Ethereum resumes consolidation after brief dip, buyback yield exceeds that of major S&P 500 companies

Ethereum resumes consolidation after brief dip, buyback yield exceeds that of major S&P 500 companies

385307   April 20, 2024 16:40   FXStreet   Market News  

  • Ethereum whale jumps on ‘buy the dip’ opportunity after Israel’s attack on Iran.
  • The buyback yield of Ethereum exceeds that of major S&P 500 firms.
  • Ethereum may continue trading inside key range as investors await the market’s response to Bitcoin halving.

Ethereum resumed its sideways movement on Friday after briefly crashing due to Israel’s attack on Iran. The move presented a buying opportunity for a whale, who quickly profited from it. This also comes when Ethereum’s buyback yield exceeds that of several S&P 500 firms.

Read more: Ethereum shows firm support at key level as its correlation with US indices increase

Daily digest market movers: Israel’s retaliation, whale activity, buyback yields, Hong Kong’s ETH ETF

Ethereum wasn’t left out, as the entire crypto market took a hit on Friday following Israel’s strike in retaliation to Iran’s attack on April 13. Here are your key market movers:

  • As ETH dipped briefly on Friday, a whale jumped on the opportunity, spending 9.5 million USDT to buy 3,253 ETH at ~$ $2,925, according to crypto analytics platform Spot On Chain. However, ETH’s price has quickly recovered, especially as Iranian officials have downplayed responding to the attack. As a result, the whale made nearly $625,000 in unrealized profit.
  • Ethereum is outshining major tech and financial giants in terms of buyback yields, according to Token Terminal. In a list of $200 billion+ finance and tech S&P 500 companies, including Apple, Alphabet and Berkshire Hathaway, Ethereum ranks number 16, above Tesla and JPMorgan with a buyback yield of 0.23%.

    Buyback for Ethereum, in this case, is implemented through token burns that began after The Merge in 2022. The number one smart contract blockchain achieved this feat in only nine years compared to the median age of 44 years of other companies in the list.ETH buyback yield
    ETH buyback yield

Also read: Ethereum moves sideways as Q1 report indicates token burns are making it deflationary

  • Meanwhile, Bloomberg ETF analyst Eric Balchunas expressed doubts that Mainland China investors may not get access to Hong Kong’s spot ETH ETFs when they start trading. This pessimism is based on China’s ban on all crypto-related activities in 2021. However, other analysts have pointed to Hong Kong’s positive reception to crypto investment as a good sign that spot ETH ETFs would see impressive inflows when they launch in the region.
  • Despite ETH’s brief price decline, ETH’s long liquidations weren’t heavy, sitting around $34.4 million in the past 24 hours. This may be due to heavy liquidations already seen earlier in the week.

Technical analysis: ETH may continue trading inside key range

ETH attempted to break the $2,852 support on Friday after Israel attacked Iran. However, prices have quickly bounced back, and ETH appears to be continuing its consolidation. The calm may be due to investors exercising caution as they await how the market responds to Bitcoin’s fourth halving, which is a few hours away.

Read more: Ethereum declines as crypto market crash increases bearish sentiment

Considering that many analysts have predicted that Bitcoin halving is already priced in, ETH may experience light volatility in the next few hours.

ETH/USDT 4-hour chart

ETH/USDT 4-hour chart

But in the coming weeks, it won’t go outside the range of $2,852 and $3,406 formed in recent price movements, except if major external factors prevail on its price. In the long term, ETH could test the resistance of $3,730. An unlikely approval of spot ETH ETFs by the Securities & Exchange Commission (SEC) would send it past the $4,000 key level to a new all-time high.

Ethereum FAQs

Ethereum is a decentralized open-source blockchain with smart contracts functionality. Serving as the basal network for the Ether (ETH) cryptocurrency, it is the second largest crypto and largest altcoin by market capitalization. The Ethereum network is tailored for scalability, programmability, security, and decentralization, attributes that make it popular among developers.

Ethereum uses decentralized blockchain technology, where developers can build and deploy applications that are independent of the central authority. To make this easier, the network has a programming language in place, which helps users create self-executing smart contracts. A smart contract is basically a code that can be verified and allows inter-user transactions.

Staking is a process where investors grow their portfolios by locking their assets for a specified duration instead of selling them. It is used by most blockchains, especially the ones that employ Proof-of-Stake (PoS) mechanism, with users earning rewards as an incentive for committing their tokens. For most long-term cryptocurrency holders, staking is a strategy to make passive income from your assets, putting them to work in exchange for reward generation.

Ethereum transitioned from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) mechanism in an event christened “The Merge.” The transformation came as the network wanted to achieve more security, cut down on energy consumption by 99.95%, and execute new scaling solutions with a possible threshold of 100,000 transactions per second. With PoS, there are less entry barriers for miners considering the reduced energy demands.

