CryptoNewsia (2024)

16/02/2022

TA: Ethereum Eyes Key Upside Break, $3K Holds The Key

Ethereum extended increase above the $3,050 resistance against the US Dollar. ETH price even climbed above $3,150 and might attempt a break above $3,200.

Ethereum gained pace and was able to clear the $3,120 resistance.

The price is now trading above $3,050 and the 100 hourly simple moving average.

There is a key bullish trend line forming with support near $3,050 on the hourly chart of ETH/USD (data feed via Kraken).

The pair could extend increase if stays above the $3,000 support zone.

Ethereum Price Eyes More Gains

Ethereum remained well supported above the $3,000 level and the 100 hourly simple moving average. ETH extended increase above the $3,050 resistance zone.

It even broke the $3,120 resistance and traded to a new high at $3,196. It is now consolidating gains and trading below the $3,150 level. Ether also tested the 23.6% Fib retracement level of the recent increase from the $2,832 swing low to $3,196 high.

However, the price is placed above $3,050 and the 100 hourly simple moving average. There is also a key bullish trend line forming with support near $3,050 on the hourly chart of ETH/USD.

Source: ETHUSD on TradingView.com

An immediate resistance is near the $3,150 level. The first major resistance is near the $3,180 level. The main resistance sits near the $3,200 level. A successful close above $3,200 might start another increase. In the stated case, the price could test the next key hurdle at $3,250. Any more gains might send the price towards the $3,320 level.

Dips Supported in ETH?

If ethereum fails to start a fresh increase above $3,150 or $3,180, it could start a downside correction. An initial support on the downside is near the $3,110 level. The next major support is near the $3,050 level and the trend line.

The 50% Fib retracement level of the recent increase from the $2,832 swing low to $3,196 high is also just below the trend line and the 100 hourly simple moving average. A downside break below the trend line support might push the price towards the $3,000 level. Any more losses might call for a move towards $2,880.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing pace in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 level.

Major Support Level – $3,050

Major Resistance Level – $3,180

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16/02/2022

Bitcoin Mining Stocks Lose 50-60% Value Since Crypto Price Peak

Bitcoin mining stocks have drastically collapsed since November following the effect of the hashrate’s 23% growth and bitcoin’s downtrend on the miner’s rewards.

Mining Stocks Sharp Decline

Arcane Research data shows that the largest bitcoin mining stocks have collapsed since November after being caught up in the market’s volatility.

The miner giant Marathon Digital Holdings’ (MARA) stock first plummeted on November 9th falling from over $81 to $79, followed by more dramatic drops and little upward movement. MARA is at $28,63 at the time of writing, a 66% drop since November.

The other large miner Riot Blockchain (RIOT) has gone from its November high of $45,97 to $19,73 at the time of writing, a 55% drop.

Source: The Arcane Research Weekly Update – Week 6

Meanwhile, Core Scientific (CORZ) plummeted from $14,5 in November to a low of $6,99 mid-January but recovered over 70% of its value in February now trading at $10,54 with a positive response from investors to production and operations updates.

Related Reading | Intel Announces Mining Chips’ First Clients: BLOCK, Argo Blockchain, and GRIID

On the other hand, following bitcoin’s slight recovery in January, MARA saw an increase of 33%, and RIOT jumped 34% from its low points.

The Arcane Report notes a possible underestimation of the bitcoin mining industry back in November. Investors might have overseen how the industry’s new capacity would make it more competitive. This factor plus the miners decreased profits and bitcoin’s downtrend are likely behind the mining stocks’ big drop.

“This massive decline should have taught bitcoin mining investors that the high beta behavior of bitcoin mining stocks is a double-edged sword.”

Low Mining Profits

The bitcoin miner’s rewards took a hit as the price of the coin declined since its November $69k All-Time High, which reflected in the mining stocks downtrend.

Miners increased capacity last year as the dropping hashrate that followed China’s ban on crypto mining promised high profits for the activity. However, the increase of the capacity came online later in the year, thus the rising hashrate levels did not follow bitcoin’s price, as usual, rather they met the coin at its fall.

Consequently, it was not only the decrease of bitcoin’s price that lowered miners’ profits but also the contrasting rising hashrate, which led to more competitiveness and an increase in mining difficulty.

Mining stocks have seen slight recoveries as bitcoin shows a short-term upward trend. However, if another bull market does not meet with the coin soon, mining stocks are likely to keep slumping.

