Značka: crypto

Ethereum analyst warns of 'clean fakeout' despite 30% ETH price rebound

Ethereum’s native token, Ether (ETH), underwent a sharp relief rally after falling to $880, its lowest level in eighteen months, on June 18.ETH price regains 30% in two daysEther’s price reached above $1,150 this June 19, marking 30%-plus gains in just two days. However, at the beginning of the new weekly session this June 20, the ETH/USD pair hinted at giving up its weekend gains, with its price plunging by almost 9% from the $1,150 high. PostyXBT, an independent market analyst, told his 79,800 followers to be careful about the latest ETH price rally, noting that the move “would make for a clean fakeout.” Excerpts from his statement:”It looks like an opportunity to flip long towards $1,250, but $BTC still hasn’t reclaimed it’s like-for-like level.”ETH/USD 4-hour price chart. Source: PostyXBT/TradingViewNext ETH price bear target: $700-$800The statements appear as Ether, alongside other top cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and Cardano (ADA), have entered a bear market. ETH/USD now trades 77% below its $4,951-record high, but some tokens are down 90% from their 2021 peak levels.Concerns about the Federal Reserve’s hawkish policy to tame inflation has stoked these sell-offs, hurting parts of traditional stock markets in tandem. In detail, the U.S. central bank plans to hike benchmark rates into 2023, which may leave investors with lesser liquidity to buy riskier assets like BTC and ETH.Additionally, forced selling and liquidity troubles led by the so-called decentralized finance, or DeFi, sector have added downside pressure on the crypto market, thus limiting Ether’s prospects of continuing its recovery rally moving forward.Analyst “Capo of Crypto” states that ETH has not bottomed out yet and that its price could fall further toward the $700-$800 range.$ETHMain target reached, bounced from there, but no bottom formation yet.Eyes on $700-800 as new support zone, which would complete the 5th of the 5th wave. https://t.co/ZIWnzMW6bk pic.twitter.com/rT0qnY0Roe— il Capo Of Crypto (@CryptoCapo_) June 20, 2022ETH price bottom signs?Meanwhile, one metric that tracks the differences between Ether’s market value and realized value suggests that ETH/USD is bottoming out.The “MVRV-Z Score,” as it is called, assesses when Ether is overvalued or undervalued relative to its “fair” or realized value. So, when the market value has surpassed realized value, it has historically marked a bull run top.Conversely,  the market value falling below realized value has indicated a bear market bottom (the green zone in the chart below). Ether’s MVRV-Z Score entered the same buying zone in early June and is now consolidating inside it.Ethereum MVRV Z-Score. Source: GlassnodeBut this does not necessarily mean a trend reversal, according to the MVRV-price relation witnessed during the 2018 bear market.Related: 5 indicators traders can use to know when a crypto bear market is endingNotably, Ether’s MVRV Z-Score slipped into the green zone on August 12, 2018, when the price was around $319. But the Ethereum token bottomed out at a much later date, on December 14, 2018, when the price reached near $85.In other words, Ether has entered a bottoming out stage, at best, if the on-chain fractal holds valid in 2022. 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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XRP price technical breakdown boosts chances of a 40% drop by July

Ripple (XRP) price stares at potential losses in the coming weeks as it breaks out of a “descending triangle” pattern, with its bias skewed toward the downside.Major XRP breakdown underwayTo recap, XRP started forming the technical structure after reaching $1.98 in April 2021, its second-highest level to date. In doing so, the token trended lower inside a range defined by a falling resistance trendline and a horizontal support trendline.On May 16, 2022, XRP broke below the triangle’s support trendline, accompanying a decent increase in trading volumes. The move confirmed the descending triangle as a bearish reversal indicator. Meanwhile, as a rule of technical analysis, XRP now risks extending its downside move by as much as the triangle’s maximum height when measured from the breakdown point, as shown below.XRP/USD weekly price chart featuring ‘descending triangle’ breakdown setup. Source: TradingViewThis could have XRP drop to $0.18 by July 2022, down nearly 40% from June 1’s price. Crypto carnageXRP’s bearish setup appears amid a broader selloff taking place across the crypto market, with some tokens now trading more than 90% below their record highs established last year. The massive tailspin began in May after Terra (LUNA) — now known as Luna Classic (LUNC) — a $40-billion “algorithmic stablecoin” project, collapsed due to the failure of its staking system. This debacle found its match in Celsius Network, one of the largest crypto lending platforms, which unexpectedly paused crypto withdrawals in June over “extreme market conditions.”Related: Finblox withdrawal restrictions trigger concerns from the communitySince then, the crypto market has been facing one piece of bad news after another, from crypto fund giant Three Arrow Capital’s potential insolvency owing to bad debts and risky trades to crypto lender Babel Finance halting withdrawals due to liquidity issues.Babel Finance 也暂停了提现业务 pic.twitter.com/9Nk1gkEmVz— 0xEdson | web3 (@0xEdsonCrypto) June 17, 2022Macro risks also favor XRP’s downside outlook with the Federal Reserve’s 0.75% interest rate hike this June 15, ensuring lower liquidity for investors to speculate on risky assets. Nonetheless, Kevin Cage, who runs Iron Key Capital, a crypto-focused hedge fund, says XRP will “survive” the bear market.I know for a fact that no matter how hard it gets, $XRP will survive future bear markets.XRPL is 10 years old. Tried & true.Ripple expanding, new partners every week, hiring 300 more peopleThey want clarity and will fight until the end.SEC chose the wrong company to fight— Kevin Cage (@Kevin_Cage_) June 14, 2022

