Altcoins

Solana Sees Small Bump in Price As Coinbase Wallet Expands Support for SOL Ecosystem

Coinbase is pressing ahead toward the Web 3.0 future by enabling its browser-based wallet to accept assets from the Solana (SOL) ecosystem. According to a new press release, the US-based crypto exchange says it’s responding to new needs and opportunities as blockchain technology expands its frontiers. “Over the past year, there has been an explosion […]

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Crypto News

LUNA Sees 17% Loss In One Week, UST De-Peg Rumors Affect Its Price?

As the crypto market sees some relief over the past week, the price of LUNA trends to the downside. The worst performer in the top 10 by market cap, the Terra native cryptocurrency appears at risk of further downside. Related Reading | What’s Behind LUNA’s Rally, Could Its Price Decouple From Bitcoin? At the time of writing, LUNA trades at $87 with a 17% loss and a 5% loss in the last week and 24-hours, respectively. Data from Material Indicators (MI) suggest thin support for LUNA’s price at its current levels. Around $83 there are around $700,000 in bids orders which could proved inefficient to prevent a fresh assault from the bears. In addition, Terra presents over $3 million in ask orders which could operate as major resistance as the price attempts to reclaim previous highs. As seen below, LUNA could fail to break above the selling wall around $86 due to the high amount of ask orders. In the price is rejected around those levels, $81 should operate as the next support levels as it records around $2 million bids. Additional data provided by analytics platform Nansen indicates the Terra ecosystem has seen important adoption levels. Trending upwards since 2021, the daily active address on this network stands near 35,000 and saw a small decline as the price of LUNA turned bearish. However, daily transactions have been moving sideways with a small uptick towards 160,000 during March 2022. This could suggest investors are onboarding the network, but with low bids for LUNA or Tera’s native product. Terra (LUNA) Expands, Why Bulls Could Have The Upper hand The above suggest more sideways action with potential for downside pressure in the short term. Over the long term, Terra continues to generate interest. Retail investors seem to be attracted to LUNA’s burning mechanism tied to the network’s native stablecoin UST. This digital assets also enable investors to generate a 19% APY with the Anchor Protocol. Rumors over the sustainability of Anchor’s 19% APY have surrounded social media in recent days. Most likely driven by the bet between Do Kwon, co-founder of Terra Labs, and a pseudonym crypto trader known as Gigantic Rebirth (GCR). The winner will be determined by the price of LUNA. If the cryptocurrency manages to stay above $80 in one year, Do Kown will win. Beyond the bet and the price of this cryptocurrency, the event has cast doubt on the ecosystem. In defense of Terra, LUNA, and UST fundamentals developer José María Macedo published an analysis on this network. UST operates as an algorithm and decentralized stablecoin. The DeFi sector has seen its fair share of this types of assets, often ending up in failure, but the Terra native stablecoin could follow its own trajectory. Macedo said: $UST already defied the odds by not just surviving but thriving as a pure algo stable: growing supply, keeping a tight peg and withstanding shocks such as May ’21 What Terra achieved is truly unprecedented and few understand it (…). I’m bullish not because I think there are no risks, but because I understand the tradeoffs and believe the upside more than justifies the risk. Decentralized stablecoins are a multi-trillion dollar, winner-takes-most market that $UST is best positioned to win. Related Reading | Terra (LUNA) Surpasses Ethereum Becoming Second Most Staked Asset Recently, the Anchor Protocol was deployed on top of the Avalanche network. The price seems to be positively reacting to this event, but bulls need to secure current levels as support by closing a daily candle about $86 or above.

Crypto News Ethereum

Ethereum Spikes Above $2,700 After Fed Announcement, What Now?

Ethereum has moved above $2,700 following the Fed announcement yesterday. The highly anticipated meeting had been concluded, coming out that the Fed had increased interest rates by 0.25%. Ethereum has responded positively to the news and had rallied out of the slump it had been in since the last dip. Now the digital asset sits above $2,700 but it is still far from stable at this price point. What The Rally Did Ethereum’s rally on Wednesday was a welcome one, showing more bullish tendencies towards cryptocurrencies following the Fed’s decision. After completely smashing the $2,522 resistance point, the digital asset is on to test much bigger resistance points. This resistance being mounted by bears just below $2,800 has seen ETH ricochet back down. Related Reading | Small Cap Altcoins In The Green In Pre-Spring Crypto Surge Nevertheless, the recent rally has set the digital asset on a bullish path, even if just in the short term. It is now trading above the 20-day moving average, meaning sentiment towards purchasing the asset at these prices is shifting towards the positive. Indicators point towards significant support forming for the cryptocurrency just above the $2,600 level. But at its current price, the next resistance point lies at $2,839. A simple break above $2,800 would make easy work of this as this is the position that bears need to hold. Otherwise, a fall would send the digital asset once more to the $2,600 level, somewhere that bulls want to avoid going forward. Ethereum On A Bull Trend With the market in its current trend, there are important points that digital assets need to touch to establish another bull run. For Ethereum, this lies above $2,800 according to crypto analyst Justin Bennett. This position would expose the digital asset to $3,000 where the next test would lie for buyers. One can safely assume that buyers would need to maintain or even increase momentum above this point to keep up the bull trend. Related Reading | Today’s Crypto Boost: The FED, Inflation, And Global Adoption Furthermore, a break above $3,000 and Ethereum be on its way to $3,600 in what the crypto analyst describes as a spring. At this point, the digital asset would have solidified another rally, likely pushing up towards $4,000. ETH trading above $2,800 | Source: ETHUSD on TradingView.com On the flip side of this is the drop that could keep the digital asset down. If Ethereum closes below the next resistance point, then it could be back down to its next level with significant support which has proven over the past couple of weeks to be the $2,500 level. At the time of this writing, Ethereum is trading in the green at $2,759. It is currently a battle between the bulls and the bears, evidenced by the zig-zaggy trend lines displayed on the chart in the early hours of Thursday. Featured image from CNBC, chart from TradingView.com