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Gold price finished the week with gains amid geopolitical tensions, shy of $2,400

Gold price finished the week with gains amid geopolitical tensions, shy of $2,400

385305   April 20, 2024 16:35   FXStreet   Market News  

  • Gold price peaked at $2,417 per ounce following escalating conflict between Israel and Iran with investors seeking safety.
  • Prices stabilized around $2,394 after Tehran indicated no immediate plans for retaliation, calming initial fears.
  • US Treasury yields and the US Dollar’s decline support Gold’s gains, although Fed officials hint at ongoing restrictive monetary policy.

Gold price hit a five-day high above the $2,400 figure amid an escalation of the Middle East conflict between Israel and Iran. An Israeli attack on Iran on Friday sent bullion toward its daily high of $2,417 a troy ounce as ebbs and flows flock to safety in the uncertainty of the outcome. However, the rally was short-lived as Tehran said it had no plans to retaliate.

XAU/USD trades at $2,394, registering gains of 0.70%  after Golds seesawed $44.00 as traders digested Friday’s developments. Aside from this, the drop in US Treasury bond yields and the Greenback keeps the golden metal afloat. This is despite recent hawkish comments by Federal Reserve (Fed) officials, who have adopted a more neutral stance suggesting that the disinflationary process has stalled.

On Friday, Chicago Fed President Austan Goolsbee exited from its dovish stance and stated that the inflation progress had “stalled,” adding that “the Fed’s current restrictive policy is appropriate.” His words echoed comments made by Atlanta Fed’s Bostic and New York Fed’s Williams, who crossed the newswires on Thursday.

Bostic, one of the most hawkish members of the Federal Open Market Committee (FOMC), went beyond Goolsbee and Williams’s comments, saying that the Fed wouldn’t reduce rates until the end of the year.

Daily digest market movers: Gold rises on risk-off mood despite hawkish Fed commentary

  • Gold remained underpinned during the week by the geopolitical risks linked to the Middle East conflict following Iran’s attack on Israel. The non-yielding metal is on its way to registering more than 2.25% weekly gains.
  • The10-year Treasury benchmark rate is up 8 basis points in the week at 4.615%. US real yields are also up 8 bps and will likely end the week near 2.215%.
  • Data during the week: Strong US Retail Sales were the first piece of data to spark a repricing of interest rates set by the Fed. Consequently, the US 10-year note yield peaked at 4.696%, a level last seen in November 2023.
  • Firm Industrial Production data for March and solid jobs data, with Initial Jobless Claims lower than expected, overshadowed the housing market’s sudden weakness.
  • Atlanta Fed’s Raphael Bostic noted that inflation is too high, and the US central bank still has a way to go to tame it. He added that the Fed won’t be able to reduce rates. Earlier, New York Fed President John Williams stated that the Fed is data-dependent and emphasized that monetary policy is in a good place, so he wasn’t in a rush to cut rates. His baseline doesn’t consider hiking rates but added that the Fed will hike if needed.
  • CME FedWatch Tool shows that the first-rate cut could happen in September, with odds for a quarter percentage point cut at 67%, up from Thursday’s 66%.
  • US Dollar Index (DXY), which tracks the buck’s performance against a basket of six other currencies, loses 0.05% to 106.15.

Technical analysis: Gold climbs on risk aversion as buyers lose steam

Gold price is upwardly biased, though it seems that buyers could be losing momentum as Friday’s spike to $2,417 was courtesy of risk aversion. The Relative Strength Index (RSI) remains at overbought levels, but it hasn’t surpassed the last peak, which means there’s a slight divergence between price action and momentum. That could pave the way for a pullback, but the most likely scenario is a continuation of the uptrend.

That said, XAU/USD’s first resistance would be $2,400, followed by Friday’s high of $2,417. A breach of the latter will expose the all-time high of $2,431. On the other hand, if XAU/USD is headed for a correction, the first support would be the $2,350 mark, followed by the April 15 daily low of $2,324. Once surpassed, Gold might test $2,300.

Gold FAQs

Gold has played a key role in human’s history as it has been widely used as a store of value and medium of exchange. Currently, apart from its shine and usage for jewelry, the precious metal is widely seen as a safe-haven asset, meaning that it is considered a good investment during turbulent times. Gold is also widely seen as a hedge against inflation and against depreciating currencies as it doesn’t rely on any specific issuer or government.

Central banks are the biggest Gold holders. In their aim to support their currencies in turbulent times, central banks tend to diversify their reserves and buy Gold to improve the perceived strength of the economy and the currency. High Gold reserves can be a source of trust for a country’s solvency. Central banks added 1,136 tonnes of Gold worth around $70 billion to their reserves in 2022, according to data from the World Gold Council. This is the highest yearly purchase since records began. Central banks from emerging economies such as China, India and Turkey are quickly increasing their Gold reserves.

Gold has an inverse correlation with the US Dollar and US Treasuries, which are both major reserve and safe-haven assets. When the Dollar depreciates, Gold tends to rise, enabling investors and central banks to diversify their assets in turbulent times. Gold is also inversely correlated with risk assets. A rally in the stock market tends to weaken Gold price, while sell-offs in riskier markets tend to favor the precious metal.

