The MVRV Ratio Indicates Bitcoin Has Reached Its Lowest Point in the Bearish Market

Alexander Salazar
-
0
<strong>The MVRV Ratio Indicates Bitcoin Has Reached Its Lowest Point in the Bearish Market</strong>

Since the Bitcoin MVRV ratio has been below one (1), its market capitalization has been below its realized capitalization. The indicator has been in that region for 170 days but has remained there shorter than in the 2014-2015 bearish market.

On-chain data from CryptoQuant shows that the value of Bitcoin (BTC) has dropped over the last 170 days. According to the Market-Value-to-Realized-Value (MVRV) ratio, it has reached 0.74, its lowest point during this bearish market.

The realized capitalization model indicates that each coin in circulation has its previous price. Then all those figures add up to the whole supply to get the value of BTC.

That indicator differs from traditional market capitalization, as the coins do not have the same value as the market price of Bitcoin. Considering the cost basis of each holder in the market, it acts as the value of the cryptocurrency.

Therefore, comparing the two capitalizations (the MVRV ratio) can help determine whether the price is undervalued or overvalued.

The Market Capitalization of Bitcoin Is below Its Realized Capitalization

A recent chart shows the MVRV ratio of Bitcoin has been below one (1) over the last few months. Therefore, the market capitalization of the pioneering cryptocurrency has been below its realized capitalization.

The bearish bottoms in the price of the crypto asset have historically been in the region below 1. Besides, highs have occurred when the MVRV ratio has been higher than 3.7.

The indicator assumed values below 1 for 300 days in the 2014-2015 bearish market, dropping as low as 0.6. However, that period saw a shorter cycle, as it remained in that zone for only 134 days.

The MVRV ratio of Bitcoin has been in that region for 170 days in the current cycle, reaching as low as 0.74. Although the indicator has remained there longer than during the last period, it has been shorter than between 2014 and 2015.

Since the metric is not as deep as in those cycles, the bears might go lower before Bitcoin bottoms out.

The Behavior of the Price of Bitcoin over the Last Week

The value of Bitcoin has remained above the USD 17,000 resistance zone over the last seven days. It could rise above the USD 17,100 and USD 17,200 resistance levels.

The pioneering cryptocurrency exceeded USD 17,400, trading close to the USD 17,500 resistance zone. However, the bears remained active near USD 17,500, forming a high near USD 17,440 before the price started a bearish correction.

Bitcoin dipped below the USD 17,200 level and the 100-hour SMA, breaking below the crucial upward trend line with support near USD 17,050.

Although the price was as low as USD 16,888, it is now rising to trade near USD 17,000 and the 100-hour SMA. It is above the 23.6% Fibonacci retracement level of the recent decline from the USD 17,440 high to the USD 16,888 low.

Bitcoin is trading at around USD 17,008 and has accumulated a 4.8% gain over the last week. While its daily trading volume is above USD 20.60 billion, its market capitalization is about USD 317.06 billion, according to CoinGecko.

By Alexander Salazar

FTX Japan Seeks to Unfreeze Client Funds and Allow Withdrawals

Audy Castañeda
-
0
<strong>FTX Japan Seeks to Unfreeze Client Funds and Allow Withdrawals</strong>

The Japanese subsidiary of the collapsed bitcoin exchange promises a “master plan” to return the money withheld from Japanese users.

FTX Japan has announced plans to allow clients to withdraw funds from the exchange soon, meaning they will be among the first to get their money back.

FTX investors have been unable to withdraw capital from the stock market due to the collapse of the Sam Bankman-Fried empire. However, a recent announcement from FTX Japan should come as a great relief to Japanese users.

Law Prevents Client Assets from Being Treated as FTX Property

FTX Japan has received confirmation from the law firm representing the FTX group that the assets of Japanese clients should not be treated as company property.

Based on this confirmation, FTX Japan plans to re-enable withdrawals. The notice further says the following:

“Our engineering teams are working to enable FTX Japan users to withdraw their funds. Re-enabling the withdrawal service is our top priority, and we are grateful for your understanding and support.”

FTX Japan specified that the differentiation between user funds and company assets was disclosed with the support of the law firm representing the FTX Group in bankruptcy proceedings in the United States.

