Investors May Turn to Stablecoins and Meme Coins as Cryptocurrencies Rally in 2023

Alexander Salazar
-
0
<strong>Investors May Turn to Stablecoins and Meme Coins as Cryptocurrencies Rally in 2023</strong>

Since prices usually rise again one year after a bearish market, Bitcoin and many altcoins could rally in 2023. Amid distrust toward young projects, many investors may turn to safer assets.

After the crash in early November, sentiment in the crypto market has remained relatively moderate. Due to the low prices and little movement, the level of enthusiasm has dropped among the friends of cryptocurrency.

This year, the crypto market has experienced difficulties as the bearish trend has been in full swing. Although prices stabilized in the second half of 2022, cryptocurrencies have lost between 70 and 90% of their value.

In addition, the market has faced crises such as the bankruptcies of Terra (LUNA) and Celsius, in which investors lost much money. In November, the situation worsened with the FTX collapse and the drop of the FTX token by 90%.

Bitcoin and Other Cryptocurrencies Might Recover Significantly in 2023

However, the crypto market might recover, as crises have always led to price increases and innovations in the medium and long term. The year after a bearish market has historically been a period when prices can rise significantly again.

Therefore, there might be a rise in the price of Bitcoin (BTC) and many altcoins in 2023. In that context, investors might expect to see extreme crypto trends.

Investors Might Turn to Stablecoins as the Price of Bitcoin Rallies

Due to the 2022 scandals and overall losses, investors could move to more stable assets. For example, the recent increase in the price of Litecoin (LTC) could be a harbinger of the growth of those developments.

Amid a climate of distrust towards young projects, many investors might venture into safer assets. In addition, the dominance of Bitcoin might rise after falling over the last year.

Bitcoin is trading at around USD 16,583 and has accumulated a 0.1% loss over the last 24 hours. While its daily trading volume is above USD 17.32 billion, its market capitalization is about USD 318.70 billion, according to CoinGecko.

Meme Coins Might Rise despite the Fall of the Market

Some assets follow a trend contrary to the direction in which the overall crypto market is moving. Meme coins, the most volatile and risky investments, might reemerge next year.

Shortly before the recent collapse of FTX, the price of Dogecoin (DOGE) rose significantly. Since Elon Musk acquired Twitter, that meme coin might experience significant gains in 2023. Investors could also turn to Shiba Inu (SHIB) and many other meme coins like Tamadoge (TAMA).

DOGE is trading at around USD 0.098474 and has accumulated a 5.9% gain over the last 24 hours. While its daily trading volume is above USD 1.36 billion, its market capitalization is about USD 13.49 billion, according to CoinGecko.

Investors should research Bitcoin and other cryptocurrencies to know their all-time highs, behavior, and possible future prices. However, it is only a matter of time before seeing where the market will take the value of crypto assets.

By Alexander Salazar

Analysts Think Cryptocurrency Bear Market Could End Soon

Audy Castañeda
-
0
<strong>Analysts Think Cryptocurrency Bear Market Could End Soon</strong>

The crypto market capitalization reached 828.74 billion dollars, appreciating 5.93% in the last day, rekindling the hopes of analysts. One analyst said that as far as the macrocycle goes, BTC seemed to be pretty close to bottoming out. Analyst Ecoinometrics suggested, however, that the bad news could still affect Bitcoin.

The cryptocurrency bear market has analysts stumped, but recent short-term gains in Bitcoin and altcoins have revived investor hopes.

The global crypto market has been in an extended downtrend, with prices of major cryptocurrencies shattered following the FTX crash. The two main currencies, Bitcoin and Ethereum, have fallen more than 20% and 30%, respectively, throughout this month.

While the short-term gains offered the market some relief in the bear winter, there are few clear catalysts for a price rise in the near future. However, this has not deterred analysts from speculating whether the bear market is drawing to a close.

The crypto market capitalization is now at $828.74 billion, appreciating 5.93% over the last day, fueling the hopes of some traders.

Crypto Market Recovery: What Do the Cards Say?

Analyst and pseudonymous trader SmartContracter told his 214,000 Twitter followers that macro-cycle wise, BTC seemed to be pretty close to bottoming out. Bitcoin price near the bottom could mark the end of the bear market.

