News Updates April 12, 2022
1. Bitcoin Falls Below $40K for First Time Since Mid-March:
Nydig, a bitcoin-focused asset manager, cites fears of rising inflation and a tighter Fed policy as reasons for the drop.
Bitcoin, the world's largest cryptocurrency by market capitalization, fell below $40,000 on Monday for the first time since March 16.
The fall in price comes as investors weigh the risks of rising interest rates, soaring inflation and dislocation of global commerce as a result of Russia's invasion of Ukraine.
The macro environment has investors spooked,” said Armando Aguilar, head of alternative strategies and research at Ledn.
As of press time bitcoin (BTC) was down 8.5% over the past 24 hours to $39,783.
March Consumer Price Index report (CPI Report):
U.S. President Joe Biden's administration on Monday was already warning that the Consumer Price Index report for March, due out early Tuesday, would reveal inflation rising at an "extraordinarily elevated" pace. That could prompt the Federal Reserve to accelerate the pace of interest-rate increases to keep inflation, currently running at a four-decade high, from spiraling out of control.
2. Crypto Futures Observe $323M In Liquidations As Bitcoin Plunges To $41k.
As the Bitcoin price crashes to $41k today, the crypto futures market has observed more than $323 million in liquidations over the past 24 hours.
More Than $323 Million In Crypto Futures Liquidate Over The Past Day:
In case anyone isn’t aware of what futures “liquidations” are, it’s best to take a brief look at the workings of margin trading.
When an investor takes on a crypto futures contract, they have to first put forth a collateral, called the “margin.” This margin can be in any crypto or in fiat.
Against the margin, futures holders can decide to loan an amount multiple times their initial investment. This is called the “leverage.”
The benefit of taking leverage is that if the price of the crypto moves in the direction the holder has bet on, any profits earned will be multitudes more.
3. Top Crypto price news today (April 12): Bitcoin, ETH, BNB, XRP, Solana, ADA, LUNA to AVAX, Dogecoin – all tokens bleed:
Top cryptocurrency price today (April 12, 2022): The global cryptocurrency market capitalisation has shrunk 6.06% over the last day to $1.83 trillion. On Monday (April 11), the total crypto market cap was $1.93 trillion. According to CoinMarketCap data, the total crypto market volume over the last 24 hours increased by 57.06% to $101.50 billion. The total volume on DeFi was $12.87 billion, which is 12.68% of the total crypto market 24 hour volume.
Stable coins volume was $85.66 billion, which is 84.40% of the total crypto market 24-hour volume.
Bitcoin’s dominance witnessed a slight increase of 0.04% over the last day at 41.07%. The most popular crypto asset was priced at $39,471.84 (approx. Rs 31.5 lakh) on Tuesday (April 12, 2022) morning. The overall Bitcoin price has decreased by 15.40% in the last 7 days, according to the data on CoinMarketCap website. In the last 24 hours itself, Bitcoin price decreased by 6.13%.
ALSO Read | Crypto Price News April 11, 2022:
Meanwhile, prices of other top crypto assets have also decreased in the last 24 hours. Here’s a comparison:
1) Ethereum (ETH)
Ethereum price decreased by 6.84% to $2961.08 in the last 24 hours. In the last 7 days, ETH price has decreased by 15.75%. It is currently ranked second largest crypto asset in terms of market capitalisation.
2) Binance (BNB)
Binance coin’s price decreased by 5.07% to $393.84 in the last 24 hours. In the last 7 days, BNB price has decreased by 12.73%. It is currently ranked as fourth biggest crypto asset in terms of market capitalisation.
3) XRP:
XRP coin’s price decreased by 6.37% to $0.698. in the last 24 hours. In the last 7 days,XRP price has decreased by 15.69%. It is currently ranked as 6th biggest crypto asset in terms of market capitalisation.
4) Solana (SOL)
Solana coin’s price was down 10.41% to $99. in the last 24 hours. In the last 7 days, SOL price has decreased by 25.02%. It is currently ranked as 7th biggest crypto asset in terms of market capitalisation.
5) Cardano (ADA)
Cardano token’s price decreased by 8.73% to $0.9271 In the last 24 hours. In the last 7 days, ADA price has decreased by 23.51%. It is currently ranked as 8th biggest crypto asset in terms of market capitalisation.
6) Terra (LUNA)
Terra coin’s price decreased by 8.91% to $81.64. in the last 24 hours. In the last 7 days, LUNA price has decreased by 29.60%. It is currently ranked as 9th biggest crypto asset in terms of market capitalisation.
