Investors Wait to Return over USD 138 Billion Worth of Stablecoins to the Market

Alexander Salazar
-
0
Investors Wait to Return over USD 138 Billion Worth of Stablecoins to the Market

The amount of the three leading stablecoins corresponds to 12% of the total crypto market capitalization, a historically high level. A reduction in inflation will allow retail traders to have enough money to invest in high-risk assets like cryptocurrencies.

Many analysts had forecast that the crypto market would stabilize without suffering a final capitulation event. A high amount of stablecoins will re-enter the markets when the right time comes.

There are three stablecoins among the top 10 crypto assets by market capitalization whose combined value is above USD 138 billion. Tether (USDT) has USD 65.9 billion, USD Coin (USDC) USD 54.5 billion, and Binance USD (BUSD) USD 17.9 billion.

Changpeng Zhao recently stated that much fiat money was sitting on the sidelines, waiting to return. He said those wanting to leave the crypto market would not hold stablecoins.

Those Leaving the Crypto Market Turn Back to Fiat Money

If people needed to leave cryptocurrencies, they would revert to fiat money and withdraw from trading. In mid-June, more than USD 400 billion got out of the market in one week.

The overall crypto market has been within a limited range, with a recent rally to push capitalization to USD 1.17 trillion. That is equivalent to 33% of its all-time low cycle of USD 875 billion.

The amount of the three leading stablecoins corresponds to 12% of the total crypto market capitalization. Despite a decline due to the adjustment in the Tether supply and the slight market rally, it is still historically high.

Since inflation has caused a cost-of-living crisis, retail traders do not have enough money to invest in high-risk assets like cryptocurrencies. The crypto markets will not become bullish unless the economic situation improves.

Those countries that view the US dollar as a hedge against inflation think stablecoins are a solution. Those fiat-pegged crypto assets are in high demand in several Latin American nations with double-digit inflation.

Crypto Markets Cool Down after a Consolidation Weekend

Following a consolidation weekend, total market capitalization suffered a slight decline during the latest Asian trading session. While writing this article, the markets have dropped by 1.2% to USD 1.13 trillion.

The leading cryptocurrencies, Bitcoin (BTC) and Ether (ETH), are trading at around USD 23,323 and USD 1,687, respectively. Meanwhile, most altcoins are red after some have suffered double-digit percentage losses.

The Performance of the Three Leading Stablecoins

Tether (USDT) has accumulated a gain of 0.6% over the last 24 hours and 0.1% over the past week. Its daily trading volume is above USD 49.17 billion, while its market capitalization is about USD 65.92 billion.

USD Coin (USDC) has accumulated a 0.3% loss over the last 24 hours and a 0.2% gain over the past week. Its daily trading volume is above USD 5.94 billion, while its market capitalization is about USD 54.41 billion.

Binance USD (BUSD) has accumulated a 0.6% loss over the last 24 hours and a 0.4% gain over the past week. Its daily trading volume is above USD 6.22 billion, while its market capitalization is about USD 17.98 billion, according to CoinGecko.

By Alexander Salazar

$200M BitGet BTC-USDT Hedge Fund Suggests Investor-Centered Trend; Related News about Voyager

Audy Castañeda
-
0
$200M BitGet BTC-USDT Hedge Fund Suggests Investor-Centered Trend; Related News about Voyager

Bitget joins the growing list of cryptocurrency companies, such as Binance, that have taken an investor-centric approach to earn investor trust through hedge funds. Voyager cannot guarantee that all customers will receive their crypto as per the proposed recovery plan.

Bitget is a Singapore-based cryptocurrency exchange that specializes in derivatives. With more than two million users and four years of experience in the market, it has established itself as one of the most important exchanges. P2P trading, spot trading, copy trading, and futures are some of its outstanding services.

With the ultimate goal of regaining investor confidence amid a protracted bear market, crypto derivatives exchange Bitget launched a $200 million fund to save user assets.

The Bitget Hedge Fund comprises 6,000 Bitcoin (BTC) and 80 million Tether (USDT), valued at $200 million at the time of writing. Considering the fact that the crypto winter currently shows almost no signs of slowing down, Bitget has committed to securing the value of the fund for the next three years.