Furthermore, Arcane Research data estimated the cash flow of mining one bitcoin for Antminer S9 –often described as the most powerful miner in the market with 13.5TH/s, but demands more power than s19 to mine the same amount of BTC– and Antminer S19 –which can reach 110 TH/s hashrate–.

Vulnerable to the digital coin’s volatility, S9 cash flow dropped 60% since November 9th and S19’s decreased 41%.

Source: The Arcane Research Weekly Update – Week 6

Related Reading | Environmental Debate: New York Crypto Mining Plant Permit Delayed

Bitcoin Price

Bitcoin continues to recover showing 4.2% gains over the last 24-hour. The digital coin is 3% up over the last month.

Bitcoin trading at $44,079 in the daily chart | Source: BTCUSD on TradingVIew.com

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16/02/2022

TA: Bitcoin Fails to Test $45K, Why Dips Could Be Attractive

Bitcoin attempted a move towards $45,000 but failed against the US Dollar. BTC is correcting lower, but dips might be limited below $42,800.

Bitcoin extended increase above $44,000 before it faced sellers.

The price is trading above $43,500 and the 100 hourly simple moving average.

There was a break below a short-term rising channel with support near $44,200 on the hourly chart of the BTC/USD pair (data feed from Kraken).

The pair could drop to $43,000 or $42,800, where the bulls might take a stand.

Bitcoin Price Faces Resistance

Bitcoin price remained supported and extended increase above the $44,000 level. BTC even cleared the $44,500 resistance and settled above the 100 hourly simple moving average.

However, there was no test of the $45,000 resistance zone. A high was formed near $44,770 before the price started a downside correction. There was a break below the $44,500 support zone. Besides, there was a break below a short-term rising channel with support near $44,200 on the hourly chart of the BTC/USD pair.

Bitcoin is trading just below the 23.6% Fib retracement level of the upward move from the $41,573 swing low to $44,770 high. On the upside, the price might face resistance near the broken channel support at $44,200.

Source: BTCUSD on TradingView.com

The first major resistance is near the $44,500 level. A clear move above the $44,500 resistance zone might send the price further higher. The next major resistance is near $45,000, above which the price might rise towards the $45,500 resistance level.

Dips Limited in BTC?

If bitcoin fails to continue higher above the $44,500 resistance zone, it could start a downside correction. An immediate support on the downside is near the $43,800 zone.

The next major support is seen near the $43,150 level. It is near the 50% Fib retracement level of the upward move from the $41,573 swing low to $44,770 high. If there is a downside break below the $43,850 support zone, the price might struggle. The next support sits near $42,800 or the 100 hourly SMA, below which there is a risk of a sharp decline in the near term.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is still above the 50 level.

Major Support Levels – $43,800, followed by $43,150.

Major Resistance Levels – $44,200, $44,500 and $45,500.

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16/02/2022

Representing Lawyer of XRP Holders Predict SEC’s Next Move As Ripple Price Hikes

Ripple is one of the altcoins that has strived comparative well within the cryptocurrency space. The price-performance and the general trend in the protocol’s ecosystem have made this crypto one of the outstanding long-term and short-term investment choices.

Currently, Ripple is ranked in the 6th position according to CoinMarketCap, as it boasts a market cap of over $40 billion.

With the recent case of SEC and Ripple, several of the XRP community have some built-up tension over the possible action to expect.

Related Reading | Bitcoin Hashrate Climbs To New High As Price Recovers Above $42,000

This is after the unsealing of three different documents set by the judge. However, John Deaton, the cryptocurrency lawyer representing more than 64,000 XRP holders, put forth some possibilities to calm the situation. First, he explained that SEC is likely to make two potential moves.

From the new evidence, there’s an inclusion of the email thread and deposition notice of Brad Garlinghouse, Ripple CEO. Also, the evidence contains the line of Chris Larsen, a Ripple executive.

According to Deaton’s suggestion, substantially proving the link between Ripple’s public announcements and XRP price would be a near impossibility. Moreover, he mentioned that the SEC would have to confirm the sale of XRP tokens by Garlinghouse and Larsen in the U.S.

Furthermore, the lawyer was contemplating if SEC could lay claim of Ripple creating a secondary market for XRP. This could be their alternative approach once they fail to establish that the two Ripple executives are selling XRP in the U.S.

Deaton is yet to access the unsealed document despite his having the amicus counsel status in the case.