The price can move due to a wide range of factors. Geopolitical instability or fears of a deep recession can quickly make Gold price escalate due to its safe-haven status. As a yield-less asset, Gold tends to rise with lower interest rates, while higher cost of money usually weighs down on the yellow metal. Still, most moves depend on how the US Dollar (USD) behaves as the asset is priced in dollars (XAU/USD). A strong Dollar tends to keep the price of Gold controlled, whereas a weaker Dollar is likely to push Gold prices up.

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Dogecoin Price Prediction: Will the Bitcoin of memecoins make it to $0.2 amid halving DOGE Day euphoria?

Dogecoin Price Prediction: Will the Bitcoin of memecoins make it to $0.2 amid halving DOGE Day euphoria?

385303   April 20, 2024 16:33   FXStreet   Market News  

  • Dogecoin price holds above an ascending trendline despite growing overhead pressure.
  • Bitcoin halving and DOGE Day could set the tone for altcoins to rally.
  • A rising wedge pattern has it out for Dogecoin price, but bullish narratives could see fortunes change for DOGE holders.

Dogecoin (DOGE) price is trading with a bullish bias, all things considered, consolidating along an ascending trendline despite the toned-down upside momentum seen across the market. Meanwhile, Bitcoiners and cryptocurrency enthusiasts in general continue to celebrate the fourth Bitcoin halving, and this could bode well for Dogecoin as DOGE Day sets in.

Also Read: Dogecoin price could make a 15% recovery as DOGE market attempts to determine a bottom

DOGE price could show strength amid Dogecoin Day hype

On the same day as the Bitcoin halving, April 20, the DOGE community is celebrating the Dogecoin Day, a social media campaign and movement intended to raise awareness and increase the value of Dogecoin.

Dogecoin was created in 2013 based on the popular “Doge” meme featuring a Shiba Inu dog and has since gained a strong community following.

On the 12-hour timeframe, Dogecoin price holds well above the ascending trendline, which provides downward support and is reinforced by the 200-day Simple Moving Average (SMA). The Relative Strength Index (RSI) has crossed above the yellow band of the signal line which is a bullish crossover interpreted as a buy signal. The same crossover can be seen on the Moving Average Convergence Divergence (MACD), crossing above the orange band of the signal line.

Should the DOGE bulls heed the buy signal, Dogecoin price could push north to confront resistance due to the 100-day Simple Moving Average (SMA) at $0.1718. If this moving average fails to hold as resistance, the Bitcoin of meme coins could shatter past it to confront the 50-day SMA at $0.1830. In a highly bullish case, the gains could see the Dogecoin price tag the $0.2000 psychological level, nearly 33% above current levels.

A break and close above the $0.2000 psychological level on the 12-hour timeframe would negate the ascending wedge that governs Dogecoin price action.

DOGE/USDT 1-day chart

If the $0.2000 blockade fails to break, however, Dogecoin price could face a rejection that could go as low as below the support offered by the ascending trendline. In a dire case, the DOGE price could slip below the 200-day SMA at $0.1278 to test the bottom of the market range at $0.1000 psychological level. 

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SOL rises 5% as transaction activity becomes long-standing highlight of Solana Network’s performance

SOL rises 5% as transaction activity becomes long-standing highlight of Solana Network’s performance

385301   April 20, 2024 15:33   FXStreet   Market News  

  • Solana price is up 5% after landmark fourth Bitcoin halving.
  • SOL has dominated daily transactions, boasting 30% across layer 1 and layer 2 networks.
  • After completing a rounding bottom pattern, Solana price could rally as bulls hold $130.45 support.

Solana (SOL) price is among the top gainers among the large market capitalization-sized tokens following the successful conclusion of the fourth Bitcoin halving.  The token has been a top performer throughout the fourth quarter (Q4) of 2023, with the sentiment extending across the most part of Q1 of 2024.

Also Read: Solana rolls out update to tackle network congestion

Solana network performance puts SOL on a pedestal

As Solana continues to be a powerhouse in the cryptocurrency playing field, institutional data platform for digital assets Artemis shows that Solana is dominating daily transactions, accounting for over 30% across layer 1 (L1) and layer 2 (L2) networks.

Data according to this dashboard showcases the heft of Solana as a powerhouse in transaction activity, which has for the longest time highlighted Solana’s performance.

Daily transactions

Solana is a high-performance blockchain platform known for its fast transaction speeds and low fees. Transaction activity on the Solana network refers to the volume of transactions being processed on the blockchain at any given time.

This activity can include various interactions such as transferring SOL, executing smart contracts, decentralized applications (dApps) interactions, and more. Solana has emerged as the leading platform for on-chain financial activity, with its total transaction fees surging by approx. 417%. With this, it surpassed BNB Chain and Tron as meme coins on the blockchain continue to raise hundreds of millions.

The activity was so much that recently the network suffered a slowdown, ascribed to the current software system being unable to handle the overwhelming traffic volume. Head of communications for Solana Labs had addressed the issue in an X post.