Bitget Launch in Detail

While Bitget chose to self-fund the entire protection fund without relying on a third-party insurance policy, Binance established its user protection insurance fund, Secure Asset Fund for Users (SAFU), allocating 10% of the trading fee.

As of 2018, SAFU achieved a $1 billion valuation in early 2022. Sharing details about the newly founded fund, Gracy Chen, CEO of Bitget, added that, “The hedge fund will help us reduce investor concerns and attract potential users. As we continue to endure the crypto winter, it is crucial that our users can rest assured that their funds are safe.”

Bitget’s reasoning behind using a combination of stablecoin and BTC in the hedge fund is to counter massive unforeseen volatility in the crypto markets. To further protect investors, Bitget implemented strict Know Your Customer (KYC) and Anti-Money Laundering (AML) policies to prevent bad actors from using its services.

About Voyager

It is worth remembering the fear provoked among clients when they learned that the bankrupt broker, Voyager Digital Ltd., will never be able to pay them back.

Following court approval, Voyager’s proposed recovery plan involves reimbursing user funds worth approximately $1.3 billion in a combination of Voyager tokens, cryptocurrencies, “common shares in the newly reorganized company,” and funds. of any proceeding with Three Arrows Capital (3AC).

“The plan is subject to change, negotiation with clients, and ultimately a vote. […] We put together a building plan that would preserve the clients’ assets and provide the best opportunity to maximize value.” the loan firm said.

By Audy Castaneda

Bitcoin Miner Capitulation to End amid First Difficulty Spike since June

Audy Castañeda
-
0
Bitcoin Miner Capitulation to End amid First Difficulty Spike since June

Bitcoin (BTC) miners have capitulated for almost two months, but the end of the restriction could already be in the air.

That was the conclusion of the cryptocurrency mining and Blockchain infrastructure company, Blockware, as it published its latest Intelligence Bulletin on July 29.

The most recent edition of the market research series highlighted changes in the mining ecosystem that could change a trend that has been in place since early June.

Report: Capitulation “Expected” to Be Done in September

The miners, judging by the hash tape metric, have been withdrawing for an “extended period of time,” Blockware says, and since August 1, the hash tapes have been withdrawn. sign capitulation for 55 days.

“The current mining capitulation began on June 7, 2022, and has lasted a significant amount of time. It is important to note that miner capitulations are particularly relevant because they reveal that a large number of machines are no longer generating hashes,” the firm wrote.

It also added that, “Since June 7, public and private mining companies are likely to have connected other new-generation mining rigs. However, enough previous generation machines or inefficient overleveraged miners have been shut down, that hash rate and difficulty have actually decreased in size.”

The reflection reflects the profitability headwinds generated by the drop in the price of Bitcoin, which hit $17,600 in June, sending the market back to 2020 fines.

As signs emerge, albeit disputed, that price strength is returning, the chances for better conditions for miners are also rising. According to Blockware, the capitulation, as defined by the hash tapes, should end before the summer.

“If there are no new lows in Bitcoin, we should expect miner capitulation to end in August or September at the latest,” the bulletin added.

Difficulty Due to Breakout of Multi-Month Downtrend

When it comes to miners returning to form, the first signs are already visible on-chain, thanks to automated adjustments to the fundamentals of the Bitcoin network.

Specifically, mining difficulty owes its first increase in two months on August 4 after three consecutive downward adjustments.

“It is currently projected to be positive and there is a high probability that it will persist,” Blockware summarized.

The increase, if current spot price levels also persist, will be modest at around 0.5%. For comparison, the previous decrease in difficulty totaled -5%.

By Audy Castaneda

Despite the Bearish Market, Cryptocurrencies Gain Acceptance in Minnesota

Alexander Salazar
-
0
Despite the Bearish Market, Cryptocurrencies Gain Acceptance in Minnesota

Unbanked citizens, who represent 5.4% of the US population, are crucial to the market and do not need a bank account. The authorities have taken steps to protect investors while federal regulators struggle to enforce the law.

The use and adoption of cryptocurrencies have grown in Minnesota despite the recent collapse of the economy. University professor Vivian Fang said that people could use them to buy clothes and food at various businesses in the state.

Some online payment platforms have included a crypto payment option, allowing users to make large purchases. Besides acquiring real estate, travel tickets, and digital goods, people can donate to charities through cryptocurrency channels.

