Experts Suggest “Not Falling In Love” With Crypto Projects and Reconsider Trading

Audy Castañeda
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Experts Suggest “Not Falling In Love” With Crypto Projects and Reconsider Trading

Experts agreed that “everything is shaking” and suggested traders and investors wait for the macroeconomic situation to improve before financing projects. They argued that the latest cases of Celsius, KuCoin, Nexo, BlockFi, are just a few examples and that the bear market will continue.

In the last talk show of Cryptocapital of Capital Radio, led by Sergio Fernández (@Sergio_fdez_7), the panel of experts argued that Bitcoin (BTC) could continue to fall since the rebound “has no strength”, for which they suggested to the holders of the crypto ecosystem “not fall in love” with projects that promise high profitability and reconsider trading since investors need security to put their capital at risk.

In the last week, Bitcoin has fluctuated between $19,000 and $21,000. Some analysts have predicted that this final capitulation is yet to come, which could cause the price of Bitcoin to plummet to almost $13,000. This would equate to the drop in the last bear market, which was 82% from the all-time high. Bitcoin is currently trading at around 70% of its peak price.

The first quarter of 2022 ended with BTC losing 58% as the asset plummeted from $45,528 on April 1 to end the period at $19,098, according to CoinGecko. The unprecedented bear market continues to produce new lows in terms of statistics, and Bitcoin is now through its worst quarter in 11 years.

Talk Show Highlights

The host of the program, Sergio Fernández (@Sergio_fdez_7) expressed the following:

“Bitcoin continues its fall, more than 40% in the last few months. There are already several guests on the show who saw this latest fall coming, and even lost $20,000. There are many exchanges that are secretly insolvent, as the CEO of FTX said. They are having serious difficulties. Everything is shaking.”

For the panel of experts, the outlook for BTC is uncertain and it is complex to predict what is coming, since “the decline is not over” and stablecoins have served as a refuge for some investors, who are waiting for “positive signs” to enter the market, while the near future of cryptocurrency prices could be related to the decisions of the United States Federal Reserve.

“Unlike stocks, which are limited based on cash flow, in crypto it is not like that. There will be a value, but we don’t know what it is. We had seen this fall coming, but it never ceases to surprise how short time it took. It was a fast movement, and the descent has not ended. At some point the fall has to stop, it could be related to the reactions of the Fed, when there is a more advanced recession, there they would adopt a less aggressive monetary policy and that is where the bottom could come. It could be $14,000 or $8,000. It is random”.

Cryptocapital host delved into the current situation of the crypto market, while the Cryptocapital panel made the following recommendations to holders of non-fungible token (NFT) projects:

“You have to look for the utility and there are some that are worth it, and even give passive returns, it’s not just a JPG. You have to know how to search. There will be speculators and investors, and this is the time to get in. For the novice investor it could be difficult, but if you specialize, great, but it’s also a jungle. NFTs are very easy to create and promote by influencers. It’s been crazy. Monkeys and punks haven’t gone down that much.”

By Audy Castaneda

Rio de Janeiro Will not Have Its Own Cryptocurrency but Aims for NFT Sale

Audy Castañeda
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Rio de Janeiro Will not Have Its Own Cryptocurrency but Aims for NFT Sale

Rio de Janeiro wants to become the new Brazilian crypto center. Since January 2022, the city has hosted major events in the crypto ecosystem. Cariocas will not yet have its own cryptocurrency.

In January this year, Mayor Eduardo Paes published Rio Decree No. 50,145/22, which created the Crypto Rio Working Group. The document details the plans of the municipality that intends to become the new Brazilian crypto hub was called.

The city already has the Start Ups Factory, in Porto Maravalley, in the port region of the city, which houses several ideas with the new emerging and innovative technologies of the entire crypto ecosystem.

The Municipal Secretariat of Finance and Planning (SMFP), Municipal Secretariat of Economic Development, Innovation and Simplification (SMDEIS), Invest Rio, as well as other organizations, participated in the studies, which aimed at planning the digital currency market, means of payment, and Blockchain technologies for Rio de Janeiro.