Based on his thesis on BTC’s three-day chart, the analyst believed that the price was starting to look like a trailing diagonal was forming to end the bear market’s ABC pattern.

Analyst RektCapital told his 330,000 followers that bearish contagion had become a historical trend. It occurs near the absolute bottom of the BTC bear market.

He further said that in previous BTC cycles, it was Bitmex that caused the crash. Before that it was Mt Gox, and this time it’s FTX.

Analyst On-Chain College looked at the BTC Mayer Multiple charts to highlight periods where Bitcoin was oversold compared to its 200-day moving average. The analyst said that those periods are marked by fear, despondency, and anger.

The analyst also added that such periods have historically provided some of the best long-term value zones from which a positive bounce has occurred.

Analyzing the Bitcoin Price Bottom

Analyst TradingShot, in a TradingView post, highlighted that two weeks ago, BTC saw the strongest weekly volume in over a year. The same could indicate an uptrend reversal.

The analyst noted that, on a weekly chart, a drastic increase in volume tends to be associated with trend changes on the Bitcoin chart. The increase in trading volume between November 19, 2018, and May 13, 2019, was the bottom formation of that bear cycle.

However, analyst Ecoinometrics suggested that bad news could still affect BTC in certain stressful financial conditions.

He tweeted that, “over the past 13 years #Bitcoin has only experienced tight financial conditions a handful of times. So it is hard to tell how it is likely to react.”

Thus, Ecoinometrics expects more bad news to come up.

By Audy Castaneda

The Bahamas SEC Explains the Reasons for the Seizure of FTX Assets

Alexander Salazar
-
0
<strong>The Bahamas SEC Explains the Reasons for the Seizure of FTX Assets</strong>

The SEC requested authorization to transfer the assets to digital wallets under their control to benefit the clients of FTX. The Commission said to be concerned that accusations from John Jay Ray III arose after a decision to protect several users.

The collapse of FTX has wreaked havoc on the crypto market, leading regulators in the Bahamas to take drastic measures. The Securities and Exchange Commission (SEC) of that country recently published an official statement explaining why it seized the assets of the bankrupt exchange.

The SEC found it necessary to seize the assets of FTX to assist the interim liquidators appointed by the Supreme Court of the Bahamas.

According to the statement by the SEC, digital asset company FTX is liable under the Bahamas Digital Assets and Registered Exchanges (DARE) Act. Therefore, the SEC suspended its license in the Bahamas and petitioned the Supreme Court to place its assets in interim liquidation.

The Bahamas SEC appealed to the Supreme Court for authorization to transfer the assets to digital wallets under its control. They argue that their purpose is to benefit the customers and creditors of the bankrupt company.

The Collapse of FTX Causes Trouble in the Bahamas

Following the collapse of FTX, Bahamians are looking for a way to make sense of the situation while remaining optimistic. According to The Wall Street Journal, that event shook that island country, which had encouraged that cryptocurrency company to feel at home.

Hurricane Dorian hit the Bahamas hard in 2019 before the 2020 COVID-19 pandemic. Since their economy is highly dependent on tourism and offshore banking, Philip Davis, the Prime Minister of the Bahamas, believed that cryptocurrencies would help them.

The community now suggests that the regret of the collapse of FTX has caused unemployment on the island. The company posted jobs, used USD 100,000 in catering, and set up private transportation services for its workers.

Due to the collapse of FTX, some crypto community members have criticized how it has affected the Bahamas.

The New FTX CEO Questions the Decision by the Bahamas

John Jay Ray III, the new CEO of FTX, recently criticized the actions of the Bahamas SEC. He argued that there were immoderate and inaccurate accusations during the motion to transfer the assets from the company.

The SEC said it is concerned that such arguments arose after a decision to protect the assets of various users.

They also encouraged Ray III to show the necessary evidence to allow justice to continue investigating the FTX case.

In addition, the Securities and Exchange Commission stated that it made the best decision in transferring the assets of FTX. They explained that alleged Chapter 11 debtors suffered significant theft through hacks that still affect their systems.

Finally, they indicated they would continue investigating the facts and circumstances surrounding the FTX liquidity crisis. Furthermore, they said they would hold the company and its management accountable for their wrong decisions.