Meanwhile, Bleeding Crypto says that XRP could fall toward $0.17 but anticipates that the token would undergo a sharp rebound move after reaching the level. “Looks like it may be going for a full reset of this past bull run,” he wrote, hinting that XRP would reclaim $1.95–$1.98 during its next upside retracement.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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Global Bitcoin adoption to hit 10% by 2030: Blockware report

The adoption of Bitcoin (BTC) could occur more rapidly than the adoption of past disruptive technologies such as automobiles and electric power, with global take-up likely to hit 10% by 2030 according to a new report.In its June 8 report, Blockware Intelligence said it arrived at this forecast by examining historical adoption curves for nine past disruptive technologies, including automobiles, electric power, smartphones, the internet, and social media, along with the growth rate of Bitcoin adoption since 2009.“All disruptive technologies follow a similar exponential S-curve pattern, but […] newer network-based technologies continue to be adopted much faster than the market expects.”Using the average and weighted average of historical technology adoption curves, as well as the growth rate of Bitcoin adoption, the report was then able to arrive at its prediction.It said that based on a metric called Cumulative Sum of Net Entities Growth and Bitcoin’s predicted “CAGR of 60% we forecast that global Bitcoin adoption will break past 10% in the year 2030.”Blockware Intelligence is the research arm of Blockware Solutions, a Bitcoin mining and blockchain infrastructure company, so you might expect it to be bullish on adoption.The intelligence unit said it expects Bitcoin adoption to reach saturation quicker than many other disruptive technologies, given direct monetary incentives to adopt, the current macro-environment, and because adoption growth will be accelerated by the internet. “From a consumer perspective, past technologies had convenience/efficiency-related incentives to adopt them: adopting automobiles allowed you to zoom past the horse and buggy, adopting the cell phone allowed you to make calls without being tied to a landline,” the report explains. “With Bitcoin direct financially incentivized adoption creates a game theory in which everyone’s best response is to adopt Bitcoin.”Bitcoin, like the internet, smartphones, and social media, also derives benefits the more people that adopt the technology, which is known as the “network effect”.“Case in point if you were the only user on Twitter would it be of any value? It would not. More users make these technologies more valuable.”Related: 75% of retailers eyeing crypto payments within 24 months: DeloitteHowever, the authors of the Blockware report stressed that the model used to predict the rate of adoption was only conceptual at this stage, adding it is neither meant to be used as investment advice nor a short-term trading tool and it would continue to be refined. However:“The general trend is clear; there is a high probability that Bitcoin’s global adoption will grow significantly into the future and thus so will price.”The report and model was reviewed by several crypto investors and analysts, including executives from Ark Invest, Arcane Assets, AMDAX Asset Management, and M31 Capital. Cryptocurrency adoption has been growing rapidly over the last few years. In 2021, global crypto ownership rates reached an average of 3.9%, with over 300 million crypto users worldwide, according to data from TripleA, a global cryptocurrency payment gateway. Blockchain data platform Chainanalysis last year revealed that global adoption of bitcoin and cryptocurrency surged 881% from July 2020 to June 2021. It found Vietnam to have the highest cryptocurrency adoption, leading 154 countries analyzed, followed by India and Pakistan. In April, a survey conducted by cryptocurrency exchange Gemini found that crypto adoption skyrocketed in 2021 in countries like India, Brazil, and Hong Kong as more than half of respondents from its 20 countries polled stated that they started investing in crypto in 2021.

