Autor Cointelegraph By William Suberg

Analysts urge calm as Tether depegs from USD, Bitcoin loses $17K rebound

Analysts urge calm as Tether depegs from USD, Bitcoin loses $17K rebound

Uverejnil používateľ | nov 10, 2022 |

Bitcoin (BTC) and crypto markets saw fresh volatility on Nov. 10 after stablecoin Tether (USDT) unpegged from the U.S. dollar.USDT/USD 1-day candle chart (Binance U.S.). Source: TradingViewTether exec: “No issues” with USDTData from Cointelegraph Markets Pro and TradingView showed USDT hitting lows of $0.971 on Bitstamp on the day amid fears that the largest stablecoin by market cap may fall further. Those fears were stoked by evidence of embattled exchange FTX and sister company Alameda Research attempting to short USDT.Currently in the throws of a crisis reminiscent of the Terra LUNA debacle, both firms have fallen foul of the cryptocurrency community and beyond as regulators step up scrutiny of the industry.The impact has been felt across crypto prices, with BTC/USD reaching more than two-year lows of $15,638 on Bitstamp.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewCommenting on USDT moves on the day, CTO Paolo Ardoino urged calm.“Tether processed ~700M redemptions in last 24h. No issues. We keep going,” he confirmed in a tweet. That message echoed Tether’s official stance already published the day prior. In a blog post, the USDT issuer stated that it did not have direct exposure to FTX or Alameda.“Tether is completely unexposed to Alameda Research or FTX,” it read.“Tether tokens are 100% backed by our reserves, and the assets that are backing the reserves exceed the liabilities.”TRON DAO Reserve says it will buy 300 million USDTMichaël van de Poppe, founder and CEO of trading firm Eight, was another of many voices calling on market participants not to overreact to the ongoing volatility.Related: Tron’s stablecoin USDD loses dollar peg on suspected selloff by Alameda Research“Panic across the markets as USDT depegs a bit from USD. That always happens during these times. No need to overstress and is most likely jumping back towards 1:1.” he argued.During the Tether LUNA aftermath, USDT briefly wicked lower than $0.96, soon recovering its USD peg.“The exchange rate is IRRELEVANT so long Tether is able to redeem every 1 USDT for 1 USD,” part of a tweet from popular analyst Duo Nine continued. “Big whales will just go to Tether and get their USD at parity. Don’t be fooled! The only reason the peg will not restore is if Tether does not have 100% coverage.”USDT/USD 1-week candle chart (Binance U.S.). Source: TradingViewMeanwhie, in a curious development, decentralized cryptocurrency reserve TRON DAO Reserve announced that it would purchase 300 million USDT on the open market.The aim, it said in a tweet, was to “safeguard the overall blockchain industry and crypto market,” without giving further details.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin miners ‘next trigger’ for BTC price crash as outflows hit multi-month highs

Bitcoin miners ‘next trigger’ for BTC price crash as outflows hit multi-month highs

Uverejnil používateľ | nov 10, 2022 |

Bitcoin (BTC) miners could form the next BTC price “trigger,” research warns as withdrawals intensify.In a Quicktake post for on-chain analytics platform CryptoQuant on Nov. 10, contributor MAC.D suggested that miners could soon face “bankruptcy.”Research: Network conditions “will strangle” minersAfter BTC/USD fell 20% in a matter of days, miners began operating at a higher cost than the block subsidy and transaction fees they earned.The result is mining rigs being idled and miners selling BTC to cover expenses. “BTC security is at an all-time high, but its mining volume is gradually decreasing. This will strangle the miners,” MAC.D explained.He pointed to outflows from miner wallets passing 5,400 BTC for Nov. 9 alone, something which “can be interpreted as increased selling pressure.”Going forward, the situation could worsen should major mining firms end up selling stored BTC en masse as a way to pay obligations.“There is already a lot of news that mining companies listed on NASDAQ cannot pay their debts. If they go bankrupt, there will be a situation where they have no choice but to sell BTC,” the post continued:“Therefore, it is necessary to keep a close eye on the miner withdrawal table, and if the amount of miner withdrawal increases, BTC is likely to fall further.”A silver lining could nonetheless come shortly after such a major capitulation. Historically, there has been a correlation between miner wipeouts and BTC price bottoms.“But the bankruptcy of past miners has formed the bottom of the BTC,” the post concluded:“So when they go bankrupt, they have to use it as an opportunity to buy BTC.”Bitcoin miner outflows chart. Source: CryptoQuantMining costs outweigh gainsContinuing the theme, journalist Colin Wu, meanwhile, noted that even the most popular Bitcoin mining machines were now unprofitable.Related: FTX and Binance’s ongoing saga: Everything that’s happened until now“As BTC has fallen by 20% in the past 7d, F2POOL shows that bitcoin mining machines such as Whatsminer M30S and Antminer S17Pro have fallen below the shutdown price,” he tweeted on the day, linking to major mining pool f2pool:“Top bitcoin mining machines such as Ant S19 XP also account for 56% of electricity bills.”Charles Edwards, CEO of asset manager Capriole, also flagged the untenable cost of production versus miners’ income at current prices.“Many Bitcoin miners are now turning their rigs off,” he commented on a chart. Bitcoin mining production cost annotated chart. Source: Charles Edwards/ Twitter“Bitcoin’s electrical cost has just been breached for the 2nd time only in 5 years. The electrical bill for the average miner is now greater than the income earnt.”The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin price risks $17K amid claim Binance may reject FTX takeover