Solana price recently completed a rounding bottom pattern, which is a bullish reversal pattern that happens after a prolonged downtrend. With the $130.45 support holding, Solana looks primed for a rally, which could be activated by a bullish reaction from altcoins following the BTC halving.

Also Read: Solana price primed for a breakout as it completes a rounding bottom pattern

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Sei Price Prediction: A bounce from here could signal a bullish trend for SEI

Sei Price Prediction: A bounce from here could signal a bullish trend for SEI

385299   April 20, 2024 14:33   FXStreet   Market News  

  • Sei price is holding above critical support at $0.4732 based on recent price action
  • SEI could rise to $0.8000 amid rising momentum and two buy signals in the works.
  • A break and close below $0.4000 would invalidate the bullish thesis.

Sei (SEI) price is nurturing a recovery rally after a fall of nearly 40% starting April 9. With the SEI bulls defending against further downside, the altcoin could be primed for a growth in bullish momentum.

Also Read: SEI, Omni Foundation propose standard to unify Ethereum NFTs

SEI could rally 40% if altcoins show strength

Altcoins could have their rally now that the Bitcoin halving has concluded. For the Sei price, this could mean a climb of around 38% as bulls defend against further downside. On the 1-day timeframe, the altcoin is at a make-or-break support level of $0.4732 based on recent price action. A bounce from here could signal a bullish trend ahead.

If the SEI bulls can muster enough strength to stay above this support zone, it would provide a good jumping-off point for the Sei price to keep the momentum going. Already, the altcoin has flipped the 200-day Simple Moving Average (SMA) into support, with eyes now set on the $0.8000 target. Such a move would denote a climb of almost 38% above current levels. To get here, however, the bulls must overcome the resistance confluence between the 100- and 50-day SMA at $0.7554 and $0.7647 respectively.

Notice also that both the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are flirting with a confirmed bullish cross over above their respective signal lines, interpreted as buying signals.

In a highly bullish case, the Sei price could shatter the $0.8000 blockade, extending the gains to tag the $1.0000 psychological level,  or in a highly bullish case, reach to reclaim the $1.1450 range high.

SEI/USDT 1-day chart

On the other hand, if bulls begin to cash in on the nearly 20% gains made over the past four days, the Sei price could drop. A daily candlestick close below the $0.4000 psychological level would invalidate the bullish thesis.

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Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Altcoins come ashore after BTC halving arrival

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: Altcoins come ashore after BTC halving arrival

385295   April 20, 2024 13:33   FXStreet   Market News  

  • Bitcoin price could drop to $60,000 or lower as investors cash in on BTC halving news.
  • Ethereum price could make a bullish breakout if altcoin market cap seesaws against BTC price.
  • Ripple price holds above support, could reclaim above $0.5783 as XRP bulls reawaken.

Bitcoin (BTC) price remains lull, but the outlook seen among altcoins is different with Ethereum (ETH) and Ripple (XRP) holding above key levels. It comes following the successful arrival of the fourth BTC halving, which has Bitcoiners and market enthusiasts euphoric.

The highly awaited Bitcoin halving finally happened on Saturday, with the Bitcoin block height hitting 840,000. In the aftermath, the global cryptocurrency market capitalization has increased by 3.22% to $2.32 trillion.  It comes as altcoins begin to reawaken, with most flashing green to outperform the pioneer cryptocurrency.

Also Read: Bitcoin halving concludes successfully as BTC miner rewards reduce to 3.125

Bitcoin price could drop to $60,000

Bitcoin price remains lull following the conclusion of the BTC halving, and in the ‘sell the news’ situation the big crypto risks a correction to $60,000 or lower. Notice the lower lows and lower highs on the Relative Strength Index (RSI), showing momentum is dropping.

In its place, the Awesome Oscillator (AO) is edging toward negative territory as the red shade intensifies. Similarly, the Moving Average Convergence Divergence (MACD) has slipped below the orange band of its signal line, suggesting a potential bearish cycle.

Bitcoin price could drop below $60,000 to test the $59,530 support or extend lower to the $50,420 threshold.

BTC/USDT 3-day chart

Conversely, a surge in buying pressure could send Bitcoin price further north. A decisive candlestick close above the $70,000 psychological level on the 3-day time frame would confirm the continuation of the uptrend. This could see BTC price reclaim its $73,777 peak, or higher to record a new all-time high.

Also Read: Bitcoin Price Outlook: When should BTC peak post-halving?

Ethereum price coils up for a breakout

Ethereum price is consolidating within a falling wedge pattern, a bullish reversal technical formation that could see the largest altcoin rise. ETH is back above the $3,000 level and could record a bullish breakout as the market capitalization of altcoins seesaw against that of Bitcoin.

The RSI is tipping north, primed to recover above the 50 mean level. If it does, it could precipitate a strong move north for Ethereum price to extend higher.  

ETH/USDT 3-day chart

Conversely, early profit booking among the bears could see Ethereum price drop, with a slip below $2,850 support negating the bullish thesis. This could see the fall extend to the depths of $2,500.

