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Bitcoin Price Could Fall To $8,000, Says Guggenheim CIO

Hearing more negative speculation would be unpleasant for the investors as the recent bloodbath’s catastrophic effects already slowed down crypto markets. But unfortunately, an expert predicted Bitcoin would go far below.

Scott Minerd, Chief officer at Guggenheim Partners, a global investment and advisory firm handling $325 billion under its management, speculated that the Bitcoin price could plummet to $8,000. He is the same man who once said in December that “Bitcoin price should be $400,000.”

Related Reading | XRP Has Broken Below Its Long-Standing Support, What’s Next?

The speculation refers to a nearly 70% drop from today’s price of BTC, fluctuating around $30,000.

BTC Could Fall With The Fed Being Restrictive

Speaking with the CNBC’s Andrew Ross Sorkin in an interview held on Monday at World Economic Forum, Switzerland, he said;

When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive.

Minerd highlighted the relationship between BTC price and Fed regulation and tightening policies.

Following its previous high of November 10, when BTC’s price marked $69,044, it decreased by around 58% of its value.

“Most of these currencies, they’re not currencies, they’re junk,” he added, saying that “I don’t think we’ve seen the dominant player in crypto yet.”

Comparing the current situation with the dotcom bubble of the early 2000s, he said;

“If we were sitting here in the internet bubble, we would be talking about how Yahoo and America Online were the great winners,” adding that “Everything else, we couldn’t tell you if Amazon or Pets.com was going to be the winner.”

In addition, he urges that digital currency is required to store value. As well as, become a medium of exchange and a unit of account. “I don’t think we have had the right prototype yet for crypto,” said Minerd.

Bitcoin price currently trades at over $29,000. | Source: BTC/USD price chart from TradingView.com
Investors Seem Hesitant To Buy Bitcoin Dips

The collapse of stablecoins, including TerraUSD (UST) and its fellow token Luna, has caused the market to suffer a severe blow.

Edward Moya, an analyst from the well-known forex and CFD trading platform of America, OANDA, has commented that Bitcoin prices are steadied even with the broad risk rally on Wall Street. He added;

It looks like most crypto traders are hesitant to buy the dip. Which most likely means that the bottom has not been made.

Moreover, Moya talked about the European Central Bank President Christine, who previously said digital currencies are “worth nothing.”

Related Reading | Solana (SOL) Could Register An Upswing, Thanks To This Pattern

“It is unlikely that any head of a central bank will endorse bitcoin or the other top coins. Especially as we are years away from a digital euro or dollar,” Moya stated. “It looks like bitcoin won’t really attract massive inflows. Until investors believe most major central banks are nearing the end of their tightening cycles.”

He speculated that giant coin prices will possibly remain choppy this summer. 

Featured image from Pixabay and chart from TradingView.com

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Nox Bitcoin To Refund UST At $1 To Their Customers

Nox Bitcoin, a cryptocurrency exchange in Brazil, has taken the unprecedented step of using its own funds to refund customers for their TerraUSD coins at the full rate.

Following local media’s report on May 20, the Nox Bitcoin exchange has refunded all UST holders at a $1 rate with Tether’s USDT.

The report stated that the crypto brokerage firm paid 620,000 Reais ($127,000). The exchange paid the amount to compensate all its customers who lost money due to the Terra ecosystem collapse.

  Related Reading | Ripple Price Falls Below $0.43 As Bears Take Control Of The Market

“FatMan” of the Terra research forum commented in a tweet on May 20 that the decision might set a global precedent for other crypto exchanges.

The tweet stated;

This is fairly significant. A Brazilian cryptocurrency exchange has refunded all UST holders at a 1:1 rate with USDT. Likewise, this case may be used as key precedent to argue that exchanges are liable for UST losses. If tortious misrepresentations were made.

UST Back At $1 For Those Lucky Ones

The exchange stated that it would refund the customers the amount of the difference between the present rate for UST and the dollar peg it collapsed from. This implies that a holder of 100 UST at $0.06 will receive a refund of 94 USDT.

