News updates February 14, 2022

1. Bitcoin, Ethereum, Dogecoin, and Tron Daily Price Analyses – 13 February Roundup

* The global crypto market continues its fluctuations, losing 1.81% in 24 hours.

* Bitcoin is in no mood to regain, loses 1.03% in 24 hours.

* Ethereum following bitcoin, as usual, loses 2.07%.

* Dogecoin and Tron turn bullish, gaining 1.28% and 0.22%, respectively.

The Crypto market has stabilized itself if we look at its progress in recent days. Compared to the previous hard times, this time’s progress has been satisfactory. The reason is the fight from bitcoin to retain its value, and Ethereum’s closely following the mentioned coin. The result is evident in the form of a market that has suffered losses but in a bearable range. Though last week has been dramatic in gains and losses, the new week is expected to bring Avalanche, Bitcoin, and Polygon reasonable gains as per CoinMarketCap prediction.

The US Securities and Exchange Commission has slapped a fine of $100 million over BlockFi for some irregularities. Experts believe that this fine is too much for its faults. It will also affect the market as it goes through a difficult phase. The fine has been slapped in a period when even lovers prefer to date people who own crypto. The Crypto market needs leniency to grow and regain its vitality from hard blows. Findings have suggested that a new trend in dating has been influenced by crypto ownership.

Crypto is becoming an essential part of our life, and another example is that of crypto donations. The recent Russia-Ukraine crisis has resulted in crypto donations for Ukraine. It has helped much the struggling economy that is facing the Russian giant.

* Bitcoin, Ethereum, TERRA, Cardano Price Analysis — 13 February 
 Morning Prediction 

* Bitcoin price analysis: BTC pivots above $42,000, test of upside slowly incoming?

* Bitcoin, Ethereum, Ripple, Tezos Daily Price Analyses – 12 February Roundup.

* Bitcoin, Ethereum, Solana, ShibaDoge Price Analysis — 12 February Morning Prediction

Here is a brief overview of the significant cryptocurrencies like Bitcoin, Ethereum, and other significant names in the market.

1) BTC faltering at $41K

The question that bitcoin faces these days is whether it will cross $45K. Those days are gone when there were debates about it crossing $100K. It can be considered a development phase again for bitcoin when it needs to stabilize itself. So far, Bitcoin has been successful in doing so as it has gotten out of the $30K limbo.

The current bitcoin data shows a loss of 1.03% in the past 24 hours. The past week’s losses amount to 1.34% as it has gradually reduced its losses. The current bitcoin price is in the $41,775.31 range, while it has lowered its value from $43K.

The current market cap for bitcoin amounts to $791,953,256,384. The graph for bitcoin shows a fluctuating approach to gains as it has been up and down for the past seven days. The 24-hour trading volume of bitcoin for the last 24 hours amounts to $15,706,434,793.  

2) ETH lowers to $2.8K range

Ethereum closely follows bitcoin in the new changes in the market. It has been through bearishness since bitcoin has changed course. It has continuously shown losses as it has lowered from $4.2K. The past week’s performance of it shows a loss of 5.77%. At the same time, the previous 24 hours show redness of 2.07%.

The current price for Ethereum is about $2,855.00, while its 24-hour trading volume is at $9,392,033,351. The same amount in its native currency can be converted to 3,289,678 ETH. The circulating supply for this currency is estimated to be 119,570,979 ETH.

The market cap of Ethereum has been reduced to $341,375,204,345 as per the latest updates.  

3) DOGE bullish resumes momentum

Dogecoin has suffered a loss of 8.33% in the previous seven days despite support from a corporate giant. Tesla has been supporting it, which has been why it has remained in benefit if compared to other coins. Though other currencies went through a huge recessive period in the past few days, Dogecoin was able to retain its value.

The current price for this currency is about $0.1462, while the 24-hour gain shows 1.28%. The current market cap for Dogecoin is about $19,395,219,055. While the trading volume of it is about $1,771,959,040.

