News Updates July 10, 2022

10 Jul, 2022 03:59 pm

1.Bitcoin Technical Analysis: BTC at $21k. Bitcoin has reached a turning point where bulls can take a break. The major cryptocurrency has reclaimed the key $21k level and is trading at $21,600 at the time of writing this article. Bulls will be delighted when the pair begins to move close to important resistance at $22k, where small selling may occur
The $21,000 mark is psychologically significant since it was the all-time high of 2017 and assisted the pair in its current free fall for a considerable amount of time. The weekend's short-term recovery rally has inspired some buying activity as traders anticipate the next week. The volume will play a crucial part in determining how Bitcoin overtakes key resistance levels later on.
Bitcoin Price Movement in the Last 24 Hours
Bitcoin must show that higher lows are in the offering this week to restore investor confidence. The daily trendline is still falling, but the current $21k price level action is defending this crucial support level. The price has repeatedly slammed the move above the trendline in downbeat bearish legs. The price has broken above the hourly trendline and is now significantly below the long-term descending channel, which is shrinking. The falling triangle pattern's upper boundary remains intact. Bitcoin technical analysis indicates that it is unable to respond to short-term optimism.
Furthermore, the 50-day moving average and the upper trendline of the falling channel are significant barriers to this latest recovery. In order to grow beyond the present dent in the price, investors must defend 2017's all-time high.

2. Historical Data Could Suggest Possible Price Bounce for BTC.

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Historical Data Could Suggest Possible Price Bounce for BTC
By Danielle Du Toit1 hour ago 2 mins
BITCOIN NEWS
The net unrealized profit and loss position of short-term Bitcoin (BTC) holders has reached interesting levels.
BTC is currently trading at $21,291.69 after a 1.22% drop in price over the last 24 hours.
137,000 BTC worth about $2.8 billion will soon be released into the market.
The net unrealized profit and loss position of short-term Bitcoin (BTC) holders has reached levels that historically have marked BTC macro bottoms. When looking at BTC’s historical data, this situation could be a good thing as it has led to bounces in price in the past.

Now, investors want to know if history will once again repeat itself for the 4th time.

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Entity-Adjusted Short-Term Holder Net Unrealized P/L 7-Day EMA (Source: Glassnode).
Now, investors want to know if history will once again repeat itself for the 4th time.

Total Supply in Profit Held by Short-Term Holders 90-Day Exponential Moving Average (Source: Glassnode).
Although BTC has some historical data to back it up, it is still important to acknowledge that these are only a couple of metrics to take into consideration and it is still very important to look for confluence as well as consider the macro backdrop.

According to CoinMarketCap, Bitcoin (BTC) is currently trading at $21,291.69 after a 1.22% drop in price over the last 24 hours and after reaching a high of $21,877.14 over the same time period. Although BTC is down over the last day, the crypto is still up 11.43% over the last week.

3. Pronounced Bitcoin (BTC) Move Impending, According to Glassnode Co-Founders – Here’s When

The creators of one of the leading on-chain analytics firms say that the odds are stacked for a considerable move to the upside for Bitcoin (BTC) sooner than traders think.

In Glassnode’s latest newsletter, Jan Happel and Yann Allemann say that while price action looks bleak currently, an unexpected change in policy from the Fed could be a looming bullish catalyst for BTC.

In a volatile environment where bad news is perceived as good news, Bitcoin has been compressed between $19,00-$21,000 while Swissblock’s Bitcoin Risk Signal reflected an easing risk. Despite a weak price action in June, there is an impending pronounced move.

The market is indecisive as investors digest incoming data, eagerly await the FOMC meeting, and anticipate the Fed’s policy. Will the Fed proceed with an aggressive rate hike in July and September? Or has the economy (aggregate demand) shown enough weakness to persuade the Fed to change its course of action?”

The Glassnode founders also have their radars locked on the stablecoin supply ratio (SSR) metric, which is the total market capitalization of BTC divided by the total market cap of all known stablecoins in circulation.

According to Glassnode, a low SSR indicates that current stablecoin has more buying power to purcahse BTC.

Happel and Allemman say that the current state of the SSR indicator is leaning towards Bitcoin being significantly oversold.

“Bitcoin is holding the $20,000 level. Increase in stablecoin market cap share suggested an oversold BTC on a daily timeframe

At time of writing, Bitcoin is down over 68% from its all-time high, currently changing hands for $21,498.

4. Russian financial watchdog Rosfinmonitoring is ready to accept the use of cryptocurrencies in international settlements, the head of the agency, Yuri Chikhanchin, has indicated. The statement adds to growing support for the legalization of international crypto payments in Russia amid financial restrictions imposed over its invasion of Ukraine.

*Top Financial Regulator in Russia Welcomes International Crypto Payments*

The Federal Financial Monitoring Service of the Russian Federation, also known as Rosfinmonitoring, fully accepts that cryptocurrencies can be employed for settlements with foreign partners, Yury Chikhanchin, director of the regulatory body has stated.