UST is currently trading at $0.066 with a green line | Source: UST/USD price chart from Tradingview.com

According to Nox Bitcoin CEO Joo Paulo Oliveira, the firm is not responsible for bearing clients’ losses from investing in certain currencies on its platform. Yet, they decided to intervene to ensure their customer’s trust.

He continued;

Clients have trusted us with staking and we understand that their trust is much more valuable than anything else. As a result, we’re going to reimburse these users minus the expenses we’d have elsewhere, like marketing.

The news came as a relief and brought positiveness to the cryptocurrency space. However, the decision by the Nox Bitcoin exchange reflects the Brazilian customer protection regulations.

The exchange also offers staking services, such as Anchor Protocol, which UST heavily uses. The DeFi protocol offered up to 20% APY on UST staking and was primarily seen as being instrumental in its collapse due to these unsustainable yields.

People are now waiting to see what happens next regarding listing UST and LUNA. “It is possible that this will no longer exist in the near future,” stated Oliveira before adding, “but you never know what can happen in an unpredictable crypto market.”

  Related Reading | Cosmos (ATOM) Skyrockets 12% Following Bitcoin And Ethereum Recovery

According to Tradingview, UST is trading at $0.067 with a 1% increase at the time of writing. The “unstablecoin” has withdrawn 93% from its peg. And it is unlikely to get back to it without major intervention such as a TerraForm Labs hard fork.

Also, TerraForm’s LUNA has dumped a similar amount. As a result, the coin is trading at $0.00020 with a market cap of $1.35 billion and 6.5 trillion tokens in circulation. 

Featured image from Flickr, and chart from Tradingview.com

 

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Tether Cuts 17% Of Its Commercial Paper Holdings Over Q1 2022

As per the official report published on May 18, Tether, the issuer of the world’s most used stablecoin, USDT, has cut 17% of its commercial paper holdings and increased United States Treasury bills with this reserve amount to back its stablecoin, USDT. Tether made the reduction over Q1 2022 and continues for a further 20% decline since April 1. The firm will highlight this 20% reduction in the Q2 report.

The crypto project took these steps following the USDT stablecoin losing its dollar peg. The stablecoin dropped to 95 cents on May 12. In addition, to assuage users’ fears over the catastrophic effects of the recent bloodbath, Tether noted that its reserves were “fully-backed” in a blog post on Thursday.

Related Reading | TA: Bitcoin Reclaims $30K, Why Bulls Face Uphill Task

According to the statement of the stablecoin issuer, it has decreased commercial paper holdings. As a result, the holdings decreased from $24 billion to $20 billion in the first quarter. As well as, the company increased its investments in the market money funds and U.S. treasury bills during that time. The firm has added 13% to its Treasury Department and lifted the investment amount from $35.5 billion to $39 billion.

Chief technical officer at Tether, Paolo Ardoino, expressed;

Tether has maintained its stability through multiple black swan events and highly volatile market conditions and, even in its darkest days. Tether has never once failed to honor a redemption request from any of its verified customers.

USDT price is currently below the 1 U.S dollar. | Source: USDT/USD price chart from TradingView.com
Tether Affirms It Is “Fully Backed”

He further added;

This latest attestation further highlights that Tether is fully backed. And that the composition of its reserves is strong, conservative, and liquid. 

In February 2021, New York Attorney General alleged the firm had misrepresented the figure of fiat collateral through which stablecoins USDT is backed. The company settled the legal dispute with A.G by paying an $18.5 million fine. And since then has been liable to disclose its reserve every quarter per the settlement. As a result, Tether reported its reserve allocation for Q4 2021 last February. According to that report, the company has reduced its commercial paper holdings from $30 billion to $24 billion, diminished by 20%.

Continued redemptions from USDT would cause forced sales of commercial holdings, possibly leading to spillover in contagion in the traditional financial market, said Nikolaos Panigirtzoglou, an JP Morgan Chase & Co. analyst on Thursday.

