XRP Rejoins the Crypto Market in the Red in SEC vs. Ripple Silence

Audy Castañeda
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<strong>XRP Rejoins the Crypto Market in the Red in SEC vs. Ripple Silence</strong>

On Thursday, XRP joined the broader crypto market in the red, falling 4.57% to end the day at $0.37122. US President Joe Biden’s crypto tax plans, Fed Fear, and the collapse of Silvergate Bank overshadowed optimism toward the SEC vs. Ripple case. Technical indicators turned bearish, signaling a return to below $0.35.

On Thursday, XRP fell 4.57%. Reversing a 2.33% gain on Wednesday, XRP ended the day at $0.37122. Significantly, XRP ended a three-day winning streak.

After a hectic morning, XRP rallied to an early afternoon high of $0.39717 before pulling back. Failing to reach the first major resistance level (R1) at $0.4026, XRP slid to a Thursday night low of $0.36443. XRP fell through the first major support level (S1) at $0.3739 to close the day at $0.37122.

SEC vs. Ripple Case Goes to the Background to Leave XRP in a Bearish Mood

There were no SEC vs. Ripple case updates to distract investors from the crypto news wires and the US economic calendar.

Market angst ahead of the US jobs report, as well as Fed fears, weighed on buyers’ appetites. Following news that Silvergate Bank was planning a voluntary liquidation, shares of SVB Financial Group (SIVB) plunged, as investors responded to the announcement of a $1.75 billion share sale to support its balance sheet and to address the impact of the drop in deposits.

The US Administration added to the bearish mood, publishing a White House fact sheet outlining plans to remove crypto tax subsidies.

For investors monitoring the SEC vs. Ripple case, a court ruling on the Hinman Documents will be the key for the defendants and the crypto market in general. In a famous 2018 speech, William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

The contentious issue with the speech relates to Hinman’s connection to Simpson Thacher. Simpson Thacher is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

A Court decision in favor of the Defendants would fuel the expectation of an SEC settlement.

XRP Action Price – Technical Indicators

XRP was down 0.19% at $0.37051. A bearish start to the day saw XRP fall from an initial high of $0.37097 to a low of $0.36534.

XRP needs to move through the $0.3776 pivot to target the first major resistance level (R1) at $0.3908, and Thursday’s high of $0.39717. A return to $0.39 would signal a bullish session. However, the broader crypto market and SEC vs. Ripple talk would need to support a breakout.

In the event of a prolonged rally, XRP would likely test the second major resistance level (R2) at $0.4103. The third main resistance level (R3) sits at $0.4431.

The 50-day EMA has pulled back from the 100-day EMA, with the 100-day EMA pulling back from the 200-day EMA. The signals were bearish.

A move through the 50-day EMA ($0.37858) would support a break of the 100-day EMA ($0.37996) and 200-day EMA ($0.38313) to target R1 ($0.3908). However, a drop-through S1 ($0.3580) would give bears a look below $0.35.

By Audy Castaneda

US Jobs Report Jitters Surface

Audy Castañeda
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<strong>US Jobs Report Jitters Surface</strong>

It was a bearish morning for Asian markets, with the Hang Seng and ASX 200 posting heavy losses. Market angst over the US Jobs Report and news that SVB Financial Group (SIVB) is falling into trouble sent major Asian companies into the red. However, the Bank of Japan cushioned the fall of the Nikkei.

It was a bearish morning for Asian markets, with the Hang Seng and ASX 200 posting heavy losses. The bearish sentiment from the US session carried over into the morning session as investors turned their attention to the all-important US Jobs Report.

Following unexpectedly aggressive testimony from Fed Chairman Powell on Tuesday, another better-than-expected jobs report could boost rate top forecasts, raising the threat of a global recession and a US hard landing.

Beyond the economic calendar, SVB Financial Group (SIVB) announced a $1.75 billion share sale to address balance sheet issues, spooking investors following the demise of Silvergate Bank.

On Thursday, the NASDAQ Composite Index fell 2.05%, and the Dow and S&P 500 posted losses of 1.66% and 1.85%, respectively.

Market Overview

The ASX 200 was down 2.07%. There were no economic indicators out of Australia to influence, leaving Fed Fear to control investor sentiment ahead of the US Jobs Report. Bank shares followed their US peers in dark red on SVB Financial Group news (SIVB).

