The Price of Bitcoin Is around USD 18,000, but Nobody Knows Where It Will Go Next

Alexander Salazar
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The Price of Bitcoin Is around USD 18,000, but Nobody Knows Where It Will Go Next

Mauro Liberman estimates that the price of Bitcoin might reach USD 14,000 if it loses support at USD 18,000. The analyst believes little liquidity is due to speculation on macroeconomic movements, a possible recession, and rising interest rates.

The Bitcoin (BTC) price recently dropped to USD 18,000, leading many to wonder where it will go and where it will find its next support.

Mauro Liberman, the co-founder of the CrypStation café, has been a cryptocurrency trader and analyst for over five years. He believes the market will continue with hoarding phases at a 70% to 80% level to the downside compared to its last high.

Bitcoin is trading 73% below its all-time high at nearly USD 69,000. That seemingly serious setback is similar to others it has had in the past but is not the biggest. Likewise, the pioneering had always recovered from each fall to reach a new all-time high until last year.

Liberman considers that Bitcoin has not yet bottomed out in this bearish stage, given the typical setbacks and the market state. The specialist recalled that in the crisis of 2018 and the pandemic, it dropped by 80%. Although that situation caused 60% of portfolios to suffer losses, he now notes that it does not reach 50%.

Those owners of the cryptocurrency in unrealized losses are those buying it at prices higher than the current one since late 2020. The beginning of the crypto boom drove high demand, increasing its value to almost USD 69,000 in November 2021.

In addition, he believes little liquidity entered the market due to more speculation on macroeconomic movements, a possible recession, and rising interest rates. He agrees with the stock market and cryptocurrency analysts that the selling wave continues due to fear of the discouraging context.

Bitcoin Might Reach USD 14,000 If It Breaks the USD 18,000 Support

From his long-term bullish view, Liberman maintains there is still time to hoard between USD 18,000 and USD 21,000. However, he highlights that the price of Bitcoin will reach lower prices if its demand remains unconsolidated and breaks to the downside.

Bitcoin could head for USD 14,000 if it does not form support at USD 18,000, implying an 80% correction from its all-time high. That projection is close to bearish predictions from other analysts, who agree that the cryptocurrency has not bottomed out yet.

BTC is trading at around USD 18.96 and has accumulated a 5.6% loss over the last 24 hours. While its daily trading volume is above USD 20.37 billion, its market capitalization is about USD 364.62 billion, according to CoinGecko.

Bitcoin has played a crucial role in the economy since its inception, which those supporting it cannot overlook. The price of the pioneering cryptocurrency always rebounded from its worst lows to resume its previous all-time highs. Many analysts think it is undergoing a necessary correction before rebounding to its bullish trend.

By Alexander Salazar

A Congressman Considers the Central Bank of Argentina Puts Citizens on the Verge of Hyperinflation

Alexander Salazar
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A Congressman Considers the Central Bank of Argentina Puts Citizens on the Verge of Hyperinflation

Argentine congressman Luciano Laspina questions how the Central Bank funds the National Treasury. The official urges the State to regain confidence in its fiscal solvency by reducing public spending.

Congressman Luciano Laspina recently stated the Central Bank of Argentina (BCRA) violates its Organic Charter by putting citizens on the verge of hyperinflation.

The government official is part of the Juntos por el Cambio (Together for Change) bloc. He said the BCRA has allowed funding the Treasury with reserves since the reform of the Organic Charter in 2012.

However, Laspina pointed out that this reform limited the monetary funding of the National Treasury by the banking entity. According to Article 20, the Bank may make transitory advances to the government of up to 12% of the monetary base. The legal document also indicates that the BDRA may grant advances not exceeding 10% of the national cash resources.

The BCRA Uses Taxes to Fund the National Treasury

The economist commented that the BCRA has decided to ignore those limits, despite their laxity. He explains that the financial institution is bypassing them to fund the Treasury. They have recently bought Treasury debt for over ARS 600 billion, equivalent to about USD 2.6 billion.

According to the congressman, the BCRA abuses Article 18 of the Organic Charter to bypass the self-imposed limits. That rule establishes they can buy and sell public securities in the market for monetary, exchange, financial, and credit regulation purposes.