Speaking in the Federation Council, the upper house of Russian parliament, Chikhanchin emphasized that payments with digital assets inside Russia are prohibited by law. The country’s current legislation bans “money surrogates.”

However, under certain conditions, such payments may well be used in international trade, Chikhanchin said. The high-ranking official believes this can help businesses oriented towards exporting Russian products. Quoted by the Bits.media crypto news outlet, he also noted:

Yury Chikhanchin further emphasized that in order to take advantage of cryptocurrency payments, Russian companies need to know to whom exactly they are exchanging the digital currencies.

The regulator revealed that his department has developed and already launched a special information system for tracking crypto transactions. It allows financial authorities to identify both the sender and the recipient of funds and has been used already in some investigations.

The debate over the future of cryptocurrencies in Russia is still ongoing. A new bill “On Digital Currency” is expected to introduce more comprehensive rules for crypto transactions after the law “On Digital Financial Assets” regulated only some aspects of the crypto market.

The idea to use cryptocurrencies in international settlements has been gaining support amid mounting Western sanctions over Russia’s military intervention in Ukraine. At the same time, most government institutions in Moscow agree that the ruble should remain the only legal tender in the country.

While the Bank of Russia, a strong opponent of the free circulation of cryptocurrencies, recently signaled it could back the legalization of crypto payments that don’t penetrate Russia’s financial system, the lower house of Russian parliament recently adopted a law banning domestic payments with digital financial assets.

5. Interconnectedness and Leverage are Getting a Hold of Crypto

Yves Smith has once again taken to her blog, Naked Capitalism, to talk about crypto. This time, the podcaster and author recalled her warning against the usage of crypto. She went ahead into an I-told-you-so discussion at the risk of sounding like an old fart.

*The Antecedents of Cryptocurrencies*

Smith said that crypto is like a. momentous trade. Those who started quite early and got out fast did exceptionally well. But a lot more people are left behind holding the bag now.

Smith called her audience to remember that the use cases of cryptocurrencies were criminal. She said they were used for money laundering, tax evasions, and speculations. It is impossible for crypto to displace fiat currencies as a payment system, the author said.

Parts of the obstacles of cryptocurrencies are inherent in their nature. They have a slow processing speed. Bitcoin is becoming slower than it used to be since the blockchain is getting longer.

The cost attached to foreign exchange is said to be another obstacle, according to Smith. It cost additional fees to trade cryptocurrencies in and out of fiat currencies.

Smith delved into the travail of Voyager Digital and its clients. The crypto lender took crypto deposits on the promise of returning a 12% yield. But things have not gone as planned and the firm has run aground.

Voyager Digital took to Twitter to tell depositors and other investors it is seeking strategic alternatives. The firm said it is fixated on protecting its assets and increasing value for customers.

6. Crypto and NFT Projects From Collapsed Terra are Migrating en Masse to Polygon (MATIC)

* Crypto and NFT projects that once called Terra home have started to migrate to the Polygon Network (MATIC).

* According to Polygon Studios CEO, 48 projects have started the migration, including the OnePlanet NFT marketplace and Derby Stars metaverse game.

* In late May, Polygon Studios CEO announced an uncapped migration fund for projects willing to migrate from Terra.

Terra projects that were left in limbo after the collapse of LUNA and UST, and the subsequent launch of a new Terra chain, have started to migrate en masse to the Polygon Network (MATIC).

According to Polygon Studios CEO Ryan Wyatt, over 48 crypto and NFT projects have begun the migration process from Terra to MATIC. Projects moving to Polygon include the NFT marketplace known as OnePlanet and the metaverse game Derby Stars. Mr. Wyatt shared his insights on the migration of projects from Terra to Polygon through the following tweet.

7.The Crypto Bailouts Have Begun. Is This the Only Way?
SBF is rescuing insolvent crypto companies left and right. Now CZ and Justin Sun want in. None of this is very healthy for the industry.

FTX CEO Sam Bankman-Fried has rushed to the rescue of ailing crypto firms so quickly amid the current crash that he is being compared to John Pierpont Morgan (the man himself, not the bank) in 1907. Now his rivals are taking note, and they want in on the bailout race.

Last month, FTX extended a $250 million line of credit to battered crypto lender BlockFi. One day later, Alameda Research, another SBF company, gave Voyager Digital a $500 million line of credit. Two weeks later, FTX came to terms to acquire BlockFi outright. SBF reportedly walked away from giving Celsius a similar rescue. And he told Reuters last week that FTX still has "a few billion" to help out other companies with one foot in the grave.

This isn't about magnanimity, and it's hard to see this as a positive for the crypto industry.

In Voyager's case, it turns out Alameda already owed Voyager $377 million. It isn't often you see a borrower bail out its lender. Binance CEO CZ criticized that Voyager bailout, telling us in an interview for the next gm podcast, "I would never do that type of deal. I would never say, 'I will invest in your company and then you loan me some money.' I would just not invest in that company, I'll keep my money."

News Updates July 10, 2022

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