Bank stocks were in free fall. ANZ Group (ANZ) and Commonwealth Bank of Australia (CBA) fell 3.27% and 3.34%, respectively. Westpac Banking Corp (WBC) and National Australia Bank (NAB) were down 3.08% and 3.11%, respectively.

Oil stocks were also in negative territory, with Woodside Energy Group (WDS) slipping 3.09% and Santos Ltd (STO) slipping 2.16%. The fall in oil prices since Thursday, as well as a further decline this morning, weighed on oil stocks. Brent crude was down 0.50% at $81.18 this morning.

Mining stocks had a mixed session. Rio Tinto (RIO) and BHP Group Ltd (BHP) were down 2.53% and 2.6% respectively, and Fortescue Metals Group (FMG) was down 2.80%. Newcrest Mining (NCM) bucked the downtrend, rising 0.86%.

Hang Seng Index

The Hang Seng was down 2.49% this morning, with market angst ahead of the weight of the US Jobs Report. In terms of the main constituents of the index, Tencent Holdings Ltd (HK:0700) was down 1, 70%, while Alibaba Group Holding Ltd (HK:9988) fell 3.31%.

Nikkei 225

Nikkei 225 was down a relatively modest 0.43% this morning, with stronger USD/JPY at 136.69 cushioning the decline. Economic data and the Bank of Japan failed to deliver a bullish session.

Household spending rose 2.7% in January, reversing a 2.1% drop since December. Economists forecast a more modest rise of 1.4%. Year-over-year, spending fell 0.3% versus an expected decline of 0.1%. In December, household spending fell by 1.3%.

There were no surprises from the Bank of Japan to move the dial. In line with expectations, the Bank of Japan left interest rates at negative 0.1%. The Bank also made good on its promise to maintain ultra-loose monetary policy by leaving the bond yield cap and yield control policy unchanged.

Looking at the main components, Fast Retailing Co (9983) and KDDI Corp (9433) fell 0.96% and 0.12%, respectively. Sony Corp (6,758) and SoftBank Group Corp. (9,984) posted larger losses of 2.49% and 3.37%, respectively. However, Tokyo Electron rose 0.29%.

By Audy Castaneda

Details of the Project Launched by the Central Bank of Brazil

Audy Castañeda
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<strong>Details of the Project Launched by the Central Bank of Brazil</strong>

This is the first real digital pilot, announced on March 6.

On Monday, March 6, the Central Bank of Brazil announced the first pilot of the digital real, finalizing the plans for the new form of the Brazilian currency. This project will involve tests throughout 2023, with the participation of financial entities, following the model used in the development of Pix.

Fábio Araújo, responsible for the real digital project in BC, stated that the objective is to develop a test platform with “specific focus on the DLT programmability infrastructure”. DLT (Distributed Ledger Technology) is a technology that allows the distributed ledger of information on a computer network, which includes Blockchain technology.

The implementation of the digital real has been discussed for some time by the Central Bank, and the idea is that the new form of currency is an alternative to cash and facilitates financial transactions. With the pilot announced, the plans for its implementation begin to become more tangible, and the Central Bank continues to work to make digitally viable.

What Is, In Practice, a DLT?

Distributed Ledger Technology (DLT) is a ledger network that allows all participants transparent access to transaction history and data. DLT is a more collaborative version of traditional databases and its security is considered superior.

The use of DLT for a national currency, as it is intended to do with the real, has implications that go through gaining transparency in operations, which facilitates control by the authorities.

While DLT has many benefits, the privacy of the data being transmitted is a major concern. Distributed technologies tend to make information widely visible on the web, and it is necessary to think carefully about the strategies that can be used to ensure the privacy required by law.

How Money Can Be Programmed Using This New Technology

Understanding DLT technology is fundamental to understanding the changes that the digital real can bring, however, the ultimate goal of the Central Bank is not limited to creating a more modern database. In fact, the main focus is on creating “programmable money”.

The term “programmable money” does not just refer to simple tasks like scheduling payments, but to a deeper concept. When the coin is programmable, it is possible to embed rules directly into the coin itself.

This programming can allow companies to create loyalty programs for their customers, in which purchases and services provided are automatically counted towards the delivery of a monetary bonus.

In addition, this technology can make the payment process more efficient, with the possibility of creating smart contracts that automate the transfer of values ​​in a faster and safer way.

