Bitcoin is Trying its Best to Consolidate the 20,000 USD position while JP Morgan Observes the End of the Crypto Winter

Jenson Nunez
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Bitcoin is Trying its Best to Consolidate the 20,000 USD position while JP Morgan Observes the End of the Crypto Winter

Whales keep hoarding assets at low prices while JP Morgan predicts the end of the Crypto winter.

The digital asset market recovered the 900,000 million dollars of global capitalization. Bitcoin (BTC) and Ethereum (ETH) stopped the daily losses on Tuesday, trying to get back the strength they had in 20,000 and 1,100 dollars.

The cryptocurrencies left July 5, a day of prominent volatility, behind, with increases registered at 6% for BTC and 10% for ETH, but then became diluted to the point that the main currencies went to crumble again.

However, the first digital assets had shown their strong position on price levels that apparently have an effect on the market. In addition, the whales are moving, which are appearing to hoard coins, and there are other signs that make the JP Morgan expert team believe that the worst stage of the crypto winter might become an issue of the past.

Despite a harsh quarter for investors, Nikolaos Panigirtzoglou, an expert and managing director at JPMorgan, observes strong funding pullback as signs of fading crypto winter. He said that Indicators like the net leverage metric express that deleveraging is already underway. Panigirtzoglou explained that he is aware of the rise of these positions during the comprehensive market.

He also notes that part of the reason for this prediction focused on other crypto firms with “stronger balance sheets” are making it a business of theirs to help ensure that the damage that has spread through the comprehensive market gets contained.

The analyst also speaks about the intervention of the Bahamian digital assets derivatives exchange FTX in the BlockFi predicament. The exchange assisted BlockFi with a $250 million line of credit to help the company consolidate this position during this period.

Second, the forecast got also influenced by venture capital funding and its strength during the current market situations. Despite the crypto winter, funding amassed at least $5 billion between May and June.

The bank also highlights that funding is still flowing into projects linked to the crypto space. The bank pointed out that what appears to be different now from previous pullbacks is that retail investors are no longer the only ones going through difficult times.

Instead, many prominent financial and other entities are now trying their best in the market. The point that JP Morgan makes is clear: while some money is abandoning the sector, more money gets injected to strengthen the market.

Therefore, the essential thing for investors is to carefully think about the investment cases and pay attention to those cases that represent better opportunities for the future.

By: Jenson Nuñez

Amid Growing Concerns about the US Recession, the Bitcoin Price Fluctuates by 7.5%

Alexander Salazar
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Amid Growing Concerns about the US Recession, the Bitcoin Price Fluctuates by 7.5%

Michael van de Poppe said the value of Bitcoin broke resistance at USD 19,700 and ran toward USD 20,300. Captain Faibik predicted that there might be a relief rally of between 30% and 40% if the bulls recover the USD 21,600 level.

The Bitcoin (BTC) price recently rebounded and recovered support at USD 20,400 after reaching a daily low of USD 19,309. Meanwhile, the bulls are fighting against the bears to regain control over the crypto market.

Amid growing recession concerns in the United States, there was positive price action in the crypto market and the technology-heavy Nasdaq Composite.

According to TradingView, the bears led Bitcoin (BTC) to drop to USD 19,309 before receiving reinforcements to drive it back above support at USD 20,400.

Various analysts have predicted what may come for the leading cryptocurrency in the market and what support and resistance levels to watch.

Bitcoin Breaks out the Resistance Zone to Continue toward USD 23,000

Michael van de Poppe, an independent analyst, has a bullish position on the recent price action of Bitcoin. He posted on Twitter a follow-up chart suggesting it is necessary to break the USD 19,700 resistance zone to rise further.

The analyst said that the value of Bitcoin overcame that resistance and ran toward USD 20,300. He thinks the cryptocurrency may consolidate a little at that level but breaking that resistance zone will allow rising towards USD 23,000.