The graph shows lows after a continued bullishness in the previous week.

4) TRX revitalizes after long

Tron has gained 0.22% in the past 24 hours compared to its weekly loss of 3.39%. It has retained its balance as its losses haven’t crossed the 5% barrier. The current value of it is in the $0.0636 range. It has shown a rise and fall as its prices rose in the mid of the previous week and then saw recession.

: TradingView
The current market cap of it is about $6,473,774,365. The 24-hour trading volume of this coin shows a value of $947,812,015.

5) Final Thoughts

The global crypto market is testing investors’ nerves as the value of currencies is changing in an unprecedented manner. The value of the global market cap has lowered to $1.86T from the previous $1.95T. There are chances that it might revitalize soon if Bitcoin and its closely following altcoins regain momentum. If it happens, the market will make up for the losses. The new changes have suggested varying patterns in the growth of the market.

2. Bitcoin Breaks Key Support, Why BTC Could Dive Below $40K

Bitcoin started a fresh decline from well above the $44,000 level against the US Dollar. BTC broke the $42,500 support and remains at a risk of more downsides.

* Bitcoin traded below an important support zone at $42,500.

* The price is trading below $42,500 and the 100 hourly simple moving average.

* There is a key bearish trend line forming with resistance near $42,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).

* The pair could decline further if it fails to recover above the $42,800 zone.

1) Bitcoin Price Extends Decline:

Bitcoin price failed to clear the $45,500 resistance and started a major decline. BTC traded below the $43,200 and USD 42,500 support levels to move into a short-term bearish zone.

There was also a close below the $42,50 level and the 100 hourly simple moving average. A low was formed near $41,573 and the price is now consolidating losses. An immediate resistance is near the $42,000 level. The first major resistance is near the $42,200 level.

Besides, there is also a key bearish trend line forming with resistance near $42,200 on the hourly chart of the BTC/USD pair. The next key resistance could be $42,500 or the 23.6% Fib retracement level of the recent decline from the $45,900 high to $41,573 low.

The main resistance seems to be forming near the $42,850 level or the 100 hourly simple moving average. A clear move above the 100 hourly simple moving average might send the price to $43,750. It is near the 50% Fib retracement level of the recent decline from the $45,900 high to $41,573 low.

2) More Losses in BTC?

 If bitcoin fails to start a fresh increase above $42,850, it could continue to move down. An immediate support on the downside is near the $41,600 zone.

The next major support is seen near the $41,200 level. If there is a downside break below the $41,200 support, the price could start a major decline towards the $40,000 level.

3. EU GOING TO BAN CRYPTO: APPLICATION RENEWABLE CALL:

* A top EU financial regulator has revived demands for a bloc-wide “ban” on the most common type of bitcoin mining and expressed concern about the growing share of renewable energy committed to crypto mining.

* The remedy is to prohibit evidence of work,” said Thedéen, who also serves as the director-general of Sweden’s Financial Supervisory Authority.

Cryptocurrency mining has come under increasing fire for its environmental effect. According to statistics from the Cambridge Bitcoin Electricity Consumption Index, the practice consumes 0.6 percent of the world’s total energy and consumes more electricity each year than Norway.

1) GOVT CALLING OUT CRYPTO AS A “NATIONAL CONCERN”

Erik Thedéen, the vice-chair of the European Securities and Markets Authority, told the Financial Times that bitcoin mining had become a “national problem” in his home country of Sweden and that cryptocurrencies presented a risk to reaching the Paris agreement’s climate change targets. To reduce the sector’s massive power consumption, Thedéen suggested that European regulators consider banning the mining approach known as “proof of work” and instead steer the business toward the less energy-intensive “proof of stake” model.