Citing the outflows of the Tether, Panigirtzoglou said;

This is not all exiting crypto markets as around $5 billion appears to have shifted to USDC and Binance USD.

Related Reading | Bitcoin Selling Pressure Continues As Long-Term Holder SOPR Spikes Up

Tether has a market capitalization of over $74 billion at the time of writing. While Tether’s reported assets backing USDT have exceeded $82 billion. To assure users that Tether is stable as its name sounds, over the last two weeks of market volatility, Tether highlighted that it would “honor all redemptions from verified customers” for USDT.

Featured image from Pixabay and chart from TradingView.com

 

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U.S. Mining Stocks Drop Almost 50% Despite Hashrate Increasing

The Cambridge Center for Alternative Finance, a financial research institute affiliated with Cambridge University, has found that the Bitcoin hashrate was up by 4% in August from the previous year, from 35% to 39%. But, still, the mining stocks have seen declines in the last month, with Bitcoin prices going down. The concluded figure involves BTC.com, Via BTC, and Pooling data.

Cryptocurrency mining involves verifying and broadcasting the transactions on the relative blockchain ledger. It is a computationally-intensive process that opens doors for validators (who validate transactions) to earn rewards. Validators verify the transaction by guessing a unique hash number associated with each transaction. And it requires computing power more than simple PCs.

Related Reading | New Data Shows China Still Controls 21% Of The Global Bitcoin Mining Hashrate

Similarly, it needs a more powerful computer when verifying transactions on the Bitcoin network. Because the Bitcoin algorithm creates difficulty when too many validators come online simultaneously.

Mining Bitcoin through a home computer was feasible a decade ago. However, considering the problems that arose with the growth of BTC mining, U.S. public companies such as Marathon Digital Holdings, Riot Blockchain, and Core Scientific owned server forms have made this type of work more accessible.

Bitcoin is currently trading below $29,000 | Source: BTC/USD price chart from Tradingview.com
Mining Stocks Dropped Nearly 50%

The most recent bloodbath in the crypto market, which has seen the collapse of TerraUSD and the price dips of many cryptocurrencies, also caused a slump in the price of the shares of these mining companies.

Since April 18, mining stocks of Core Scientific and Marathon have nearly lost 47% of their value. Likewise, Riot’s shares are reduced by its one-half, and Canadian-based Hut 8 Mining Corp has similarly diminished by 41% of the value of its shares.

A few crypto traders point out that seeing the last month’s decline of 25% in Bitcoin price and the increasing correlation of crypto with the stock market, investors would now be cautious about cryptocurrency investment.

The level of correlation between crypto and stocks has lasted between 0.67 to 0.78, with the BTC falling 10% on the day of peak correlation. Here 0 refers to no relationship, and 1 implies being completely correlated.

Richard Craib, chief of the San-Francisco-based hedge fund Numerai, stated that digital assets are now “part of the mainstream financial system, and that’s not good for its viability as an alternative asset class. It’s not serving its original purpose as an uncorrelated asset.” 

Related Reading | Bitcoin Bearish Signal: Whales Ramp Up Dumping

Analysts say that some traditional investors have ended up their crypto trading. The plummet of tech stocks has become the reason behind the exit of many investors. So they are selling their virtual assets to raise funds. 

In addition, the raised concerns about the environmental impacts of mining could also play their role in dropping stock prices. As of now, 160 crypto mining bills are waiting for the consideration of the government authorities in over 30 states.

Featured image from Pixabay and chart from TradingView.com

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TerraLabs Sold Over 80,000 BTC To Rescue Its Stablecoin, Luna

The crypto market has experienced many bloodbaths in the past. But last week’s crash had more catastrophic effects on the market than recent bearish trends, mainly on the stablecoins. UST, a stablecoin issued by Terraform Labs, is an example that stunned the crypto world as the coin collapsed and dropped its value from $1 to $0.15 between May 9 to May 14, nearly losing 85% of its value.

