Consolidation week ending in the cryptocurrency markets. Although the bitcoin price failed to break out of its resistance at $ 21,000, it continues to find buyers above $ 20,000. Our overlap in ETH, which currently accounts for two-thirds of the fund, will have helped beat the bitcoin index for the week. As has happened many times in recent months, however, all speculators are holding their breath. In fact, yesterday the Fed announced the next interest rate hike in the US. These macroeconomic decisions are likely to once again indicate the direction of prices.
The Fed raised the key rate by 75 points. It is therefore the message that comes with the announcement of this increase that will be analyzed from all angles. Several players expect a slowdown in gains to be a harbinger for the future. “The market is very fixated on the fact that in November it will be 75, 50 [points de base] in December, February 25 on February 1 and probably another 25 in March, “said Julian Emanuel, head of equities, derivatives and quantitative strategy at Evercore ISI.” So actually the market already thinks this will happen, and from my point of view there is no possibility that the outcome of his press conference will be any more dove That “. Will a more aggressive stance lead to downward pressure on the markets or, conversely, will confirmation of a slowdown plan at the terminal rate of 5% be seen as a pivot that will allow the latter to recover? which attracts everyone’s attention today.
The completion of Elon Musk’s Twitter acquisition has already spilled a lot of ink this week. In parallel, the price of the billionaire’s favorite token, Doge, has also improved significantly. Musk is obviously not the only one paying in this gigantic transaction. Binance has specifically invested $ 500 million in the acquisition of Musk and is already building an internal team that will use blockchain to help the company in its fight against bot accounts. In an interview with CNBC, PDF Mr. Zhao elaborated on other potential use cases for cryptocurrencies on Twitter, stating that paid subscription projects could be “very easily realized, on a global scale, using cryptocurrencies as a means of payment”.
Vitalik Buterin also contributed to that deal, essentially responding to Musk’s plan to charge $ 8 a month to get or keep the blue verification check next to his ID. According to Buterin, the effectiveness of the new proposal will depend “on the exact extent of due diligence exercised to ensure that the blue brackets are who they claim to be”. In short, if this approach becomes just a monetization method, it will greatly damage the platform’s anti-fraud efforts, not the other way around. He added that “if there are more real controls, the result will be very different”.
Has the cryptocurrency winter discouraged cryptocurrency investments by institutional investors? A survey conducted by investment giant Fidelity is encouraging on this topic. The firm revealed that 58% of institutional investors invested in digital assets in the first half of 2022, up 6% from the previous year. In addition, 74% of institutions said they want to buy digital assets in the future, while 51% have a positive perception of digital assets, compared to 45% in 2021. “Although the markets have faced difficulties in recent months, we believe that the digital assets fundamentals remain solid and the institutionalization of the market in recent years has positioned it to withstand recent events, “said Tom Jessop, President of Loyalty digital assets.
Was Celsius outright a Ponzi scheme? A New York judge broadened the scope of the Celsius Network bankruptcy investigation as clients of the company asked for an investigation into the cryptocurrency lender’s business operations. At the hearing, US Bankruptcy Court Judge Martin Glenn ordered the court-appointed examiner and Celsius’ official creditors committee to agree who will investigate the company’s use of client money. “We don’t know if Celsius was a Ponzi scheme, but some red flags have emerged,” creditors committee attorney Greg Pesce told the WSJ. “Let me be clear, we are investigating if this is the case. We don’t have an answer to this question. “
Will the $ 20,000 be able to act as a new support towards an eventual exit from the bear market? The distribution of realized prices begins to suggest this. The realized price of bitcoin represents the average cost paid by buyers for their bitcoin holdings. If the bitcoin price is lower than a user’s realized price, the user technically suffers an unrealized loss. The bear market of 2019 shows that 30% of the total BTC supply was concentrated in the realized price range. In April 2019, the price surpassed the realized price, signaling the start of a new bull market.
If we look at the current market and apply the same methodology, the realized price of bitcoin concentrates 20% of the offer between $ 17,000 and $ 22,000. While this suggests that more redistribution may be taking place, the consolidation is significant and highlights a resilient owner base.
Another particularly encouraging on-chain indicator is BTC’s exit from exchanges, which is often interpreted as a desire for long-term cold wallet holding. As the largest exchange by volume, Binance garnered significant interest and saw a net position change of over 55,000 BTC on October 26, the largest on record. The outflow beat all other buying waves, including the $ 17,600 slump in June this year and the March 2020 slump.
Finally, returning to the topic of our most recent letter, only once before has BTC had such good value compared to the hash rate – and this was long before even the all-time high of 2017. Bitcoin meter measures the relationship between bitcoin’s market capitalization and hash rate, two fundamental parameters that, when compared to each other, offer key information on prices. As its creator Charles Edwards explains, the lower the value, the “cheaper” bitcoin is. In short, the higher the hash rate applied to guarantee the tokens at low prices. Currently, the hash rate of the Bitcoin network is close to all-time highs, while the price has dropped around 75% from the last all-time high seen in November 2021. lower for the Bitcoin meter the whole history of bitcoin. Edwards adds that “this means that on a relative basis, bitcoin is extraordinarily cheap considering the amount of energy used on what is the most powerful computer network in the world.”
The fund invests approximately 65% of ETH, 30% of BTC and 5% of MATIC.
This article was brought to you by Fonds Rivemont. The Rivemont cryptocurrency fund is the first and only actively managed cryptocurrency fund in Canada. Suitable for RRSP and TFSA. Accredited investors can find out more here.
Disclaimer: This column does not necessarily reflect the opinion of CryptonewsFR and does not constitute investment advice or trading instructions..
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