News updates June 20, 2022

1. Bitcoin Climbs Back Above $20K, A Bit Of A Relief To The Sinking Crypto Market

Bitcoin reached a new 18-month low of $17.5K on Sunday before quickly recovering above $20K in the hours that followed, providing some breather to the heavily stressed out bear market.

According to data from CoinMarketCap, Bitcoin has rebounded by little over 15 percent in the last 24 hours, rising from its new disappointing low to $20,482 at the time of writing.

Bitcoin is currently pushing the 2017 all-time high range of $17K to $20K and is constantly stalking lower prices, signaling excessive seller pressure.

Bitcoin had declined to $17,677.42 on Saturday before recovering to $18,290.74. After Tesla CEO Elon Musk tweeted that he was now purchasing the joke coin Dogecoin, the most sought-after crypto asset extended its recovery.

After saying on Twitter that he will “continue to support Dogecoin,” the price of the popular cryptocurrency increased by 8% to $0.058 on Monday.

In response to Musk’s tweet, a user suggested that if he truly believed in the “joke” coin, he should buy it. To which the billionaire replied, “I am,” implying that he is purchasing the drop.

By falling below $20,000, BTC has triggered market trends that analysts say might spark a wave of forced selloffs. Large investors in both cryptocurrencies would be compelled to close positions on BTC and ETH derivatives in such a scenario.

Bitcoin and Ether constitute a little more than half of the market capitalization of cryptocurrencies, which fluctuates often. In the preceding hour, the entire cryptocurrency market grew by 3.7% to $972 billion.

Bitcoin has lost 30% of its value while Ether has dropped 31% during the previous week. Bitcoin is down 72 percent from its all-time high of $69,044.77 established on November 10, while Ether is down 78 percent from its all-time high of $4.878.26 set on the same day.

International fixed income chief Andrew Brenner of National Alliance Securities said Monday that retail investors acquiring bitcoin over the weekend, when few professional traders are active, was likely what caused Bitcoin to regain some spark.

Bitcoin has momentarily paused a selloff that, according to some market analysts, could push the world’s top cryptocurrency as low as $13,800 in the current bear market by inching up to levels above $20,000.

2. Peter Schiff Says Bitcoin’s Current Price Bump Is A Bull Trap As Nothing Drop In Straight Line:

Peter Schiff thinks Bitcoin is in a bull trap and the bear market is still in force.

Over the weekend, the crypto market experienced a strong bearish attack that saw prices of Bitcoin drop below the 2017 ATH of $20k for the first time ever. ETH dropped below $1k. The market seems to respond well as prices spike in recovery. From the lows of $18k, BTC has now reclaimed the $19k range and still working on stabilizing the $20k support.

However, Peter Schiff, who happens to be a strong Gold supporter and opposer of cryptocurrencies like Bitcoin, doesn’t think the recovery is a positive sign for the BTC market. According to him, this is a bear trap – a price spike that could mislead people into thinking a bull run is oncoming, only for the coin to crash again.

Peter was sharing his opinion on Twitter when he also said that the recent crash of BTC price seems to have been orderly, adding that prices don’t fall in a straight line. This statement appears to have been meant to back his claim that the price increase is a bear trap.

For one, crypto prices seem to swing up and down a certain point before either consolidating the support or succumbing to pressure to establish a lower support point.

According to Peter, the dynamics that usually inform a price bottom in a bear market are missing in the BTC market, suggesting that the bottom is yet in.

On June 11th Schiff predicted that bitcoin would fall below $20K and Eth would go below $1K.

So far, the $20k range, the previous ATH, seems to have been the ultimate support for BTC. This was breached over the weekend when the value fell to around $18k. A lot of traders and analysts have, in the recent past, opined that such a breach would give way to further decline to the $16k and even the $13k price.

While Peter Schiff isn’t exactly someone to take crypto investment advice from, his strongly anti-crypto stance could be right or wrong about the current market dynamics. If he’s wrong, Bitcoin may have hit bottom, and the only way from there is up. If he’s right, the bear market could further push the BTC to below $18k. This would give investors another chance to buy the dip. Time will tell.

