Cryptocurrency exchanges liquidated USD 500 million only between Bitcoin and Ether positions. OKEx, Binance, and FTX were the platforms with the highest losses for traders.

The price of Bitcoin (BTC) plummeted on January 5^th, causing significant losses to traders who operate leveraged in various exchanges. After 24 hours, the figure was close to USD 900 million, of which exchanges liquidated about USD 550 million in BTC and Ether (ETH) transactions.

Cryptocurrency exchanges liquidated more than USD 325 million worth BTC positions alone, while ETH traders lost USD 223 million, according to CoinGlass.

Although the losses on other cryptocurrencies were more moderate, they also amounted to millions of US dollars. Prominent cases included Solana (SOL), the native token of Ripple (XRP), and Dogecoin (DOGE), with liquidations between USD 20.17 and 14 million, respectively.

Besides a sharp drop in the price of Bitcoin of around 10% in 24 hours, the whole cryptocurrency market had negative momentum. A crisis of confidence following a decline in the processing power (hash rate) of the network in Kazakhstan caused that collapse.

A large part of the miners who left China in 2021 accumulated precisely in that country, which is currently amid a political crisis. Recent cuts in electric power and Internet services abruptly stopped their contribution to the Bitcoin network by around 18%) in the Asian country.

According to CoinGlass, the drop in the price of the leading cryptocurrencies on the market caused the second-highest loss in the last three months. Traders leveraged in long positions on various exchanges lost more than USD 600 million in 12 hours.

Concerning Bitcoin, it is trading at around USD 41,705 and has accumulated a loss of USD 0.4% in the last 24 hours. Its daily trading volume is above USD 37.67 billion, and its market capitalization is about USD 798.21 billion, according to CoinGecko.

The Risks that Leveraged Positions Poses to Exchange Users

Only the balance sheets of cryptocurrency exchanges benefit from the loss of so many millions of USD dollars worth of speculative positions. That makes evident the high risk of operating those derivative products.

Unlike spot positions, in which investors exchange one asset for another, a liquidation of leveraged positions means the loss of funds. Although the profit margins favor traders when the price is higher, the opposite is true.

On other occasions, there have been waves of liquidations to leveraged traders, regardless of the trend in the BTC price. Coincidentally, a drop caused a liquidation record on Binanceat at the beginning of 2021. At times like this, traders usually lose the most money on that exchange, as it has the highest trading volume on the market.

This time, traders lost most funds (USD 264 million) on the OKEx cryptocurrency exchange. In contrast, there were lower losses on Binance and FTX, where investors lost USD 250 million and about USD 167 million, respectively.

Cryptocurrency traders look for increasingly effective ways to invest their money, for which they turn to leveraged positions. However, those financial products do not provide them with much security regarding the loss of funds. For that reason, they expect regulatory agencies to approve spot exchange-traded funds (ETFs) in the short term.

By Alexander Salazar

The billionaire noted that many view Bitcoin as digital gold, as it has a limited supply of coins. He said investors should diversify even though governments do not want cryptocurrencies to succeed.

Ray Dalio is an American philanthropist billionaire who has been a co-CEO of hedge fund Bridgewater Associates. He recently expressed that investors should allocate between 1% to 2% to Bitcoin (BTC).

Dalio, also known as Mr. Diversification, said he agrees with investing in the pioneering cryptocurrency. However, he pointed out that Bitcoin should represent only a low percentage of investment portfolios in 2022.

The hedge fund manager reiterated that he agrees with the suggestion from billionaire Bill Miller to allocate between 1% and 2%. He believes that this is the most sensible decision an investor can make.

Ray Dalio Believes Bitcoin Could Prosper as a Hedging Asset

In December, Ray Dalio said that Bitcoin has merit for a small part of a portfolio. However, he cautioned that cryptocurrency has advantages (pros) and disadvantages (cons).

Although Bitcoin has become prominent, he noted that he is concerned that the government will ban it and that hackers will use it in ransomware attacks.

The billionaire mentioned that many Bitcoin supporters view it as digital gold and a hedge against inflation. They have even compared it to gold because of its design, as there is a limited supply of coins.

Dalio highlighted that the market capitalization of Bitcoin is now around one trillion US dollars. Meanwhile, he commented that the gold that is not in central banks and has no use in jewelry is worth USD 5 trillion. He said that makes him realize that hedging assets could prosper quite well over time.

The billionaire philanthropist added that inflation hedging assets could improve, so he does not favor cash.

Previous Opinions of Ray Dalio on Bitcoin

Interestingly, Ray Dalio called Bitcoin a bubble in 2017 and lashed out at it for its volatility in November 2020.

In September 2021, he told the CNBC channel that cash is trash while showing a positive stance towards Bitcoin and other cryptocurrencies. At the time, he recommended that investors should not keep fiat money.

He also said that governments do not want cryptocurrencies to succeed. In that regard, they consider that those assets take their control over the way citizens use their money away from them. However, the billionaire commented that this does not mean that investors should not diversify.