Also Read: Ethereum resumes consolidation after brief dip, buyback yield exceeds that of major S&P 500 companies

Ripple price shows strength

Ripple price could move up as it holds above the ascending trendline. The RSI seems primed for a pullback as it rejects further downside as it holds above 34. If XRP bulls are able to haul above 50, it could kick off a strong move north, sending Ripple price above the $0.5783.

A decisive candlestick close above this level on the three-day timeframe would encourage more buy orders. To confirm the continuation of the uptrend, bulls should watch for a candlestick close above $0.7630, the mean threshold of the supply zone between $0.7277 and $0.7959.

XRP/USDT 3-day chart

On the other hand, if the bears pull XRP price below the ascending trendline, it could encourage a sell off to send the Ripple price to the $0.4183 support. In a dire case, the altcoin’s price could drop all the way to the $0.3078 support.

Also Read: XRP fails to break past $0.50, posting 20% weekly losses

Bitcoin, altcoins, stablecoins FAQs

Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.

Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.

Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.

Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.

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Chainlink co-founder expects ETF narrative to play into other coins
Chainlink co-founder expects ETF narrative to play into other coins

Chainlink co-founder expects ETF narrative to play into other coins

385294   April 20, 2024 10:17   FXStreet   Market News  

  • Chainlink co-founder Sergey Nazarov said ETF dynamic would continue growing as he expects other crypto coins to have ETFs.
  • Apart from Ethereum, Bitcoin forks could see quick ETF approval.
  • Nazarov also expects real-world assets to bring synergy between TradFi and Web3.

Sergey Nazarov, co-founder of blockchain oracle platform Chainlink, gave his opinion on the future of the crypto ecosystem on Friday, expecting more ETFs representing other cryptocurrencies to launch this year. He also shared his take on the real world assets narrative that’s currently heating up in the market.

Also read: Honk Kong could beat the US in allowing in-kind creations and redemptions for spot Bitcoin ETFs

More crypto ETFs could launch this year

In an interview with Cointelegraph at the Token2039 event in Dubai, he stated that exchange-traded funds (ETFs) could stand out more and be very instrumental in the widespread adoption of web3.

According to Nazarov, the approval of spot Bitcoin ETFs indicates the possibility for issuers to file for ETFs of other coins. He says this is “more about coins other than Bitcoin and Ethereum.” He further mentioned that the ETF landscape is expected to “just grow and grow and grow.”

Read more: Bitcoin ETF success could see Ethereum alternative soon, says Jim Cramer

Apart from Ethereum, crypto community members have previously stated that there may be a chance for Bitcoin forks like Litecoin and Dogecoin to see ETF approval. This is because their respective blockchains function similarly to Bitcoin, which has already been approved by the US Securities & Exchange Commission (SEC).

In a further statement, Sergey commented on tokenized real-world assets (RWA) and explained how they would be instrumental in bringing synergy between traditional financial services and web3 services. He believes that both systems will need one another in the long run.

Also read: XRP ETF is likely to get approved before Ethereum: Valkyrie Funds CIO

“Eventually, I expect the web3 assets to be bought by the banks, and the bank assets to be bought by the web3 protocols for various reasons why they would want each other’s assets,” said Nazarov. He also explains how the crypto space keeps “pushing the limits on what’s possible, ” stating that all of these will take effect within three to four years.

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ID, CTSI, and YGG: Over $30 million worth of cliff token unlocks to watch next week
ID, CTSI, and YGG: Over $30 million worth of cliff token unlocks to watch next week

ID, CTSI, and YGG: Over $30 million worth of cliff token unlocks to watch next week

385293   April 20, 2024 10:02   FXStreet   Market News  

  • Space ID, Cartesi, and Yield Guild Games have some of the most voluminous token unlocks scheduled for next week.
  • ID, CTSI, and YGG worth millions of dollars are set to flood markets in a cliff unlock.
  • Increased token supply could create massive sell pressure. 

The week starting April 21 does not have many significant unlocks lined up, with the only ones standing out being from three ecosystems. Investors should expect volatility around the calendar dates of the token unlocks and maintain cognizance that this event is often a bearish catalyst.

Also Read: What to expect from Bitcoin post halving, less than 70 blocks to go

Brace for these three token unlocks next week

Cryptocurrency token unlocks are typically considered bearish events for asset prices. Unlocked tokens enter circulation, increasing selling pressure on the asset across cryptocurrency exchange platforms.

First in line is the Space ID ecosystem, due to release 18.49 million ID tokens worth $14.16 million on Monday, April 22. Constituting 4.29% of the network’s circulating supply, the tokens will be allocated to the ecosystem fund, the foundation, community airdrop, and towards the network’s marketing endeavors.

The Cartesi network will follow, releasing 21.43 million CTSI tokens worth $4.36 million of Tuesday, April 23, issued to the team. The tokens will make up for 2.73% of the network’s circulating supply

Gaming ecosystem, Yield Guild Games, will be unleashing 16.69 million YGG tokens worth $14.01 million on April 27, making up for 5.33% of its circulating supply.