Therefore, the digital real is not only a more modern form of money, but it can also bring significant changes to the way financial transactions are carried out. DLT technology and the concept of programmable money can play an important role in building a more digital and efficient economy, and even in banking inclusion.

By Audy Castaneda

Ethereum Price at $5,000

Audy Castañeda
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<strong>Ethereum Price at $5,000</strong>

In the last few weeks, the Ethereum price has only seen a stronger rise and in the last 2-3 weeks it has fallen slightly again.

The Ethereum price has seen a very good rise in 2023 so far. Although a slight price drop was observed recently, investors are likely to become more optimistic again. The previous all-time high is $4,800.

In general, the direction of Ethereum’s course has been upward so far this year. At the beginning of the year, the ETH rate was still $1,250. It is currently at $1,550.

However, the Ethereum price has already reached a price of $1,700 in recent weeks. However, since mid-February, the price has fallen more sharply again after the price of Bitcoin also suffered a steeper decline.

Can the Ethereum Price Explode again in 2023?

The Ethereum course could already perform well this year. Therefore, 2023 could be a very successful year for the ether token. The second year of a bear market usually brings a slight rebound from the heavy losses of the first year in the bear market.

However, the question remains as to whether the Ethereum price could rally back towards the all-time high, and thus towards $5,000, in the coming weeks and months. Some analysts assume that the cryptocurrency market is still very undervalued at the moment.

However, it is almost impossible for the Ethereum price to rise in these areas this year. It will probably take a few more months before there are extremely strong rallies in Ethereum.

When Will the Price Reach $5,000?

A new all-time high and rally above the $5,000 level could happen very quickly if a bull market resumes. This bull market has always come after the Bitcoin halving, which triggers a Bitcoin supply shock. With the rise of Bitcoin, Ethereum is also rising sharply as a result.

The years 2024 and 2025 seem likely. The halving will likely come in the spring of 2024, after which the Ethereum price should skyrocket. Assuming a bullish perspective, $5,000 could drop as early as 2024.

However, by the second half of 2025 at the latest, the $5,000 mark should fall easily, because then the course of Ethereum should move towards a new all-time high. At the top, even more than $10,000 for an Ether should be possible.

High inflation and the extremely insecure macro situation were strongly reflected in the price of Bitcoin in 2023. Considering the internal problems of cryptocurrencies with big players like FTX, Celsius, Voyager, Luna going under, 2023 doesn’t look too good. for the bulls. A lot of sideways price action will be seen, with a tendency to slide lower with every minor shake in the market.

Many experts consider that Ethereum is the best cryptocurrency to invest, since its system is better than that of Bitcoin. It is true that there are other large projects, but none has a level of relevance, in the crypto world, comparable to Bitcoin and Ethereum, at least so far.

By Audy Castaneda

Bitcoin Mining Company Marathon Digital Cancels Credit Lines with Silvergate

Audy Castañeda
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<strong>Bitcoin Mining Company Marathon Digital Cancels Credit Lines with Silvergate</strong>

Marathon Digital (MARA) canceled its lines of credit with Silvergate Bank. The mining company reduced debt by $50 million and released $75 million worth of BTC as collateral. Silvergate Bank has started the voluntary liquidation process.

Marathon Digital, a leading Bitcoin miner, has ended its relationship with Silvergate Bank. This development came at a time when Silvergate Capital Corporation (Silvergate’s parent company) decided to shut down banking operations.

According to the official blog, the mining company completed the full payment of the loan and ended its credit lines with Silvergate. Given the adverse market conditions, this development came as the pro-crypto bank ceased operations.

The payment reduced debt exposure by $50 million and increased the company’s unrestricted Bitcoin holdings by 3,132 BTC, held as collateral. Hugh Gallagher, CFO of Marathon, stated the following:

“We have reduced our leverage by approximately $50 million, immediately released approximately $75 million worth of BTC that was held as collateral for the term loan, and reduced our annual cash interest costs and setup fees by approximately $5 million.”

Via Twitter, Marathon Digital Holdings posted the following:

“Marathon Digital Holdings has repaid its term loan and terminated its credit facilities with Silvergate Bank, reducing Marathon’s debt by $50 million and increasing the Company’s unrestricted bitcoin holdings by 3,132 BTC.”

