Bitcoin Crypto News

Can Bitcoin Bounce Back To $35K? Here’s What Stands In The Way

No action in the crypto market as Bitcoin still trades around the $29,000 to $30,000 area. The first crypto by market cap has been rangebound since the Terra ecosystem collapsed taking a hit on an already soft market. Related Reading | Mr. Wonderful-Backed Green Bitcoin Mining Venture To Build $500M HQ In N. Dakota The “Black Swan” event has preceded one of the worst periods for the space as Bitcoin and Ethereum recorded record consecutive losses. At the time of writing, BTC’s price trades at $29,500 with a 2% loss in the last 24-hours. According to a pseudonym trader, Bitcoin could be ready to re-test the lows at $29,000 before resuming its bullish momentum. The trader expects BTC’s price to potentially dip below this level and then bounce back to $35,000. This would put Bitcoin close to the bottom of its current range. Therefore, a move to the upside and some relief seems logical, if BTC is to continue to trend rangebound. In that sense, the pseudonym trader recommended to “play the trend” and re-examining if BTC breaks above those levels. The trader said via Twitter: Before you get discouraged about trading just remember this tiny little range of chop is what’s been so difficult for everyone to figure out. Once a direction is established from here it’ll get easier. A report from QCP Research agrees that $28,700 is a major area of support, in case of further downside, as it stands as BTC’s current 61.8% Fibonacci retracement level. These Fibonacci levels have been “pivotal”, the report says, for Bitcoin across its history. Particularly during 2020, when the start of the COVID-19 pandemic sent BTC to test the 61.8% Fibonacci level at around $3,800. This level was held during one of BTC’s worst drawdowns. QCP Research said: For BTC and ETH, the current drawdown is now identical to the 2020 Covid drawdown. It is possible that we see a short-term bounce from these oversold levels. Why Bad News Is Good For Bitcoin And Risk Assets In addition, the report claims BTC, and other risk-on assets seem inversely correlated to the media. Whenever “good news” on inflation, unemployment, and other metrics in the U.S. break to the public, these assets seem to trade to the downside. The opposite happened from 2020 to 2021 as bad news on COVID-19 translated into an economic stimulus. Now, the U.S. Federal Reserve (FED) is determined to stop inflation and has begun removing liquidity from global markets while it launches its Quantitative Tightening (QT) program. This will force the institution to unload its balance sheet into global markets. As a result, Bitcoin and stocks will continue to suffer in the coming months, QCP Research believes. The report claimed: This draining of liquidity will only be exacerbated by the upcoming QT balance sheet unwind as well, beginning 1 June. We expect these factors to weigh on crypto prices. The current narrative in mainstream media is running on the back of inflation. If it changes to words like “recession” or “economic recession”, the U.S. FED might be forced to slow down on its tightening giving some relief for Bitcoin and stocks, the report claims. Related Reading | Arthur Hayes Says Bitcoin And Ethereum May Not Be Ready To Recover Drastically In other words, if news shifts from bad to worse, Bitcoin could change its direction to the upside. In the meantime, it seems likely to remain rangebound or with short live rallies.

Altcoins

After TerraUSD (UST) De-Pegging Scare, Tether (USDT) Releases Report Claiming It Has Fully Backed Reserves

As the most recent crypto market crash is putting the spotlight on stablecoins, one of the leading dollar-pegged tokens says its valuation remains secure. In a new post, Tether Holdings Limited announced that not only is its signature product Tether (USDT) backed by more assets than liabilities, the company is reducing its commercial investments in […]

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Altcoins

Terra (LUNA) Founder Do Kwon Facing South Korea Investigation Over Claims of Ponzi Fraud: Report

The CEO of Terraform Labs is facing possible criminal charges in the wake of two leading cryptos collapsing earlier this month. In a new report, Yonhap News says that South Korean authorities are considering bringing Ponzi scheme charges against Do Kwon, the founder of Terra (LUNA) and algorithmic stable coin TerraUSD (UST), both of which […]

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Bitcoin Crypto News Ethereum

Institutional Investors Exit Market As Crypto Declines, New Report Reveals

Following the failure of the crypto market to return to its former glory, institutional investors are fleeing in droves. The market has seen a large outflow of institutional cash in recent weeks, according to multiple sources. Coinshares made the figure surrounding the conversation available a few days ago in a recent update. Investors Leave Market According to Coinshares’ latest figures, the total amount of money that has flown out of the market owing to institutional investor withdrawals in a month is over $339 million. Despite the fact that the market saw a similar movement at the start of the year, the study indicated that this one had not overturned it. The sum was roughly $467 million at the start of the year, according to Coinshares, indicating a $128 million difference. According to the report, Bitcoin funds accounted for the majority of the recorded withdrawals. Since a whopping $133 million was seen in June last year, this figure reflects the greatest outflows from the Bitcoin fund in a week. According to the paper, pinpointing the exact root of the problem is difficult. However, much has been said about the market’s drop, while others have speculated on the US Federal Reserve’s report. BTC/USD trades at $39k. Source: TradingView Related Reading | Time Vs Price: Why This Bitcoin Correction Was The Most Painful Yet Market Declines Further Institutional investors who had invested in Ethereum were not left out, according to the report, as they withdrew a total of $25 million from the fund last week. This means that since the beginning of the year, Ethereum has only seen outflows in the last five weeks. The total amount of money it has spent is $194 million. Although institutional investors withdrew from most altcoins, funds with a wide portfolio of assets saw tiny inflows to buck the trend. The total market capitalization is at its lowest level since the middle of March. In the last 24 hours, the market has lost 12% of its value, putting it at $1.8 trillion. Bitcoin has also dropped slightly, trading below $38,000, while Ethereum has been circling around the $2,800 mark for quite some time. The bulk of cryptocurrencies have followed the negative trends of prominent coins and have lost a significant portion of their value. NEAR, on the other hand, is still going strong, with a 2.7 percent increase in the market in the last 24 hours. Related Reading | Bitcoin Perfectly Follows Market Cycle Comparison, What Comes Next For Crypto? Featured image from Pixabay, chart from TradingView.com

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Algorand (ALGO) Founder Makes 10-Year Prediction On Crypto Markets: Report

The founder of Ethereum challenger Algorand (ALGO) says that crypto assets with one key feature will survive into the next decade as blockchains become mainstream tools used by traditional financial institutions. In a new interview with the Los Angeles Times, Silvio Micali, a professor of computer science and cryptography at the Massachusetts Institute of Technology […]

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