7) Avalanche (AVAX)
Avalanche token’s price decreased by 5.74% to $74.41% in the last 24 hours. In the last 7 days, AVAX price has decreased by 22.89%. It is currently ranked as 10th biggest crypto asset in terms of market capitalisation.
Popular memecoins – Dogecoin (DOGE) and Shiba Inu (SHIB) prices decreased by 9.57% and 9.72% respectively in the last 24 hours. DOGE is currently ranked 11th and SHIB 15th in terms of their respective market capitalisations.
4. Bitcoin Dives Below $40K, Why BTC Could Recover In Short-Term
Bitcoin gained bearish momentum and even declined below $40,000 against the US Dollar. BTC could recover if it manages to climb above the $40,000 pivot level.
* Bitcoin remained in a bearish zone and extended decline below $40,000.
* The price is now trading below $40,000 and the 100 hourly simple moving average.
* There is a steep bearish trend line forming with resistance near $39,700 on the hourly chart of the BTC/USD pair (data feed from Kraken).
* The pair could start a short-term recovery if there is a move above $40,000.
Bitcoin Price Gains Bearish Pace:
Bitcoin price struggled to recover above the $43,500 level. BTC started another decline and traded below the $42,000 support level.
The bears took control and pushed the price below the $41,000 level. There was also a clear move below the $40,000 support zone and a close below the 100 hourly simple moving average. The price traded as low as $39,240 and is currently consolidating losses.
In the stated case, the price may perhaps rise towards the $41,350 resistance zone. It is near the 50% Fib retracement level of the recent decline from the $43,415 swing high from the $39,240 low.
More Losses in BTC?
If bitcoin fails to clear the $40,000 resistance zone, it could continue to move down. An immediate support on the downside is near the $39,250 level.
The next major support is seen near the $38,880 level. A downside break below the $38,880 support zone could increase selling pressure. In the stated case, the price could accelerate lower towards the $37,500 level in the coming sessions.
5. Bank Of America Warns of Dire Recession That Could See Cryptos Rocketing to New Highs:
As the U.S. economy continues to reel under the pressure of mounting inflation, the Bank of America (BofA) foresees a mammoth recession as the FED moves in to tighten its monetary policy.
Brace for Recession:
As per a report by Reuters, BofA’s chief investment strategist Michael Hartnett warned in a weekly note that the US economy could sink lower following what he termed as “inflation shock” and “rates shock”.
Last week, the Federal Reserve signaled it will likely start slashing assets from its $9 trillion balance sheet at twice the rate it did on its previous “quantitative tightening” exercise. Furthermore, according to minutes from a March FOMC meeting, a majority of commissioners want the central bank to hike its key interest rate by 50 basis points, as part of the plan to lower the four decade-high inflation figures.
Cryptocurrencies, Commodities To Emerge Strong:
Michael however argued that in the context of this economic turmoil, cash, commodities, and cryptocurrencies would likely come out strongly, outperforming bonds and stocks due to their considered inflation-proof nature.
His sentiments echos a note by the bank in late February where Alkesh Shah, Global Crypto and Digital Asset Strategist at the bank ruled out the possibility of a crypto winter despite the U.S. Federal Reserve and microeconomic headwinds likely limiting the upside of cryptocurrencies. To him, the level of adoption and growth in development activity only screamed continued strength by cryptocurrencies.
6. 22 Bitcoin ATMs Established Globally Per Day in March, Study Shows
The number of Bitcoin ATMs continues to rise, it is estimated that 22 machines were installed per day last month, according to a study by Finbold.
Statistics indicated that the number of BTC ATMs surged to 36,709 on April 1 from 36,023 recorded on March 1, increasing by nearly 2%.
7. Philippine Digital Payments Unicorn To Expand Crypto Services
Voyager Innovations, owner of Philippine’s largest digital payments app, said it reached unicorn status on Tuesday after a $210 million funding round. The firm said it will apply the new capital towards expanding its crypto services.
8. Iran Will Not Allow Crypto Payments, Prepares to Pilot Digital Rial
Iran will not recognize cryptocurrencies as a means of payment, a high-ranking government official has indicated. His statement came as the Central Bank of Iran announced rules for the issuance of digital coins in the country. These are meant, however, for its own “crypto rial,” the pilot phase of which should start in the near future.
9. Crypto ATM Market Expected to Hit $1.18B by 2028, Driven by Increasing Fund Transfers
A surge in fund transfers is expected to expedite the global crypto ATM market to hit $1.185 billion by 2028, according to Vantage Market Research, a company providing B2B research services.