While token unlocks are generally considered bearish catalysts, those cryptocurrencies that unlock over 3% of their circulating supply are often the ones that suffer a correction in their price.

Reasons for token unlock events

Cryptocurrency projects have a defined roadmap from the time they launch. The ecosystem carefully plans how it will release specified proportions of its token supply into circulation on a batch-by-batch basis. The goal of such a structure is to promote the stability of the token while fostering long-term health.

Token allocation varies, depending on how they have been earmarked. The recipients determine whether selling pressure should be expected or not, depending on their assumed selling appetite.

Traders tend to keep an eye out for such events because of their nature to cause price volatility. Proactive traders know how to make a profit by trading around these events. The other lot is often rekt as part of exit liquidity.

Cryptocurrency metrics FAQs

The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.

Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.

Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.

Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.

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FTX investors to settle with Sam Bankman-Fried on condition that he provides key information
FTX investors to settle with Sam Bankman-Fried on condition that he provides key information

FTX investors to settle with Sam Bankman-Fried on condition that he provides key information

385292   April 20, 2024 09:21   FXStreet   Market News  

  • Sam Bankman-Fried has agreed to provide FTX investors with valuable information about key firms and celebrities related to the defunct exchange before its collapse.
  • Part of the settlement terms include proof that SBF’s net worth is negative.
  • Investors will discharge all claims against SBF if the court approves the agreement.

A group of FTX investors have filed a court document to settle with Sam Bankman-Fried on the grounds that he provides key information about FTX-related celebrities and institutions. This indicates that these investors are looking to exhaust all avenues to ensure they get back their funds.

Read more: SBF sentenced to 25 years in prison after November conviction

Investors to settle with SBF

According to a Bloomberg report, Sam Bankman-Fried, founder and former CEO of FTX, recently sentenced to 25 Years in prison, has come to terms with a group of investors. It’s been barely three weeks since the official sentence of Bankman-fried to prison.

The agreement with FTX investors involves all claims against Sam being dropped if he cooperates with the class representatives to strengthen their case against celebrity promoters of FTX by providing valuable information regarding their dealings.

If the court approves, the agreement will mandate that Bankman-fried release confidential information about celebrities’ involvement in raising FTX ratings before its eventual collapse in 2022.

Also read: Mango Market attacker convicted of fraud and market manipulation

These celebrities include Shaquille O’Neal, Stephen Curry, Lawrence Gene David, Tom Brady, Gisele Bundchen, and even organizations such as MBA’s Miami Heat franchises, SoftBank Group, Paradigm Operations LP, and many more.

Bankman-Fried will also be required to provide certain documents alongside evidence of these people and organizations’ involvement with FTX and present them to the court without a subpoena, a filed document showed.

This will include a financial statement of all his current assets and a sworn affidavit of all his financial assets. He will also provide an affidavit stating that his net worth is negative.

This follows a recent demand by US Senator Elizabeth Warren for the head of the US Commodity & Futures Trading Commission (CFTC), Rostin Behnam, to give a full account of his several meetings with SBF before the FTX implosion.

Read more: OneCoin’s head of legal and compliance gets four years in jail as CZ sentencing comes next

In November of 2023, Sam Bankman-fried was convicted and found guilty of all charges against him, including wire fraud, securities fraud, and money laundering. On March 28, he was sentenced to 25 years in prison, and a forfeiture of $11 billion woth of assets was ordered to help “fund the repayment of the victims of the FTX collapse.”

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Breaking: Bitcoin halving concludes successfully as BTC miner rewards reduce to 3.125

Breaking: Bitcoin halving concludes successfully as BTC miner rewards reduce to 3.125

385290   April 20, 2024 08:17   FXStreet   Market News  

  • Bitcoin has undergone its fourth halving ticking over at a block height of 840,000
  • BTC miners’ block issuance rewards have been cut in half from 6.25 BTC to 3.125 Bitcoin per block.
  • Bitcoin price is trading for $64,188 at the time of writing

Bitcoiners and cryptocurrency market enthusiasts are celebrating the fourth successful execution of the Bitcoin halving, done at a block height of 840,000.

Miners will henceforth receive 50% fewer BTC for verifying transactions. Specifically, the reward for mining new blocks on the Bitcoin blockchain is now 3.125 BTC per block, halved for the fourth time. Miners previously received 6.25 BTC.

Effectively, Bitcoin’s inflation rate has reduced, as strides toward the 21 billion maximum supply continue. So far, more than 19.5 million has already been mined, leaving fewer than 1.5 million left to be created.

Bitcoin’s creator, Satoshi Nakamoto, designed the concept to effectively reduce by half the reward that BTC miners receive. The idea is that by cutting in half the amount miners currently make for their efforts, fewer Bitcoins will enter the market, creating more scarcity of the cryptocurrency.