Afterward, on May 16, the Luna Foundation Guard (LFG) announced on Twitter that they had sold out their Bitcoin (BTC) reserves between May 8 to 10 to rescue its stablecoin.

Related Reading | Bitcoin Marks Seven Consecutive Red Candles, Paints Gruesome Picture For Market

It was not the first time a crypto project collapsed. But the previous collapse had not the terrible effects as the stablecoin UST has suffered in the most recent bloodbath.

LFG, an organization aimed at supporting the blockchain innovators developing a decentralized economy, revealed its reserves of 80,394 BTC and other digital currencies it held as of May 07, 2022.

The Foundation reportedly began converting its assets into reserves against UST on May 8, 2018, when UST’s price fell significantly. It took these steps immediately since it is a non-profit firm with a primary motto to strengthen Terra’s ecosystem. 

Similarly, the firm explained it quickly shifted the asset by transferring the digital assets to a counterparty, which does not require short notice to allow large-sized transactions.

Luna’s price currently stands at $0.00020. | Source: LUNA/USD price chart from TradingView.com
LFG Strives To Maintain Luna Peg

In line with the Master Services Agreement that was inked on January 10, 2022, TerraForm Labs (TFL), on May 10, said it managed to execute all financial, administrative, and operational duties that were needed to back its coin when the value of Terra’s $UST had decreased to $0.75.

In its desperate attempt to maintain the value of the peg, TerraLabs, relying on the LFG, had carried out the following BTC exchange besides others.

“LFG sold 33,206 $BTC for an aggregate 1,164,018,521 $UST.”

Speaking about the remaining 313 BTC in circulation, the Luna Foundation has announced that it plans to distribute them among Terra’s community to reimburse affected users.

The LFG revealed in a tweet;

The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first. We are still debating through various distribution methods; updates to follow soon.

Suffering the effect of collapse, the Luna made the deepest dive on Saturday when it sniffed the bottom. Afterward, the volatile token skyrocketed and gained a whopping $720% in just 24 hours, reaching its value at $0.00040154. Likewise, Luna’s trading volume surged 1000% after the TFL restarted its block production after a 9-hour halt.

Related Reading | Ripple (XRP) Price Picks Up As SEC Legal Showdown Drags On

As things stand now, it’s hard to speculate whether or not the Terra network can recover from such a huge loss. But, the recent gains give frustrated investors momentary ease. And it remains to see whether the token will have the potential for full-fledged recovery.

Featured image from Pixabay and chart from TradingView.com

 

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Bitcoin Price Takes Deepest Dive Since 2020, Will BTC Bounce?

Suffering the effect of the current bloodbath in the crypto market, Bitcoin’s (BTC) price on May 12 hit its lowest valuation of $26,350 since December 2020. The ongoing bearish trend has remarkable similarity with the previous mid-season bearish trend that lasted from May to June 2021.

In both market crashes, Bitcoin’s price broke the resistance level of $30,000. Recently, it had dropped more than it reversed back in June 2021 when the BTC’s valuation stopped losing at $29,800. In contrast, its price in the current market clash has touched the $26,3000 level.

Related Reading | Dogecoin Has Dropped 90% Since “The Dogefather” Debuted On SNL

Several macroeconomic factors impacted the crypto market in both instances. For example, before 2021’s bearish trend, Chinese banks prevented using crypto by disallowing crypto services for the state’s financial sector. Then Elon Musk added fuel to the fire by reversing his decision to include Bitcoin for Tesla payments. Similarly, the distortion of COVID-19 caused some major countries to step back from the blockchain industry; thereby, the BTC price plummeted dramatically.

Likewise, in the most recent downtrend, geopolitical conditions and macroeconomic facts have decided the fate of Bitcoin. First, the Russia-Ukraine conflict immensely affected the crypto price, with regulators imposing strict rules day by day at a time when Bitcoin is starting to grow worldwide. Then legal ambiguity and Fed regulation of digital assets further plunged back Bitcoin price.