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Over 200K BTC now stored in Bitcoin ETFs and other institutional products

Bitcoin (BTC) investment vehicles are seeing “gargantuan” inflows this month, which is a fresh sign that traders’ appetite for BTC exposure is mounting.Data from monitoring firm Arcane Research published this week shows that Bitcoin exchange-traded products (ETPs) now have record high BTC under management.”Happier days” for Bitcoin ETPs as buyers pile inDespite BTC price action failing to draw in buyers at over 50% below all-time highs, not everyone is feeling risk-off.According to Arcane’s data, Bitcoin ETPs have seen a flurry of interest from institutional investors both this month and last.In total, Bitcoin ETPs, which include products such as the ProShares Bitcoin Strategy exchange-traded fund (ETF), now have 205,000 BTC under their control — a new record.“While the May recovery was strong in ETPs, June has seen even happier days!” Arcane analyst Vetle Lunde told Twitter followers while uploading the numbers on June 2.“The first two days of June have seen gargantuan net inflows to Purpose, 3iQ Coinshares, and BITO, pushing the global BUM to a new all-time high of 205,008 BTC.”Bitcoin ETF investment chart. Source: Vetle Lunde/ TwitterIn the first few days of June alone, more than 7,000 BTC flowed to ETPs, almost as much as for the entirety of May, which, itself, saw an impressive 9,765 BTC rise.“Massive $BTC inflows into Bitcoin ETFs in June already,” Zhu Su, cofounder of asset manager Three Arrows Capital, reacted.Little reprieve for GBTCThe Purpose Bitcoin ETF, the first Bitcoin spot price ETF to launch anywhere in the world, meanwhile had $1.294 billion worth of assets under management as of June 3, data from on-chain monitoring resource Coinglass confirmed.Related: Bitcoin bounces to $30.7K as analyst presents Stock-to-Flow BTC price model rehashPurpose Bitcoin ETF assets under management chart. Source: CoinglassThings remained somewhat less rosy for industry stalwart the Grayscale Bitcoin Trust (GBTC), however.According to Coinglass data, GBTC continues to trade near a record discount to the Bitcoin spot price, currently 28.68% as of June 3.Previously, Cointelegraph reported on Grayscale’s ongoing battle to convert GBTC to a Bitcoin spot ETF.GBTC holdings, discount vs. BTC/USD chart. Source: CoinglassThe 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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Billionaire Bill Miller calls Bitcoin 'insurance' against financial catastrophe

Bill Miller the billionaire founder and Chief Investment Officer of investment firm Miller Value Partners, has said he considers Bitcoin (BTC) an “insurance policy against financial catastrophe.”Appearing on an episode of the “Richer, Wiser, Happier” podcast on May 24 Miller backed the cryptocurrency as a means for those caught in conflict to still access financial products. He used the collapse of financial infrastructure in Afghanistan after the US withdrawal in August 2021 as an example.“When the US pulled out of Afghanistan, Western Union stopped sending remittances there or taking them from Afghanistan, but if you had Bitcoin, you were fine. Your Bitcoin is there. You can send it to anybody in the world if you have a phone.”Miller said examples of how the crypto can function as insurance don’t “have to be all or nothing” and noted how Bitcoin performed during the early stages of the pandemic and the Federal Reserve’s reaction to it.“When the Fed stepped in and started gunning the money supply and bailing out, in essence, the mortgage rates […] Bitcoin functioned fine. There was no run on Bitcoin. The system functioned without the Fed and without any interference. Everybody got their Bitcoin, the price adjusted, and then when the Bitcoiners realized, ‘Wait, we’re going to have inflation down the road,’ Bitcoin went through the roof.”“It’s an insurance policy, the way I look at it,” he added.Miller also rebuked Warren Buffett’s recent criticism of Bitcoin where the billionaire investor famously remarked that “it doesn’t produce anything” and he “wouldn’t take” all the Bitcoin in the world for even $25.”He’s said that Bitcoin is a non-productive asset and therefore he can’t value it. Fair enough. If the only thing that you think you can value are productive assets, then no one’s making you buy it, right? So ignore it.”He later followed up his comment, adding “the objective of investing is not to own productive assets, the objective is to make money”.Related: Scott Minerd says Bitcoin price will drop to $8K, but technical analysis says otherwiseMiller is famous for managing a portfolio which for 15 consecutive years between 1991 and 2005 consistently beat the returns of the S&P 500 index. He’s also known for his advocacy of Bitcoin and put half of his net worth into the asset in January.When asked if he still held that position Miller confirmed that about “40% to 50%” of his money was in Amazon stock and his Bitcoin holdings were “about the same as Amazon”, adding that 80% of his net worth is split between the two assets.Miller also discussed the Luna-based tattoo on the arm of Mike Novogratz, the founder of crypto asset management firm Galaxy Digital after the collapse of the Terra ecosystem:“Somebody had sent me a picture of Mike Novogratz where he got a Luna tattoo on his arm months ago of the wolf howling at the moon, and it’s big. It’s like, whoops, maybe you should have got a Bitcoin on your arm, it’d be a little more enduring than that one.”Novogratz has said that the tattoo will be a “constant reminder that venture investing requires humility” as Galaxy Digital posted a $300 million loss on its Luna investments.“I felt bad for him when I saw some story of him going from something like $10 billion to $2 billion,” Miller said, “I’m like, yeah, that’s really tragic”.

