News updates May 29, 2022

1.Traders Worried Despite Bitcoin (BTC) Price Short-term Rally.   

Since yesterday, the volume has dropped by over a quarter of a percent.
After the fall, the crypto market lost billions, putting Bitcoin in danger.


It’s deja vu all over again for the largest crypto, Bitcoin. It has already lost eight straight days and is doomed to keep going downhill. Many Bitcoin maximalists are worried that the price may fall below new support levels. Currently trading around $29,000, it has gained just about 1% in the last 24 hours of trade. Bitcoin is currently predicted to close the week around the $29,000 mark after a shortage of movement in previous days. Since yesterday, the volume has dropped by over a quarter of a percent.

2. Bitcoin price action decouples from stock markets, but not in a good way
Conflicting Bitcoin derivatives data shows leverage traders bullish, while pro traders fear a deeper correction below $29,000. 

This week the stock markets began to flash a little green, and Bitcoin (BTC) is decoupling from traditional markets — but not in a good way. The cryptocurrency is down 3%, while the Nasdaq Composite tech-heavy stock market index is up 3.1%.

May 27 data from the United States Commerce Department shows that the personal savings rate fell to 4.4% in April to reach the lowest level since 2008, Meanwhile, crypto traders are worried that worsening global macroeconomic conditions could add to investors’ aversion to risky assets.

For example, Invesco QQQ Trust, a $160 billion tech company-based U.S. exchange-traded fund (ETF), is down 23% year-to-date. Meanwhile, the iShares MSCI China ETF, a $6.1 billion tracker of the Chinese shares, has declined 20% in 2022.

To get a clearer picture of how crypto traders are positioned, traders should analyze Bitcoin derivatives metrics.

3. India’s central bank plans 'graded approach' to digital currency, News 18 says.

The Reserve Bank of India (RBI) said in its annual report released on Friday that it was taking a “graded approach” toward the introduction of a Central Bank Digital Currency, News 18 reported.

“The Reserve Bank is engaged in the introduction of a central bank digital currency in India. The design of CBDC needs to be in conformity with the stated objectives of monetary policy, financial stability and efficient operations of currency and payment systems,’’ it said in the Annual Report on the Working of the Reserve Bank of India 2022.

“The Reserve Bank proposes to adopt a graded approach to introduction of CBDC, going step by step through stages of Proof of Concept, pilots and the launch,” The RBI said in the report. “Accordingly, the appropriate design elements of CBDCs that could be implemented with little, or no disruption are under examination,” the report added.

Indian Finance Minister Nirmala Sitharaman announced in her budget speech earlier this year that the RBI planned to issue a digital rupee, according to Bitcoin.com

4. Do Kwon Denies Terra 2.0 Has ‘Ninja’ Code that Enforces Vesting of Tokens, Says it Was Clarified in Proposal 1623.

Summary:

Do Kwon has refuted claims that Terra 2.0 has ‘Ninja’ Code that enforces the vesting of tokens of all users to be delegated to random validators.
Terra’s Do Kwon has further clarified that the vesting of tokens was highlighted in Proposal 1623 to create a new Terra blockchain.
In another Tweet, Do Kwon expressed optimism that the new Terra Chain will be better than Terra Classic.
More crypto exchanges list new Terra (LUNA), which is currently consolidating below $6.
LUNA traders could be waiting for the Binance listing to better gauge the future of the new Terra token.

The founder of Terra (LUNA), Do Kwon, has refuted claims that Terra 2.0 has ‘Ninja’ code that enforces the vesting of LUNA tokens of all users to be delegated to random validators. The issue about forced vesting of LUNA tokens was raised by crypto community member @clayop, who also added that such a feature was ‘unethical and against self-sovereignty.’ He said:

Terra 2.0 seem to have a ninja code that enforces vesting tokens of all users(even including exchanges) to be delegated to random(or pre-registered?) validators.

IMO, this is unethical and against self-sovereignty. I haven’t seen any announcement regarding this code. All Terra 2.0 holders, including exchanges, please re-delegate or un-delegate your power!

5. Top crypto analyst foresees a 50 % drop in SOl, AVAX, and other altcoins.

According to a renowned crypto expert, if Bitcoin (BTC) continues to tumble, four Ethereum (ETH) competitors will have a grim future.