Laspina considers those security purchases do not aim to regulate the money supply, the exchange rate, or the credit. He believes they should not use inflationary taxes to finance an illiquidity or insolvency crisis. He explained that this would lead the limits imposed by Article 20 to become abstract, useless, and irrelevant.

The 49-year-old congressman, with legislative experience since 2014, maintains that the State must take forceful and urgent measures. The objective would be to recover confidence in its fiscal solvency, starting by reducing public spending generated in the first half of 2022. He added that the BCRA must comply with its Organic Charter, refraining from monetizing the irrational exuberance of national government spending.

The Argentine congressman said it would only be possible to prevent citizens from suffering hyperinflation by meeting those two conditions.

In 2022, the Argentine Hyperinflation Could Rise by 72%

Private consultants have predicted that inflation will be close to the levels registered in May (5.1% monthly) in June. However, it will be necessary to wait until July 14th for the Institute of Statistics and Censuses (INDEC) to publish its official data. According to financial news media Bloomberg, year-on-year inflation could exceed 72% at the end of 2022.

All this happens amid the high devaluation of the national fiat currency, the peso (ARS). On the other hand, the US dollar (USD) price has recently reached all-time highs measured in ARS.

Meanwhile, the cryptocurrency market has also suffered a considerable drop in the first half of 2022. For example, Bitcoin (BTC) is trading at around USD 18,976 and has accumulated a 5.6% loss over the last 24 hours.

By Alexander Salazar

MicroStrategy Continues to Hoard Bitcoin despite the Drop in Its Price

Alexander Salazar
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MicroStrategy Continues to Hoard Bitcoin despite the Drop in Its Price

The Bitcoin share of MicroStrategy rose after the business intelligence firm bought 480 additional bitcoins for around USD 10 million. The new acquisition allowed them to increase their reserves to 129,699 BTC, thus proving that Saylor is optimistic about the cryptocurrency.

As part of the investment plan of Michael Saylor, MicroStrategy will continue to hoard Bitcoin (BTC).

The business intelligence firm recently acquired 480 BTC, thus accumulating over 128,000 BTC in its coffers.

According to Saylor, there are 129,699 BTC in their reserves, bought at around USD 20,817 per unit.

Since Bitcoin is trading at around USD 20,000, the holdings of MicroStrategy amount to about USD 2.6 billion.

Amid the run of Bitcoin into the range between USD 18,000 and USD 21,000, many think MicroStrategy might face margin calls. However, Saylor dismissed that possibility and expressed his commitment to buying as many additional coins as cash flow allows.

The executive said they only had to guarantee a 200-million-dollar loan on a one-billion-dollar balance sheet. In that regard, he stressed that the company had become ten times more guaranteed.

In addition, he commented that talking about the MicroStrategy margin calls is a lot of ado about nothing.

MicroStrategy Keeps Increasing Its Reserves of Bitcoin

Michael Saylor explained that MicroStrategy generates excess cash, which they invest in more Bitcoin. He said their strategy was buying and keeping it and then using the free cash flow to buy additional coins.

While some are selling their holdings, Michael Saylor takes advantage of the low prices to buy more Bitcoin.

Saylor stated that MicroStrategy had purchased an additional 480 Bitcoins for around USD 10 million, an average of USD 20,817 per unit. Today MicroStrategy owns about 129,699 BTC, bought for USD 3.98 billion at an average of USD 30,664 per unit.

According to the SEC, MicroStrategy bought 480 BTC in June for around USD 10 million, an average of USD 20,817 per unit. With the new acquisition, the company increased its reserves to 129,699 BTC.

On June 14th, Saylor pointed out he would keep his Bitcoin despite the drop in its price. After that remark, the millionaire businessman made this additional purchase of the pioneering cryptocurrency.

Saylor Bets on a Bullish Scenario despite the Drop of Bitcoin

Although the performance of BTC was not very positive in June, Michael Saylor did not feel scared. He believes in a scenario where the price of Bitcoin will recover and grow considerably.

Referring to the current bearish stage, Saylor recognized that Bitcoin had had its ups and downs. In that context, he considers that Bitcoin can get out of that abyss to seek higher levels.