The group’s objectives include boosting the local economy, optimizing the city’s financial and fiscal instruments, as well as generating income for the Municipality of Rio de Janeiro, creating a legacy for the Marvelous City, and solving the great challenges of the digital world with greater access to the crypto ecosystem for all interested citizens and companies.

Interview with CEO of Invest Rio: Major Highlights

In an interview, the CEO of Invest Rio, Rodrigo Stallone, talked about the paths that the Municipality of the Marvelous City intends to take as the new center of crypto innovation in Brazil. Invest Rio is the investment promotion and attraction agency of the city of Rio de Janeiro and actively participated in the Working Group called Crypto Rio.

The municipality intends to seek advantage now and in the future, with integrity, diligence, and transparency. How does the city plan to do this?

“The City Council will always seek the best technologies to be increasingly transparent. As of today, we have already digitized most of the processes and we understand that advancing in this digitization through Blockchain technology will make everything even clearer.”

What kind of actions does the city plan to announce to attract the global crypto ecosystem? Will there be tax exemptions for companies, for example, in addition to the IPTU and the port of Maravalley?

“Everything is being studied with the Treasury and with the PGM, we cannot take any initiative that is not from these organizations. In addition, the fact that we are a City Council that is looking for these solutions already shows the market that we are open to conversations.”

What about Crypto Rio listed on the City Coins platform? Any chance of the city council getting involved with the platform like the mayors of Miami and NY did? Use cryptocurrencies for the benefit of the city?

“There is, but we’re not looking at that specific project right now.”

And why doesn’t the city council issue its own crypto?

“It is important to weigh the pros and cons. The city has to think of the whole and, therefore, we do not want to issue any currency that could benefit some to the detriment of others. If we somehow realize that this is beneficial for the people of Rio, it will certainly happen. For the rest, there are so many alternatives in this Web 3.0 market that there will be no shortage of good projects for our citizens.”

By Audy Castaneda

Those Investing in Bitcoin Are Still Waiting for an Upside Respite

Alexander Salazar
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Those Investing in Bitcoin Are Still Waiting for an Upside Respite

A significant pullback from a bullish long-term trend is underway, but the Fibonacci retracement indicates the decline might stop. The price remains locked in a descending wedge, suggesting a trend reversal, but it must cross the resistance at USD 21,500.

Since the bulls have not shown enough determination to drive the price of Bitcoin (BTC) higher, it is re-testing support at USD 19,000. The following weekly analysis indicates that a necessary respite might occur in the short term.

BTC is trading at around USD 19,292 and has accumulated a 0.4% loss over the last 24 hours. While its daily trading volume is above USD 13.18 billion, its market capitalization is about USD 368.18 billion, according to CoinGecko.

Although volatility has dropped significantly over the last week, fear still dominates the market, causing further problems in the short term.

According to the weekly CryptoQuant metrics overview, investors do not want to leave the market. It might mean they are still waiting for the price of Bitcoin to bottom out.

While Bitcoin has lost 70% of its market capitalization over the last few months, stablecoins have only lost 11%. The reserves of stablecoins on exchanges are equivalent to half of the funds in BTC.

The Weekly Analysis of the Price of Bitcoin

The monthly BTC/USDT chart shows that the price remains locked at the support around USD 19,500.

While the long-term trend is bullish, a significant pullback from this direction is underway. The price is near the 78.60% Fibonacci retracement level, where the decline might stop. However, it is still impossible to confirm that.

If the price lost the support zone in which it is, the ground might be clear for the 88% Fibonacci. That level coincides with support at USD 10,760.

The price of Bitcoin going down to between USD 10,000 and USD 11,000 still seems too unlikely to occur. Anyway, there should be a significant respite to the upside first. The short-/medium-term trend is bearish, so the latest momentum in that direction is quite predominant.

The Daily Chart of the Price of Bitcoin

The daily timeframe shows that the price remains locked in a descending wedge. When that figure forms relevant support, it announces a possible trend reversal.

Before confirming a change in trend, the price must cross the descending line that delimits the figure. The most conservative might expect it to break through the resistance at USD 21,500.

If that does not happen, the price of the pioneering cryptocurrency will remain at risk. This weekly forecast will become invalidated if it loses support at USD 19,000. Therefore, there will probably be strong selling over the next few days.