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Bitcoin price bottom signals flash as 'fear and greed' index matches March 2020 lows

Bitcoin (BTC) has fallen by over 67% in 2022 and is now wobbling between a tight trading range defined by $28,000 as interim support and $30,500 as interim resistance.The selloff appears in the wake of the Federal Reserve’s hawkish policy and the uncertainties in the crypto market led by Terra, an algorithmic stablecoin project whose native token LUNA fell by 99% earlier in the month. Nonetheless, Bitcoin’s decline has somewhat cooled down as May draws to a close, leaving speculators with the hope that the token is in the process of bottoming out. Something like this might play out for #Bitcoin. Notice the lower left corner we had a double bottom before getting a green wave. We’re currently sitting at the bottom of the wedge. We can go a little lower and form another double bottom before reversing. pic.twitter.com/feuzp5tiDZ— BitcoinAlArab (@BitcoinAlArabx) May 23, 2022Interestingly, Bitcoin’s Fear and Greed Index (F&G) also hints at the same scenario, notes Arcane Research in its latest weekly report.Bitcoin F&G readings hit March 2020 lowsIn detail, Bitcoin’s F&G reached the score 8 on May 17, indicating “extreme fear,” a first since March 2020.”We see that buying fear has previously been a profitable strategy when measuring median and average returns of previous extreme fear periods,” Arcane wrote while citing the four instances wherein Bitcoin’s F&G had dropped to 8.Bitcoin price median returns after reaching ‘extreme fear’ levels. Source: Arcane ResearchMeanwhile, Ben Lilly, market researcher at Jarvis Labs, added that Bitcoin’s F&G index falling below ten signals the extreme possibility of the market bottoming out. He also noted that buying Bitcoin when its F&G score is below 10 is a good short-term strategy, saying:”Turns out the strategy where you hold it for less time produced greater results. Meaning the strategy where you sold after F&G rose above 35 (yellow line in the chart [below]) produced better results than a reading of 50 (orange) and 80 (red).”F&G returns for Bitcoin. Source: Ben Lilly’s Twitter HandleOn the flip side, Arcane highlighted that not all lower F&G scores have guaranteed bullish retracement moves in the past; some preceded continued selloffs. For instance, Bitcoin dropped nearly 11% on April 7, 2018, just sixty days after its F&G reached extreme fear levels.More indicators signal bottomMore signs of a possible in the Bitcoin market come from several on-chain indicators.For instance, Glassnode’s MVRZ Z-Score, which assesses when Bitcoin is undervalued/overvalued based on its “fair value,” is nearing the green zone that had preceded the crypto’s massive rebound rallies, as shown in the chart below. Bitcoin MVRV Z Score. Source: GlassnodeSimultaneously, the Long Term Output Profit Ratio (LTH-SOPR) indicator, which “evaluates the profit ratio of the whole market participants by comparing the value of outputs at the spent time to created time,” also suggests that Bitcoin is bottoming out. Specifically, when the LTH-SOPR value falls below 1, it highlights that some long-term Bitcoin holders could sell BTC at a loss. Conversely, a value above 1 shows that they could sell in profit. As of May 25, the LTH-SOPR is 0.72, which could mean a potential forming bottom in the Bitcoin market because people will be reluctant to sell BTC at a loss.Bitcoin LOTH:SOPR (SMA 7). Source: CryptoQuantSelloff warnings remain for BTCNevertheless, the uplifting bottom indicators appear in contrast to a few other bearish signs elsewhere in the market and calls for as low as $15,500 and even below $10,000. For instance, Scott Minerd, chief investment officer at Guggenheim, argues that Bitcoin is on its way to $8,000, a 70% drop from today’s price. Minerd cites a hawkish Federal Reserve for the bearish outlook on Bitcoin, whose daily correlation with Nasdaq has been positive since February 2022.BTC/USD and Nasdaq 100 correlation. Source: TradingViewFrom the technical perspective, Bitcoin could indeed fall further toward the $22,000-$26,000 range before bottoming out. Related: Bitcoin ‘death cross’ data hints 43% drop due in BTC price bear marketThese levels coincide with two historical support levels—the 200-day exponential moving average (200-week EMA; the blue wave) and the 200-day simple moving average (200-week SMA; the orange wave)—that marked the end of BTC’s previous bearish cycles.BTC/USD weekly price chart. Source: TradingView”Towards the downside, the $25,000 bottom from May 12th is the closest support level below $29,000,” further noted Arcane’s researchers Vetle Lunde and Jalan Mellerud, adding that Bitcoin’s “next critical support level” could be around $20,000, the 2017 peak. Excerpts:”Towards the upside, $30,500 has been a strong resistance area over the last week. If BTC breaks out of resistance, $35,000 is the next key resistance area.”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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Top 3 cryptocurrencies that are faring the best in the 2022 bear market