The most recent Bitcoin halving took place in May 2020, reducing the block reward from 12.5 BTC to 6.25 BTC. Then, Bitcoin price was around $8,602. Look how far we’ve come!

Why BTC halving is bullish for Bitcoin price

With reduced frequency at which new BTCs are generated, there will be lesser propensity for miners to sell. Historical data indicates a positive effect of the expected scarcity on the investors’ psychology. This translates to expectation of a rise in the value of Bitcoin and more buys to follow.

Notably, while past mining events have seen positive effects, the effect of halving events on Bitcoin price is prone to variations, depending on prevailing market condition.

Much of the credit for the recent rally in Bitcoin price is given to the early success of a new way to invest in the asset, by way of spot BTC exchange-traded funds (ETFs),  approved in a landmark decision by the US Securities and Exchange Commission (SEC) on January 10.

Expert predictions about Bitcoin price post halving

To some, the fourth BTC halving is already priced in, saying that it could be a non-event for Bitcoin price because of the massive run already experienced in 2024, leading BTC to an all-time high of $73,777.

Others say there could still be a bump, at least longer-term, fueled by growing demand due to the spot ETFs, and reinforced by the supply shock of the next halving, potentially driving Bitcoin price even higher. “Consensus estimate” according to Bitwise senior crypto research analyst Ryan Rasmussen is closer to the $100,000-$175,000 range.

Implication for Bitcoin halving for miners

Moving forward, Bitcoin miners are likely going to be compelled to become more energy efficient.

They may also have to raise new capital, with historical data showing that total miner revenue dropped one month after each of the three previous BTC halving events. However, those figures had rebounded significantly after a full year, ascribed to spikes in Bitcoin price along with larger miners expanding their operations.

The next halving is expected around April 17, 2028, and while there is no specific calendar, the event is scheduled to occur regularly after the creation of every 210,000 blocks. This generally works out to roughly once every four years. 

BTC halving dates

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Forexlive Americas FX news wrap 19 Apr. Nasdaq has its worst week since
Forexlive Americas FX news wrap 19 Apr. Nasdaq has its worst week since

Forexlive Americas FX news wrap 19 Apr. Nasdaq has its worst week since

385289   April 20, 2024 06:17   Forexlive Latest News   Market News  

The focus today was on the big-cap tech stocks today. The Nasdaq index got creamed with a decline of -2.05%. That was the largest decline since January 31 when the index fell -2.23% The move lower was initially off of disappointing forward guidance from Netflix after its earning announcement after the close on Thursdays. Its shares tumbled -9.09%.

The kick to the downside got another shove, just before the open Super Micro Computers announced its earnings date, but did not to pre-announce its earnings for the fiscal third quarter. SMCI has been one of the darlings of the 1Q as it tagged along with Nvidia. According to sources, in seven of the past eight quarters, the company issued a press release announcing preliminary results ahead of its routine earnings release, generally raising financial guidance. That was not to be today, and the stock fell sharply in reaction. That momentum continued in the US session with the stock plunging 23.16% to $713.65. The high price in the 1Q reached $1229.00. The decline. Nvidia as well. It shares fell $84.31 or -10.0% to $762.

BTW Super Micro Computers will announce their earnings on April 30. Nvidia doesn’t announce until May 22

Other big movers today included a number of different chip stocks:

  • AMD, – 5.44%.
  • Micro -4.61%
  • Broadcom -4.31%
  • Meta Platforms -4.13%
  • CrowdStrike holdings -3.99%
  • Taiwan semiconductor -3.46%
  • Amazon -2.56%
  • Intel -2.40%
  • Qualcomm -2.36%
  • Tesla, -1.92%.

Next week, the earnings calendar kicks into full gear Below is a sampling of some of the major earnings releases. :

  • Monday: Verizon,SAP
  • Tuesday: GM, Tesla,Visa, Texas Instruments
  • Wednesday: Boeing, AT&T, General Dynamics, Meta Platforms, IBM, Ford, Chipotle, ServiceNow
  • Thursday: American Airlines, Caterpillar,Southwest Airlines, Bristol-Myers Squibb,Microsoft, Alphabet,Intel
  • Friday: Exxon Mobil, Chevron

In the US debt market today, yields move modestly lower.

  • 2-year yield, 4.99%, unchanged
  • 5-year yield 4.671%, -1.6 basis points
  • 10-year yield 4.622%, -2.4 basis points
  • 30-year yield 4.715% -2.9 basis points

For the trading week yields moved higher as markets reacted to the Fed’s shift toward rates steady for longer:

  • 2-year yield +8.7 basis points
  • 5-year yield +11.4 basis points
  • 10-year yield +9.7 basis points
  • 30-year yield +8.3 basis points

A snapshot of the forex market at the week’s end has the CHF as the strongest of the major currencies on the back of a safety bid.

The GBP was the weakest. BOEs Ramsden commented that:

  • Over the last few months, I have become more confident in the evidence that risks to persistence and domestic inflation pressures are receding.
  • Balance of domestic risks to the outlook for UK inflation is now tilted to the downside.