ATMs Allow US Merchants to Expand Cryptocurrency Adoption

In addition to the 159 ATM kiosks installed in Minnesota, there are also devices in North and South Dakota. The physical facilities are in those places where customers are most likely to use cash.

Some gas stations and convenience stores at more than 500 locations in Wisconsin, Minnesota, and Iowa are using Bitcoin ATMs. Chad Capp, a gym software entrepreneur, is exploring how to enable membership payments through cryptocurrencies.

Crypto Wallets Allow People Not to Need Bank Accounts

Vivian Fang said unbanked citizens are also a crucial part of the market, as crypto wallet operators do not require a bank account. The Federal Deposit Insurance Corporation revealed that about seven million US citizens, 5.4% of the population, do not have a bank account.

Ethnic minorities, such as Asians, African Americans, and Hispanics, earning little income are among this unbanked population. They have felt frustration trying to enter the American traditional banking system.

Fang thinks that cryptocurrencies provide an alternative where people do not need a credit score. That advantage has allowed the use and adoption of those assets to a greater degree.

The Application of Actions to Protect Cryptocurrency Investors in Minnesota

The authorities of Minnesota have taken steps to protect investors while federal regulators struggle to enforce the law of the industry. The Minnesota Department of Commerce and the Securities and Exchange Commission (SEC) received a USD 100 million settlement. The state will receive USD 940,000 of the shares for offering unregistered interest-bearing products to residents.

In June, Representative Byron Donalds, from Florida, said that Tom Emmer, Congressman of the Minnesota District 6, would work with Alabama senator Tommy Tuberville. They would introduce a bill in the Senate to ban the US Department of Labor from determining which activities may become part of 401(k) plans.

US Regulators Encourage a Strengthened Regulation of Cryptocurrencies

The US Treasury Department recently stated that the UK-US Financial Regulation Task Force discussed a broader cryptocurrency regulation strategy.

Besides cryptocurrency scrutiny, regulators have considered issues of current market developments like stablecoins and the exploration of CBDCs.

The American government agency said participants committed to supporting safe financial innovation and strengthening regulatory outcomes for stablecoins. They also considered discussing broader regulatory initiatives for cryptocurrencies in the future.

Meanwhile, Bitcoin is trading at around USD 23,311 and has accumulated a 3.1% gain over the last week. Its daily trading volume is above USD 39.70 billion, while its market capitalization is about USD 445.46 billion, according to CoinGecko.

By Alexander Salazar

Is the Creator of the Shiba Inu (SHIB) Developing a New Cryptocurrency?

Audy Castañeda
-
0
Is the Creator of the Shiba Inu (SHIB) Developing a New Cryptocurrency?

Some members of the Shiba Inu community have closely followed a series of “cryptic messages” sent by Ryoshi through the Blockchain.

Ryoshi, the mysterious creator of the Shiba Inu (SHIB), would be behind a new cryptocurrency project called Dejitaru Tsuka (TSUKA).

Some members of the Shiba Inu community have carefully followed a series of “cryptic messages” apparently sent by Ryoshi through the Blockchain, through which he would be revealing the guidelines of a new project.

According to what was reported by the British media Express.co.uk, members of the SHIB community would have deciphered some messages that would indicate Ryoshi’s return to the crypto ecosystem.

In this sense, the mysterious developer would be behind a cryptocurrency project called Dejitaru Tsuka (TSUKA).

At the same time, the source revealed that there were also “on-chain messages” with words like “faith, belief, and patience.”

The source also described the experience of deciphering the encoded communications as “a sort of rite of passage, one that at the end we think results in some big reveals, that the token is some type of new utility, not just a meme token and that Ryoshi will step from the shadows”

Ryoshi Keeps Silent

One detail to note is that the cryptic messages sent by Ryoshi to his followers are similar to the ones he used before he disappeared and erased his mark on social networks.

It is important to remember that, last May, the Shiba Inu grabbed the headlines after it was revealed that his enigmatic creator had deleted his Twitter account.

In addition, Ryoshi also removed all his posts on Medium, the platform used to spread announcements and updates about the project, but not before expressing the following:

“I am not important, and one day I will leave without warning. Take SHIBA and go forward, friends.”