The crypto market has been in decline over the past six months with its valuation dropping from over $3 trillion in November 2021 to $1.23 trillion in May 2022.Fears over persistently higher inflation, the Federal Reserve’s hawkish response to it, and the ongoing conflict between Ukraine and Russia prompted investors to limit their exposure to riskier assets. Also, their increasing appetite for the safe-havens, such as the U.S. dollar, weighed down demand for some of the top cryptocurrencies and U.S. equities.As a result, some digital assets, such as Dogecoin (DOGE) and Cardano (ADA), fell by more than 80% from their record highs established last year. At the same time, a few tokens witnessed similar albeit dwarfed declines compared to other assets in the top-30. These are three among those cryptocurrencies listed in random order.Monero (-65%)Privacy-focused cryptocurrency Monero (XMR) has suffered fewer losses than its top rivals in the space since November 2021.XMR’s price dropped nearly 40% to $186 from its November 2021 peak of around $300. The plunge surfaced as a part of a broader correction move that started after Monero reached its record high in May 2021, near $520, bringing its net downside retracement to around 65%.XMR/USD weekly price chart. Source: TradingViewXMR’s limited downside prospects since November 2021 came forth amid reports that it’s been used to bypass sanctions. Meanwhile, fears of strict regulations lurking over the crypto market also appeared to have boosted the speculative demand for Monero.From a technical perspective, XMR has been consolidating in a range defined by its 50-week exponential moving average (50-week EMA; the red wave) around $211 and 200-week EMA (the blue wave) near $167, underscoring a bias conflict.UNUS SED LEO (-40%)UNUS SED LEO (LEO), a utility token backed by iFinex — the parent company of BitFinex exchange, has been largely unfazed by broader crypto trends. The token continued its uptrend even as its rivals in the top-30 moved lower after November 2021; it reached an all-time high of around $8.15 in February 2022 but has since corrected by almost 40%, now trading at around $4.90.LEO/USD weekly price chart. Source: TradingViewNotably, iFinex introduced LEO in a private token sale to raise $1 billion back in 2018. In doing so, the firm wanted to alleviate the cash shortfall it had incurred after the partial fund seizure of its payment processor, Crypto Capital.IFinex also announced that it would buy back LEO with a minimum of 27% of its consolidated revenues from the previous month, thus removing its supply from the market. In addition, the firm also committed to allocating 95% of the recovered Crypto Capital funds and 80% of the funds from the BitFinex hack in 2016 to buy LEO.LEO’s returns to date now stands around 100%. But the token appears heavily centralized, with a so-called centralized exchange whale still holding around 97% of its net supply, according to data from Santiment.Binance Coin (-53%)Like Monero, Binance Coin (BNB) topped out in early May as its price per token crossed over $700. Then in November 2021, the BNB/USD pair almost retested its record high before correcting lower with the rest of the market. In doing so, it wiped out more than half of its valuation, now trading around $325.BNB/USD weekly price chart. Source: TradingViewBNB serves as a utility token inside the Binance ecosystem, including the world’s leading crypto exchange by volume and a native blockchain named BNB Chain. The token holders also get to submit proposals via BNB Chain’s built-in governance module, which are then voted on.Other crypto assetsTop cryptos, Bitcoin (BTC), and Ethereum’s native token, Ether (ETH), have also fared better than most of their top-ranking rivals in the ongoing bear market. BTC’s price has dropped by 57% to around $29,300 from its November 2021 record high of $69,000. Meanwhile, the second-largest crypto, ETH, has plunged 60% to around $1,975 from above $4,850 in the same period.Related: Bitcoin price coma greets Wall Street open amid signs market ‘calling for rally’Shiba Inu (SHIB) and Polkadot (DOT) are down 65% from their record highs of $55 and $0.00008760, respectively.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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Stablecoin supplies and cash reserves in question amid crypto exodus