Ripple (XRP) Price Hikes, Aims To Touch $0.90

The price of XRP is finally skyrocketing, as shown on the 4-hour chart. Its upward trend indicates a prime surge, as its target is to hit $0.90. However, the crypto may have to face a little tussle in striving to achieve its target.

XRP rises on the daily chart | Source: TradingView.com

But through its move, the XRP price is likely to encounter a great challenge while soaring above the $0.90 level. This is mainly due to the resistant bridge from the Momentum Reversal Indicator (MRI) as the 78.6% Fibonacci retracement level.

Related Reading | These Two Altcoins Are Ready For Major Pullback, Says Crypto Analyst

Once there’s an increase in the buying orders, the bullish trend of the XRP price will likely get to a new high. But where the selling demands increase, the XRP price may have to dwindle and hit its Simple Moving Average (SMA) of $0.69.

Featured image from Pixabay, chart from TradingView.com

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16/02/2022

Bitcoin Dominance Will Continue To Decline In Favor Of Ethereum, Altcoins, FTX US President

Bitcoin has maintained dominance over altcoins like Ethereum and others for the longest time. This dominance, although has declined over time, still helps the digital asset maintain its title as the most valuable cryptocurrency in the space. However, in only a matter of years, bitcoin’s dominance on the market has declined by half, and according to FTX US President Brett Harrison, the encroachment is far from over.

Bitcoin To Lose More Market Share To Altcoins

In a recent interview on CNBC’s Squawk Box, FTX.US president Brett Harrison shares his thoughts around the market, most notably the market dominance of bitcoin in relation to altcoin. The dominance of the pioneer cryptocurrency has been a slow but steady downtrend that has seen bitcoin’s dominance ridden down to as low as 40% and Harrison expects this to continue.

Related Reading | Bitcoin Hashrate Climbs To New High As Price Recovers Above $42,000

The President told Squawk Box that other digital assets like Ethereum and Solana will continue to take up more market share from the asset. And over time, Harrison explained, the percentage of market share that is controlled by a single asset, in this case, BTC, will continue to wane.

“Assets like Ether, other alternative proof-of-stake assets like Solana, and these other alternative coins are all picking up in terms of market cap,” said Harrison. “Over time, we are going to see less and less of the total market share come from just one asset, Bitcoin alone.”

With this current trend, the market is expected to see more decline in BTC’s dominance over the market. This does not mean that the digital asset becomes less important, but as investors turn to altcoins for better opportunities, BTC will find itself commanding less and less of the market share.

BTC’s Dominance Over Time

Like anything in the crypto space, bitcoin’s dominance in the market has fluctuated widely. However, one thing remains constant and that is the fact that altcoins continue to eat into this market share.

Related Reading | These Two Altcoins Are Ready For Major Pullback, Says Crypto Analyst

Only five years ago, before the likes of Ethereum and Cardano grew into their own, Bitcoin maintained the vast majority of the market share. In February 2017, the market share commanded by the digital asset was 96%. Five years later, it has lost half of this dominance to be sitting at 43.08% as of the time of this writing.

BTC dominance declines to 43% | Source: Market Cap BTC Dominance on TradingView.com

Over the years, the decline has been very obvious. By 2018, only one year after, bitcoin managed to lose more than 50% of its dominance, seeing it touch its lowest point of 35%. It has since recovered more market share since this time, but trends point towards further downside as blockchains like Ethereum and Solana steal more market share with DeFi and NFT capabilities.

Featured image from Banking Exchange, chart from TradingView.com

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15/02/2022

LEO Token Pumps Post Bitfinex Bitcoin Seizure, But Why?

Bitfinex LEO Token has been rallying in the past week, as U.S. authorities allegedly captured the bad actors that took over 100,000 BTC from the platform back in 2016. LEO was created as a utility token as part of a mechanism to compensate the victims of the attack and repaid them for their losses.

Related Reading | Meet The Two Alleged Bitfinex Hackers: Ilya Lichtenstein and Heather Morgan

As of press time, the LEO Token trades at $6 with a 2.4% profit in the last day. On a 30-day basis, the token rallied from a low at $3.50 and reached a high of almost $8 as the news about the capture of Ilya Lichtenstein and Heather Morgan, the alleged hackers, became known.

LEO with significant gains on the 4-hour chart. Source: LEOUSDT Tradingview

There has been a lot of speculation around whether U.S. authorities will return the stolen funds to Bitfinex. The funds are current value at over $3 billion and could fuel LEO’s burning mechanism, according to a recent report from Arcane Research.