Bitcoin price struggles to hold $30,000 again. | Source: BTC/USD price chart from TradingView.com
Bitcoin Holders Rushed To Exit Their Assets

Crypto investors have been withdrawing their holdings after the recent slump, and many still hold on to losses and expect crypto prices will rock on again in the future. According to stats, 16,967,726 wallet addresses currently took losses and broke previous records. Crypto history has seen a similar peak on 19 Mach 2020.

The unusual behavior of the crypto market compelled investors to liquidate their assets, neglecting the losses they had taken. That’s why the figure for the following metric has decreased. Now, the number of crypto traders holdings 1K+ coins in their wallets has reached a low of 2,234, and most importantly, this figure was recorded on May 11.

Again, May 11 set a new record of transactions in the Bitcoin network as crypto holders rushed to exit their investments. It has reached a 4-year new high of traded volume with 175,146.8 BTC. The recent volume of committed transactions has eclipsed previous highs.

Related Reading | TA: Bitcoin Gains Momentum, Why Break Above $30K Is Crucial

Considering the present situation of the crypto market, the host of The Wolf of All Streets Podcast, Scott Melker, commented that “the entire market is reeling.”

He added:

I think that markets are in a full irrational panic. The pendulum has swung to extreme fear, as it always does. This causes people to sell assets at or near the bottom.

Featured image from Pixabay and chart from TradingView.com

 

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Bitcoin Market Cap Falls By $315 Billion As Crypto Adoption In 2022 Fails To Materialize

Cryptocurrencies’ values have been diving due to the current bloodbath in the crypto market. Likewise, the largest and most popular cryptocurrency, Bitcoin, also continues to lose its value. The coin has consecutively dropped since the year 2022 has turned.

Per the statistics provided by Tradingview.com, the market value of the giant Bitcoin was fledging around $883.89 billion on January 1. However, after the continuous downtrend in the value, its market capitalization as of May 10 stands around $568.55 billion.

Related Reading | Market Downtrend Trigger Bitcoin Inflows From Institutional Investors

It means that the Bitcoin market cap has lost more than 35% by outflowing $315 billion since the beginning of the year.

The DeFi asset’s drop in price has similarly declined the DeFi market cap. Meanwhile, Bitcoin faced an ever-decreasing price falling from $46,726 on January 1 and trading at $29,865 as of May 11.

In other words, the BTC price at the time of writing had lost 35%. Or say the price has decreased by $17,861 compared to its value before the year started. 

Crypto Bloodbath Occurs Amidst Bitcoin’s Growing Adoption

Bitcoin’s inability to capitalize on the crypto adoption of 2022 across the global industries, became the reason for these year-to-date (YTD) losses. It also encircles the recent adoption of Bitcoin in the Central African Republic (CAR), the second country after El Salvador to make Bitcoin a legal tender.

In terms of the adoption, the Bitcoin network has reportedly installed 3,000 ATMs in 2022 where users can buy and sell Bitcoins. The number of such machines is 37,338 as of May 11.

Players in the industry put their efforts in 2021 to spread the growth of Bitcoin, installing over 10,000 ATM machines globally. 

It is not only Bitcoin that recorded increasing adoption; nearly 700 new cryptocurrencies and 30 crypto exchanges have rolled out solely in March. At the time of writing this news piece, 19,384 cryptocurrencies are circulating in 525 total crypto exchanges.

Bitcoin price currently trades above the $30,000 mark. | Source: BTC/USD price chart from TradingView.com
Cryptocurrency Is Now Linked With Stocks

Cryptocurrencies’ relationship with stocks has grown up since many financial institutions have adopted blockchain technology over the past year. 

Traditional financial markets, alongside the crypto industry, have been seeing a big sell-off due to tightening monetary policies of the Federal Reserve spreading fear. Therefore, Wall Street is having difficulty, and its index has decreased by 3.75%.