Cryptocurrency investors and traders have cashed out $7.7 billion from the stablecoin Tether (USDT) resulting in its market capitalization falling by 7.8% over the past seven days to $76 billion.The amount withdrawn from the top stablecoin is nearly double the $4.1 billion it held in cash reserves at the end of 2021 according to Tether’s latest reserves report from December 2021.To maintain Tether’s peg with the US dollar the company behind the token backs USDT with assets such as cash, bonds, and Treasury bills, the purpose being that each token is backed by at least $1 worth of assets.According to the latest reserves report, the company had a total assets amount of at least $78.6 billion, around $4 billion or 5% of which was cash.However, the firm seems to be able to maintain its cash reserves despite the “bank run” scenario caused by the collapse of the algorithmic stablecoin TerraUSD (UST) which had investors fleeing not only stablecoins but the entire crypto market for fear of collapse.A separate transparency report updated daily shows that 6.36% of Tether’s assets are currently held in cash which would amount to roughly $4.8 billion if Tether’s reserves closely match the USDT market cap. On May 12, market panic caused USDT/USD to trade under $0.99 on major exchanges, causing Tether to issue a statement at the time stating that it will honor all redemptions to $1.https://twitter.com/Tether_to/status/152472463333705728The same day, Tether’s Chief Technology Officer Paolo Ardoino said in a Twitter spaces chat that the majority of the company’s reserves are in U.S. Treasuries and that over the last six months it has reduced its exposure to commercial paper.Related: Untethered: Here’s everything you need to know about TerraUSD, Tether, and other stablecoinsTether has received scrutiny for its secrecy regarding the assets in its reserve and only published its first reserve breakdown in May 2021. The published reports are still vague as to the exact assets the company invests in.​​This obscurity coupled with the recent short-lived de-pegging had some investors rushing to swap their Tether for another popular US dollar stablecoin, USD Coin (USDC) on the notion that USDC was audited and already fully backed by cash and U.S. Treasuries.A blog post on May 13 by Circle’s Chief Financial Officer Jeremy Fox-Geen made in response to the stablecoin fallout reaffirmed that USD Coin was fully backed by cash and U.S. Treasuries for the 50.6 billion USDC in circulation.Data from CoinGecko further shows investors finding a safe harbor in USDC, a 6.3% leap in the USDC market cap took place between May 3 and May 17 representing $3.1 billion of inflows over that time.

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Ethereum in danger of 25% crash as ETH price forms classic bearish technical pattern

Ethereum’s native token Ether (ETH) looks ready to undergo a breakdown move in May as it forms a convincing “bear pennant” structure.ETH price to $1,500?ETH’s price has been consolidating since May 11 inside a range defined by two converging trendlines. Its sideways move coincides with a drop in trading volumes, underscoring the possibility that ETH/USD is painting a bear pennant.Bear pennants are bearish continuation patterns, meaning they resolve after the price breaks below the structure’s lower trendline and then falls by as much as the height of the previous move downside (called the flagpole).ETH/USD two-hour price chart. Source: TradingViewAs a result of this technical rule, Ether risks closing below its pennant structure, followed by additional moves to the downside. The height of ETH’s flagpole is around $650. Therefore, if the price undergoes breakdown at the pennant’s apex point near $2,030 then the structure’s bearish target will be below $1,500, down over 25% from today’s price.Sell-off, pullbackInterestingly, the bear pennant’s profit target falls into the area that preceded a 250% price rally in the February-November 2021 session. Also, the target is around Ether’s 200-week exponential moving average (200-day EMA; the blue wave), currently near $1,600.Ideally, the demand zone could prompt Ether traders to accumulate the tokens in anticipation of a sharp upside retracement. Suppose it happens, then ETH’s price interim profit target would likely be the multi-month downward sloping trendline that has served as resistance in a “falling channel” pattern, as shown in the chart below.ETH/USD weekly price chart. Source: TradingViewETH has already been rebounding after testing the demand zone (and the falling channel’s lower trendline) as support. This could push ETH/USD to reach the channel’s upper trendline near $3,000, about 50% above today’s price, by June.Extended breakdown scenarioThe worst-case scenario could be ETH breaking below the demand zone, led by macro risks and their impact on the crypto market so far in 2022.Related: $1.9T wipeout in crypto risks spilling over to stocks, bonds — stablecoin Tether in focusNotably, Ether has declined by over 50% quarter-to-date as investors reduce their exposure to the riskier assets, including Bitcoin (BTC) and tech stocks, in a higher interest rate environment.As Cointelegraph has reported, anticipations of additional stock market selloffs could weigh on cryptos, thus hurting Ether, Bitcoin, Cardano (ADA), and others in tandem.Ethereum’s correlation coefficient with tech-heavy Nasdaq 100 is at 0.90. Source: TradingViewBOOX Research, a financial blogger at SeekingAlpha, remains long-term bullish on Bitcoin, Ethereum, and the broader crypto market but believes a recovery might take several years. Excerpts from its note:”While some of the corrections from the top may have simply shaken out the ‘hot money,’ there is still a risk that a deteriorating macro environment opens the door for even deeper losses.”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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STEPN move-to-earn tokens GMT, GST hit new highs after Coinbase listing announcement