Pseudonymous trader Altcoin Sherpa warns on Twitter that smart contract-enabled blockchains Solana (SOL), Avalanche (AVAX), Polkadot (DOT), and NEAR Protocol (NEAR) are all ready to lose about 50% of their value if Bitcoin continues to fall.

Polkadot is now trading at $9.76.  

The analyst then turns his attention to Solana, which is now trading at $41.79 at writing.

Altcoin Sherpa also examines the Avalanche, which is presently trading at $22.42.

The trader then monitors NEAR Protocol, which is currently trading at $5.05.

Bitcoin is currently trading at $28,730 (At the time of writing), a more than 28% decrease in the last 30 days.

 *One coin that may rise*

While Altcoin Sherpa is pessimistic about the four Ethereum competitors, he believes TRON (TRX), a blockchain built as a decentralized storage and distribution network for social media and digital entertainment content, has some upside potential.

TRON might rise by almost 40% to $ 0.12 from present levels if the price of Bitcoin “stabilizes,” according to Altcoin Sherpa, as the crypto asset’s founder, Justin Sun, announces new projects.

Sun just announced USDD (USDD), an algorithmic stablecoin based on the TRON blockchain that is supposed to swap one for one with the US dollar. The market capitalization of the USDD is now about $577 million.

“$TRX: 1 of the few coins you can look for longs; wouldn’t do it in this current area but Justin Sun is moving his shitcoin higher. If BTC stabilizes, I would assume this goes to .12. #TRON.”

At the time of press, TRON was changing hands for $0.08.

 *Views on Bitcoin*

The analyst further commented that there is very likelihood of Bitcoin pumping up to $ 35,000. Also, Sherpa believes that $ 20,000 is soon possible as BTC slowly bleeds out. A similar thing happened in 2018. 

“$BTC: I keep thinking that we’re going to get a relief pump up to mid high 30ks, but I’m not even sure we get that anymore. One reason why 2018 sucked was because of the way it slow bled down; this is feeling similar. This area is the last stop before 20k. #Bitcoin“

However, there are more market participants this time around, and hence, the chances of this slow bleed out are low. Still, the market might bounce once before hitting the $ 20,000 mark.

“I didn’t think we would slow bleed as badly as back then due to more derivs being in the space today + better market structure. but it appears I’m wrong. I actually do think we eventually hit 20k but I personally still think some small bounce before then.”

 *Overall crypto market is stumbling.*

The markets have been in a severe downtrend since the start of the year. The terraUSD blunder exacerbated the situation. Since then, the market capitalization of the whole crypto market has plummeted by more than 25 %. The total market cap is now $ 1.182 trillion, down from $ 1.569 trillion since May 9. Overall, it is down by 61 % from its all-time high of $ 3 trillion mark.

6. UK FCA Releases Fresh Crypto And NFT Risk Warning

While crypto and the underlying blockchain technology hold potential for great innovation, regulators have become increasingly concerned that bad actors may take advantage of its hype to market high-risk products to uninformed and unsuspecting individuals. With the same concern in mind, the UK Financial Conduct Authority (FCA) has released a fresh warning about the risks in the nascent market.

In the statement, the FCA sought to remind consumers that it had no oversight over crypto and NFT investments. Consequently, they informed investors that they risked losing all their money as no safety net or compensation scheme was protecting them.

The FCA said it was issuing this warning again due to social media posts they had seen recently promoting these products without adequate warning. Furthermore, the regulators urged those promoting digital assets to adhere to guidelines by the Advertising Standards Authority (ASA).

7. Elon Musk: We’re Approaching a Recession but It’s ‘Actually a Good Thing’

Tesla CEO Elon Musk believes the U.S. economy is approaching a recession but he explained why it is “actually a good thing.” Musk has estimated that the upcoming recession will last 12 to 18 months.

Responding to a question about whether “we’re approaching a recession,” he answered: “Yes.” However, Musk noted, “this is actually a good thing.”

The Tesla boss explained that “It has been raining money on fools for too long,” stressing that “some bankruptcies need to happen.” He elaborated: “All the Covid stay-at-home stuff has tricked people into thinking that you don’t actually need to work hard. Rude awakening inbound!”

8. Bank of Russia Steps Up Efforts to Issue Digital Ruble Due to Sanctions

The Central Bank of Russia (CBR) has accelerated the development of its digital ruble in response to Western sanctions. The monetary authority now intends to pilot transactions with the new version of the national fiat in early 2023 instead of 2024, as originally planned.