Inflation
Bitcoin price is ‘likely starting the next push up’ if $42K holds as support
The cryptocurrency market remains in a state of flux as investors are once again focused on what steps the U.S. Federal Reserve might take to combat rising inflation and markets wobble as the situation in Ukraine remains tense. Data from Cointelegraph Markets Pro and TradingView shows that the price of Bitcoin (BTC) has hovered around the $44,000 support level and traders are hopeful that an inverse head and shoulders chart pattern will lead to a sustained bullish breakout. BTC/USDT 1-day chart. Source: TradingView Here’s a survey of what several analysts in the market are keeping an eye on moving forward as global issues from inflation to war continue to make their presence felt in the cryptocurrency market. On-Balance Volume shows a bullish reversal Insight into what may lie ahead for Bi...
Bitcoin on-chain data hints at institutions ‘deploying capital’ at expense of ‘hodlers’
“Sophisticated passive buying” on Bitcoin (BTC) spot exchanges coincides with the trend of BTC leaving exchanges to cold storage. Adjusted Bitcoin supply shock. Source: Willy Woo The price recovery witnessed in the Bitcoin market across the last two weeks coincided with a rise in hodlers and speculative investors selling their coins, according to data provided by researcher Willy Woo. Nonetheless, BTC’s price ability to withstand the selling pressure meant there was buying pressure coming from elsewhere. As Cointelegraph reported earlier this week, so-called Bitcoin whales are accumulating BTC at current price levels. “This selling is contrasted by exchange data showing sophisticated passive buying on spot exchanges and movement of coins to whale-controlled wallets,...
DeFi flashes early revival signs as retail and institutional inflows trickle in
Decentralized finance (DeFi) has had a rough go so far in 2022, and data from Messari shows the top ten-ranked DeFi assets currently down between 10% to 50% since the start of the year. Top ten DeFi tokens by market capitalization. Source: Messari A positive is, the situation may change soon as funds have began to flow back into the DeFi ecosystem following a month of declines as data shows institutional and retail funds returning to crypto markets. Data from Defi Llama shows that the total value locked in all of DeFi platforms has climbed to $211.1 billion on Feb. 11, up from a low of $185.14 billion on Jan. 31 Total value locked in DeFi. Source: Defi Llama A closer look at the individual protocols that contribute to the total TVL shows that the biggest drawdowns in TVL over the past 30 d...
DeFi flashes early revival signs as retail and institutional inflows trickle in
Decentralized finance (DeFi) has had a rough go so far in 2022, and data from Messari shows the top ten-ranked DeFi assets currently down between 10% to 50% since the start of the year. Top ten DeFi tokens by market capitalization. Source: Messari A positive is, the situation may change soon as funds have began to flow back into the DeFi ecosystem following a month of declines as data shows institutional and retail funds returning to crypto markets. Data from Defi Llama shows that the total value locked in all of DeFi platforms has climbed to $211.1 billion on Feb. 11, up from a low of $185.14 billion on Jan. 31 Total value locked in DeFi. Source: Defi Llama A closer look at the individual protocols that contribute to the total TVL shows that the biggest drawdowns in TVL over the past 30 d...
‘One currency change every generation,’ how monetary skepticism spearheaded cryptocurrency adoption in Czechia
Czechia, a country of 10.7 million people in Central Europe, is known for its beautiful capital (Prague), rich history and good beer. Within the last decade, however, one can now add cryptocurrency adoption to that list. In fact, the Trezor wallet, the first cryptocurrency hardware wallet in the world, was invented here in 2014 and is still going strong. Its parent company, SatoshiLabs, has expanded into creating secure chips for electronic hardware via Tropic Square and advancing cryptocurrency education via Invity. What’s more, the country also gave birth to the world’s first Bitcoin (BTC) mining pool — Braiins (Slush Pool), with close to 1.3 million BTC mined since 2010. Then there’s General Bytes, one of the world’s largest crypto ATM chains, with close to 8,000...
Ethereum eyes $3.5K as ETH price reclaims pandemic-era support with 40% rebound
Ethereum’s native token Ether (ETH) looks poised to hit $3,500 in the coming sessions as it reclaimed a historically strong support level on Feb. 5. Ethereum price back above key trendline ETH price rising above its 50-week exponential moving average (50-week EMA; the red wave in the chart below) means the price also inched above $3,000, a psychological support level that may serve as the ground for Ether’s next leg up. ETH/USD weekly price chart. Source: TradingView The 50-week EMA was instrumental in maintaining Ether’s bullish bias across 2020 and 2021. For instance, it served as a strong accumulation zone during the market correction in the second and third quarters last year, pushing ETH price from around $1,700 to as high as $4,951 (data from Binance). As a result, ...
