Trader Explained Why he Wouldn’t Purchase Bitcoin While it’s Crypto Winter

Jenson Nunez
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Trader Explained Why he Wouldn’t Purchase Bitcoin While it’s Crypto Winter

Holders keep their digital assets in the bear market and see an opportunity to purchase. Meanwhile, other traders looking for quick incomes expect the bull market to return.

The current bear market in digital assets such as bitcoin appears to be a purchasing opportunity for some investors. In contrast, others see it as a warning to stay away until it is over.

Three Mexican bitcoin traders shared their experiences and forecasts with El Ceo. One of them is Oscar Ortega, who, as he intends to gain quick profits with trading, preferred to temporarily move away from digital currencies due to the bear market.

His way of acting labels him as a short-term trader because he invests to achieve returns fast. Ortega likes to acquire digital assets when going through a bullish move to sell them in fast operations and make good incomes in zero time.

Ortega is a software engineer who works with blockchain tech. That made him interested in crypto trading in 2021. He went so far as to invest in bitcoin, Shiba, Solana, and Terra, which recently crashed and caused a disaster in the market space.

Although Ortega expressed that he lost half of his investments in Solana, he says that the rest of the digital assets he invest in brought him returns registered at 700% and 900%. However, he highlighted that when he started exploring the crypto space, prices were already at high peaks, so he traded for a short time and then stepped away from the market.

Ortega added that while he hasn’t been after trends, he considered getting back into the market now that low prices are leading the list. However, he thinks that people’s interests are at risk in the market and that the current values could keep crashing down, so he has decided to stay away until it recovers the appropriate balance.

Currently, he only owns stable coins since he does not want to face so many risks regarding investments. He hopes that he will invest again to make quick profits when the crypto winter is over.

Bitcoin Holders See the Current Market as a Purchasing Opportunity

While some traders looking for fast growth in their incomes, like Ortega, momentarily step away from the crypto space, the holders act differently. Precisely holding their investments unsold because they think the prices will reach a high price in the long run. Daniel Martínez and Mario Buendía’s case is something similar.

Unlike short-term traders, holders are those people who keep their currencies for a long time because they think there is an opportunity to earn a higher return by applying this method. Martínez, one holder, said that he acquired bitcoin at the end of 2016 and has since become a great digital asset enthusiast.

From his experience, he thinks it appropriate to use some digital assets as a long-term investment. In 2017, bitcoin went from being worth USD 1,000 to USD 10,000, while traded for less than that maximum in the following two years. For this reason, in 2019 he took the opportunity to acquire more BTC when the price crashed down below USD 3,000.

By: Jenson Nuñez

Scott Minerd Believes the Price of Bitcoin Could Drop to USD 8,000

Alexander Salazar
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Scott Minerd Believes the Price of Bitcoin Could Drop to USD 8,000

After the value of BTC dipped below USD 30,000, it has struggled to rise back above that level. Minerd thinks that the price had much more room to go down, especially after the Fed implemented measures to control inflation.

Scott Minerd, chief investment officer (CIO) of Guggenheim Partners, recently spoke about the future of Bitcoin (BTC). The stock market investor said the price could collapse further and drop to USD 8,000.

According to CoinMarketCap, there could be a drop of over 70% from the current price, which is USD 29,154. After dipping below USD 30,000 in early May, the value of Bitcoin has struggled to rise back above that level.

If the prediction made by Scott Minerd came true, it would cause further distress to Bitcoin investors and the overall crypto market. His comments came after Christine Lagarde, the president of the European Central Bank, said cryptocurrencies were worthless and needed regulation.

Minerd Predicts the BTC Price Will Bottom Out at USD 8,000

Scott Minerd told the CNBC news channel that USD 8,000 is consistently the ultimate bottom line when breaking below USD 30,000. He said he thought the price had much more room for the downside. That is particularly possible now that the US Federal Reserve (Fed) implements restrictive economic measures to control inflation.

He added that Ether (ETH) and Bitcoin would lead the crypto assets that will survive the market collapse. He pointed out that there has not yet been a dominant player in the cryptocurrency industry. The CIO of Guggenheim Partners also stated that he considers most cryptocurrencies garbage or junk.