Many investors have become aware that Bitcoin has played a relevant role in the world economy. Although it has suffered a sharp drop over the last few months, many analysts still see it as a long-term store of value. It is a matter of time for the behavior of the market to indicate whether the price will rebound to previous all-time highs.

By Alexander Salazar

After Adopting Bitcoin as Legal Tender, the Central African Republic Introduces Sango Coin

Alexander Salazar
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After Adopting Bitcoin as Legal Tender, the Central African Republic Introduces Sango Coin

Citizens can use Sango Coin to acquire property and real estate in the territory. Although the country adopted Bitcoin as legal tender, many of its inhabitants have no access to the Internet.

The president of the Central African Republic, Faustin-Archange Touadéra, recently introduced the cryptocurrency Sango Coin. It will allow the trading of the resources of that country with the rest of the world and provide citizens with further financial inclusion.

Members of the cabinet and businesspeople from the industry accompanied president Touadéra during the presentation of Sango Coin. The cryptocurrency experts gave technical details about that initiative.

The Central African cryptocurrency will base on pro-Bitcoin regulation and the relationship between the public and private sectors for technological developments. Citizens and investors can use it to acquire tokenized property and real estate. In addition, they can participate in the governance of decentralized autonomous organizations (DAO.

The primary objective of Sango Coin and its ecosystem is to attract investment and provide digital and physical infrastructure. The comprehensive project, which mainly focuses on the cryptocurrency and technology sector, will also establish the creation of a Digital Bank.

That plan seeks to benefit investors by registering companies through the Internet and allowing the possibility of access to citizens. Besides, they will be exempt from some obligations, such as paying income taxes.

The Central African Republic aims to have a legal cryptocurrency framework ready before late 2022. Based on the law determining Bitcoin as legal tender, the State created the National Agency for the Regulation of Electronic Transactions (ANTE).

The Central African Crypto-Island Will Be like Salvadoran Bitcoin City

The Central African government plans to create a crypto-island, a version of the Salvadoran Bitcoin City. They said it would be an excellent place to enjoy the cryptocurrency revolution.

Besides the physical space, they will create another version in the metaverse. The world of properties and real estate will have a digital representation, which adds other edges for expansion in the future.

The official website of Sango highlights that this project emerged from the National Assembly of that country. The Central African Republic became the second country to adopt Bitcoin legal tender in April.

A Long Way to Digitization in the Central African Republic

In 2022, the World Bank approved a USD 35 million development fund for the Central African Republic. The objective is digitizing the public sector, an initiative parallel to adopting Bitcoin and Sango.

However, the Sango plan and the massive use of Bitcoin as a payment method have collided with the Central African reality. Less than 8% of the population of almost 5 million has access to the Internet. Therefore, they would not be part of the technological revolution that Faustin-Archange Touadéra aims to implement.

Touadéra said that the infrastructure of telephone companies in Africa (half of what exists worldwide) would be crucial. He considers Central Africans would only need a cell phone to access Bitcoin, Sango Coin, and the technological and digital revolution.

By Alexander Salazar

Amid the Collapse in the Overall Crypto Market, the Litecoin Bulls Resist

Alexander Salazar
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Amid the Collapse in the Overall Crypto Market, the Litecoin Bulls Resist

Although the bears have driven the LTC price increasingly low in recent months, the reduced transaction volume might have influenced a trend change. Despite the recent rally of Litecoin, the correction may extend and take the price back to USD 41.

The high drop that Bitcoin (BTC) has suffered in the first half of the year has also affected altcoins like Litecoin (LTC). However, the selling pressure might be decreasing, suggesting an excellent time to invest for the medium to long term.

Former Google engineer Charles Lee created LTC in October 2011 by adapting and modifying the Bitcoin open-source code. Like the pioneering cryptocurrency, no central authority controls Litecoin. However, they differ because the latter has a faster block generation rate and uses Scrypt as a proof-of-work (PoW) scheme.