The Shiba Inu meme cryptocurrency, the brainchild of Ryoshi, has gained wide popularity and acceptance within the crypto ecosystem. In 2021 alone, it posted astronomical profits, making many investors billionaires.

The Shiba Inu is a meme coin. Also called meme cryptocurrencies, meme coins stand out for appealing to humor and the building up of a community that is capable of growing and achieving notoriety, unlike other more complex projects such as Chainlink (LINK) or Polkadot (DOT).

A fundamental aspect of memes is their ability to reproduce en masse, achieving a “life of their own” by themselves. In fact, this concept was coined by the evolutionary biologist Richard Dawkins, in 1976.

Due to its nature, over the years, new memes have emerged, reaching enormous levels of complexity compared to the first to appear. They are no longer just images because today they can also be videos, stocks, and cryptocurrencies: meme coins.

As for the particularities of memes in financial instruments, it is a factor that becomes very relevant in their community. Furthermore, the larger and more faithful the people who support a project, the more the value of the asset can grow.

SHIB even made it to the top 10 of the crypto market ranking. If the theory of a new cryptocurrency developed by Ryoshi is true, will it have the same impact as Shiba Inu?

By Audy Castaneda

Polygon, Ether, and Ethereum Classic Might Rise Sharply in the Coming Days

Alexander Salazar
-
0
Polygon, Ether, and Ethereum Classic Might Rise Sharply in the Coming Days

While the price of ETH might break above the USD 1,843 level, a bounce might drive MATIC to USD 1. After consolidating below USD 40, the bearish pressure could push ETC above USD 50 in the short term.

The prices of Bitcoin (BTC) and leading altcoins have recovered significantly over the last few days. Although the pioneering cryptocurrency has suffered losses, it tends to regain bullish momentum.

Despite the current bearish cartel, crypto assets seem ready to maintain the upward trend. Altcoins like Ether (ETH), Polygon (MATIC), and Ethereum Classic (ETC) might prosper in the coming week.

The Price of Ether Might Rise Significantly

The price of ETH has recently consolidated around upper resistance levels, including two pullbacks and a recovery. It seems to have formed a flag following the pole of a bullish flag pattern. Therefore, a significant rally above USD 1,843 might break through the resistance levels of the parallel channel.

Since the daily active address recently peaked, the activity of the network on the platform has increased. ETH exceeded the 1-million-address trade for the first time as its price nearly reached USD 1,770, signaling a significant upward trend.

Ether is trading at around USD 1,693 and has accumulated a 9.1% gain over the last week. Its daily trading volume is above USD 12.97 billion, while its market capitalization is about USD 203.01 billion, according to CoinGecko.

The Price of Polygon Might Break above USD 1

The price of MATIC is moving toward USD 1 and might break above these levels in the coming days. Since the crypto asset has dropped a little below USD 1 a couple of times, a bounce might drive it higher.

Polygon, like Ether, is trading within an ascending parallel channel. However, the value of MATIC faced rejection well below upper resistance. Therefore, the bears seem more dominant, which might take the price toward the middle bands.

Polygon is trading at around USD 0,947 and has accumulated a 7.7% gain over the last week. While its daily trading volume is above USD 998.75 million, its market capitalization is about USD 7.56 billion, according to CoinGecko.

The Price of Ethereum Classic Might Rise above USD 50

ETC has gained considerable momentum with the ETH 2.0 merger, as ETH miners would move to Ethereum Classic or Bitcoin. The price of ETC has risen by more than 200% over the last two weeks amid increased activity on the network.

The price of ETC is dropping inside a parabolic curve to reach monthly lows near USD 12. However, it has gained considerable bullish momentum and reached highs of nearly USD 45. Before rising to USD 50, a rejection pushed the price of the altcoin below USD 40.

Since the selling volume has exceeded buying, the price should consolidate below USD 40 for some time. Besides, the extended bearish pressure could drive the price above USD 50 in the short term.

Ethereum Classic is trading at around USD 39.84 and has accumulated a 55.2% gain over the last week. Its daily trading volume is above USD 2.20 billion, while its market capitalization is about USD 5.41 billion, according to CoinGecko.

By Alexander Salazar

1...709710711...1,654Page 710 of 1,654