Bitcoin price risks $17K amid claim Binance may reject FTX takeover

Uverejnil používateľ | nov 9, 2022 |

Bitcoin (BTC) fell below $17,000 on Nov. 9 as rumors spread over crypto exchange Binance exiting a deal to buy embattled competitor FTX.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBinance CEO: “Do not trade FTT”Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $16,936 on Bitstamp before rebounding.The latest dive hit an already shaky market, which had reacted badly to news that FTX had asked Binance for financial assistance.In a note to staff shared on Twitter, Binance CEO, Changpeng Zhao (known as “CZ” in the crypto industry), told them to refrain from trading FTX’s in-house FTT (FTT) token.“I want to remind everyone: DO NOT trade FTT tokens. If you have a bag, you have a bag,” it read.While he said that he “would not comment” on the FTX takeover deal, an unnamed source subsequently told industry news outlet CoinDesk that Binance had doubts over going through with it.This in turn pressured crypto market sentiment, leading to a drop which saw large-scale losses across Bitcoin and altcoins.Liquidations told the story, with a total of $860 million worth of long and short positions wiped out in the 24 hours to the time of writing, according to monitoring resource Coinglass.Crypto liquidations chart. Source: CoinglassFTT/USD traded at just $3.60 on the day, down from $22 just two days previously, leading to comparisons with the Terra LUNA debacle.“Honestly, it feels weird, but things will be better from here on,” Michaël van de Poppe, founder and CEO of trading platform Eight, predicted. “Errors need to be made to improve a system and that’s what happened with Mt. Gox, $LUNA, and now FTX. It might feel like we’re on the edge of collapsing crypto entirely, but Bitcoin and crypto are here to stay.”FTT/USD 1-hour candle chart (FTX). Source: TradingViewCPI day creeps up on cryptoWith the crypto community distracted with internal problems, few paid attention to the Nov. 10 United States Consumer Price Index (CPI) print.Related: Funding rates hit 6-month high before CPI — 5 things to know in Bitcoin this weekA source of volatility in itself, the event is normally given full attention, but even the U.S. midterm elections took a back seat this week.”I’m just waiting to see how CPI & how the market reacts Thursday,” trader Josh Rager summarized in part of a tweet Nov. 8. The U.S. dollar index abandoned modest gains on the day, heading below 110, while both the S&P 500 and Nasdaq Composite Index tread water.”It’s clear that Bitcoin is yet again priced to buy for long-term spot but I’m happy to wait to see how the market reacts with how the FED handles things.”U.S. dollar index 1-hour candle chart. Source: TradingViewThe views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin price dips under $17.6K June low as FTX nerves liquidate nearly $1B