Related Reading | Bitcoin Long-Term Holders Start Capitulating Amid Panic

Bitcoin’s price lastly went below $30,000 in July 2021 when its value reached the $29,301 mark before rebounding.

“Bitcoin could perhaps receive a mini-bounce near $35,000, but unless we break the trend line at around $37,000, I’m predicting for $29,000 in the coming weeks or week,” said Wendy O, a crypto analyst, in a new social media video.

Many investors called BTC the gold of the digital era and a potential safety investment posing inflation hedge. But, seeing the volatile price actions of cryptocurrencies, the market doesn’t consider virtual assets as a reliable value repository.

Featured image from Pixabay and chart from TradingView.com

 

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Ethereum Miners Surpass Bitcoin Miner Revenue By $224M

After the continuous sink in the mining profitability of both digital assets year-on-year, Bitcoin miners have been set back to seats as Ethereum miners consecutively surpassed them in mining revenue and recorded a gap of $224 million in April 2022.

This month was not so good for Bitcoin miners as they were able to generate around $1.16 billion only. Notably, this figure is down by $44 million from the previous month’s mining revenue of Bitcoin. The last month saw $1.7 billion in recorded income.

Related Reading | TA: Ethereum Bears Aim Big After Recent Breakdown Below $2.5K

Bitcoin miners’ total profitability was down by 31% from April 2021 to the present. In that time, $1.7 billion in revenue was recorded.

Similarly, the single-day high of BTC mining revenue in April was 3% low than the peak value of March. As per YCharts, the best-day high in March 2022 lasted at around $47.54 million and $46.01 million in April. And it dropped 23% from the best-day high of January, which saw $60.16 million.

Unlike Bitcoin, Ethereum mining revenue in April increased by 3% generating $1.39 billion. While Bitcoin, at the same time, recorded $1.16 billion in mining revenue.

Bitcoin currently trading at $30,700 with a 9.6% decline over the past 24 hours | Source: BTC/USD chart from Tradingview.com

Still, the Ethereum mining revenue has decreased yearly from its previous marks recorded till April. The mining revenue of Ethereum in April 2022 is 17% below the previous year’s mining income of April 2021. Last year it was around $1.68 billion.

Ethereum Becomes Preferred Choice Of Miners In 2022

Although Bitcoin stands as the largest and most popular digital asset, Ethereum has become the most preferred choice of the miners seeing a higher income generated in 2022.

It was not the first time Ethereum outpaced Bitcoin in mining revenue; it surpassed BTC mining by $260 million in January, $190 million in February, and $130 million in March 2022.

To understand the reason behind disparities in the mining incomes of two digital assets, first, it needs to consider the fact that mining revenue is calculated per the value of cryptocurrency and earned coins within a specific timeframe.

Likely, Ethereum mining revenue increased in March 2022 and traded between $3,000 to $4,000 until most of April. And it traded in the range of $2,900 and $3,400 in March.

On the other side, the Bitcoin price in April traded between $37,000 and $44,000. And in March, it had a higher trading value ranging from $43,000 to $48,000.

Related Reading | Bitcoin Price Plummets To Lowest Point In 2022, Will $33,000 Hold?

Crypto mining is the process of verifying and adding new transactions to the blockchain for a cryptocurrency. The miner who wins the competition gets rewards with some amount of the currency and/or transaction fees.

Featured image from Pixabay and chart from TradingView.com

 

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Bitcoin Tumbles Below $36K, Altcoins In Red Too

The crypto market has turned red even after the latest FOMC meeting. Bitcoin inches towards the $35,511 mark, and altcoins are getting a beating too.

Bitcoin responded to the Federal Reserve’s 50 basis-point interest rate hike by dropping more than 10% in one day, its most significant decline in two months.

Related Reading | Cardano Prepares For Major Update, Will It Be Enough To Push Bears Back?

Most of the crypto market was up early today, with bitcoin hitting $40,000 after yesterday’s Federal Reserve meeting. Other cryptocurrencies that performed well in the early hours are Cardano, Solana, Polkadot, and Avalanche.