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

3. Bitcoin and Ethereum Inch Higher But Downtrend Intact, Altcoins Rally

This past weekend, bitcoin extended losses below the USD 20,000 support level and even tested the USD 17,500 zone before the bulls appeared. It is currently (04:05 UTC) trading near USD 20,050 while a major hurdle is near USD 21,200. BTC is up 9% in a day and down 25% in a week.

Similarly, most major altcoins are attempting an upside correction. ETH is up almost 14% and trading near the USD 1,100 level. XRP is consolidating near USD 0.300. ADA is trading well below the USD 0.50 resistance.

4. US Fed to Blame for Downturn, Large Crypto Players Have Responsibility Toward Ecosystem - FTX CEO

With crypto prices continuing to slide, Sam Bankman-Fried, the outspoken CEO of major crypto exchange FTX, argued that the US Federal Reserve (Fed) is to blame for the ongoing downturn, but that large companies such as his have a responsibility to step in and make efforts to contain the resulting losses for crypto investors.

Bankman-Fried finds that major crypto businesses such as his exchange have a responsibility to strive to contain the losses resulting from the ongoing meltdown that impacts crypto investors.

5. Russian Finance Ministry Rules Out Sale of Oil for Bitcoin

The Russian government considers bitcoin as a payment option for small business transactions, not for oil exports, the country’s finance ministry has indicated. A top official emphasized the department means that cryptocurrencies may be used in barter deals, but not as legal tender.

6. Over 100K BTC Holders Have Given Up In The Past Three Days, But Some Have Found New Profit PUMP

As per on-chain data Glassnode, there have been Bitcoin liquidations to the tune of $2.42 Billion every day, for the last three consecutive days. The data provider noted:

“The last three consecutive days have been the largest USD denominated Realized Loss in Bitcoin history. Over $7.325B in $BTC losses have been locked in by investors spending coins that were accumulated at higher prices”.

Furthermore, in the last three days, more than 555K Bitcoins have changed hands in the price range between $18,000-$23,000. Interestingly, long-term holders holding BTC for 1yr+, who accumulated coins in H1 2021 or earlier, started panicking, flooding the exchanges with 20K to 36K Bitcoins every single day.

However, there are still some long-term holders in the market who took advantage of this plunge to earn more than 2000% return.

7. Celsius Network plans to adopt a Bitfinex-like recovery plan

The lead investor at Celsius Network BnkToTheFuture, and the co-founder of the protocol Simon Dixon, have proposed a recovery plan for the Celsius Network. The two have proposed implementing the same recovery model adopted by Bitfinex following the 2016 hack.

8. Binance to Temporarily Suspend Tron Deposits and Withdrawals in 3 Days.

The world's biggest crypto trading venue, Binance, has stated in a recent blog post that it intends to carry out maintenance for Tron wallet starting on June 23.

The tweet in which the link to the post was shared does not specify when the maintenance will end, but it warns that all deposits and withdrawals will be suspended until the end of it.

 "Binance will perform wallet maintenance for the @trondao $TRX network starting from June 23, 05:55 UTC. Deposits and withdrawals will be temporarily suspended and will reopen once the maintenance is complete."

9. Circle’s USDC Surpasses Tether’s USDT, Here’s How?

Circle’s stablecoin USDC has overtaken Tether’s USDT for the first time in the number of daily transactions on Ethereum, Nansen.AI CEO Alex Svanevik highlighted on Twitter.

This news is the latest in a series of bad events for Tether. USDT still holds the lead in market value and daily trading volume. However, there is growing speculation that USDT might be losing its position as its number one status in stablecoins to USDC. 

A Series Of Bad News For USDT
Just a couple of days ago, USDT lost its $1 pegging after the Celsius Network announced that it is freezing withdrawals. It had also lost its peg in May following Terra’s monumental collapse. Similarly, there have been growing fears that USDT may be on the same crash path as Terra’s UST.

Fox Business journalist Eleanor Terrett highlighted how a crypto industry source had moved all his stablecoins from USDT to USDC. She highlighted the fear in the industry over USDT losing its peg and the similarities to Terra. Just a couple of days ago, USDT fell below the $70 Bln mark in market cap and on June 18th, Tether’s CTO tweeted about a DDOS attack on Tether. There have also been allegations on Tether over Chinese Commercial Paper Holdings.

Meanwhile, USDC had gained over 1000% percent in market value in over a year. It currently holds a market value of about $55 billion and is providing stiff competition to USDT.