The native tokens of move-to-earn lifestyle app STEPN swung higher on news that they would be available to trade on Coinbase, a U.S.-based crypto exchange.The price of STEPN’s governance token Green Metaverse Token (GMT) rallied by nearly 20% to reach over $4 in the past 24 hours, hitting as high as $4.50, its best level to date.GMT/USD four-hour price chart. Source: TradingViewSimilarly, the other STEPN token, called the Green Satoshi Token (GST), which players earn after walking, jogging and running outdoors with STEPN’s “NFT Sneakers,” gained 6.5% to about $6.25 on a 24-hour adjusted timeframe with a new record high of $7.20. STEPN ecosystem growsThe intraday rallies in GMT and GST markets are part of a broader uptrend that started in early March 2022. The growing hype around the so-called move-to-earn industry is boosting the value of these tokens, which are rewarded to active players.Move-To-Earn Token FITFI on Avalanche has achieved a 50x increase over the price of DAOMaker IDO ($0.0049) after it was launched on OKX and Bybit today. The public offering will release 10% after the launch. The mechanism is similar to Stepn. https://t.co/KVRVb1kDvL— Wu Blockchain (@WuBlockchain) April 26, 2022In particular, STEPN’s economic model, which involves selling nonfungible token (NFT) shoes and using the proceeds to buy back and burn GMT tokens, likely attracted speculators that see a lower supply-higher demand structure as bullish. GMT comes with a supply cap of 6 billion.Stepn $GMT nearly 2x since last tweet. Up 40x since first mention. I’m up a lot and Stepn app makes me money too. What a great investment https://t.co/CgheKBoMib— MURO – won’t DM, beware of scam (@MuroCrypto) April 28, 2022

Meanwhile, GST, which comes with an unlimited supply cap, finds bullish cues from its underlying use-cases. Notably, STEPN players use the token to mint, repair and level up their NFT sneakers — or even sell them on the app’s marketplace. As a result, if the number of STEPN users increases, it could lead to players limiting GST’s downside prospects by using it as an in-game currency.Players have already been sharing screenshots of their STEPN profiles, which feature their physical activities and the GST rewards they earned for doing them. Meanwhile, leading NFT marketplace OpenSea has added STEPN’s sneakers collection, providing more avenues for STEPN NFT owners to resell their digital shoes. How do I get a $STEPN activation code?— KSICRYPTO (@ksicrypto) April 27, 2022

The hype for move-to-earn tokens appears similar play-to-earn projects such as Axie Infinity (AXS), which skyrocketed last year. GMT ascending triangleGMT’s price eyes a return to $4.50 ahead of this week’s close, based on the “ascending triangle” setup on its shorter-timeframe charts, as shown below.GMT/USD hourly price chart featuring ‘ascending triangle’ setup. Source: TradingViewAscending triangles appear when the price consolidates between a horizontal upper trendline and a rising lower trendline. They resolve after the price breaks out in the direction of its previous trend, and rise by as much as the maximum distance between the triangle’s upper and lower trendline.Related: STEPN to new highs? GMT price painting first ‘bull flag’ toward $5 targetInterestingly, the triangle’s upside target near $4.50 also coincides with the 1.618 Fib line of the Fibonacci retracement graph drawn from $3.82-swing high to $2.75-swing low. GST descending triangleUnlike GMT, GST is showing signs of breakdown as it forms a descending triangle pattern after topping out at $7.20.GST’s price has been trending lower between a falling upper trendline and a horizontal lower trendline, which is considered bearish reversal after a strong uptrend. That said, the STEPN token now risks breaking below the triangle’s lower trendline, as illustrated below.GST/USD hourly price chart featuring ‘descending triangle’ setup. Source: TradingViewIf this occurs, GST’s price will risk falling by as much as the triangle’s maximum height when measured from the breakdown point, resulting in the bearish target of $6.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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Dogecoin price risks 40% correction despite Elon Musk-Twitter euphoria