The afternoon market dived, and all cryptocurrencies, including Bitcoin, recorded a significant decline. BTC fell 10%, while altcoins also saw a considerable fall. 

The second-largest cryptocurrency Ethereum fell by 7.8%; other altcoins also had a major decline. For example, DOGE had dropped 5.4% in the last 24 hours while SAND was down 11.8%.

As the cryptocurrency landscape was bearish last week following a rejection at $40,000, it quickly returned below that level and kept losing value. This resulted in an almost two-month low of under $35,511 per coin.

Bitcoin is trading below its two month low with a 10% decline | Source: BTC/USD price chart from Tradingview.com

Yesterday, it was reported that the asset failed to stay above $39,000 and eventually fell below $38,000 again.

Bitcoin was trading at around $38,500 before the FOMC meeting. The Fed Chair Jerome Powell said the institution would raise the interest rates by 50 basis points (instead of the expected 75). 

This news caused the stock market to go up. Bitcoin also jumped to an intraday high of $40,000. As per Jarvis Labs:

(…) the fair price scanner started showcasing potential local bottoming after alerts last night. However, they predict FOMC/trad-fi is more likely to play along for a market relief current week. Any slight dovishness sign and we might see the follow-up. And if not, then further crab or a drop hard. Volatility could go either way.

U.S Stock Market Affecting Bitcoin Price

Unfortunately, the stock market could not hold the spike and started a downtrend. Bitcoin also followed the US stock rally and lost more than 10% of its value. This brings its total market cap above $692.6 billion.

Cryptocurrencies are being affected by the same trend as stocks. Investors seem to be selling off their stocks, causing a “risk-off” trade. This has caused the market for cryptocurrencies to go down sharply.

Despite the several positive news like a DDoS attack against a cryptocurrency busted, Congress is considering allowing companies to include cryptocurrencies in their 401(k) plans; the falling stock market is pulling cryptocurrency values down with it. In addition, the volatility of tokens means that when the stock market goes down, the losses are generally more severe in the crypto market.

Related Reading | One Coin, Two Trades: Why Bitcoin Futures And Spot Signals Don’t Match Up

Cryptocurrencies are constantly changing. Thursday’s changes seem regular. People who invest in cryptocurrencies might understand that the value of these investments can go up and down drastically. However, as things stand, what has changed in the last six months is that stock market values have started affecting cryptocurrency values.

Featured image from Pixabay and the chart from Tradingview.com

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Bitcoin Struggles To Hold $40K While Crypto Track US Stocks

Crypto is mirroring stock markets’ gains again today, with Wall Street’s sharp climb after opening higher likely to provide further impetus for Bitcoin. Last Friday, the crypto market saw a significant decline correlating US Indexes. 

Bitcoin and Ethereum, the major players in the crypto market, gained 2% in the past 24 hours. Both crypto combined capitalization reached nearly $1.2 trillion today, with total crypto market capital at $1.9 trillion. 

Related Reading | Ethereum Trades Below $3,000 Support, Why Is ETH Falling Since November?

The crypto markets see a broad recovery as equities continue their upward trajectory. The BTC/USD pair is trading above $40,000 while ETH/USD has gained ground close to the $3,000 resistance level. Both coins are gaining amid this positive trend for all assets.

The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite have all gone up today. The S&P 500 is up 2.3%, the Dow Jones Industrial Average is higher by 1.7%, and the Nasdaq Composite leads the upside with 2.8%. This happened as Asian and European stocks had good days before the US Federal Reserve’s 0.5% interest rate hike.

Bitcoin And Ethereum Still Look Bullish

The bitcoin price is holding well above $38,000, but it’s close to touching another key supply wall at $40,000. However, this could signify that the bulls still have some strength and may push higher soon.

