The cryptocurrency market story for the past week was the same as for all of 2022. The price moves with macroeconomic factors and in conjunction with US stock indices. For the past few weeks, however, there have been some encouraging signs for bitcoin.
First, at the price level, we can see that any drop below $19,000 is currently quickly bought, regardless of what the stock market indices do; the Nasdaq in particular. This price action means that while these same American exchanges are trading today at their lowest level for the year, bitcoin remains in its current consolidation channel. This data is doubly encouraging when one integrates the DXY index, that is, the strength of the American dollar. The latter is currently exploding, reaching record levels dating back to 2002. Remember that bitcoin is seen by many, including us, as a protection against the possible weakness of the dollar, or national currencies in general at least.
As a result, the chart of bitcoin against the British pound, the Euro, the Chinese yuan and even the Canadian dollar is much more encouraging than that against the US dollar at present.
What explains this recent relative strength of bitcoin, when we observed the opposite until recently? The absence of sellers at this price level. “I think what we’re seeing is more of a lack of great sellers, rather than a plethora of great buyers,” said Mike Alfred, a value investor and founder of the digital asset investing platform Eaglebrook Advisors. “There are no big sellers anymore. The forced sale has already taken place”. Blockchain analytics firm Glassnode agrees, saying bitcoin’s relative stability stems from the “full detoxification of speculative interest” and long-term investors’ refusal to yield and sell in a weak macroeconomic environment. . “The dominance of spent mature tokens collapsed from an exuberant 8% at the peak of the bull in January 2021, at a distribution of just 0.4% of all volumes,” the firm’s analysts wrote in the latest edition of the firm’s weekly newsletter. “This suggests that the cohort of investors owning older coins remain steadfast, refusing to spend and exit their position on any significant scale.”
The data does not lie to this effect. While the price has fallen more than 50% in the past six months, more than three out of four bitcoins have remained snug in the wallets of its holders, with no movement observed.
On the Ethereum side, the network now works exactly as expected on its consensus mode proof-of-stake. The price stabilized after a “sell the news” drop. However, remember that the creation of new tokens recorded a sharp decrease of 95%. Eventually, Ether will become a deflationary currency. Ethereum will be considered deflationary if the number of tokens issued per day is less than the amount burned (another way of saying permanently destroyed). The burning mechanism was introduced by EIP-1559 in August 2021. Since the merger, the network’s daily issuance has dropped to 772 tokens per day from 12,500 before the upgrade. In short, while some may be disappointed with Ether’s price action following this merger, the fundamental backdrop is more interesting than ever. On the fund side, we are closely watching consolidation at current levels and remain bullish on a bull market return against bitcoin for ETH.
Celsius CEO Alex Mashinsky has resigned, adding that he regrets his role at his bankrupt cryptocurrency lending business has become a growing distraction. “I have chosen to step down as CEO of Celsius Network today,” Mashinky said in a statement. “Nevertheless, I will continue to maintain my focus on working to help the community unite behind a plan that will deliver the best outcome for all creditors – which is what I have been doing since the company filed for bankruptcy. .” Meanwhile, rumors are growing that FTX is considering bailing out Celsius through an asset buyout offer. Bloomberg reported FTX’s interest in Celsius Network based on information from someone familiar with the company’s founder, Sam Bankman-Fried.
Strike, a bitcoin payments company, raised $80 million in a Series B funding round. Venture capital firm Ten31, which focuses on bitcoin companies, was the lead investor. Note, however, that Washington University in St. Louis and the University of Wyoming also participated, according to an announcement made Tuesday. Strike uses the Lightning Networka solution of 2e layer that helps speed up bitcoin transactions so that the cryptocurrency can be used to make everyday purchases.
Could the next bullish wave just be based on bitcoin’s growing utility, rather than what it more philosophically represents? That’s exactly what Mike Novogratz, CEO of Galaxy Digital, believes. As part of a panel held earlier today, the latter suggested that the price action in 2020 and 2021 was “probably 80% history and 20% utility”. Unlike previous cryptocurrency bulls, the next bitcoin bull is expected to be “50% story, 50% utility,” Mr. Novogratz predicted. are user friendly. We don’t have them yet. That’s why we are where we are. But in the next few years, they will arrive”. During the panel, Novogratz also fired up the audience with his bullish prediction of the “inevitability” of crypto success. “The word inevitable keeps coming up on the carpet. There is a feeling of inevitability that we are in the right space, inevitable that bitcoin will have its day,” Novogratz said. He also expressed belief that Web3 and non-fungible tokens will be prominent in the space. gaming in the future.
The Rivemont crypto fund remains in a defensive position. As of this writing, around half of the capital is exposed, exclusively against bitcoin. We also note a rebound in the BTC.D dominance index since its systematic fall in the summer.
This article is brought to you by Fonds Rivemont. The Rivemont crypto fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA eligible. Accredited investors can learn more here.
Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..
Follow our affiliate links:
- To buy cryptocurrencies in the SEPA Zone, Europe and French citizensvisit Coinhouse
- To buy cryptocurrency in Canadavisit bitbuy
- To generate interest with your bitcoinsgo to the website of BlockFi
- To secure or store your cryptocurrenciesget the wallets Ledger Where Trezor
- To trade your cryptos anonymouslyinstall the app NordVPN
To accumulate coins while playing:
Stay informed with our free weekly newsletter and to our social networks:
We would like to give thanks to the writer of this article for this incredible content
The latest crypto, blockchain and Defi news
Explore our social media profiles as well as other related pageshttps://metfabtech.com/related-pages/