 Measures That Will Help Marathon Digital

In fact, reducing debt obligations will help the company and the mining industry as a whole. Marathon Digital is a company that specializes in Bitcoin mining.

As a mining company, their business model involves using high-powered computers to solve complex math problems to validate Bitcoin transactions and earn rewards in the form of a new BTC.

The company requires a significant capital investment in expensive computer equipment, electricity, and other operating costs to run this business. The company took on debt to finance these investments, which could be a source of financial stress.

Nonetheless, the mining giant proactively restored its balance sheet by paying off some of its debts and releasing its restricted BTC.

Marathon Digital settled $30 million in revolving loans with Silvergate in December, freeing up 3,615 BTC held as collateral. Such examples will help struggling miners release additional liabilities that could restrict further growth.

Silvergate Ceases Operations

The timing of this development to reduce exposure was interesting. The pro-crypto bank took steps to “cease operations.”

The announcement was “in light of recent industry and regulatory developments,” BeInCrypto reported on March 8. Silvergate Bank’s liquidation plan included the “full refund of all deposits.”

The sale comes just one day after a report hinted at a possible revival surfaced. The bank was discussing ways to avoid a shutdown with US federal regulators.

Needless to say, the decision has caused immense short-selling activity against its share price ($SI).

Numerous clients severed their alliances with the bank. The closure of Silvergate Bank may leave a ripple effect in the cryptocurrency industry, paving the way for existing and new entrants to fill the void.

By Audy Castaneda

BTC Bears to Target below $21,000 on Fed Fears and Regulatory Jitters

Audy Castañeda
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0
<strong>BTC Bears to Target below $21,000 on Fed Fears and Regulatory Jitters</strong>

It was a bearish Wednesday session, with BTC falling 2.23% to end the day at $21,713. The news that Silvergate Bank plans to voluntarily liquidate sent BTC and the broader crypto market into the red. Technical indicators are bearish, with less than $20,000 in sight.

On Wednesday, Bitcoin (BTC) fell 2.23%. Following a 0.87% drop on Tuesday, BTC ended the day at $21,713. BTC ended the day below $22,000 for the first time since February 13.

A mixed start to the day saw BTC rally to an early high of $22,291. Missing the first major resistance level (R1) at $22,525, BTC slid to a last-hour low of $21,619. BTC fell through the first major support level (S1) at $21,921 and briefly through the second major support level (S2) at $21,634 before ending the day at $21,713.

Silvergate Bank and Fed Chairman Powell Return BTC to Sub-$22,000 Levels

It was a busy day on the US economic calendar. Following Tuesday’s hawkish testimony from Fed Chairman Powell, the US labor market was in the spotlight.

The numbers supported a more aggressive Fed rate path to bring inflation on target. According to ADP, non-farm payrolls increased by 242k in February, against an expected increase of 200k. Payrolls saw a more modest increase of 119k in January.

Following the labor market numbers, Fed Chairman Powell delivered a second day of testimony. However, the markets showed little interest after the sell-off on Tuesday. The NASDAQ Composite Index rose 0.40%. This morning, the NASDAQ mini is down 5.5 points.

On Wednesday, news came that Silvergate Bank was planning to close its doors. The cryptocurrency-friendly bank reported a $1 billion loss in the fourth quarter of 2023, with a bank run leaving the bank with no alternatives. Silvergate Bank reportedly stated that the liquidation plans include a full refund of deposits. The crypto market is expected to face increased scrutiny, as US lawmakers and regulators consider the impact of the crypto market on financial stability.

Bitcoin (BTC) Action Price – Technical Indicators

This morning, BTC was up 0.09% at $21,732. A mixed start to the day saw BTC fall to an initial low of $21,690 before rising to a high of $21,732.

BTC needs to move through the $21,874 pivot to target the first major resistance level (R1) at $22,130 and Wednesday’s high of $22,291. A return to $22,000 would signal a bullish session. US crypto news leads and economic indicators should be crypto-friendly to support a prolonged rally.

In the event of a prolonged rally, BTC would likely test the second major resistance level (R2) at $22,546 and resistance at $23,000. The third major resistance level (R3) sits at $23,218.

A move through R1 ($22,130) would give the bulls a run on the 50-day EMA ($22,536) and R2 ($22,546). A move through the 50-day EMA would send a bullish signal. However, a failure to break above the 50-day EMA ($22,536) would leave major support levels in play.

By Audy Castaneda

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