“Fiat money and cryptocurrencies from Japanese clients should not be part of FTX Japan’s assets given the way these assets are held and ownership interests under Japanese law,” the company states.

Additionally, Sam Bankman-Fried has claimed in a tweet that FTX US is solvent. He claims to be unsure why withdrawals from FTX US stopped. Does this mean that FTX US could also re-enable withdrawals soon, or is it just a diversionary tactic? Here is what SBF tweeted:

“When I filed, I’m fairly sure FTX US was solvent, and that all US customers could be made whole. To my knowledge, it still is today. I was expecting that to happen.  I’m surprised it hasn’t.  I’m not sure why US withdrawals were turned off.”

SBF Called to Appear in the House of Representatives

The United States House Financial Services Committee held a hearing on December 13 to discuss the collapse of FTX. Maxine Waters, chair of the committee, invited Sam Bankman-Fried to the hearing because they “appreciate his willingness to speak to the public.”

“@SBF_FTX, we appreciate that you’ve been candid in your discussions about what happened at #FTX. Your willingness to talk to the public will help the company’s customers, investors, and others. To that end, we would welcome your participation in our hearing on the 13th,” Waters tweeted.

The community criticized Waters, calling this action “incredibly embarrassing.” They demand she reconsiders and takes an honorable approach. Ryan Wyatt, CEO of Polygon Studio, questions the move, claiming that SBF is a criminal.

By Audy Castaneda

The Price of SOL Might Rise Significantly in the Coming Weeks despite an Adverse Scenario

Alexander Salazar
-
0
<strong>The Price of SOL Might Rise Significantly in the Coming Weeks despite an Adverse Scenario</strong>

A rise in the price of BTC and a reduction in inflation in Europe would confirm predictions about the SOL. The market anticipates the meeting in December, hoping for a less aggressive decision by the Fed about interest rates.

Solana (SOL) has long been among the top 20 crypto assets by market capitalization, as its considerable publicity has attracted many enthusiasts.

Six months ago, the aggressive policies of Jerome Powell, the Fed chairman, caused the value of SOL to drop by about 95%.

The price of SOL swept away the accumulation zones of the enthusiasts entering for fear of missing out (FOMO). The operating system of the crypto asset suffered a significant outage, which prevented the community from making transactions.

SOL Is the Black Cat of Crypto Assets

After the market crash, SOL also suffered from over-collateralization within hedgefund Alameda Research. After becoming bankrupt, the latter entered a process of liquidation of its balance sheets, which harmed the crypto asset.

SOL seems to be amid accumulation, as its price has re-entered the previously tested zone. High volatility movements might define whether it will move upward or downward.

Following a bullish process, the relative strength index (RSI) is in a bearish area of ​​36.56%. There might be a We would expect a reversal before the price continues its course to the upside.

Since Bitcoin (BTC) always influences the crypto market, a rise in the price would confirm predictions about SOL for the coming weeks.

Higher stability by the Fed in December and a reduction in inflation in Europe would allow confirming that proposed scenario.

The Price of SOL Might Enter a Bearish Trend

Nobody should rule out that possibility, as those predictions rely on recently obtained information. However, the opposite might happen in the worst scenario, even with adequate risk management.

In the first weeks of December, the Fed might set aggressive market conditions, invalidating previous analysis. In addition, employment in the US might falter, and Russia might decide not to trade its commodities in Bitcoin.

Regardless of the scenario, the predictions about SOL might become invalid, as the market is always right. Therefore, the estimated target for the price of the crypto asset would be around USD 6.58

The market does not only expect the events related to the war and the adoption of cryptocurrencies in Russia. Investors are looking forward to the meeting in December, hoping for a less aggressive decision by the Fed about interest rates.

SOL is trading at around USD 13.44 and has accumulated a 1.1% loss over the last 24 hours. While its daily trading volume is above USD 159.00 million, its market capitalization is about USD 4.89 billion, according to CoinGecko.

Investors should research SOL or any other crypto asset before buying it to learn about its all-time high, behavior, and possible future prices. It is only a matter of time before seeing where the market will take the value of that crypto asset.

