secures applications, and unlocks hundreds of never-before-possible use cases for Web3. It has gained 18% in the last 24 h.

The Sandbox, Kadena, and Bora all gained 14% today. Bora is up to 96th. Yesterday, it was barely staying afloat at 100.

Harmony, the 42nd largest coin by market cap, is one of today’s big winners too. It has gained more than 13%. Celo gained just under 13%. OMG Network and Livepeer are also up 13%.

The price of metaverse token GALA gained 700% last November, after which it fell with a series of declining highs. Now, it’s starting to reverse some of its losses. It has gained 12% today. Arweave is also up by 12%.

Other strong performers include Enjin Coin with +11% and Stacks and THORChain, both with +10%. The live Kusama price today is $272 with a 24-hour trading volume of $114.4 million. It is up 9.71% in the last 24 hours.

Trending

Bombcrypto is a classic play-to-earn game where players can buy bomber heroes and participate in exciting game modes. The game has 3 game modes: Treasure Hunt – Autoplay, Story Mode, and PVP. It is trending as Bomber Coin. 

The price of its token, BCOIN, is $3.24 today. Bomber Coin is up 30% in the last 24 hours.  

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Crypto and Fed digital dollar can coexist, says Fed Chair Jerome Powell

  • Powell says nothing would prevent a well-regulated stablecoin from coexisting with a US CBDC.

  • He also revealed that a much-awaited report on cryptocurrencies was ready for release within weeks.

Cryptocurrencies and a US central bank digital currency can coexist, according to comments made by Federal Reserve Chair Jerome Powell.

The Fed chair said this when answering a direct question on the topic from Sen. Pat Toomey during Powell’s re-nomination hearing on Capitol Hill.   

The lawmaker wanted to know if there was anything that would prevent the coexistence of a Fed digital dollar and stablecoins. 

According to Business Insider, Powell responded with a “no, not at all.”

His response suggests that if Congress okayed a CBDC and Fed were able to launch one, nothing would “preclude a well regulated, privately issued stable coin from co-existing” within the same financial system as the digital dollar.

An example would be USD Coin (USDC), a US dollar-pegged stablecoin launched by Circle and Coinbase. 

Crypto report ready

Powell also said that the long-overdue report on digital currencies should be out soon, putting the timeline towards that within weeks.

He told Sen. Mike Crapo that the report on cryptocurrencies was ready and that the delay in releasing it was largely down to monetary policy adjustments.

He noted that coming up with the report was a tough task and that the agency “didn’t get it quite to where [it] needed to get it.” However, it’s now ready for publication.

“The report really is ready to go and I would expect we will drop it, I hate to say it again, in the coming weeks, but it really is in a situation where it’s ready to go,” the Fed Chair reiterated.

According to Powell, the structure of the engagement with the report will mainly constitute “asking questions and seeking input from the public,” and not merely taking predetermined positions on issues.

But that doesn’t mean that the Fed wouldn’t be taking positions, he added.

Powell said in December that he didn’t think crypto posed any threats to the stability of the US financial system. He also earlier told Congress that the Fed was not looking to take China’s route and ban cryptocurrencies.

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