LTC has strongly resisted the current fall in prices in the crypto market. It is trading at around USD 49.54 and has accumulated a 0.4% gain over the last 24 hours. While its daily trading market is above USD 318.97 million, its market capitalization is about USD 3.50 billion, according to CoinGecko.

Litecoin Resists the Drop while Its Transaction Volume Decreases

The bears have controlled the market over the last few months, driving prices increasingly low. However, the reduced volume of transactions could be a relevant factor influencing a change in the trend. Besides indicating a lack of interest among traders in trading, it may simply suggest decreasing interest in Litecoin.

Other crypto assets offer more advantages than LTC, like lower transaction fees and higher transaction capacity per second.

In addition, several South Korean exchanges recently stated they would not trade Litecoin anymore. Therefore, it is common to see a decrease in withdrawals and deposits of the cryptocurrency. Over the last few days, Binance also announced that they could not validate the address of those sending transactions with MimbleWinble.

The Technical Analysis of the Litecoin Price in the Short Term

The 4-hour charts show that the correction in the price may extend despite the recent rally of Litecoin. Even so, the bulls are defending a relevant support zone, which they should not lose to prevent LTC from reaching USD 41 again.

It is relevant to know that the candlesticks are at the average levels of the ENV channels. In addition, they are in the lower part of the parallel channel. That suggests that there might be a bounce to the upside in the short term.

In addition, the Relative Strength Index (RSI) is at 30 points and has moved sideways in that area, coming from oversold readings. However, the Moving Average Convergence Divergence (MACD) is in a similar position. However, the moving averages of both indicators point to the downside.

In the short term, the bulls may defend the current level and sideline the trend around USD 60. However, if the price breaks below the parallel channels, the selling pressure would put LTC at USD 41. Therefore, investors should be attentive to what might happen within the next few hours.

By Alexander Salazar

Ethereum Median Transaction Fee Crumbles to at Least $1.57, the Lowest Rate since 2020

Jenson Nunez
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Ethereum Median Transaction Fee Crumbles to at Least $1.57, the Lowest Rate since 2020

For at least two years, between January 2021 and May 2022, the standard gas fee needed by the Ethereum network was approximately 40 dollars, registering on May 1, 2022, with the highest average daily gas cost of 196,638 dollars.

Ethereum’s obstruction to market dominance gets usually attributed to the unreachable transaction fees or gas fees it needs to achieve a transaction. However, with Ethereum’s standard fee going down to 0.0015 ETH, the game would be about to change.

The standard transaction fee on the Ethereum blockchain submerged into 0.0015 ETH or $1.57, a figure previously observed in December 2020. However, as of January 2021, Ethereum gas fees reached a high peak due to hype around non-fungible tokens, decentralized finance, and a promising optimistic market.

Between January 2021 and May 2022, the standard gas fee needed by the Ethereum network was approximately 40 dollars, registering on May 1st, 2022, with the highest gas price, 196,638 dollars -as the data observed in BitInfoCharts.

Supporting this sudden fall in gas prices, daily sales of NFTs have also crumbled to one-year lows. The NFT environment revealed its worst numbers of the year, as the sales crashed to approximately 19,000 with an expected value of $13.8 million.

In November 2021, as shocking gas fees got highlighted by a high group of investors, Ethereum co-founder Vitalik Buterin revealed a cost-cutting and capping proposal to minimize unprecedented layers of stress on the platform. Buterin presented a short-term solution to lessen winding costs by implementing a call data cap per block to minimize ETH gas prices.

Ethereum liquidity supplier XCarnival experienced a recovery of at least 1,467 ETH just one day after facing an attack that extracted at least 3,087 ETH, worth about $3.8 million, from the protocol.

XCarnival faced a cyberattack on June 26th, 2022, and it got forced to stop a considerable part of the protocol. XCarnival officials confirmed they would grant the owner of 0xb7CBB4d43F1e08327A90B32A8417688C9D0B800a 1500 ETH reward.

At the same time, XCarnival officials free the person from any harmful legal action. Blockchain researcher Peckshield explained the nature of the attack stating that The hack occurred by allowing the withdrawal of a connected NFT to serve as collateral, which gets then disrupted by the cyber criminal to extract a high amount of assets from the pool.

By: Jenson Nuñez

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