By Alexander Salazar

Jim Cramer Calls Sam Bankman-Fried a Liar, Scammer, and Absent-Minded Idiot

Alexander Salazar
-
0
<strong>Jim Cramer Calls Sam Bankman-Fried a Liar, Scammer, and Absent-Minded Idiot</strong>

Cramer stressed that anyone who fraudulently mixes funds should go to jail, whether they did it intentionally or not. Jake Chervinsky said Caroline Ellison is crucial in the FTX case, but no one knows what she is doing.

Jim Cramer, a former hedge fund manager, and TV host commented on the collapse of FTX and Sam Bankman-Fried. He said the former CEO of the bankrupt exchange committed illegal fraud even though he did not try to do so.

The expert noted that Bankman-Fried did not keep records, so he admits to illegality, even though he said not to intend to.

Cramer said it was irrelevant whether Bankman-Fried was a good person since the facts were indisputable. He pointed out that he knew friendly people who had spent a lot of time in prison for mistakes they made.

The TV presenter described Bankman-Fried as an obsessive liar and scammer. He stated that the former CEO of FTX admitted to inappropriately mixing accounts and later said he felt wrong about it.

In addition, he highlighted that fraudulently mixing funds implies that the person responsible must go to jail, regardless of whether he is lying or being honest.

The former hedge fund manager concluded that thieves never say to be sorry about committing a crime. However, he believes this is irrelevant because his behavior affected many investors.

After FTX filed for bankruptcy on November 11th, Bankman-Fried stepped down as CEO. About 1 million customers and investors lost billions of US dollars due to the collapse of the exchange.

A court is investigating the bankrupt company for mismanaging the funds of customers. John Ray, the new CEO of FTX, said he had never seen such a complete failure of corporate controls.

Nobody Knows of the Former CEO of Alameda Research

Caroline Ellison, the former CEO of Alameda Research, was reportedly in New York recently. The crypto community has begun to speculate about what she might do there.

While Bankman-Fried has spoken publicly, the crypto community and lawmakers want to know about the alleged fraud involving Alameda Research.

Maxine Waters, chairwoman of the US House Financial Services Committee, urged Bankman-Fried to appear at a hearing on December 13th. However, he declined the invitation to testify, saying he first needed to learn and review what happened.

Many reacted to those words, criticizing him for stating in various virtual media that he has made inadvertent accounting errors.

Jake Chervinsky, the head of policy for the Blockchain Association and US Attorney, said Caroline Ellison was another piece of this story. No one knows what she may be doing now as Bankman-Fried makes public statements.

The collapse of FTX and its effect on the crypto market has led regulators to exercise tighter measures. Of course, the victims of that event are the ones criticizing the former CEO the most on social media.

Meanwhile, Bitcoin is trading at around USD 17,298 and has accumulated a 5.1% gain over the last week. While its trading volume is above USD 22.41 billion, its market capitalization is about USD 332.55 billion, according to CoinGecko.

By Alexander Salazar

Bitcoin at $17,000, Altcoins Wobble, and Crypto Community Takes on SBF

Audy Castañeda
-
0
<strong>Bitcoin at $17,000, Altcoins Wobble, and Crypto Community Takes on SBF</strong>

Crypto Market ends the week with a total market capitalization of $851 billion.

The crypto market has had a positive week in many ways. First of all, the market capitalization increased by around $10 billion. It’s not much, but it’s a step in the right direction. Subsequently, most of its core assets have posted small but promising gains. Lastly, the crypto community finally took on former FTX CEO Sam Bankman-Fried and got some valuable answers.

Bitcoin started the week slowly, flirting with the $16,000 support. However, it rallied and gradually rose from Wednesday, breaking above $17,000 before the weekend began. Unfortunately, it did not manage to stay there for long. It is currently trading just below the resistance level at $17k, most likely where it will end up this week.

Ethereum continues to grow slowly as it builds on last week’s run. The second-in-command crypto posted another 3% rise in recent days. That brings its tally to around $1,250 this week. Earning $50 a week is not much for ETH, but it may be enough to keep it below the dreaded $1,000 level.