Bitcoin Crypto News

Today’s Crypto Boost: The FED, Inflation, And Global Adoption

Crypto assets saw some wild swings in the day and are now trading to the upside. Risky assets are reacting to the FED’s decision to raise rates by 25-basis points, and the increasing global adoption might be adding weight to the boost. Related Reading | Expectations Of Aggressive FED Drop, Here’s Why Bitcoin Could Rise To $50K What Hikes? Crypto Reacts To The FED The Federal Reserve just lifted rates 25 basis points, raising rates for the first time since 2018. Six more hikes are expected in 2022. The markets have been experiencing volatility following expectations for a more hawkish FED, given the implications of the Russo-Ukrainian war, rising U.S. inflation, and increasing Covid-19 cases. In the day, the crypto market had a downward reaction first, which experts described as a fake-out, then started to react to the upside. Experts expressed during a Fox Bussiness Live that the FED is lagging behind and this move will not affect the economy. They added that the FED is giving investors a plain field to do well in stocks, “not worrying about the U.S. economy.” Similarly, the light interest raise hikes are looking positive for bitcoin and consequently for other crypto-assets as well. Chair Jerome Powell claimed that “the probability of a recession within the next year is not particularly elevated,” and added, “All signs are that this is a strong economy, one that will be able to flourish — not to say withstand, but certainly flourish — in the face of less accommodative monetary policy.” As NewsBTC has been reporting, the 25bps hike scenario looks bullish for Bitcoin for its more passive stance. As many believe the FED’s dovish move comes as a late reaction and will do little to nothing to the U.S. inflation, investors might be taking refuge in Bitcoin as it has happened before. Inflation is expected to remain high at 4.3% by the end of 2022, above the Fed’s annual target of 2.3%. Keeping savings in the bank only means a loss of purchasing power, and as a result, many people might start to see Bitcoin as a hedge against these losses. Cameron Winklevoss, the co-founder of Gemini, argues that the best way to shield yourself from rising inflation is Bitcoin. “Imagine paying a money manager 7.9% a year to do absolutely nothing with your money. That’s what inflation is. It’s a hidden management fee that comes with no return. Today, if you hold USD cash, you are paying the US government 7.9% to do nothing with your money. Scary.” Ukraine Sings Crypto Regulation Amidst the Russo-Ukrainian war, crypto has also been looking like the only feasible option to the people affected by the invasion and sanctions. Ukraine has benefited from crypto assets in several ways during the war. They have received over $108 million in donations in crypto-assets and reportedly, citizens have been able to use digital coins as a tool to safely take their funds with them when fleeing the country. Moreover, regulatory clarity for crypto in the U.S. and other places is expected. Many politicians are taking stances in favor of cryptocurrencies, and Ukraine’s president Zelensky is not lagging behind. Volodymyr Zelensky just signed a law “on virtual assets” to legalize crypto. An official statement says that this law “creates conditions for the launch of a legal market for virtual assets in Ukraine.” “The signing of this Law by the President is another important step towards bringing the cryptocurrencies sector out of the shadows and launching a legal market for virtual assets in Ukraine.” The deputy minister of digital transformation, Alex Bornyakov, expressed that they believe “that crypto industry offers new economic opportunities. We will do our best to bring the bright new future closer as soon as possible.” This does not mean cryptocurrencies are a legal tender in Ukraine, but crypto holders are now legally protected in the country. This favorable sentiment appears to be growing amongst many politicians and governments around the world, which could turn into a rapidly growing institutional adoption of crypto. As both Russians and Ukrainians have found themselves in need of an alternative to the traditional financial institutions, they have also sought refuge in bitcoin and stablecoins. Besides the functional side experienced by Ukrainians, Russians could be finding in crypto a refuge from their devalued ruble. This sets a worldwide example and could end in a positive scenario for the market. Related Reading | Leading News Outlets In Ukraine Aim To Secure $1 Million By Selling NFTs

Bitcoin Crypto News

FED Announcement Pushes Bitcoin Price Up, Will BTC Sustain Momentum?

