tridEX

31st August 2022

Compound cETH market bricked by update — 7-day wait on vote to fix it

The code bug has plagued the cETH market and has affected Compound’s front-end user face, but the CEO confirmed that “funds are not immediately at risk.”

31st August 2022

Fed’s Moves To Fight Inflation Unfavorable For BTC Traders In Short-Term

The raging inflation and the Federal Reserve’s approach to fighting it have seemingly affected the crypto market negatively. The first sell-off trend started when the Feds announced an interest rate hike in July 2022. Even though the Terra Luna crash worsened the situation, the market was already on the brink of collapse.

Many people panicked and didn’t want to pay high interest on their crypto gains. Since then, the Feds have come up with many unfavorable decisions in the inflation fight. Recently, Jerome Powel announced a stricter approach on August 26, causing another downtrend in the crypto market and beyond.

Many cryptocurrencies lost price gains after the meeting until August 30, when some positive changes occurred. These incidents have attracted the attention of top players in the crypto market, such as Brian Brooks, Bitfury CEO.

Fed’s Approach Affects Short-Term BTC Traders More

In a recent interview with CNBC, the CEO of Bitfury, Brian Brooks, shared his thoughts on how the inflation fight affects BTC short-term traders. He pointed mainly at the interest rate hikes since the fight started. The Feds started the aggressive approach to digital assets in early 2022. The interest rate hike affected borrowing as the funding mechanism became costlier.

The rate increase started gradually from 0.25% in March 2022 and continued climbing until it reached 0.75% in July. The higher rates affect short-term traders negatively, as they must pay high rates on their borrowed capital. According to Brooks, many traders now believe that the Feds will continue being hawkish in this fight, given their approach and current decisions.

Besides the Federal Reserve, Brooks also showed disappointment over SEC actions against the crypto market. The CEO believes that the regulatory body should inform crypto participants about rules to guide their actions.

The CEO believes that the practice of suing people after they’ve executed their plans is a very wrong approach. He, therefore, recommended that regulators and congress disclose what’s allowed and what’s not to participants early.

Bitcoin price currently trades below $20,000 mark. | Source: BTCUSD price chart from TradingView.com
The Crypto Market And Inflation Fight?

The continued interest rate hike caused a lot of damage to the crypto market. The first response was the dumping of crypto holdings, leading to a price crash. Then after Terra collapsed, a long period of the bearish trend followed, tagged “Crypto Winter.”

As a result of these activities, the overall crypto market cap slumped from $3 trillion to $1 trillion. On August 29, the market cap lost $50 billion and fell below $1 trillion. Thankfully, crypto assets recovered slightly on August 30, pushing the figure back to $1 trillion.

Cryptos such as Bitcoin and many altcoins have lost massively. Tracing BTC price from November 2021, the coin has lost 65% from its all-time high of $69K. Currently, the market is celebrating BTC at $20K since it dipped below that level on August 29.

Analysts have predicted difficult months for BTC and ETH, following historical trends and movements on the chart. But many are hoping that the current positive actions from August 30 continue.

Featured image from pixabay and chart from TradingView.com

31st August 2022

Market for Compound Ether Token ‘Frozen’ After Code Bug Kills Price Feed

Compound points to faulty code in a recent addition to the protocol as the problem and said a solution is days away.

31st August 2022

Investor Indifference Follows Bitcoin’s Break Above $20,000

Bitcoin has been seeing a lackluster performance in the last couple of weeks, and crypto investors have responded in kind to this. After a couple of weeks of tethering above $20,000, the digital asset’s price had finally fallen below this important technical point, triggering outflows in the market. For the past week, institutional investors have continued to feel the fatigue in the market, so while there were outflows, they still remain quite muted.

Bitcoin Loses $29 Million

Bitcoin outflows have continued into another week. This has now brought outflows for the digital asset into three consecutive weeks with no signs of a reversal. The total came out to $29 million in outflows for the week. It marked another week where bitcoin had sent the majority of outflows, although others had recorded outflows.

The inflows were more localized to short bitcoin, which once more speaks to the bearish sentiment that is brewing among bitcoin investors. Despite not being large by previous margins, the $1 million into short BTC shows that institutional investors continue to exercise caution when investing in the market.

It is understandable, given the stance that the Fed has taken when it comes to the economy. In a bid to get inflation rates under control, the Fed has taken what is known as a “hawkish” stance, causing investors to cling tightly to capital.

Outflows Remain The Order Of The Day

Outflows were not only recorded in bitcoin alone, although it was the focus for the week. The second-largest cryptocurrency by market cap, Ethereum also saw outflows totaling $1 million for the same time period. Investors had been very bearish on the digital asset until the announcement of the Merge changed sentiment. However, it is obvious that the bullish sentiment did not last very long.

Digital asset investment products, just like bitcoin, have now marked their third consecutive week of outflows. It saw outflows reaching $27 million for the week. The majority of the outflows had come from three countries, including the US, Sweden, and Germany, with a combined total of $26.5 million.

Interestingly, minor outflows had flowed into other DeFi platforms such as Solana, Cardano, Uniswap, Tezos, and Chainlink. Most of the inflows had come from Brazil, with a total of $1.2 million.

The market, in general, is still struggling despite bitcoin recovering above $20,000 once more. There is very weak momentum which makes this a seller’s market.

Featured image from Forbes, chart from TradingView.com

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