Altcoins and DeFi

Most altcoins are trading in the green, which shows promising signs for this corner of the crypto market. For example, Cardano is up 1%, Avalanche almost 5%, and Polkadot more than 3%. Meanwhile, Uniswap takes the best climber cake with a 12% rise in value, followed by Polygon with 7%.

However, not all altcoins were as lucrative this week. For example, BNB is down almost 8% and XRP almost 4%. Similarly, Solana is down 6%, Shiba Inu 3% and Dogecoin 1%.

This week, the Metaverse sector is the most successful segment of the crypto market. ApeCoin increased 4%, ICP 9% and Mask Network 19%. Meanwhile, Theta Network declined 8% and Axie Infinity and The Sandbox 1%.

The DeFi sector lost almost $10 billion of the total value in locked protocols (TVL), now at almost $40.89 billion.

Next Week Crypto Market Forecast

The crypto market enters the last month of 2022 with mixed feelings.

Firstly, it shows slight signs of recovery after the bloodbath caused by the bankruptcy of FTX.

On the other hand, most altcoins struggle to make significant profits. And when they finally do, they lose them shortly after. This trend should continue next week and it may be even so until the year’s end.

Other events to watch out for include: According to Ted Cruz, the Fed and White House want a CBDC; Coinbase Wallet removed XRP and 3 other coins citing low usage; and Galaxy Digital is looking to buy GK8 from failed lender Celsius.

By Audy Castaneda

The Outcome of the Legal Battle between Ripple and the SEC to Influence the Entire Crypto Industry

Alexander Salazar
-
0
<strong>The Outcome of the Legal Battle between Ripple and the SEC to Influence the Entire Crypto Industry</strong>

Garlinghouse said Ripple promised to fight hard to get clearly-stated rules for the entire crypto industry in the US. Around 70,000 XRP holders involved in the case believe the price will skyrocket, even exceeding its previous all-time high.

The legal battle between the US Securities and Exchange Commission (SEC) and Ripple is ending, according to Stuart Alderoty. The legal counsel said the FinTech company submitted its final filing in the case, seeking a ruling in its favor.

Alderoty also stated that the company is proud to defend the entire crypto industry in court. Before that, Brad Garlinghouse and Chris Larsen, the CEO and co-founder of Ripple, supported a motion for summary judgment.

Ripple argued that the SEC should drop its opposition to proceeding to summary judgment, as the latter has no evidence. Therefore, they cannot determine whether XRP was a bid or sale of an investment contract and why it is a security.

In response to the comment from Alderoty, Garlinghouse congratulated the Ripple team on reaching the final stage of the case. They promised they would fight hard to obtain clearly-stated rules for the crypto industry in the United States.

Ripple Receives Support from the Crypto Community

During that two-year legal battle, Ripple received tremendous support from the community. For example, crypto companies like Coinbase have filed a dozen amicus briefs. In addition, around 70,000 XRP holders have filed a brief to defend the company.

Ripple has also scored minor victories, such as gaining access to the e-mails of William Hinman, a former director of the SEC.

Several analysts have argued that the outcome of that case will significantly influence the entire crypto industry.

The Price of XRP Might Skyrocket When the Case Ends

The case, which lasted from December 2020 to 2022, keeps the native token of Ripple, XRP, undervalued. The SEC has claimed that it is a security, seriously damaging investor confidence. For that reason, all sales, including secondary ones on exchanges, have amounted to unregistered security offerings.

XRP is trading at around USD 0.39 and has accumulated a 1.11% gain over the last 24 hours. That is equivalent to an 89.7% drop in the price from its all-time high in 2018.

However, XRP holders have gotten involved in the case as third-party friends in the court. They believe the price will skyrocket, exceeding its all-time high, when the suit is over.

In short, the result of the legal battle between Ripple and the SEC might determine the future of the crypto industry. If clearly-stated rules emerged, the companies that operate with cryptocurrencies would know what to do to avoid sanctions. In addition, that would allow them to protect the interests of their clients if they have to declare bankruptcy.

Investors should investigate XRP or any other cryptocurrency before buying it to know its all-time high, behavior, and possible future prices. However, it is only a matter of time before seeing where the market will take that crypto asset.

By Alexander Salazar

1...604605606...1,654Page 605 of 1,654