Crypto News for Crypto Optimists #6: Digest of the Week
Bitcoin (BTC) Ups and Downs
This week started with a slight correction. Bitcoin, which dropped below $39.000 on Sunday, gained back $2.000 already by Monday afternoon and was trading around $42.000. On Thursday, the first cryptocurrency briefly rose above $44.000, but by Friday afternoon, January 14, it was trading near $42.000 again.
Bitcoin’s Current Correction
Jurrien Timmer, the director of global macro at Fidelity Investments, believes that BTC has reached the bottom at $40.000. In his opinion, after falling to this level, the cryptocurrency is technically in the oversold territory. Timmer refers to the growth of a demand curve, according to which the level of $40.000 provides Bitcoin with fundamental support.
ARK Invest founder Cathie Wood shared her opinion on the causes of the correction, which is observed in the cryptocurrency market. She believes that the macroeconomic uncertainty in the financial markets in recent months, against which the U.S. dollar is actively strengthening, is to blame.
Signals of Technical Analysis on Bitcoin Charts
A rare signal to buy Bitcoin was discovered by Su Zhu, co-founder and CEO of Three Arrows Capital. According to his observations, such a signal has appeared six times in history. The expert refers to the idle flow indicator. This indicator shows the period during which Bitcoin remained “illiquid” before moving. The current value of the indicator potentially signals that there is no selling pressure on the Bitcoin rate. Zhu also states that BTC is currently in a long period of accumulation.
Crypto analyst Lark Davis found the “death cross” formation on the Bitcoin chart on January 13. As per the expert, there have been only eight death crosses in BTC’s history. The last one was seen in June 2021. Then the value decreased to $28.000, setting a local minimum.
Bitcoin’s Long-Term Predictions Remain Optimistic
Long-term forecasts for BTC seem to be upbeat. Thus, according to a survey among JPMorgan’s clients, over 40% of respondents expect the asset to sit at around $60.000 by the year’s end. Another 5% are confident that by the beginning of next year, the Bitcoin rate will exceed $100.000. Bloomberg shared the results.
Alkesh Shah, the digital asset strategist at Bank of America, called Solana one of the most promising altcoins. In his opinion, Solana might become the “Visa of the digital asset ecosystem.” The expert noted that more than 400 different decentralized applications — from p2p exchanges to NFT marketplaces — already operate in the altcoin network. At the same time, the transaction processing speed in the Solana network potentially reaches 65.000 TPS with minimal fees.
Bank Stablecoin USDF
The stablecoin market is actively developing, too. So, a consortium of banks was created in the U.S., which included:
- New York Community Bank;
- NBH Bank;
- Sterling National Bank;
- Synovus Bank.
In partnership with Figure Technologies and JAM FINTOP, the consortium plans to issue USDF Stablecoin backed by the U.S. dollar at a one-to-one ratio. The stablecoin will be issued exclusively by the consortium’s members. Thus, USDF should become an alternative to non-banking stablecoins.
NFT News: Total Tokenization and the Chinese Market
Venture capitalist Bill Tai predicted in an interview with CNBC that stocks and other assets would be turned into non-fungible tokens in the future. The investor believes that people will transform the land, real estate, art and other valuables into NFTs and then sell the tokens over the Internet. Tai thinks NFTs are the most efficient way to assign ownership of really any asset.
Meanwhile, China is planning to create its own NFT market, not linked to cryptocurrencies, as we wrote about in more detail. The state-owned Blockchain Services Network will present an infrastructure at the end of January that will allow Chinese developers to create their own marketplaces and other applications to work with NFT tokens.
Note that this is not all the crypto news over the past week. More updates can be found on our website and social networks daily!