Minerd Compares the Current Situation to the Dotcom Bubble

In addition to the above, Scott Minerd compared the current situation of cryptocurrencies to the dotcom bubble of the early 2000s.

He stated that people would say that Yahoo and America Online were the big winners if they were sitting in the Internet bubble.

He also expressed that he did not think they had an appropriate prototype for creating cryptocurrencies. He explained that those currencies had to store value, be a medium of exchange and serve as a unit of account. He pointed out that those things do not even happen at a basic level.

Minerd thinks that additional technological advances could contribute to changing that situation. Besides, it would help create an ecosystem where people use cryptocurrencies for transactions and trust they will retain their value.

Bitcoin is trading at around USD 29,149 and has accumulated a 2.8% loss over the last 24 hours. While its daily trading volume is above USD 27.71 billion, its market capitalization is about USD 558.93 billion, according to CoinGecko.

Although Bitcoin is facing the collapse of the crypto market, it has historically recovered from its worst all-time lows. However, the CIO of Guggenheim Partners recommends looking for all types of information about crypto assets before investing in them. It is a matter of time until the price of BTC bottoms out before rebounding above USD 30,000.

By Alexander Salazar

Fed Finds an Increase in Bitcoin Adoption in the US: 12% of the Population Possessed Crypto

Jenson Nunez
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Fed Finds an Increase in Bitcoin Adoption in the US: 12% of the Population Possessed Crypto

The Federal Reserve found that the wealthiest Americans use digital assets. Most take advantage of them as investment instruments, not payment.

A recent survey presented that the number of people in the United States of America using digital assets has been rising, and most are part of unbanked citizens.

The US Federal Reserve (FED), the nation’s central bank, released its annual report on Monday looking at the financial lives of Americans, which for the first time included digital assets. This report, “Economic well-being of US households in 2021,” focused on a survey that got split among 11,000 citizens during October and November of last year.

The annual study considers a pack of factors that intend to measure the economic status of customers, including questions about profits, types of work, taxes, bank credits, and other data linked to the spending and financial scenarios of citizens. For the first time, the survey included questions about digital assets ownership and adoption.

12% of Americans Possess Crypto

Data gathered by the FED highlighted that by 2021, 12% of the adult population in the US would use digital assets such as Bitcoin. In general, the study expresses that most crypto users are not interested in employing it as a payment method; instead, they describe the new asset as an investment tool.

Of this group, 11% stated that they used digital assets as an investment method, while “2% of adults highlighted they had used crypto assets to acquire goods or make a payment in the previous 12 months, and 1% used to send funds to friends or family.

Likewise, the research also found that users who turned to digital assets were twice as likely to be unbanked as citizens who did not use them.

The use of digital currencies as an investment instrument was much more common than the use for transactions or purchases. However, while transactional digital currencies were low, those who used digital currencies to achieve acquisitions rather than investments often lacked traditional bank accounts.

Adoption Among the Wealthiest

In this sense, the North American monetary authority found that the Population’s socioeconomic status was also a factor in the trend of adopting digital assets. As such, adults with lower profits are more likely to turn to Crypto to carry out transactional activities, while those with higher yields use it as an investment tool, the research found.

46% of those who used digital assets only for investing had a profit registered at $100,000 or more, while 29% had an income of less than $50,000,” the report said. Also, 99% of those who invested in digital assets but did not employ them for transactions had a bank account, and 89% of non-retired crypto investors had at least some retirement savings.

By: Jenson Nuñez

Although the Bitcoin Gold Price Rises, Bulls Still Should Not Be Too Confident

Alexander Salazar
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Although the Bitcoin Gold Price Rises, Bulls Still Should Not Be Too Confident

Despite not knowing the catalyst behind the sharp rise in the price, various analysts consider that low-volume rallies are bullish traps. If the price broke through the top of the descending channel, it would begin to hit new higher lows.