The Price of Bitcoin May Have a Pullback to USD 15,800

The crypto analyst known on Twitter as il Capo of Crypto provided a less optimistic view on the recent price action. He posted a chart highlighting several false rallies that became lower highs.

The Bitcoin user said those were the lowest highs he had ever seen. He explained that the rallies had a low volume and looked corrective, suggesting a target of between USD 15,800 and 16,200.

The 1-Day Bitcoin Chart Shows Double Bottom in the Price

Another cryptocurrency trader and Twitter user, known as Captain Faibik, offered the last beacon of hope for investors. He posted a chart showing double bottom and highlighted the need for a daily close above USD 20,000.

Captain Faibik said that double bottom and bullish divergence are currently at stake. If the bulls recover the resistance at USD 21,600, there may be a relief rally between 30% and 40%.

Pseudonymous Twitter user Bitcoin Archive said that the Bitcoin market might be near its bottom for this bearish cycle. He posted a chart of the Bitcoin MRVR-Z Score, a reliable indicator of previous market bottoms.

Bitcoin Archive explained that Bitcoin is in the green zone, which has indicated market bottoms four times.

The capitalization of the overall crypto market is currently at USD 900 billion, while the dominance rate of Bitcoin is 40.674%.

BTC is trading at around USD 20,162 and has accumulated a 2.0% gain over the last seven days. While its daily trading volume is above USD 24.16 billion, its market capitalization is about USD 384.83 billion, according to CoinGecko.

By Alexander Salazar

Voyager Digital Filed for Bankruptcy Days after Suspending its Withdrawal Activities

Jenson Nunez
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Voyager Digital Filed for Bankruptcy Days after Suspending its Withdrawal Activities

According to Voyager Digital, it counts on $1.3 billion worth of crypto on the network. Chapter 11 allows the entity to carry out its activities while going through some improvements.

Voyager Digital filed for Chapter 11 bankruptcy following the obstruction of deposits and withdrawals announced last week.

The consequences of the collateral Crashdown of digital assets keep devastating every corner of the economy and keep wreaking havoc on the industry, with big players falling like weak trees. Voyager Digital filed to activate Chapter 11 and declare its official bankruptcy in New York, according to a July 5 court document.

According to the file, Voyager has several assets and liabilities registered between $1 billion and $10 billion declared for each. His approximate number of creditors counts over 100,000.

The entity declared that it possesses around $1.3 billion in crypto assets and more than $350 million in cash in the FBO (For Benefit Of) account for clients at Metropolitan Commercial Bank.

The firm intends to count on shelter for three divisions, Voyager Digital Holdings, Voyager Digital LLC, and Voyager Digital, Ltd.

On July 1, Voyager Digital stopped its activities regarding transactions, deposits, withdrawals, and loyalty rewards due to an unfavorable market situation.

Voyager Plans

Chapter 11 is one of the harsher methods to declare bankruptcy, as it allows an entity to remain active while it reforms its commitments.

Any suggested strategy to get restructured must be beneficial for the creditors, and if one does not get proposed, the creditors may bring up a new treatment.

CEO Stephen Ehrlich said that this reestablishment is the most optimal procedure to shield currencies on the network and strengthen the value for all stakeholders, including customers. He also expressed that the Chapter 11 process brings an effective system to consolidate a healthy recovery.

As part of the restructuration exercise, Voyager will manage the day one motion to allow it to continue its activities.

The suggested strategy to carry out the Reorganization would renew account access and return value to customers but would need a green light from the court.

Three Arrows Capital Recovery Rewards

The announcement also explained that customers holding crypto on the network would acquire a mix of their preserved currencies and revenues from the recovery of Three Arrows Capital (3AC), shares in the newly restructured entity, and Voyager tokens.

The statement also added that customers with USD will gain access to their funds after a fraud prevention procedure gets achieved along with Metropolitan Commercial Bank.

3AC, one of the most prominent crypto-focused hedge funds in the crypto space, had borrowed 15,250 BTC and $350 million USDC from Voyager. The Singapore-headquartered entity went to activate the Chapter 15 bankruptcy in New York on July 1.