The CEO of MicroStrategy said the formation of new regulatory frameworks causes uncertainty regarding the increase in Bitcoin acceptance. He trusts that the advance in the crypto market would be enough to keep the price afloat, thus generating a new bullish scenario.

BTC is trading at around USD 18.96 and has accumulated a 5.6% loss over the last 24 hours. While its daily trading volume is above USD 20.37 billion, its market capitalization is about USD 364.62 billion, according to CoinGecko.

By Alexander Salazar

The Bitcoin Price Consolidates the Expected Bearish Trend by Dropping Back to USD 18,000

Alexander Salazar
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The Bitcoin Price Consolidates the Expected Bearish Trend by Dropping Back to USD 18,000

The price of the pioneering cryptocurrency loses the USD 20,000 support where it was for nearly a week. The rejection of a Bitcoin ETF by the US SEC caused the value of BTC to fall to USD 18,980.

The price of Bitcoin (BTC) recently fell back to around USD 18,000, the low it first tested in over a year, on June 18th. It had rebounded from that level, staying mostly above USD 20,000, but it reached that figure thirteen days later.

That drop in the price of the pioneering cryptocurrency reinforces the bullish trend that analysts had forecasted. Bitcoin had already lost the support at USD 20,000 the day before, reaching the USD 19,000 line for the first time in seven days. It consolidates the downward force by stepping on the USD 18,000 range, but it sometimes rises.

Analyst Tom DeMark had stated Bitcoin was moving in a critical margin that would define its bullish or bearish trend. Before collapsing on June 29th, it traded between USD 20,000 and USD 22,000, reaching increasingly high lows for six days.

That led him to estimate that there was evident strength in the demand that was taking its price to higher levels. However, it did not seem powerful enough to break above the resistance at USD 22,000. He thought that the buying level would fall and the supply/selling force would increase if it did not overcome that resistance.

Due to that situation, its price has reached lower figures, like those observed in the market. DeMark had predicted the same for Ether (ETH), which could not exceed the USD 1,300 barrier and has dropped to USD 1,000.

The Bitcoin and Ether Collapse Leads Investors to Unrealized Losses

Those investing in cryptocurrencies when their prices were higher are suffering unrealized losses. For example, MicroStrategy bought USD 10 million worth of Bitcoin on June 29th at USD 20,817.

The cryptocurrency collapse occurred the same day the SEC rejected a Bitcoin spot exchange-traded fund (ETF). It might have been the first of its kind approved by the government agency. Its president, Gary Gensler, had called BTC a commodity some days before.

Like in the past, the rejection of the SEC was forceful, probably causing the drop of Bitcoin and Ether. Likewise, the discouraging news of the macroeconomic context has affected cryptocurrencies and led the markets to a bearish trend.

BTC is trading at around USD 18.96 and has accumulated a 5.6% loss over the last 24 hours. While its daily trading volume is above USD 20.37 billion, its market capitalization is about USD 364.62 billion, according to CoinGecko.

The drop in the price of Bitcoin back to around USD 18,000 has caused fear among investors. For that reason, many have decided to sell their holdings at a loss and even leave the market. However, others believe that the cryptocurrency will rebound into the bullish trend as Michael Saylor does.

By Alexander Salazar

After Selling Billions of XRP for 8 Years, Jed McCaleb’s Balance Will Hit Zero in Weeks

Audy Castañeda
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After Selling Billions of XRP for 8 Years, Jed McCaleb’s Balance Will Hit Zero in Weeks

According to Jed Balance, a website that tracks his XRP holdings, McCaleb’s wallet, called “tacostand,” has dumped an average of 4.06 million XRP over the last month.

Former Ripple Labs founder Jed McCaleb is nearing the end of his eight-year Ripple (XRP) selling marathon; He only has 81.53 million XRP left, worth $26.55 million in his wallet balance.

At the current rate of sales, his wallet could be empty in the next two to three weeks, much to the delight of the cryptocurrency community.

Events Unfolded and Parody Account

On Wednesday, Mason Versluis, a TikTok influencer and YouTuber known as Crypto Mason, shared the news to his 115,000 followers on Twitter, highlighting that 22 million XRP has been released in the last three days, “Jed McCaleb has 81,527,488 $XRP remaining! 22,007,874 $XRP has been released in the past 3 days.”

