What has attracted attention over the past week is the price action in the markets. Unlike what has happened so many times in 2022, it’s fortunately for the right reasons! The cryptocurrency market got off to a promising start to the year, reaching $1 trillion in market capitalization for the first time since November of the previous year. At present we are walking on one side or the other of this basic level.
The price of Bitcoin has stabilized above $21,000 in recent days, allowing the currency to return to its pre-bankruptcy level of the FTX exchange. It took a little over two months, at least on the bitcoin valuation side, to get past this crisis. Close to $500 million of short positions have been liquidated since Friday, the highest level since October 2022. This latest price move also comes as bitcoin’s mining difficulty increased by more than 10% to a new record high of 37.59T (34.09T). Sunday. Recall that mining difficulty measures the difficulty of solving the cryptographic puzzle needed to create a block on the Bitcoin network. The difficulty is adjusted every two weeks and the next adjustment is scheduled for January 28th. An increase in mining difficulty is generally seen as a sign of the network’s strength and growth, indicating new confidence in the overall market. However, this comes at a cost to miners who have to spend more resources to generate the same amount of coins as before.
The current price zone is also important for the mood of network players. According to Glassnode, the current value of one bitcoin is about $18,800. Given that bitcoin is currently trading above $20,000, this means that conventional mining companies can once again operate at a profit. This increase also allows for the benefit of more than 50% of the bitcoins in circulation.
“Many of these patterns act as important psychological resistance levels during bear markets, making this particular event newsworthy,” Glassnode analysts write. The rally that started last week and accelerated over the weekend could be attributed to signs of cooling US inflation. With a price tag of more than $19,000, Glassnode believes that miners can earn more from mining bitcoins than from running their already power-hungry machines. Also, the average owner bought BTC at a lower price, which means they can sell it at a profit.”
A cryptocurrency conglomerate Digital Currency Group, Genesis and Grayscale informed its shareholders, including the owner of Bitcoin Trust, that the company is suspending dividends until further notice. “In response to the current market environment, DCG has focused on strengthening our balance sheet by reducing operating costs and conserving cash. Accordingly, we have decided to suspend the distribution of DCG’s quarterly dividend until further notice,” DCG said in a letter to shareholders on Tuesday. Apart from this decision, there has been no significant progress on Genesis’ liquidity problems.
On the FTX side, a significant portion of the $181 million in assets held by FTX US, the crypto company’s bankrupt American subsidiary, was the subject of “unauthorized transfers by third parties” after the bankruptcy, according to a filing before the FTX creditors’ committee on Tuesday. Unauthorized transfers on FTX.com’s main platform grabbed headlines as hundreds of millions of dollars were transferred a day after the company filed for bankruptcy protection under the law. Chapter 11 November 11. However, the $90 million transferred from FTX US has not been disclosed by the company to date. According to FTX’s filing, $88 million of FTX US’s remaining assets have been transferred to a cold wallet, with another $3 million waiting to be transferred to that wallet. The following infographic was shared:
Coinbase has confirmed that it will suspend its operations in Japan within weeks, citing the current difficult market conditions. “Due to market conditions, our company has made the difficult decision to suspend operations in Japan and conduct a complete review of our operations in the country,” the San Francisco-based company said in a statement. “However, we are committed to making this transition as smooth as possible for our valued customers.” It should be noted that the Kraken exchange also made the same announcement. For its part, Binance, on the contrary, is trying to re-enter the market by leaving the company in 2018.
After intense discussion by community members, Polygon finally decided to move forward hard fork. The latter was carried out yesterday without any technical problems. It seeks to increase the speed of transactions and reduce the spikes in transaction prices that occur during peak periods.
Wallets holding Ether are on track to pass the 100,000,000 mark soon. Since 2019, this number has increased by about 20 million annually. If this pace continues, it is likely that non-zero ETH wallets will reach 100 million in Q2 2023.
More than 16 million Ether have been invested in his contract stakingFrom Ethereum. This 16 million ETH figure represents more than 13.28% of the total Ether supply and is worth about $22.38 billion at current prices. This comes nearly two years after Ethereum’s staking contract went live in 2020. The $22.38 billion in ETH invested in this contract will not be able to be withdrawn until Ethereum’s next major upgrade.”Ethereum. While the increase in the number of ETH pledged can be interpreted as a promising sign for Ethereum security and adoption, it backfires on network developers. can increase pressure to speed up work to ensure pull.
The increase in the price of Bitcoin was accompanied by a massive increase in trading volume. Last week, BTC volume more than doubled to $10.8 billion, representing a seven-day increase of 114%. An increase in volume is generally associated with an increase in volatility. But so far, that hasn’t really been the case. On-chain analytics also point to positive signs that bitcoin’s recovery is potentially underway. The more the market can absorb selling pressure without price capitulation, the less general market fear and possible macroeconomic change.
Finally, note that bitcoin’s 30-day correlation with the Nasdaq reached 0.29 on January 17, BTC’s largest divergence from the stock index since December 2021. Stock markets may continue to fluctuate due to the persistence of high inflation, but bitcoin is different. the stock market could help transform BTC into the future that many have predicted, from an exceptionally risky asset to one that is more of a safe haven.
The capital of the fund is publicly invested entirely, mainly in BTC and ETH.
This article is brought to you by Fonds Rivemont. The Rivemont cryptocurrency fund is the first and only actively managed cryptocurrency fund in Canada. RRSP and TFSA are eligible. Accredited investors can get more information here.
Disclaimer: This column does not necessarily represent the opinion of CryptonewsFR and does not constitute investment advice or trading guidance..
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