Bitcoin price dips under $17.6K June low as FTX nerves liquidate nearly $1B

Uverejnil používateľ | nov 9, 2022 |

Bitcoin (BTC) liquidated $200 million of long positions on Nov. 8 as BTC price briefly tumbled to two-year lows.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBTC price sets new two-year lowData from Cointelegraph Markets Pro and TradingView revealed carnage across crypto price charts as exchange FTX kept the mood low.After initially rebounding over $20,000 on news that the embattled FTX might be bought out by competitor Binance, panic returned after the Wall Street open.BTC/USD lost $2,000 in under two hours, seeing a sudden plunge which set a low of $17,120 on Bitstamp. The last time the pair traded at that level was in late November 2020, meaning Bitcoin managed to beat the previous macro lows of $17,600 set in June this year.BTC/USD 1-week candle chart (Bitstamp). Source: TradingViewData from the Binance order book showed the sudden cascade downward puncturing solid buy support at $18,000.At the Nov. 8 daily close, an area of interest for trade volume was around $18,400 — a zone still in play at the time of writing nearly 12 hours later.BTC/USD order book chart (Binance). Source: Material Indicators/ TwitterFigures from on-chain monitoring resource Coinglass meanwhile tracked major pain for long investors caught out at the wrong time.BTC long liquidations across exchanges totaled $214 million for Nov. 8, while cross-crypto longs were liquidated to the tune of $670 million.Combined with shorts, total liquidations for the day were $915 million.Crypto liquidations chart. Source: Coinglass”Important weeks ahead”Analyzing the situation, popular crypto commentators were cautious about calling an end to price turmoil.Related: Why is Bitcoin price down today?“Way too soon to know how this resolves, but the fact we are seeing another exchange-driven liquidity crisis at this point in the macro structure is really quite something,” a normally optimistic TechDev tweeted. “Important weeks ahead.”Others acknowledged that they themselves had fallen foul of volatility, while beyond crypto, analysis looked for potential silver linings.For trading account IncomeSharks, weakness in the U.S. dollar over the ongoing midterm elections was a promising sign for risk assets.“Looks ready to drop below support,” it wrote about the U.S. dollar index (DXY) on the day. “Stocks looking good. Nasty black swan event ruined the price action for Crypto but once that taste is out of people’s mouths we should see $BTC and $ETH put up a little rally. Once again the issue is not with the assets themselves.”U.S. dollar index (DXY) 1-hour candle chart. Source: TradingViewNov. 10 was already due to be a volatile day for the week, with U.S. Consumer Price Index (CPI) inflation data due for the month of October.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Bitcoin price swings to over $20K as Binance helps FTX ‘liquidity crunch’

Bitcoin price swings to over $20K as Binance helps FTX ‘liquidity crunch’

Uverejnil používateľ | nov 8, 2022 |

Bitcoin (BTC) saw major volatility after the Nov. 8 Wall Street open as turmoil over crypto exchange FTX punished markets further.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBinance hints at plan to buy FTXData from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting $19,244 on Bitstamp, marking the pair’s lowest levels in two weeks and 24-hour losses of nearly 7%.FTX remained the main topic in the industry, despite the United States midterm elections getting underway and Nov. 10 due to deliver fresh inflation data.“Event of the week was supposed to be US CPI on Thursday, not two billionaires with acronyms for names nuking the market,” popular commentator Tedtalksmacro summarized.Worries over solvency at FTX were not helped by a lengthy silence from the exchange’s executives as withdrawals stopped on the day.Data from on-chain analytics platform CryptoQuant thus showed only a fraction of the previous day’s near-20,000 BTC balance reduction on FTX for Nov. 8.BTC netflow (FTX) 1-day chart. Source: CryptoQuantFurther numbers revealed that exchange users were voting with their wallets elsewhere — removing funds from U.S. platforms such as Coinbase and depositing them to foreign-registered competitors such as Binance.Binance was up a net 4,840 BTC for Nov. 8 at the time of writing, while Coinbase was conversely down 5,180 BTC.BTC netflow (Binance) 1-day chart. Source: CryptoQuantEngineer and trader Tree of Alpha nonetheless stayed optimistic about the eventual resolution of the FTX saga.“For now we suffer,” part of a tweet read, adding that the “news playbook is omega long ftt + majors if prices are still that bad when SBF and/or CZ announce they reached a deal and funds safu on both ends and withdrawals are back on.”That thesis turned out to be true, as the resumption of withdrawals sparked an instant march over $20,000 for Bitcoin. A surprise message from Binance CEO Changpeng Zhao additionally revealed tentative plans for a buyout.“This afternoon, FTX asked for our help. There is a significant liquidity crunch,” one post read. “To protect users, we signed a non-binding LOI, intending to fully acquire http://FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days.”Bitcoin grapples with support lossesFor Bitcoin, suffering was also the name of the game on the day, while Arthur Hayes revealed his belief that the bad times may last far longer.Related: Funding rates hit 6-month high before CPI — 5 things to know in Bitcoin this weekAmid the FTX withdrawal freeze, he unveiled a bet on $15,000 Bitcoin via put options with a strike date of March 2023.Closer to home, monitoring resource Material Indicators acknowledged that the past 24 hours had significantly eroded support — and price theories — from recent weeks.“BTC technical and psychological support obliterated,” it stated. Referring to moving averages (MAs), it said that the “100-Day MA, 21-Day MA, 50-Day MA and 2017 Top all lost in one D candle.”An accompanying chart showed the BTC/USD order book on Binance, with support increasing below spot price.“FireCharts shows decent bid liquidity, but don’t catch knives. Mitigate some risk by waiting for buying to resume or park your funds on the sidelines,” Material Indicators added.BTC/USD order book chart (Binance). Source: Material Indicators/TwitterIt remained to be seen at the time of writing whether spot strength could recover lost ground on hourly or daily timeframes.The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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