That helped to push the GBPUSD to the downside and the pair moved to the lowest level for the year and going back to November 14. The price is also testing the 61.8% of the move higher from the October 2023 low at 1.23635, and the high of a swing area going back to first quarter of 2023 at 1.2368. The low price today in the GBPUSD reached 1.2366.

Fed’s Goolsbee closed up the Fedspeak ahead of the quiet period (the Fed is to next announce on May 1). Goolsbee discussed the current state of the U.S. economy, highlighting a stall in progress on inflation and advocating for a cautious approach to interest rates until more clarity is achieved. He affirmed that the Federal Reserve’s current restrictive monetary policy remains appropriate but emphasized that future policy adjustments will be data-driven. Goolsbee pointed out the persistent challenge posed by high housing inflation and noted that there is room for improvement in services inflation through increases in labor supply. He questioned whether strong GDP and job numbers might indicate an overheating economy contributing to inflationary pressures, though he also acknowledged that not all data suggest labor market overheating. While the Fed has successfully maintained low unemployment, it has struggled to meet its inflation mandate. Goolsbee warned against maintaining a high level of restrictiveness for too long due to potential negative impacts on employment. He described the policy trade-offs as increasingly complex and noted that the real Federal Funds rate is historically high. Optimistically, he projected that inflation would return to the 2% target over a reasonable period, and he did not dismiss any policy options, including rate hikes if necessary, to manage economic conditions.

Meanwhile, ECB officials today including Lagarge. Muller and Wunsch advocating for multiple rate cuts starting in June.

The US core PCE data will be released on Friday and will be key for the Fed outlook going forward.

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Bitcoin price slows down in its upside momentum as BTC halving nears

Bitcoin price slows down in its upside momentum as BTC halving nears

385287   April 20, 2024 06:09   FXStreet   Market News  

  • Bitcoin “danger zone” has done its job with two 18% pullbacks.
  • Perhaps the bear cycle does not dip as hard with different types of buyers entering this cycle.
  • Historically, Bitcoin has peaked in its bull market 518 to 546 days after the halving.

Bitcoin (BTC) price is holding well above the $60,000 threshold, but could lose it after the halving as markets cash in on the gains. The countdown is intensifying with data showing only a few blocks left, expected to be completed soon.

Also Read: All eyes on Bitcoin price as CNN calls halving the ‘World Cup for BTC’

Daily digest market movers: Bitcoin slows down upside momentum as halving nears

Bitcoin halving is here, an event expected to raise the curtain on the next market cycle. There has been a lot of turbulence in the market of late. Events such as flows from exchange-traded funds (ETFs) and tensions in the Middle East between Iran and Israel have sent traders into their shells. However, there could be some relief in the market after Iranian officials indicated there are no plans to retaliate against an Israeli strike on Friday.

With markets recording a slowdown in BTC acquisitions, it is imperative to observe that Bitcoin has managed to successfully close above the $60,000 psychological level for 50 successive days. More closely, it has been able to protect the range low of its re-accumulation range for two consecutive weeks. 

Historically, Bitcoin price slows down in its upside momentum around the halving, often retracing, but momentum decisively picks back up in the months after the event. Analysts are saying the halving has already been priced in, an assumption that begs the question: When could Bitcoin peak in this bull market?

  • Historically, Bitcoin has peaked in its bull market 518 to 546 days after the halving, a pattern that typically shows how BTC halving cycles have progressed.
  • If history repeats or at best rhymes, the next bull market peak may occur around mid-September or mid-October 2025.

Bitcoin price reached a new all-time high of $73,777 approximately 260 days ahead of schedule compared to historical norms. The past few weeks, however, pre-halving retraces have dominated. Analysts from Rekt Capital speculate that BTC price could perform a bull market top 266-315 days after it reclaims its peak.

The opposite seems likely for altcoins, with analysts anticipating an explosive run in their market capitalization after the BTC halving.

Meanwhile, the “danger zone” for Bitcoin price, where pre-halving retraces tend to occur, appears to have completed successfully after two 18% pullbacks. 

Technical analysis: Danger zone officially over for Bitcoin price

The market remains predominantly bullish with the Relative Strength Index (RSI) holding above the ‘50’ mean level. Both the Moving Average Convergence Divergence (MACD) and Awesome Oscillator (AO) are in positive territory, tilting the odds to the upside.

If the RSI holds above 50, Bitcoin price could continue north. A candlestick close above $70,000 would set the tone for an extension to the $73,777 peak, or in a highly bullish case, offer BTC a chance for a new all-time high.

BTC/USDT 3-day chart

However, with the DXY compare indicator climbing, Bitcoin price could be primed for a correction, seeing as the two trajectories have maintained a countercurrent relationship. This thesis is supported by the MACD, which has crossed below the orange band of the signal line, a crossover interpreted as the beginning of a bearish cycle.

If the $59,530 support breaks, Bitcoin price could roll over to the $50,420 level before a possible inflection. 

Open Interest, funding rate FAQs

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