As explained on the LEO Token Whitepaper, iFinex, the parent company behind the crypto exchange, buys back the token on a monthly basis and proceeds to “burn them” by removing them from the market. The company acquires a portion of the token equal to a minimum of 27% of the consolidated gross revenues of iFinex, the document claims.

In addition, the LEO Token can be burned if the funds seized in 2015 to their partner Crypto Capital, a payment processor, are returned. These were subject to a “partial government seizure” and Bitfinex has been working to release them since 2018.

The other scenario to fuel an LEO Token burn is the crypto exchange recovers the Bitcoin stolen from them in the 2016 hack. At least 80% of the recovered funds will be used to repurchase and burn LEO within the subsequent 18 months from the date of the recovery, as the Whitepaper claims.

Will LEO Token Continue To Record Profits?

The market seems to be pricing-in this scenario and expecting more appreciation as a massive LEO Token burn could lead to a supply shock. However, traders must consider that iFinex and Bitfinex will attempt to prevent any sudden spike in the price of LEO.

This period offers protection from sudden market spikes and will result in a VWAP. For example, a partial recovery of 60,000 BTC at the current market price (1 BTC = approximately $5,000), would bring in $300m. After deducting $30m (for the current outstanding RRTs), $270m would remain. Assuming that $270m was recovered net funds, iFinex would use at least 80% (i.e., at least $216m) to burn LEO tokens.

Related Reading | Bitcoin Stolen From Bitfinex Hack Moved For The First Time In Five Years

As Arcane Research noted, this buyback scenario was highly unexpected by market participants. As seen in the chart below, the LEO token saw a 57% discount to the BTC stolen funds back in October 2021, but now premiums have returned noting the sentiment shift amongst traders.

Source: Arcane Research

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15/02/2022

Market Update: Cryptocurrencies Rebound After The Super Bowl

The top ten cryptos were all up yesterday after some crypto companies advertised during the pro football championship game.

Yesterday’s market volatility continued with the SPX500 and DJ30 falling 0.29% and 0.44%, respectively, as well as NASDAQ100, rising marginally by 0.25%. Investors were again unnerved by geopolitical tensions throughout Europe to bring about a sell-off in their stocks on Friday evening; however, they seemed calmer today.

Related Reading | Bitcoin Price: Research Group Sees Crypto Hitting $200,000

The UK100 fell 1.75% yesterday as broader market fears over the geopolitical situation in Ukraine sent stocks tumbling across Europe. On Monday night, the oil price nearly hit $94, increasing its previous high near 90 dollars.

Top Cryptocurrencies Performance

The price of Bitcoin briefly rose to $43,500 today. Solana rose 8%, while Ethereum gained more than 7%. XRP and Cardano also saw increases with 3 percent each at their peak values throughout Tuesday’s trading session alone.

Bitcoin gained 3.6% in 24 hours and trading at $44,000 | Source: BTC/USD Chart on Tradingview.com

The live price for Avalanche is $88.33, with a 24-hour trading volume that has increased by over a billion. Meanwhile, its token AVAX is up nearly 11% over the same time period.

With a 24-hour trading volume of $1.12 billion, Polygon is currently up 10% from yesterday’s price action and market cap 15th most significant coins in terms of the total worth.

Related Reading | Polygon Token Price Analysis – New All-Time High This Week For MATIC?

Top Gainers Of The Day

It’s a good day to be in the top 100. Today’s biggest winners of the top 100 are Kadena, Gala, Mina, and The Graph. Kadena is a blockchain ecosystem that makes crypto work for everyone! They provide the security of Bitcoin with virtually free gas and unparalleled throughput. Their smart contracts are more innovative than ever, too – they have almost raised their value today due in large part because it offers all this great technology at an affordable price point (and no lock-ups).

With the recent announcement of Galaverse dates, Gala Games’ market value has increased by 18%. The Graph, an indexing protocol for querying data on networks like Ethereum and IPFS that powers many applications in DeFi (decentralized finance) and a broader Web3 ecosystem, is up 19% within 24 hours.

Recently, Mina saw their value surge 17% as they continue on a path to make blockchain more efficient. Mina Protocol is making headway with its succinct blockchain to curb computational requirements for DApps transactions.

The last 24 hours have been fascinating for cryptocurrency traders, with many coins gaining significant value. One such example is Decentraland’s MANA token which saw its price increase by 9% in just one day. Other winners include Secret at +14%, Helium (+12%), and Qtum(+11%). The most popular metaverse Fantom also did well; it went up 8%.