Dogecoin (DOGE) prices flipped higher in the last 24 hours after its most celebrated backer, Elon Musk, purchased Twitter for $44 billion. At its best, Dogecoin had climbed to $0.17 on April 25, albeit still down 77% from its record high in May 2021.Twitter’s native currency: Dogecoin?DOGE’s price rose by nearly 25% to $0.15 on a 24-hour adjusted timeframe, confirming that traders considered Musk’s acquisition of Twitter a bullish event for Dogecoin. The reason: Musk’s long-time support for DOGE, including his recent advice to the Twitter board that they should start accepting the memecoin for Twitter Blue, their first-ever subscription service.The comments appeared a year after Twitter revealed that it plans to double its revenues to $7.5 billion by the end of 2023, raising hopes that Musk’s 100% ownership of the company would have it facilitate its future sales through an additional DOGE payment option.Elon acquires Twitter — > $DOGE becomes the currency of Twitter — > $1 $DOGE no longer a meme! How does that sound ?— Limbo (@CryptoLimbo_) April 25, 2022In January, Musk’s flagship company Tesla Motors started accepting Dogecoin, and only DOGE, for some of its merchandise.Related: What Elon Musk’s investment could mean for Twitter’s crypto plansDOGE price correction risksNevertheless, Dogecoin faces interim selloff risks following its impressive gains in the past 24 hours.DOGE’s price started correcting lower after re-testing a multi-month downward sloping trendline as resistance. Interestingly, the line constitutes a descending channel pattern, which raised the possibility of DOGE extending its pullback move by another 35%-40% by the end of Q2, as illustrated in the chart below.DOGE/USD daily price chart featuring ‘descending channel’ setup. Source: TradingViewThe selloff risks toward the channel’s lower trendline also remain elevated due to the 200-day exponential moving average (EMA) wave near $0.16, which has been capping Dogecoin’s upside attempts since November 2021. DOGE/USD daily price chart featuring Fib S/R levels. Source: TradingViewConversely, a strong upside continuation above the channel’s upper trendline and the 200-day EMA would position DOGE’s price for a test of $0.20 in Q2. This key level also coincides with the 0.382 Fib line of the Fibonacci retracement graph, drawn from the $0.35-swing high to the $0.10-swing low.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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Law Decoded: Competing narratives around crypto clash on the Earth Day, April 19-26

Regulation by enforcement, a fast and economical substitute for thorough rulemaking, is widely regarded as some of the U.S. executive agencies’ preeminent approach to crypto regulation. It could be summed up as letting crypto firms explore the boundaries of what is permissible by themselves and then punishing industry participants in case their exploratory actions come to look like a transgression. Others will take heed and learn from the explorer’s negative experience. While it is the United States Securities and Exchange Commission that gets accused of over-reliance on regulation by enforcement most frequently, other federal agencies do that as well. Last week, the U.S. Office of the Comptroller of the Currency, or OCC, announced cease and desist proceedings against Anchorage Digital, the nation’s first crypto custody firm to be awarded a national bank charter. The reason is the crypto bank’s alleged failure to implement a compliance program in line with the Bank Secrecy Act and Anti-Money Laundering standards. As Anchorage Digital races to remedy the shortcomings that the OCC pointed out, other industry players hoping to secure a bank charter will be watching closely.Crypto to the EarthOne of the most contentious policy debates around blockchain and cryptocurrency currently unfolds over the industry’s sustainability and environmental effects. From the European Union to individual U.S. states, regulators are continuously on the offensive on this front. The latest push came from a group of U.S. representatives who called for the Environmental Protection Agency, or EPA, to assess crypto mining companies’ compliance with federal environmental statutes. While some of the concerns related to mining operations that use “dirty” energy might be justified, some policymakers’ efforts to ratchet them up to vilify the entire industry are clearly misguided. On Earth Day, Cointelegraph reviewed some of the many blockchain-powered projects designed to do the environmental good and zoomed in on the technology’s capacity to contribute to the climate change fight. The future of crypto adoption will largely depend on which of the competing narratives about digital assets and blockchain’s environmental effects prevails.Australian investors get first spot-based BTC ETFAustralian regulators were busy last week. Financial compliance enforcement agency AUSTRAC, noting that cybercrime was rising apace with crypto acceptance in the country, released two guides for regulated entities on spotting illicit use of cryptocurrency and payments related to ransomware by customers. The Prudential Regulation Authority was not quite as productive, but it did send out a letter to its regulated entities presenting the roadmap of a regulatory framework for exposure to crypto assets, operational risk and stablecoins to take effect by 2025. It also outlined risk management measures that should be undertaken now. On the bright side, Cosmos Asset Management has received approval for Australia’s first Bitcoin (BTC) exchange-traded fund (ETF) after beating out three competitors to meet regulatory requirements. The fund is to begin trading on April 27 and reportedly stands to take in up to $1 billion. It will be traded on CBOE Australia.Russia could get more relaxed on crypto as sanctions bite harderRussian Central Bank governor Elvira Nabiullina spoke before the State Duma on Thursday and hinted that the bank may soften its stance on the digital asset industry as the government struggles to counteract the effects of Western sanctions. Nabiullina also said that the central bank expects to conduct its first settlements with a digital ruble in 2023. The Russian central banker has good reason to be worried as sanctions continue to be piled on. The same day she was speaking, Binance announced that Russian nationals and residents who hold over 10,000 euros, or $10,800, would be restricted from trading, and if they have open futures or derivatives positions, they will have 90 days to close them. These measures are due to the EU’s fifth round of sanctions. One day earlier, the U.S. Treasury announced it was blocking the assets of Russia-based crypto mining services provider BitRiver and its subsidiaries for facilitating sanctions evasion.

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