Miners, who solve hard riddles using enormous data centers packed with powerful computers, are paid for logging transactions with newly produced currencies. This necessitates substantially more effort than the proof of stake approach,

“The solution is to ban evidence of labor,” said Thedéen, who is also the director-general of Sweden’s Financial Supervisory Authority and the chair of Iosco’s sustainable finance committee.”The energy profile of stake proof is significantly lower.”

2) THE WORTH OF CRYPTO ASSETS IN TERMS OF SOCIETAL VALUE IS QUESTIONABLE.

According to Blockchain.com, mining has become a very profitable and competitive business, with the amount of processing power allocated to the operation reaching record highs. China banned the practice in May, but it has spread throughout the world, and there are now numerous publicly traded firms focusing on it, including Canada’s Hut 8.

“We need to have a conversation about changing the sector to a more efficient technology,” Thedéen said, adding that he was not seeking a complete ban on cryptocurrency. He went on to say, “The financial industry and many big organizations are now engaged in cryptocurrency marketplaces, and they have responsibilities.”

4. Switzerland's Largest Bank UBS Expects US Crypto Legislation to Take Time

Switzerland’s largest bank, UBS, expects the United States Congress to take a long time to pass cryptocurrency legislation despite mounting interest in crypto investments and regulators calling for Congress to weigh in on crypto legislation.

Congress Could Take a Long Time on Crypto Legislation

Congress Could Take a Long Time on Crypto Legislation:

The largest bank in Switzerland, UBS, published its view on U.S. crypto legislation Friday after the House of Financial Services Committee held a lengthy hearing on the regulation of cryptocurrencies and stablecoins last week.

The Swiss bank’s U.S. Office of Public Policy explained that at the hearing, a senior Treasury official discussed recommendations made in a stablecoin report issued by the Department of the Treasury and other regulators.

“To fill in regulatory gaps and address financial stability concerns, the regulators would like Congress to develop legislation that regulates stablecoin issuers as banks,” the UBS team detailed, noting that this proposal has received pushback from some lawmakers.

The Federal Reserve also made it clear in its recent central bank digital currency (CBDC) report that it would like direction from Congress before proceeding with a digital dollar.

The UBS team further detailed: “Regulators could be waiting a long time for Congressional action and in the meantime will need to grapple with these issues using the limited and imperfect authorities they already have.”

Nonetheless, the bank pointed out that interest in crypto assets “is growing in Congress and among the broader public.”

His remarks came after Swedish officials originally proposed a ban on the practice in November of last year, citing the increasing quantity of renewable energy allocated to cryptocurrencies while claiming that “the societal benefit of crypto assets is doubtful.”

Bitcoin and ether, the two most popular cryptocurrencies by volume, both use a proof of work methodology, which requires all participants on the blockchain digital record to validate transactions. Faced with rising criticism and a prohibition in China, miners have increased the amount of renewable energy they use to power their computers and shifted operations to nations with abundant wind and solar electricity, such as Sweden and Norway.

5. Young, Crypto-Savvy Voters May Hold Key to South Korea's Next Election:

Presidential candidates woo young retail investors who may decide the outcome.

* Young crypto investors have become a major force in South Korea's March 9 election.

* Real policy details will come post-election once a new administration comes to power.

* Taxes, investor protections, the travel rule and policies to bring crypto companies back lo South Korea are likely to be in the cards.

All of South Korea’s presidential candidates have announced crypto-friendly stances in a bid to win over young voters ahead of the election next month.

Real estate is the biggest issue on voters’ minds in South Korea now as young people under the age of 24 earn salaries of around KRW 2.6 million (US$2,176) a month, face expensive Seoul rent and have no hope of buying an apartment. Many of them have turned to stocks and crypto.

According to Edward Hong, head of platform at crypto venture capital firm Hashed, there are more than 5 million individual crypto accounts across the country’s top three crypto exchanges. Hong estimates that about 10% of this year’s voters are crypto investors.

Around 91% of South Koreans own a smartphone. Internet penetration is 96.5%. Gaming is popular, and the average person has some level of trading experience. Combining all that forms a population that is highly receptive to crypto assets, and a swath of Gen Z voters have emerged as a serious electoral force in the country.