Hedera Hashgraph, the newest blockchain technology based on directed acyclic graphs (DAGs), has seen an 11% increase in value over 24 hours. The live price is $0.25 with a trading volume of 180 million dollars for today’s session alone.

Top Trending Market Update

onLEXpa (Online Lex Partners) is specialized in developing online courses and projects. After migrating to their new BSC contract, this business aims to make education more accessible through blockchain technology, which gave them 2623% growth.

The value of Dopex has shot up 25% today, following its successful launch. The protocol is designed to maximize liquidity and minimize losses for option writers while maximizing gains by buying the rights from those who want them at a low price – which it does through an innovative trading algorithm.

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15/02/2022

Bitcoin Leverage Ratio Sinks As Market De-Risks Amid Uncertainties

On-chain data shows the Bitcoin leverage ratio has gone down recently as market de-risks amid macro uncertainties.

Bitcoin Leverage Ratio Sharply Falls Down Over The Past Week

According to the latest weekly report from Glassnode, the BTC futures open interest leverage ratio has decreased in the last week as investors de-risk their holdings.

The “futures open interest leverage ratio” is an indicator that’s defined as the ratio between the market open contract value and the total market cap of Bitcoin.

In simpler terms, what this metric tells us is the degree of leverage that an average user is currently making use of in the BTC market.

When the value of the ratio increases, it means users are increasing their leverage as they take on more risk. High values of the indicator may imply that the Bitcoin market is overleveraged at the moment. And thus, it may be more prone to a liquidation squeeze event.

On the other hand, low values of the metric mean investors are keeping their positions at low risk right now. The market is generally more stable during these periods as probability of deleveraging events decreases.

Related Reading | JPMorgan Puts Bitcoin At $150,000 In The Long-Term, But What About Its ‘Fair Value’?

Now, here is a chart that shows the trend in the Bitcoin futures open interest leverage ratio over the past year:

Looks like the value of the indicator has declined recently | Source: The Glassnode Week Onchain - Week 7, 2022

As you can see in the above graph, the Bitcoin leverage ratio seems to have sharply fallen off over the last seven days.

However, unlike many other deleveraging events over the course of 2021, this recent decrease wasn’t marked by a liquidation squeeze.

Related Reading | Bitcoin Active Addresses Surpass 1.02M Three Days In A Row, What Happened Last Time

The main push behind this trend looks to have been investors opting to de-risk their holdings by closing out their futures positions.

The report notes that futures users may be showing this behavior in response to the many macro uncertainties currently looming over the Bitcoin market.

As the current values of the indicator are very close to a range that has usually meant a more stable market, the price of the crypto may not show much volatility in the coming days.

BTC Price

At the time of writing, Bitcoin’s price floats around $44.2k, up 2% in the last seven days. Over the past month, the crypto has gained 3% in value.

The below chart shows the trend in the price of BTC over the last five days.

BTC's price seems to have shown some sharp upwards momentum over the last twenty-four hours | Source: BTCUSD on TradingView
Featured image from Unsplash.com, charts from TradingView.com, Glassnode.com

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15/02/2022

Web 3 Data Union Swash Unveils Plans for Mammoth DAO Campaign

Web 3 Data Union Swash is aiming to kickstart its eponymous DAO and boost uptake of its native $SWASH token, commencing this month. The DAO Ignition campaign will get rolling on February 15, giving participants the opportunity to influence the direction of the game-changing data ownership platform moving forward.

That’s not the only incentive, though: there will also be a grand prize up for grabs, with Swash adding $20 to the growing prize pool for every person that participates, until it reaches a maximum cap of $300K. Should that cap be reached, Swash has pledged to donate $100K to a charity as part of its Data for Good program.

Whatever the amount in the final prize pot, a single winner will claim the lot at the conclusion of the campaign, though all participants will be classed as DAO early bird members. As such, they will have the ability to impact Swash’s future trajectory.

Ready for Liftoff

Swash confidently refers to DAO Ignition as “the biggest DAO campaign of 2022” – a bold claim given the number of both established and fledgling decentralized autonomous organizations in the space. Then again, it’s the sort of confidence that stems from having expanded the Data Union base from 5,000 to 220,000 over the course of 2021.