By Alexander Salazar

The Weekly Activity of the Bitcoin Whales Indicates They Resume Accumulation

Alexander Salazar
-
0
<strong>The Weekly Activity of the Bitcoin Whales Indicates They Resume Accumulation</strong>

The whales transferred 74,405 BTC from cryptocurrency exchanges to unknown wallets and introduced 20,638 BTC to the market. Over the last week, those long-term holders decided not to move funds between marketplaces or between peers.

While the price of Bitcoin (BTC) is around USD 16,000, the whales seem to be in an accumulation trend. The following weekly analysis shows the most prominent information about their activity and some conclusions.

It is necessary to contextualize this activity to better dig into the status of the whales and the overall market. However, this is just a micro approach to one of the many factors that can influence the performance of BTC.

Weekly Analysis of the Activity of the Bitcoin Whales

Over the last week, the predominant trend in the activity of the Bitcoin whales has been accumulation. They moved 74,405 BTC from cryptocurrency exchanges to unknown wallets, representing 78.28% of the weekly total.

The second-highest trend has been the introduction of liquidity into the market, as 20,638 BTC went from unknown wallets to cryptocurrency exchanges. That amount is equivalent to 21.71% of the weekly total.

Unlike other weeks, there were no movements between cryptocurrency exchanges or between unknown wallets. Likewise, the whales decided to pause the sales of their BTC tokens. That situation leads to needing to analyze the context around the pioneering cryptocurrency.

The Current Situation of Bitcoin in the Crypto Market

Bitcoin is trading at around USD 16,586 and has accumulated a 1% gain over the last 24 hours. While its daily trading volume is above USD 19.49 billion, its market capitalization is about USD 318.74 billion, according to CoinGecko.

In 2022, the price of the pioneering cryptocurrency has varied by -64.28%, a considerable drop. However, Bitcoin did not undergo significant changes during the Thanksgiving holiday in the United States.

Although Bitcoin has been stable at around USD 16,000 for the past three weeks, it briefly dipped below USD 15,500. That happened due to fears about the future of the cryptocurrency lending company Genesis after the collapse of FTX.

However, the crypto market has remained calm after the Fed decided not to raise interest rate hikes by 75 basis points. However, several analysts say that the recent debacles might strengthen the sector, as regulators must intensify their efforts.

Most of those experts remain bearish on the prices of cryptocurrencies, at least for the short term. The uncertainty caused by the collapse of FTX and the subsequent fall of the crypto market have been the main reasons.

In that context, the Bitcoin whales stop selling but continue to acquire tokens or take them out of circulation. In either case, that situation does not determine what happens to the price of the pioneering cryptocurrency.

Amid the current bearish market, investors should research Bitcoin 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 the value of the cryptocurrency created by Satoshi Nakamoto.

By Alexander Salazar

Policies to Substitute Transactions Can Be Changed in the New Version of Bitcoin Core

Audy Castañeda
-
0
<strong>Policies to Substitute Transactions Can Be Changed in the New Version of Bitcoin Core</strong>

Bitcoin users can now enable or disable transaction substitution on their nodes.

The new version of Bitcoin Core introduces a parameter that allows network nodes to change their policies regarding replaceable transactions.

Bitcoin Core is the most widely used software to run the Bitcoin protocol, and in its version 24, it introduces the possibility that all transactions that send Bitcoin (BTC) can be replaced.

“Today version 24.0 of #Bitcoin Core was released, I recommend reading the notes that talk about mempoolfullrbf well to understand it and make a decision about how you want to configure your node once updated,” tweeted user @decentralized_b, Co-Founder y Co-organizer of @Wo_Bitcoin.

The “mempoolfullrbf” parameter refers to Full-RBF (Replace By Fee), a function that allows you to take an unconfirmed Bitcoin (BTC) transaction and try to spend it again with a better commission.

Some Businesses Work with Unconfirmed BTC Transactions

In previous versions of Bitcoin Core, nodes indiscriminately included replaceable or non-replaceable transactions, leaving the choice to make them replaceable or not in the hands of the sending user.