By: Jenson Nuñez

The BTC Trading Volume Drops by over USD 2 Billion in Q2 2022

Alexander Salazar
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The BTC Trading Volume Drops by over USD 2 Billion in Q2 2022

The monthly trading volume of Bitcoin has continued showing bearish trends, falling below USD 1.5 billion. In the second quarter of 2022, Bitcoin had a combined trading volume of USD 2.8 billion.

The Bitcoin (BTC) trading volume in Q2 2022 was one and a half times lower than in Q2 2021. That collapse was due to the sharp drop suffered by the prices of cryptocurrencies.

Lower investor interest has led the value of Bitcoin to continue hovering around USD 20,000. In the second quarter of 2022, the trading volume of the cryptocurrency was about USD 2.84 billion.

The trading volume of around USD 5.01 billion registered between April and June 2021 has suffered a 43% drop.

The Drop in the Trading Volume Indicates a Broader Crypto Market

The drop in investor demand for Bitcoin may have caused a downtrend in the overall decentralized finance (DeFi) market. That situation has led to a 60% decline in the capitalization of the overall market.

The trading volume of Bitcoin in 2021 was about USD 1.84 billion and had a one-day high of around USD 97.47 billion. Investor interest in the pioneering cryptocurrency dropped sharply after the decline in volumes it suffered in the first quarter of the year.

The volume of Bitcoin transactions in April was USD 830.12 billion, with a one-day high of USD 39.39 billion.

In May 2021, the trading volume of the cryptocurrency was USD 1.98 billion, with a one-day high of about USD 126.36 billion. The crash of the Terra (LUNA) ecosystem led to a considerable drop in the prices of all crypto assets. The volume of transactions in that period fell to USD 1.09 billion and peaked at USD 70.39 billion within 24 hours.

The trading volume of Bitcoin in June 2021 was about USD 1.19 billion, with a high of USD 58.96 billion in a single day. Although several market analysts gave bullish forecasts, the price of BTC continued its bearish trend, trading at between USD 17,708.62 and USD 31,957.28.

The Bitcoin trading volume was about USD 923.94 billion, reaching a one-day high of USD 68.2 billion in Q2 2022.

The Drop in the Trading Volume Affects Bitcoin in Q2 2022

The price of Bitcoin opened in April at USD 45,554, reaching a quarterly high of USD 47,313.48 three days later. It tested a quarterly low of USD 17,708.62 and closed the second quarter at USD 19,784.43.

In general, that is equivalent to a decline of 56% between the opening and closing price of BTC in Q2 2022.

In contrast, Bitcoin opened April 2021, trading at USD 58,926.56, hitting a quarterly high of USD 64,863.10 fourteen days later.

That represents a 40% decline between the opening and closing price of the pioneering cryptocurrency in Q2 2021.

BTC is trading at around USD 20,155 and has accumulated a 2.0% gain over the last seven days. While its daily trading volume is above USD 23.21 billion, its market capitalization is about USD 385.86 billion, according to CoinGecko.

By Alexander Salazar

According to Saxo Bank, Digital Assets are Currently Floating in a Limbo

Jenson Nunez
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According to Saxo Bank, Digital Assets are Currently Floating in a Limbo

In its Q3 report, Saxo Bank expressed that digital assets are currently in limbo, pending extensive macroeconomic results.

Saxo Bank, a Danish investment bank that focuses on online trading and investment, said that the current status of the crypto market puts the sector in an uncertain position amid heightened price corrections.

In its third-quarter outlook report for digital assets revealed today, the bank expressed that the next market price decision will rely on features such as the general economic outlook and potential competition from the central bank’s ongoing digital currency research.

Saxo Bank also said that digital assets are currently in limbo, expecting improvements in regulation and institutional adoption, not to mention the ongoing investigation into central bank digital currencies as a potential competitor.

A Declining Market

On the other hand, Saxo said that the defenders believe that the current bear market is an opportunity for the industry to recover, considering that it presents space to keep investing in the market.