Market expectations were met as the U.S. Federal Reserve (FED) announced an interest rate hike of 25 bps pushing Bitcoin into the green. The cryptocurrency was hinting at bullish price action during the week, as today’s Federal Open Market Committee (FOMC) closed in. Related Reading | Mike Novogratz: Bitcoin Price To Range Between $30k-$50k Throughout The Year At the time of writing, Bitcoin trades at $41,300 with 5% profits on the last day. BTC’s price was able to break above this price point after a brief period of volatility as FED Chair Jerome Powell began its intervention. BTC’s price reacted to the upside and could continue on this trajectory in the short term, as the FED met market expectations. In the medium term, according to Material Indicators (MI), the FED projects 7 rate hikes that hint at a potential hawkish approach in monetary policy. This could translate into a headwind for BTC’s price and the crypto market. The U.S. financial institution is determined on reducing inflation which currently stands at a multi-decade high. However, reducing inflation could prove difficult in the current macro-economic environment with the war in Ukraine and supply chain obstacles. Bitcoin’s current price action moves in tandem with MI’s analysis. Expecting a rally in the short term, the analysts are still reticent to call in a BTC’s price bottom. Sharing the chart below, MI added: Although Bitcoin has been testing the 200 MA on a 3 Day chart since January and interactions with that range are rare, most traders are looking at the 200 Weekly MA to be a more valid level to bottom test. In addition, the analysts believe Bitcoin could resume a more persistent bullish trend if it’s able to reclaim previous lows and break above a new all-time high beyond $69,000. Bitcoin In The Long Term, A War For Global Dominance The War in Russia, inflation, supply obstacles, and the recent possibility for Saudi Arabia to start accepting the Yuan for oil transactions add to an already dangerous mix of uncertainty. 8/12 Now add in the news that Saudi Arabia is considering accepting #Yuan instead of Dollars for Chinese oil and you have an accelerator for more economic problems and market uncertainty. https://t.co/5by5PkH8Vf — Material Indicators (@MI_Algos) March 16, 2022 MI believes there is an ongoing war against the U.S. dollar as a global reserve currency. Driven by Russia and China, this conflict could potentially escalate leading to a “black swan event”, like during 2020 when the crypto market reacted to the COVID-19 pandemic. Related Reading | Current Stretch Of Bitcoin Fear Surpasses 2021 Selloff Bitcoin could come out on top in a world where decentralized and un-censorable money becomes a need for the global population. MI said: The possibility of WW3 makes talking about trading crypto seem petty, but you must plan and prepare for a black swan event. That means conservative risk management and preserving capital for what may be a life changing, generational buying opportunity.

Bitcoin Crypto News

Bitcoin Value Takes A Hit As U.S Inflation Rises

The recent acceleration in the United States Consumer Price Index for February has come at just the right time with matching expectations. The index is at 7.91%. It was expected to peak during Q1 and remain elevated throughout this year. Even though it might not have a big impact on prices, the Federal Reserve and other central banks are trying to make monetary policy tighter so that people will believe they can keep prices stable. Related Reading | Gloomy Crypto Future? Book Author Warns We’re In The Biggest Bubble In History The price of bitcoin had decreased since December when the 10-year yield rose, and credit became more expensive. Reviews On Market Inflation People in the credit market understand inflation is here to stay. This means that rising interest rates are going to continue. As credit instruments sell, this causes interest rates to go up. This makes it harder for people to afford things. Dylan LeClair, senior analyst and Co-Founder of 21stParadigm, said; Fixed income doesn’t react well to (accelerating) inflation at four decade highs, who would’ve thought? Higher rates in a historically over-indebted economy; the market is doing the Fed’s hike cycle for them.  Things are likely going to break faster than most think. Furthermore, we have increasing financial conditions, and an unwind in leverage (in legacy markets as bitcoin derivatives are already de-risking). On this point, LeClair tweeted; Fixed income getting murdered over the last three months. Accelerating inflation and slowing growth across the board. A gradual then sudden process of declining liquidity as deleveraging process continues. BTFD conditions across markets has turned into “sell the rip”. The end of this regime will likely be marked by the liquidity crisis in legacy markets, which probably has a net negative impact on the bitcoin price followed by a pivot back towards quantitative easing and, ultimately, yield curve control from central banks. Related Reading | Hedge Fund Holdings Fail To Prop Up Bitcoin Price Regardless of what happens with the global economy, blockchain has continued to prove its usefulness. The case for a non-sovereign scarce digital monetary asset has never been stronger, and investors should embrace this new trend before it’s too late. Crypto Market Insight In the past 24 hours, cryptocurrency prices have been relatively calm. Yesterday’s US markets dive was in reaction to fresh inflation figures that showed prices rising at an annual rate of 7.9% over the past three months and raising fears about future tightening from monetary policymakers across Europe, Asia, and America – with all eyes fixed on when they will tighten their own purses. The top ten cryptocurrencies were all relatively stable, with only a few showing 1% or fewer movements. Among these was Avalanche, which gained 2%. Finally, Polkadot is adding 5%, making it the first time in quite a while that we’ve seen growth this high. Bitcoin added 1.08% to its value. Featured image from Pixabay, chart from Tradingview.com