After testing $39,926 Bitcoin is currently trading in red below $39,000 | Source: BTC/USD Chart from Tradingview.com

As per Altcoin Sherpa, a crypto trader and analyst, “the market structure looks bullish.” He further added;

As long as these lows are maintained and we still see higher lows, I think the bullish market structure is still intact. Still thinking 55k+ in the coming weeks.

While commenting on Ethereum prediction, Altcoin Sherpa said;

Unlike $BTC, ETH is still decently above its last lows and still has a bullish market structure (btc does too but its closer). Would like to see a higher low formed for #Ethereum. I think that it’s still at the mercy of BTC though, as always – if BTC tanks, so will ETH. 

Related Reading | TA: Bitcoin Key Indicators Suggest Strengthening Case For Decent Increase

“Bitcoin could go higher,” said Rekt Capital, one of the top crypto analysts. The analyst said;

Bullish Divergence on the 4-hourly is playing out. Key resistance in the very short-term will be this red area [above $40,300]. Turning it into support like in the previous yellow circle would be a bullish sign for trend continuation.

Bitcoin has been below its 100-day moving average for a few weeks. The price has been supported by $37,000 and the falling trendline. This has lessened the bearish momentum. The $37,000 mark has become an important support for Bitcoin. If it falls below that, the price might go down to $30,000.

 

Featured image from Pixabay and chart from Tradingview.com

 

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Ethereum Trades Below $3,000 Support, Why Is ETH Falling Since November?

Ethereum has been on quite the journey, from splitting to creating its market presence within a few years. And now, they are looking at saving electricity and other concerns put forth by analysts with their latest validation protocol. The cryptocurrency supports several blockchain networks through its layers-2 services and validations. 

With all these facts combined together, ETH could very well dethrone Bitcoin as the number 1 largest cryptocurrency network.

Related Reading | TA: Ethereum Faces Key Challenge, Why Fresh Decline Still Possible

Surprisingly, after all these achievements, one must wonder why Ethereum has been falling since November 2021 after hitting a new high. The reason is that the price is based on speculation about a protocol that will be launched in the future. Unfortunately, the actual date for the protocol has not been announced yet, so people are selling their ETH in anticipation of the lower price.

ETH showing an upward trend with a 1.5% gain | Source: ETH/USD chart from Tradingview.com

With its current market capitalization, ETH is 10 times larger than Solana and close to 45% of BTC’s value. According to technical insights, there are strong supply and demand zones in the market because people want to buy things for less. FOMO (fear of missing out) has been a major driving force behind cryptocurrency prices.

Ethereum Price Analysis

ETH’s price trend has repeatedly beaten expectations, but because it is currently trading below the 200-day moving average (DMA) curve, there is a negative sentiment in the short term.

With the crypto market still uncertain, buyers have made various attempts to breach Ethereum’s $3,600 level. But the 200-day moving average is slowly dropping. So if Ethereum surpasses this average, there could be a significant price movement to new high levels.

ETH is in high demand at $2,400 levels, and there is a good chance that demand will increase even more in the coming days. The only resistance stopping it from going even higher is $3,200 to $3,600, preventing further growth.

Since April 2022, the candlestick pattern when ETH 200 DMA failed to cross-resistance has a profit booking in free fall, stability, and more profitability bookings. On April 26, 2022, the crypto market experienced a 6% collapse. This seems to be due to concerns about the influence of Elon Musk on the crypto market. 

Related Reading | Bitcoin Trades Above $40K Once Again, Will This Time Be Different?

The ETH price decreased by 22% in April. The buying strength indicated by the RSI indicator has reduced by 66%. For the last six months, transaction volumes have remained the same, with spikes but average out at similar levels. ETH has a few milestone prices to surpass for the short term. However, before investing in Ethereum, traders should read more about the ETH’s future price momentum and explore market sentiments.

The price trend for ETH has been strong for most of this year, but declining demand seems to be weakening. Unfortunately, this decline cannot be identified by looking at its historical data. So one must assess that prices above $4,000 will lead Ethereum upward while values below $2,500 drag them down further. 

 

Featured image from Pixabay, chart from Tradingview.com