The US Federal Reserve is making some analysts bullish on Bitcoin again
Signs of a steady Bitcoin (BTC) price recovery emerged earlier this week as investors shifted away from the U.S. dollar on weaker-than-expected economic data. In detail, Bitcoin’s drop last week to below $33,000 met with a healthy buying sentiment that pushed its per token rate to as high as $39,300 on Feb. 1. As of Thursday, BTC’s price dipped below $37,000 but was still up 13% from its local bottom. Meanwhile, the U.S. dollar index (DXY), which measures the greenback’s strength against a basket of top foreign currencies, rose to 97.441 last Friday, logging its best level since July 2020. However, the index corrected by nearly 1.50% to over 96.00 by Feb. 3. DXY vs. BTC/USD daily price chart. Source: TradingView Some market analysts saw the dollar’s renewed weakness...
Digital Denarius: How a crypto revolution could have saved the Roman Empire
Two currency crises two thousand years apart. Modern-day Venezuela and the Roman Empire have more in common than you might think. Both know too well the dangers of soaring inflation and a collapse in investor confidence. But, only one has crypto on its side. Venezuela’s official currency, the bolívar, has suffered from hyperinflation for half a decade due to repeated currency devaluations, minimum wage rises and significant public spending increases. For a sustained period of several centuries, the Roman Empire enjoyed the enormous trade and commercial benefits associated with the world’s first fiat currency, as explored in my book Pugnare: Economic success and failure. The Roman currency was comprised of three coins: gold (Aureus), silver (Denarius) and copper or brass coins (Sestertius a...
Polygon (MATIC) sees a strong oversold bounce after $250B crypto market rebound
Polygon (MATIC) emerged as one of the best performers among high-ranking cryptocurrencies on Jan. 26 as the price rose nearly 17% to reach an intraday high at $1.825. The gains surfaced amid a synchronous rebound across the crypto market that started on Jan. 24. In detail, investors and traders poured in over $250 billion across digital assets, benefiting Bitcoin (BTC), Ether (ETH) and many others in the process. Performance of the top-fifteen cryptocurrencies in the last 15 days. Source: TradingView Polygon, a secondary scaling solution for the Ethereum blockchain, also cashed in on the crypto market rebound. The valuation of its native token, MATIC, rose from as low as $9.77 billion on Jan.24 to as high as $13.58 billion two days later. Meanwhile, its price jumped from $1....
‘Most bullish macro backdrop in 75 years’ — 5 things to watch in Bitcoin this week
Bitcoin (BTC) starts a new week in a strange place — one which is eerily similar to where it was this time last year. After what various sources have described as an entire twelve months of “consolidation,” BTC/USD is around $42,000 — almost exactly where it was in week two of January 2021. The ups and downs in between have been significant, but essentially, Bitcoin remains in the midst of a now familiar range. The outlook varies depending on the perspective — some believe that new all-time highs are more than possible this year, while others are calling for many more consolidatory months. With crypto sentiment at some of its lowest levels in history, Cointelegraph takes a look at what could change the status quo on shorter timeframes in the coming days. Will $40,700 hold? Bitcoin saw a tr...
Bitcoin crash ahead? Expert warns higher inflation could whip BTC price to $30K
Bitcoin (BTC) may end up falling to as low as $30,000 if the U.S. inflation data to be released on Wednesday comes any higher than forecasted, warns Alex Krüger, founder of Aike Capital, a New York-based asset management firm. The market expects the widely-followed consumer price index (CPI) to rise 7.1% for the year through December and 0.4% month-over-month. This surge highlights why the U.S. Federal Reserve officials have been rooting for a faster normalization of their monetary policy than anticipated earlier. U.S. headline inflation. Source: Bureau of Labor Statistics, Bloomberg Further supporting their preparation is a normalizing labor market, including a rise in income and falling unemployment claims, according to data released on Jan. 7. “Crypto assets are at the furthest en...
Bitcoin is new gold for millennials, Wharton finance professor says
Bitcoin (BTC), the world’s most-valued cryptocurrency, has replaced gold as an inflation hedge for young investors, according to Wharton’s finance professor. Gold’s performance was “disappointing” in 2021, Wharton School finance professor Jeremy Siegel said in a CNBC Squawk Box interview on Friday. On the other hand, BTC has been increasingly emerging as an inflation hedge among younger investors, Siegel argued: “Let’s face the fact, I think Bitcoin as an inflation hedge in the minds of many of the younger investors has replaced gold. Digital coins are the new gold for the Millennials. I think that the story of gold is a fact that the young generation is regarding Bitcoin as the substitute.” Siegel also reminded that older generations witnessed how gold had soared during the inflation...