Based on this vote of confidence, many businesses accept transactions without their being confirmed, for the benefit of faster buying and selling of products or services, and in general, for the benefit of the user or customer experience.

For example, services like Bitrefill process your sales from unconfirmed transactions that signal their non-replaceability.

Also, the Chivo ATMs in El Salvador allow cash withdrawals more quickly if the user sends a non-replaceable transaction, along with a commission high enough to estimate that it will be confirmed in the next block.

In the case of Chivo ATMs, if the user sends a transaction with RBF activated, the ATM issues a voucher for the user to claim their money later when the transaction receives the first confirmation. This logic is based on trust, which has quite a few critics.

Bitcoin Security Should Not Rely on Trust

Now developers like Peter Todd, who have pushed these changes in Bitcoin Core v24, argue that if all nodes support replaceable transactions, those who want to perpetrate an attack will have to pay very high fees to do so, removing the incentive to do so.

In this way, they place the security of Bitcoin not on trust, but on the incentive game among its participants, they claim.

Opponents of this have said that in every commercial transaction there is a percentage of trust and that many businesses see the utility in transactions with 0 confirmations to operate.

The debate has had many arguments for and against, but it has only lasted a month, so many bitcoiners in the community have been caught off guard.

By Audy Castaneda

The Price of Bitcoin Might Resume Its Bearish Trend If It Exceeds the USD 16,000 Level

Alexander Salazar
-
0
<strong>The Price of Bitcoin Might Resume Its Bearish Trend If It Exceeds the USD 16,000 Level</strong>

If the Bitcoin price moves above the USD 16,800 resistance zone, it might start a wave of recovery. If that does not happen, it might continue to drop to the USD 16,280 level and the 100-hour SMA.

The price of Bitcoin (BTC) has struggled to start a wave of recovery from the USD 15,500 support zone. It recently exceeded the USD 16,000 and USD 16,500 resistance levels.

The bears remained active near USD 16,800, although the price reached above the USD 16,300 level and the 100-hour SMA. The value of Bitcoin may have faced another rejection close to USD 16,800, leading it to form a double-top pattern.

Bitcoin dropped from the USD 16,800 area, breaking below a key bullish trend line with support near USD 16,420. The price is approaching the 23.6% Fibonacci retracement level of the recent rise from the USD 15,470 low.

The pioneering cryptocurrency is trading above USD 16,300 and the 100-hour SMA, while its immediate resistance is near USD 16,600.

It might start a recovery wave if it moves above the USD 16,800 resistance zone. The following key resistance is close to USD 17,000, from which the price could gain traction toward USD 17,500.

Bitcoin Might Resume Bearish Momentum If It Falls Below USD 16,791

If the price of Bitcoin does not break above the USD 16,800 resistance, it might continue dropping. Its immediate bearish support is near USD 16,280 and the 100-hour simple moving average.

The following crucial support is close to USD 16,130, or the 50% Fibonacci retracement level of the recent rise from the USD 15,470 low. The price might gain bearish momentum if it drops below USD 16,791, moving toward the USD 15,500 support zone.

While the Moving Average Convergence/Divergence (MACD) indicator is gaining bearish traction, the hourly Relative Strength Index (RSI) is below the 50 level.

The crucial support levels are USD 16,280 and USD 16,130, while the key resistance levels are USD 16,800, USD 17,000, and USD 18,000.

Meanwhile, Bitcoin is trading around USD 16,428 and has accumulated a 1.6% gain in the last 24 hours. While its daily trading volume is above USD 19.26 billion, its market capitalization is approximately USD 315.70 billion, according to CoinGecko.

It Is Worth Investing in Bitcoin for the Long Term

Despite the catastrophic effects of the FTX collapse, Bitcoin has managed to hold steady at around USD 17,000. With just over a month to go until 2022 ends, the price of the pioneering cryptocurrency might rise significantly.

Since the price of cryptocurrencies has historically dropped in November and December, there might be a market recovery by 2023. Despite the bearish trend, many investors like Michael Saylor and Nayib Bukele remain bullish and continue to invest in Bitcoin.

However, investors should research Bitcoin 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 the pioneering cryptocurrency.

By Alexander Salazar

1...610611612...1,654Page 611 of 1,654