Some cryptocurrencies with low capitalization have taken the opportunity to gain prominence as volatility decreases in the crypto market. For example, Bitcoin Gold has already gained around 27% over the last 24 hours.

Bitcoin Gold (BTG) is a protocol, open-source project, and cryptocurrency emerging from a Bitcoin (BTC) network fork. In the same way as Bitcoin, it does not depend on any central bank, corporation, or trusted intermediary.

The split originating BTG aimed to introduce changes to the proof-of-work algorithm of the network to prevent using mining ASIC hardware. That cryptocurrency has Bitcoin fundamentals, but people mine it on common GPUs instead of ASICs.

BTG is trading at around USD 24.56 and has accumulated a 27% gain over the last week. While its daily trading volume is above USD 166.38 million, its market capitalization is about USD 429.84 million. It occupies 116th place in the cryptocurrency ranking, according to CoinGecko.

Nobody knows the catalyst behind the sharp rise in the price of Bitcoin Gold. However, several experts think those low-volume rallies are usually bullish traps that a few traders and investors drive.

The several hundred million US dollars of the market capitalization of Bitcoin Gold may seem high at first sight. However, it is easy to manipulate the size of that amount in the crypto space.

Weekly Technical Analysis of the Price of Bitcoin Gold

Despite a significant rally, it is still insignificant for the weekly BTG/USDT chart. There has been a considerable short/medium-term bullish trend in that period, intact since early May 2021.

That drop in the price of BTG may look like a correction following a strong upward push. However, there is not yet a signal that confirms that it has reached the bottom.

The price of Bitcoin Gold currently remains locked in a sharp descending channel. Besides, the recent rally seems to be a mere pause before the price continues in the previous direction.

If the price broke through the top of that channel, it would be a good sign for the bulls. In that way, the value of BTG would begin to hit new higher lows.

The Daily Chart of the Price of Bitcoin Gold

The daily BTG/USDT chart allows seeing excellent behavior of the price thanks to the recent rally. However, after finding resistance at USD 31.50, there was a significant bullish price rejection.

The current observable rally indicates that the short-term trend of the value of BTG is upward. If it reached a new higher low in the next few hours, there would continue to be more buying soon.

However, the weekly chart indicates that no one should be too confident about that movement. Before making an investment decision, it is advisable to review the behavior of the price of BTG.

By Alexander Salazar

Arthur Hayes Receives a Two-Year Probation Sentence for Laundering Money

Alexander Salazar
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Arthur Hayes Receives a Two-Year Probation Sentence for Laundering Money

Hayes recently bought a house in Miami, but his attorney said he could do his home detention elsewhere. He expressed that he regretted participating in that criminal activity and asked the judge to allow him to go back home.

The New York federal court sentenced Arthur Hayes to two years of probation, six months of house arrest, and location monitoring. In February, the former CEO of BitMEX pleaded guilty to anti-money laundering (AML) charges on the exchange.

Hayes will have 30 days to decide where in the United States he will serve his house arrest. After living in Singapore for a long time, he recently bought a house in Miami. However, his attorney said he might want to do his home detention elsewhere as he does not have a community in Florida.

Over two dozen friends and relatives, including his wife, his mother, and his brother, were behind him in the courtroom. Hayes told Judge John Koeltl of the US Southern District Court in New York that he took full responsibility for what he did.

He expressed he regretted participating in that criminal activity and promised to turn the page and start over. He asked the judge to allow him to go back home to begin the next chapter of his life.

Koeltl agreed that Hayes could travel internationally after completing his period of home detention successfully. He would have to communicate with his parole officer whenever needed via video call from his home in Singapore.

The Chinese Authorities Seem Not To Have Stopped Bitcoin Mining

The Cambridge Center for Alternative Finance (CCAF) recently released an update to its Bitcoin Electricity Consumption Index. It partly seeks to discover and share the geographical location of Bitcoin miners worldwide.

The mining share of China dropped from 34.3% in June 2021 to 0.0% in July 2021, following the ban by the government. The most recent update showed that the mining share of the Asian country rose from 0.0% in August 2021 to 22.3% in September 2021.