Dalio stated that Bitcoin has its place, although governments could kill it at some point if it is truly successful.

However, in December 2021, the billionaire investor expressed that he believed that Bitcoin and other crypto assets are secondary investment securities.

Dalio has since confirmed that he owns Ethereum (ETH) and Bitcoin. He described both holdings as a relatively small part of his portfolio without proving details.

Bitcoin has gained prominence in the world economy, which personalities like Ray Dalio have not overlooked. Although he was initially a skeptic about cryptocurrencies, he seems to have realized their value.

By Alexander Salazar

The value of the token rejected strong bullish jumps; creating a scenario in which the exhaustion of buyers is evident. The strength of the buyers is quite dominant, for which the fall that has occurred in the last few months is just a correction.

The Livepeer token (LPT) is one of the crypto assets that the latest market crash has affected the least. The following analysis will help understand its performance and predict whether its price will recover or not.

LPT is currently trading at around USD 44.82 and has accumulated a 3.6% loss in the last 24 hours. Its daily trading volume is above USD 67.60 million, and its market capitalization is about USD 1.02 billion. It occupies 112^th place in the cryptocurrency ranking, according to CoinGecko.

Some Information about the Livepeer Token

The token is a mechanism that allows coordinating and incentivizing those participating. It helps keep the network as cheap, reliable, and secure as possible.

Currently, 3,444 delegates are working to secure the Livepeer network, and the number is growing.

The team behind the project recently conducted a 2^nd funding round in which they raised an additional USD 20 million. That capital would allow them to develop it further.

The Technical Analysis of the Price of Livepeer

The daily chart shows that Livepeer has been one the least affected by the overall bearish tide in the cryptocurrency market.

However, after sharp bullish jumps, the value quickly rejected those attempts. In that way, it created a scenario in which the exhaustion of buyers became evident.

It seems that the losses of LPT will quite probably spread in the short term, as the closest support is at USD 38.50. If the price loses that level, it could look for the next support level at USD 34.09.

It is still too early to think that the bulls have regained control of the market of LPT. Before that, the price has to break through the resistance at USD 44.26.

Predictions about the LPT Price in the Medium/Long Term

The weekly LPT/USDT chart shows that the bullish force is dominant. However, they are getting into trouble due to a strong correction underway.

On the left, the chart shows that the strength of the buyers is quite dominant. For that reason, the fall that has taken place in the last few months is just a correction.

There are not yet clear signs that the price has reached the bottom of its drop before resuming its previous trend.

It seems more likely that more sales will occur in the short term. If the price holds support at USD 35, it is possible to think of a big rally in the short run. However, that support level is at risk.

The above analysis indicates that buyers dominate the LPT market, but the price undergoes a significant correction. After it reaches the bottom, it may resume its bullish trend in the short term.

By Alexander Salazar

The mass printing of banknotes by the Fed has accelerated inflation, driving the prices of cryptocurrencies to rebound. Bitcoin and other crypto-assets could see a much higher adoption by citizens and governments in the coming years.

The price of Bitcoin (BTC) fell to its lowest level this month, after the last meeting of the US Federal Reserve (Fed). In December, the officials discussed reducing the government agency’s hefty 8.3-trillion-dollar balance sheet.

The Fed has printed more than USD 4 billion to support the economy and markets affected by COVID-19 in recent years. However, that has accelerated inflation, leading cryptocurrency prices to rebound. A growing number of investors were confident that Bitcoin would serve as a hedging asset against rising prices.

For that reason, a corrective move by the Fed to reduce the balance sheet could push Bitcoin and other cryptocurrencies lower.

The minutes of the Fed meeting state that some participants deemed a significant contraction of the amount of balance sheet appropriate. They consider it would help the market normalization process, mainly due to the high liquidity in monetary markets.

Despite obstacles from regulatory institutions, the price of Bitcoin gained around 60% in 2021.

Bitcoin Outperformed Capital Markets in 2021

Goldman Sachs recently said that Bitcoin currently holds a 20% share of the entire store of value market. To do that, it takes as a reference the market capitalization of almost USD 800,000 million of the pioneering cryptocurrency.

The leading investment company said that Bitcoin could become a higher share over time.

Younger investors seem to be moving away from gold to get closer to Bitcoin. For that reason, the precious metal appears to be losing its dominance somewhat as it only registered a return of 4% during 2021. That situation has led many analysts to refer to the first cryptocurrency on the market as digital gold.

Bitcoin and other cryptocurrencies could have an even better performance in the market in the coming years. There has already been a high adoption of crypto assets by citizens and governments in various countries. Additionally, the non-fungible token (NFT) and decentralized finance (DeFi) sectors grew exponentially during 2021.

Although most countries adopt Bitcoin optimistically, government regulations will hamper its development. If the threat of regulatory uncertainty disappears, the pioneering cryptocurrency could see much more significant growth during 2022.