6. Crypto Market Forecast: Week of February 14th 2022:

 A curated weekly summary of forward-focused crypto news that matters. This week, digital assets pull back as global geopolitical tensions rise, the Bitcoin hashrate hits a new all-time high, and 24-hour transaction volume on the Cardano network explodes.

A promising week for the digital asset markets ended poorly as geopolitical tensions pushed investors away from risk assets towards safe, low volatility assets. Bitcoin (BTC), the largest and oldest asset in crypto, was up ~1% over the last week. The 2nd and 4th largest assets in crypto, Ethereum (ETH), and Binance-coin (BNB), were both down ~4%.

The drive for investors to reallocate towards safe havens began after warnings issued by American president Joe Biden on Thursday night. Biden has asked all American citizens to leave Ukraine amid growing fears that Russia may invade the country. Biden told Lester Holt of NBC News “We’re dealing with one of the largest armies in the world. This is a very different situation, and things could go crazy quickly.”

Over the last week, Russian premier Vladimir Putin has kept his cards close to his chest. He has not ruled out diplomacy but has also reiterated that Russia will not back down easily and sent signals that he would be willing to start an all-out war with the West over Ukraine. The economic toll of a war like this would be enormous.

For most of February 2022, crypto investors have found the conviction to buy back into markets despite numerous bearish macro signals. As the end of last week arrived, however, the urge to allocate towards safe, secure investments grew too strong.

While bearish, external macro tailwinds have dragged the price of BTC’s price back, the fundamentals of the network continue to grow stronger. On February 12th the hashrate of the Bitcoin blockchain after spiking upwards by more than 30% and hitting 248.11M TH/s.

Hashrate hitting an all-time-high means that Bitcoin is the most secure it has ever been. A rising hashrate also indicates a willingness of miners to deploy long-term capital into Bitcoin. This indicates a faith that rewards earned in the future will pay off for their investments made today.

In 2021, China’s blanket ban on cryptocurrency activity made mining bitcoins illegal. China was the largest contributor to Bitcoin hashrate for many years leading up to the ban.

1) Crypto news for the week ahead
15th February- Alpaca Finance launches on the Fantom network:

Alpaca Finance is a leveraged yield farming product that was originally built on the Binance Smart Chain. It is set to launch on Fantom on Tuesday. There will be a significant 1-month yield incentive program for liquidity providers who provide FTM liquidity to the new version of Alpaca. New liquidity providers will be offered Alpaca native tokens in return for their service.

2) 21st February- Decred network upgrades:

Onchain governance-based PoW chain Decred (DCR) has announced that it will be implementing a mandatory hard fork on Sunday. PoW miners that do not upgrade by February 21, 2022 will have their rewards reduced to zero. The upgrade will include consensus vote agendas, it will reduce sync time, and include other upgrades to improve the speed and fees of the network. The price of DCR is up ~11% in the last month.

Most large-cap crypto assets pulled back alongside Bitcoin as there was a run to safety and away from volatile assets across financial markets. Despite some data providers reporting that the 24-hour transaction volume on the Cardano network is higher than that of the Bitcoin and Ethereum network, the price of ADA is down ~8%. It has been announced that the upcoming Basho scaling upgrade of Cardano will increase transaction block sizes and include memory improvements to support the now burgeoning blockchain.

Bitcoin (BTC) pulled back in the 2nd half of last week after an extended rally that pushed the price of the asset from trading at ~US$33,000 on January 24th to ~US$45,500 on February 10th. Data from Glassnode reports that the BTC Open Interest in Perpetual Futures Contracts just reached a 6-month low of $398,374,990 on derivatives exchange Deribit. Additionally the Stablecoin supply on exchanges has hit almost $29 billion, a new all-time high. These metrics indicate that money is now sitting on the sidelines and the risk preference for investors is low.