China banned Bitcoin mining in May 2021, and there were practically no miners in the country in July and August. The data indicates that almost all miners returned in September.

An Explosion and Fire Force the Disconnection of over 3,000 Cryptocurrency Miners

Bit Digital, a New York-based cryptocurrency mining company, reported that two hosting partners stopped operating over 4,800 devices. The suspension of those pieces of equipment occurred after power outages at different facilities.

The firm recently said that an explosion and subsequent fire damaged a substation in Niagara Falls. That forced its partner Blockfusion USA to disconnect 2,515 Bitcoin (BTC) and 710 Ether (ETH) miners at that place.

In addition, the mining company reported that its partner Digihost experienced a similar power outage. That led to the disconnection of 1,580 cryptocurrency miners at a facility in North Tonawanda, New York.

The explosion and fire did not directly damage any mining equipment but only the substation supplying electricity. The mining company did not suggest that one of its rigs caused the accident, attributed to defective equipment of the power company. For that reason, they will seek reimbursement for lost revenue from the mining of cryptocurrencies.

By Alexander Salazar

Andrew Kang Says that MicroStrategy Does Not Plan To Sell Its Bitcoin Holdings

Alexander Salazar
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Andrew Kang Says that MicroStrategy Does Not Plan To Sell Its Bitcoin Holdings

Kang believes that nothing fundamental about the pioneering cryptocurrency poses any problem for their investment strategy of MicroStrategy. The executive stated that the stakeholders had not put the firm under pressure to sell, thus aligning with the Bitcoin strategy.

Andrew Kang, Chief Financial Officer (CFO) of MicroStrategy, confirmed that the firm would go ahead with its plan to buy Bitcoin. He even pointed out that investors agree with their decision despite the correction in the price.

Kang currently holds a Bachelor of Arts in Biology and a Postgraduate Degree in Accounting. He has worked at MicroStrategy as Senior Executive Vice President and CFO since May 2022. Before joining MicroStrategy, he served as Corporate Treasurer for Santander Holdings USA and Executive Vice President and CFO of Greensky.

Bitcoin and other cryptocurrencies have plummeted over the last month due to investor concerns about high inflation and the collapse of TerraUSD (UST).

The executive is sure that some of the most recent volatility was due to activity outside Bitcoin. He said that nothing fundamental about Bitcoin poses any problem for their investment strategy.

MicroStrategy, based in Tysons Corner, Virginia, is among several companies with substantial holdings in Bitcoin. The data analytics company has bought 129,218 BTC until now.

MicroStrategy Will Continue to Buy and Hold Bitcoin for the Long Term

Andrew Kang said that the long-term buy-and-hold strategy of MicroStrategy remains unchanged despite the current volatility in the crypto market. Of course, that situation has affected the value of their shares.

However, Kang stated that none of the stakeholders had exerted pressure on the firm to sell. That shows a close alignment between investors and the company regarding the Bitcoin strategy. Curiously, he said he was unwilling to comment on their future Bitcoin purchases.

The CFO of MicroStrategy also predicted that the recent volatility of the crypto market could lead to new regulation of crypto assets.

Anyway, Michael Saylor, CEO of MicroStrategy, continues to extol the virtues of the pioneering cryptocurrency.

Michael Saylor Expects BTC to Reach above USD 1 Million

Saylor has repeated that on Twitter to reassure investors that MicroStrategy will not dump its Bitcoin holdings, even amid a bearish market. In addition, he has said that the firm continues to support Bitcoin as a store of value in the long term.

He stated there is no price target, but he expects to buy Bitcoin at the top forever. In addition, he predicted that the price would reach above USD 1 million, so they need to be very patient. He has commented on several occasions that the pioneering cryptocurrency is the future of money.

Bitcoin is trading at around USD 29,149 and has accumulated a 2.8% loss over the last 24 hours. While its daily trading volume is above USD 27.71 billion, its market capitalization is about USD 558.93 billion, according to CoinGecko.

Michael Saylor has said that there is no place to hide in a global bearish market, but there is a place to stand.

By Alexander Salazar

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