With DAO Ignition, some 10% of the monthly average of the amount held by the community during the year-long campaign will be burned, until Swash has eventually removed a maximum of 5,000,000 $SWASH from circulation. Thus, by simply holding on to their tokens to keep the monthly average held by the community high, users press Swash to burn more tokens over the course of the campaign.

The culmination of DAO Ignition will herald the long-awaited launch of the Swash DAO, giving stake-holders the ability to collectively reshape a data industry that has, for too long, vested power into the hands of the same well-known big data providers: Google, Facebook and Amazon.

To participate in the campaign and enter the program, users must meet the eligibility criteria outlined by Swash here.

After registering, to qualify for a chance to win the prize, a minimum of 5,000 $SWASH must be held for at least 60 days in total during the course of the campaign (February 15, 2022, until February 15, 2023). These do not have to be consecutive days, incidentally, but must amount to at least 60 days cumulatively while the campaign is ongoing.

Reaching New Heights

Swash’s native asset, which has been tokenized on Ethereum as well as xDai and Polygon, is the lifeblood of a platform that remunerates members for their participation in a fair, transparent data economy. Businesses, too, get to benefit from access to better-quality, zero-party data captured in a fully compliant way.

Built using open-source technology, the startup has expanded from a simple browser plug-in to a comprehensive data ecosystem governed by the principles of Web 3. With its aggressive burn mechanics and six-figure prize pool, the project’s upcoming DAO campaign is certain to make headlines over the next 12 months. After all, when blockchain ventures burn tokens they tend to retain complete control over the amount removed from circulation. In this case, Swash is throwing it out to the community: the more tokens users hodl, the more will be eliminated from the supply. It’s a fascinating proposition and one that should set Swash up nicely for its full DAO launch early next year.

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15/02/2022

Bitcoin Breaks Above $44K, Can Bulls Push Price To Next Level?

Bitcoin has managed to break above considerable resistance and now trades just north of the $44,000 mark. The first crypto by market cap took another swing at the low of its current levels, after a rejection near the $46,000 mark.

BTC with bullish momentum on the daily chart. Source: BTCUSD Tradingview

As NewsBTC has been reporting for the past weeks, Bitcoin was poised to see a relief rally, at least in the short term, when it reached the high area around $30,000s.

Although the situation between Russia and Ukraine seems to be escalating, the market appears to be pricing in any event to the upside. Both parties seem to have incentives to prevent a full-on conflict, a scenario that could prove unfavorable for the global markets.

Related Reading | TA: Why Bitcoin Needs To Clear $43,800 For Hopes of a Fresh Rally

Yesterday, Bitcoin saw a low near $42,000, but buying pressure propelled BTC’s price above $44,000 where a lot of ask orders were concentrated. A portion of these orders was removed and added higher, per data provided by Material Indicators.

Unless bulls continue to display strength or these ask orders are removed/fill, as seen in the chart below, BTC’s price could see a local resistance and a potential short-term pullback.

BTC’s price (in blue) breaks above considerable resistance (ask order above price). Source: Material Indicators

If momentum maintains its current course, Bitcoin could quickly approach the $50,000 mark as there seems to be little resistance above $45,600. In this scenario, bulls could score more gains, but flipping the next area of resistance into support will be decisive.

On the Russia-Ukrainian situation, Material Indicators commented the following via their Twitter handle:

Not sure if the reports from Ukraine: Russia are accurate or if Putin is going for the sucker punch strategy, but the markets seem to like the reports

The FED Policy Could Be Bullish For Bitcoin?

Talking about the recent bullish momentum, QCP Capital, claimed BTC’s price saw an increase in resistance as the U.S. published its recent Consumer Price Index (CPI) metrics.

Used to measure inflation in the U.S. dollar, the metric has been scoring higher. Previously it used to operate as a tailwind for Bitcoin, but recently it has shifted to a headwind as it could accelerate the interest rate hike by the U.S. Federal Reserve (FED).

However, QCP Capital warns on a potential danger that has been dismissed by the market, Quantitative Tightening (QT):

While the market has been fixated on rate hikes, our primary concern has actually been Quantitative Tightening (QT), which is the shrinking of the Fed balance sheet. More specifically, we want to know how QT will be carried out.

Related Reading | Bitcoin Fundamentals Show Signs Of Fresh Rally, Here Are Things To Consider

Depending on how the FED executes its QT policy, either by selling assets or by letting “securities mature without replacing them”, the market could react to the upside or with more bearish price action. QCP Capital believes a passive QT policy will be bullish for Bitcoin and the market.

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