Bitcoin is currently trading at around USD 43,716 and has accumulated a 5.4% loss in the last 24 hours. Its daily trading volume is above USD 31.91 billion, and its market capitalization is about USD 827.15 billion, according to CoinGecko.

Bitcoin currently plays a crucial role in the global economy, which leads a growing number of people and institutions to become interested in it. The exponential growth that the pioneering cryptocurrency had in 2021 is proof of the trust it generates. Of course, it is only a matter of time before it reaches and exceeds its previous all-time highs.

By Alexander Salazar

The US regulator again delayed the verdict of another spot Bitcoin ETF. Will 2022 be decided to give the long-awaited yes to a product of this type?

The United States Securities and Exchange Commission (SEC) has again decided to delay its decision on a Bitcoin spot exchange-traded fund (ETF). This time, it is about the NYDIG request.

This week, the regulatory agency filed an extension notice for the Bitcoin ETF from NYDIG, a subsidiary of asset manager Stone Ridge Holdings Group. In a statement, the SEC indicated that it postponed the verdict for at least 60 days, which means that NYDIG can now expect a response on its proposal before March 16.

SEC is Still Skeptical of a Physical Bitcoin ETF

In February of last year, NYDIG submitted a proposal for a spot Bitcoin ETF. At the time, an official filing revealed that the fund would track the price of the first cryptocurrency while the BTC funds would get held in trust. Additionally, banking giant Morgan Stanley will serve as an authorized participant in the ETF, which could trade on the NYSE Arca exchange.

The US regulator was about to issue a decision regarding the investment product by January 15 this year. However, as happened to other applications before, the SEC has extended the deadline to approve or reject the proposal.

An ETF is an investment product that allows investors to buy shares that could represent an asset without dealing with it directly; it can be currency, gold, or Bitcoin. Cryptocurrency enthusiasts have long pursued the launch of a Bitcoin ETF; a product they believe will open the doors to traditional investors, boosting the price.

Last year the SEC first approved a Bitcoin futures ETF. The arrival of such a product on the market created a precedent for the crypto space; it caused a rise in the current price for cryptocurrency.

Other similar funds have since gone public. However, a futures ETF is not the same as a spot one. The former got based on contracts that bet on the future price of Bitcoin, while the latter tracks the asset itself.

US regulators have yet to approve the first spot (also called “physical”) Bitcoin ETF, and in general, they have rejected an extensive list of requests of this type. The latest term extension to the NYDIG ETF comes after decisions on the Bitwise, Grayscale, and WisdomTree products got postponed in December.

Meanwhile, various analysts have highlighted that a great interest in the US market for a physical Bitcoin ETF surfaced, with some even anticipating that 2022 could be the year that the first one is finally approved. However, SEC Chairman Gary Gensler has shown little enthusiasm for the approval of such a fund.

By: Jenson Nuñez

Despite the expectations about the future of Bitcoin, unfortunately, it has not yet managed to take off this January 5, contrary to what is happening today with Internet Computer, which increased more than 15%.

Bitcoin continues to decline, a price report highlights again the fall seen in the price of Bitcoin (BTC) since it registers losses of 0.7% in the last 24 hours and got quoted at about USD 46,235 for the time of editing.

As can be seen in the data published in our CryptoMarkets section, the price of Bitcoin, in general, continues to decline for this January 5, with a good part of the day being below USD 47,000 per asset. The fall seen a few hours ago is especially noteworthy since it seemed that the price was rising again but went down after exceeding USD 46,800 until reaching the said values.

Good Prospects for the Future

Despite the unfavorable results experienced in these first days of 2022, some analysts and enthusiasts of the digital currency highlight it seems clear that in the medium or long term, this panorama may change and again resume an upward trend until reaching the long-awaited USD 100,000 per Unit.

Among the entities that support this theory, the international bank Goldman Sachs entered to take part in the list. The addition of this bank indicates in a recent report that Bitcoin could reach a said price as long as certain conditions are maintained, among which the reduction of capital seen in the gold market stands out.

This reading indicates that digital currency would be fulfilling its role as a store of value well. For this event to take effect, greater institutional participation is more necessary than the participation currently registered in the markets.

In addition to Goldman Sachs, personalities such as Nayib Bukele, Max Keise, Michael Saylor, and many others are clear that Bitcoin could exceed USD 100,000 this 2022 and even go much further as long as the amount of capital that participates within this ecosystem increases.

Major Altcoins are Going Down

Despite the prospects for Bitcoin’s price, weakness and instability got felt by a considerable part of the exponents of this market.

Such is the case of coins such as Ethereum (ETH), Binance Coin (BNB), Solana (SOL), XRP, Terra (LUNA), Avalanche (AVAX), Dogecoin (DOGE), Shiba Inu (SHIB), Polygon (MATIC) and many others, which register falls between 1% and 4% for the morning of this January 5.

However, this does not seem to be the case with Internet Computer (ICP), an asset that today registered an increase of more than 15%. This figure got accompanied by a significant rebound in the volume of daily commercial operations, which increased by more than 94% in the last 24 hours.

By: Jenson Nuñez