In this regard, he noted that the bears observe 2022 as the beginning of a possible crypto winter; where lower crypto prices and reduced participation in crypto apps would decay in parallel with a negative feedback loop.

On the other hand, optimists wait for a convenient spiral if crypto investment increases, driving up the price and enthusiasm for taking more part in crypto technologies. Users observe the declining market as a slight chance to get ready for the next bull run and as a healthy cleanup of the crypto space.

Not Like Gold

The bank’s report also expressed that, although the supply of Bitcoin remains limited, as is physical gold, and crypto gets compared to gold, the correlation between Bitcoin and physical gold was significant throughout 2020 and early 2021. However, market events in 2022 have eroded this narrative, and the correlation between the two is now low.

The entity adds that concerns about digital assets as a store of value grew further in May when a stablecoin turned out to be unstable. The decoupling of TerraUSD, a token supposedly attached to the value of USD$1, raised concerns about the stability of the digital assets.

Strict Crypto Regulations

Saxo notes that the fall will potentially unleash stronger regulations, as it has raised questions about the stability of digital assets. This event happens while different jurisdictions lead an ongoing discussion about the correct crypto regulatory framework.

According to the bank, the widespread Crashdown of digital assets in 2022 needs all sectors to work in balance as it has raised questions about whether the industry can resist the pressure.

By: Jenson Nuñez

The Data of 1,000 Million Chinese citizens got Sold on the Internet for Ten Bitcoins

Jenson Nunez
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0
The Data of 1,000 Million Chinese citizens got Sold on the Internet for Ten Bitcoins

A cybercriminal claims to have obtained data from one billion Chinese citizens and asks for only ten bitcoins in exchange.

An unknown hacker or group of cyber criminals expressed that they acquired the personal data of one billion Chinese citizens and are now offering it on the web for bitcoins.

According to the coverage of many media outlets, including Bloomberg, hackers would have entered the database the Shanghai National Police (SHGA) database in what got described as the most prominent security breach in history.

It Would be a Historic Data Leak for China

The CEO of cryptocurrency exchange Binance, Changpeng Zhao, was one of the first to open up and speak about the Chinese leak threat. In a tweet, Zhao expressed that his company’s threat intelligence systems discovered that one billion records from citizens of an unspecified country got to put up for sale on the dark web.

While he did not mention the offering in question, he said the breach may have happened due to a failure in ElasticSearch, a popular data search and analysis tool employed by businesses. He also expressed that Binance was increasing verification measures for users potentially harmed by the attack.

Although the Chinese authorities have not confirmed the veracity of the leaks or provided enough data about them, users in that nation expressed great interest.

According to a Reuters report, users of Weibo and WeChat social platforms in China were discussing the leak over the weekend, feeling worried about the suspected attack. Although Weibo later tried to stop the topic from becoming a trend when it blocked the hashtag #dataleak (data leak).

That report also pointed at Kendra Schaefer, director of technology policy research at Beijing-based consultancy Trivium China, who highlighted in a post on Twitter that it was hard to study this kind of rumor. If the purported leaked material came from China’s Ministry of Public Security, it would be bad for tons of reasons, Schaefer added, calling it one of the biggest and worst violations in history.

For his part, Kenny Li, co-founder of the web3 privacy project called Manta Network, revealed to The Block that the breach could have consequences for the digital asset space, as the stolen data could serve for spear phishing attacks. The main goal would be extracting access keys to crypto wallets, applications, or exchanges.

Data Privacy in China

The procedure the hackers used in the leak to gain access to the Shanghai police servers remains unclear. According to Bloomberg, a popular theory on the Internet mentions that the breach involved an external cloud infrastructure partner. According to that medium, Alibaba Group Holding, Tencent, and Huawei Technologies are among the most prominent cloud services in the nation.

The news comes as China pledged to work on several improvements regarding the privacy and protection of user data online, instructing its tech giants to secure storage after public complaints about mismanagement and misuse.

By: Jenson Nuñez

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