On Wednesday, a McCaleb parody account with 4,500 followers describing itself as “Definitely not the real Jed” posted a photo outside a restaurant called “The Taco Stand,” saying, “Almost the former Ripple executive has been methodically selling off chunks of his XRP holding, once worth nine billion, since leaving the company in 2014.

McCaleb was part of the founding team of Ripple in 2012 (then called OpenCoin), receiving a share of 20 billion XRP, which was distributed among the three founders, which also included Chris Larsen and Arthur Britto.

McCaleb left in 2014 after an alleged falling out with Ripple executives, taking his XRP holding, which amounted to around 9% of the total supply, with him. That same year, he co-founded rival payment protocol Stellar.here.”

Preventing Chaos in Plummeting Market: Blocking Conditions for McCaleb’s XRP

Fearing that the market would crash if McCaleb sold all his holdings at once, Ripple Labs and the former executive agreed to lock-up terms for his XRP.

The lock-in plan stated that, for the first year, he could not sell more than $10,000 worth of XRP a week. The plan would loosen over time, increasing the amount he could sell to $20,000 worth of XRP per week for the next three years.

Starting in 2018-2019, restrictions would apply to the number of XRP tokens, limiting their maximum allowed sale to 1 billion XRP per year.

As of 2020, the amount has risen to 2 billion XRP per year.

According to Jed Balance, McCaleb sold a large portion of his XRP holdings between January and August 2021, a period in which XRP prices shot up to $1.84 in April, selling 2.74 billion XRP.

It took a several-month break from selling from September 2021 to early January 2022 and has since returned to selling XRP steadily.

The data shows that McCaleb has sold 627.6 million XRP so far in 2022.

XRP price rallied nearly 30% on June 24, four days after rallying from $0.28, its lowest level since January 2021. Cointelegraph analysis noted that the token’s rally could extend to $0.41 next.

By Audy Castaneda

According to a Report, Crypto Market Crash Harms North Korea’s Nuclear Programs

Jenson Nunez
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According to a Report, Crypto Market Crash Harms North Korea’s Nuclear Programs

Reports suggest that digital assets held by North Korea have lost at least 60% of their value, so funding for nuclear programs would get significantly compromised in the middle of crypto winter.

Although the crash in the price of Bitcoin concerns many exchanges, various reports suggested North Korea could feel the weight of the declining market the most since the country would share connections with many prominent crypto thefts to finance their nuclear projects.

Digital Assets and North Korea

The information comes from the Reuters news agency, which reflects on a series of reports linking North Korea with cybercrimes in the digital currency space, highlighting the extraction of at least USD 552 million from the bridge of the Ronin network and hacks aiming at relevant international exchanges.

The United Nations Organization revealed a report in February highlighting that North Korea’s nuclear and weapons projects got financed with digital currencies, assets in which they found a possibility to carry out those activities after the blockades and economic sanctions imposed by many entities and countries.

This theory got reinforced by many experts, including the member of the UN Security Council, Eric Pento-Voak, who assured that digital assets and these crimes executed against entities in the sector have been essential for North Korea to avoid sanctions.

However, official representatives denied that North Korea has taken part in or has connections to the attacks carried out against exchanges and crypto projects, calling such allegations nonsense accusations that intend o discredit the Asian country.

Market Decline and Nuclear Projects

According to the crypto funds of North Korea, a report highlighted by Chainalysis confirms that the currencies held by the nation linked to attacks carried out between 2020 and 2021 suffered considerable losses since they went from USD 170 million at the beginning of the year to at least USD 65 million at the current exchange rate.

On the other hand, as for the funds obtained by the Ronin network attack, the USD 552 million extracted by the Lazarus group got now valued at USD 230 million. This information got confirmed by the TRM Labs analysis team, although it detailed that most of the extracted ETH got exchanged for BTC at the time. This situation makes it hard to highlight the margin of losses capitalized by the North Korean nation.

Finally, regarding nuclear programs, this Crashdown in the country’s reserves could become a blow to support the linked costs due to the difficulties in acquiring the respective material. 

By: Jenson Nuñez

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