Bitcoin Crypto News

Bitcoin Price Could Fall To $8,000, Says Guggenheim CIO

Hearing more negative speculation would be unpleasant for the investors as the recent bloodbath’s catastrophic effects already slowed down crypto markets. But unfortunately, an expert predicted Bitcoin would go far below. Scott Minerd, Chief officer at Guggenheim Partners, a global investment and advisory firm handling $325 billion under its management, speculated that the Bitcoin price could plummet to $8,000. He is the same man who once said in December that “Bitcoin price should be $400,000.” Related Reading | XRP Has Broken Below Its Long-Standing Support, What’s Next? The speculation refers to a nearly 70% drop from today’s price of BTC, fluctuating around $30,000. BTC Could Fall With The Fed Being Restrictive Speaking with the CNBC’s Andrew Ross Sorkin in an interview held on Monday at World Economic Forum, Switzerland, he said; When you break below 30,000 [dollars] consistently, 8,000 [dollars] is the ultimate bottom, so I think we have a lot more room to the downside, especially with the Fed being restrictive. Minerd highlighted the relationship between BTC price and Fed regulation and tightening policies. Following its previous high of November 10, when BTC’s price marked $69,044, it decreased by around 58% of its value. “Most of these currencies, they’re not currencies, they’re junk,” he added, saying that “I don’t think we’ve seen the dominant player in crypto yet.” Comparing the current situation with the dotcom bubble of the early 2000s, he said; “If we were sitting here in the internet bubble, we would be talking about how Yahoo and America Online were the great winners,” adding that “Everything else, we couldn’t tell you if Amazon or Pets.com was going to be the winner.” In addition, he urges that digital currency is required to store value. As well as, become a medium of exchange and a unit of account. “I don’t think we have had the right prototype yet for crypto,” said Minerd. Investors Seem Hesitant To Buy Bitcoin Dips The collapse of stablecoins, including TerraUSD (UST) and its fellow token Luna, has caused the market to suffer a severe blow. Edward Moya, an analyst from the well-known forex and CFD trading platform of America, OANDA, has commented that Bitcoin prices are steadied even with the broad risk rally on Wall Street. He added; It looks like most crypto traders are hesitant to buy the dip. Which most likely means that the bottom has not been made. Moreover, Moya talked about the European Central Bank President Christine, who previously said digital currencies are “worth nothing.” Related Reading | Solana (SOL) Could Register An Upswing, Thanks To This Pattern “It is unlikely that any head of a central bank will endorse bitcoin or the other top coins. Especially as we are years away from a digital euro or dollar,” Moya stated. “It looks like bitcoin won’t really attract massive inflows. Until investors believe most major central banks are nearing the end of their tightening cycles.” He speculated that giant coin prices will possibly remain choppy this summer.  Featured image from Pixabay and chart from TradingView.com

Bitcoin Crypto News

Cryptocurrency Is ‘Worthless,’ European Central Bank President Says

Christine Lagarde, president of the European Central Bank, has warned that cryptocurrencies are worthless and should be regulated. The ECB boss believes that regulating the sector will prevent people from gambling their life savings on cryptocurrencies. “My extremely modest opinion is that cryptocurrency is worthless. It is founded on nothing, and there are no underlying […]

Crypto News

Tether (USDT) Q1 Trading Volume Plunges To $5.3 Trillion In Quarterly Low

With the chaotic phase that the crypto market is going through, Tether (USDT) trading volume in Q1 of 2022 plunged lower compared to the same quarter of last year. The total Tether transaction for the first quarter of 2022 is 26,454. Even though the bearish trend has seen many investors turning to stablecoins, the interest of investors for USDT remains a bit controlled. Tether is dubbed to be a stable crypto because unlike Bitcoin, Tether is pegged with the US dollar which means it retains a consistent value over time. It’s a go-to or preferred altcoin especially for investors who have a low risk appetite. Suggested Reading | What’s In A Name? Ethereum Domain Name Sales Climb 2,300% What Is Tether? Tether is a stablecoin which is far more consistent or stable compared to other cryptocurrencies like the two popular BTC and ETH because it’s backed by fiat money. This means Tether has actual US dollars that act as collateral. It basically has the same value as the USD. Stablecoins act as a middle ground and provide liquidity in an extremely risky and volatile environment allowing crypto to be regarded as a store of value and less than a risky undertaking. USDT total market cap at $82.28 billion on the weekend chart | Source: TradingView.com The most popular stablecoins are Tether, USD Coin, and Gemini Dollar which all share the same characteristics backed by US dollars. On the other hand, other stablecoins are backed by silver, gold, and other fiat currencies like yen and euro. USDT Trading Volume Plummets Tether’s trading volume went down in the first quarter at $5.3 trillion. Compared to the trading volume of January to March 2021 of 2021, there was a marked reduction of trading volume by as much as 46% or roughly around $9.9 trillion. Overall, the crypto trading volume has plummeted which also seems to have triggered the dip in Tether trading volume in Q1. Suggested Reading | Bitcoin Briefly Tops $40,000 As More Countries Adopt Crypto Price Action Analysis To analyze the impact of Tether transactions going down on Tether trading volume, it is important to compare the USDT trading volume in the quarter 1 of 2021 to 2022. January 2021 USDT trading volume is at $3.4 trillion which is higher compared to this year’s Q1 trading volume that registered at $1.8 trillion. Meanwhile, March 2021 USDT trading volume is at $2.7 trillion which is a bit higher compared to 2022 trading volume in the same month at 1.9 trillion. January 1, 2022 trading price for USDT is at $1 and it closed quarter 1 at $1. Tether is definitely as stable as it can get; literally. Featured image from Shutterstock, chart from TradingView.com