5 Best Performing Coins of the Week – CEL and LDO Lead ALGO, LTC, and MATIC

Key Insights:

  • It is a bullish Monday to Saturday for the broader crypto market.
  • Fed fear eased over the week, with mixed US economic indicators raising questions over how aggressively the Fed can return inflation to target.
  • Several cryptos stood out from the pack. LDO and CEL lead, with ALGO, LTC, and MATIC also making solid gains.

Monday to Saturday, September 3, the total crypto market cap is up $33.59 billion to $955.11 billion. A bullish start to the week delivered the lion’s share of the gains. However, US economic indicators and sentiment towards Fed monetary policy continued to test the crypto support levels.

Crypto news updates cushioned investor sentiment towards Fed monetary policy, leaving the market cap in positive territory going into the weekend.

Cryptos finds support.
Crypto Market Cap 030922 Weekly Chart

US economic indicators delivered mixed results for the global financial markets. Consumer confidence, JOLTs job openings, private sector PMI, and weekly jobless claims supported the Fed’s aggressive path beyond monetary policy normalization.

However, ADP nonfarm employment change and the all-important nonfarm payroll and wage growth figures raised question marks.

Despite softer nonfarm payroll figures, the headline figure is likely strong enough to support the Fed’s policy mantra. US Treasury Secretary and former Fed Chair Janet Yellen reminded the markets of the Fed’s inflation objective, pressuring riskier assets.

However, network news updates were crypto-positive, with progress towards the Vasil hard fork and the Merge providing market support.

Nonetheless, the influence of the NASDAQ 100 on the broader crypto market was evident throughout the week, though going into the Saturday session, the crypto market remained in positive territory.

NASDAQ 100 tests crypto support.
NASDAQ – Crypto Market Cap – 030922 Daily Chart

Across the CoinMarketCap top 100, several cryptos stood out from the pack.

Lido DAO (LDO), Celsius Network (CEL), Algorand (ALGO), Litecoin (LTC), and Polygon (MATIC) are among the crypto 100 front runners.

Lido DAO (LDO)

For the week, LDO is up 27.51% to $2.0341. Bullish from the start of the week, LDO rallied from a Monday low of $1.5525 to a Friday high of $2.2798. However, bearish through the early hours of Saturday, LDO slid back to test support at $2.00.

Progress towards the Ethereum (ETH) merge was key to LDO’s bullish week. LDO performance is intertwined with ETH price action. Ether staking numbers provided direction, with the ETH return to $1,650 behind the LDO rally.

Looking at the trends, a move through the August high of $3.1044 would give the bulls a run at $3.5.

For the bears, an LDO fall through August low of $1.5525 would bring the June and the current year low of $0.3996 into view.

LDO finds Merge support.
LDOUSD 030922 Daily Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal going into Saturday. LDO sat above the 50-day EMA, currently at $1.9866.

The 50-day narrowed to the 100-day EMA, with the 100-day EMA converging on the 200-day EMA, delivering bullish price signals.

A bullish cross of the 100-day EMA through the 200-day EMA would support a breakout from this week’s high of $2.2797 to target the August high of $3.1044. However, a pullback from the 50-day EMA ($1.9866) would bring sub-$1,00 levels into view. A fall to sub-$1.00 would bring sub-$0.50 and the August low of $0.1725 into view.

EMAs bullish.
LDOUSD 030922 4 Hourly Chart

Celsius Network (CEL)

For the week, CEL is up 28.03% to $1.4374. Bullish from the start of the week, CEL rallied from a Monday low of $1.12267 to a Friday high of $1.59100.

News of an incoming loan repayment to cover fund operations and plans to return $50 million to clients delivered support.

Looking at the trends, a fall through the August low of $0.5817 would bring the June current year low of $0.15 into view. For now, a return to $1.00 will be the key to bringing the August and 2022 high of $4.4000 into view. Failure to return to $1.00 would leave the current year’s low of $0.15 in play.

CEL on the move.
CELUSD 030922 Daily Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal going into Saturday. CEL sat above the 50-day EMA at $1.42368.

The 50-day narrowed to the 100-day EMA, while the 100-day EMA slipped back from the 200-day EMA, delivering mixed price signals.

A CEL breakout from the 100-day ($1.64229) and 200-day ($1.66068) EMAs would support a run at the August high. However, CEL news updates will need to remain favorable for a return to $2.00.

A slide back from the 50-day EMA would bring the August low of $0.5817 back into play.

EMAs bearish.
CELUSD 030922 4 Hourly Chart

Algorand (ALGO)

For the current week, ALGO is up 6.91% to $0.30287. Tracking the broader market, ALGO rose from a Monday low of $0.28035 to a Friday high of $0.30700 before easing back.

While ALGO found support from the broader crypto market, crypto market news updates were also ALGO price positive. This week, FIFA announced plans to launch an NFT platform on the ALGO blockchain. The announcement follows Algorand’s partnership with FIFA.

Looking at the trends, an ALGO move through the August high of $0.38459 would give the bulls a free run at the May high of $0.75591. An Algo return to $0.80 would support a run at the March high of $0.98784 to bring $1.00 and the January and 2022 high of $1.84287 into view.

ALGO finds FIFA support.
ALGOUSD 030922 Daily Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bearish signal going into Saturday. ALGO sat below the 100-day EMA, currently at $0.30494.

A breakout from the 100-day EMA ($1.30494) would support a move through the 200-day EMA ($0.31692) to target the August high of $0.38359. However, a fall through the 50-day EMA ($0.32537) would bring the August low of $0.27920.

EMAs bearish.
ALGOUSD 030922 4 Hourly Chart

Litecoin (LTC)

For the week, LTC is up 12.02% to $59.82. A choppy start to the week saw LTC fall to a Tuesday low of $51.85 before rallying to a Friday high of $62.41. However, despite a bullish week, LTC came up short of the August high of $65.83.

There were no apparent news updates to support the breakout week.

Looking at the trends, an LTC move through the August high of $65.83 would give the bulls a free run at the May high of $107.03. From the May high, the March high of $134.11 would come into play. LTC struck a 2022 high of $153.91 on January 17.

However, a fall through the August low of $51.69 would bring the June and the current year low of $40.32 into view.

LTC eyes August high.
LTCUSD 030922 Daily Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal going into Saturday. LTC sat above the 200-day EMA, currently at $57.23.

The 50-day closed in on the 100-day EMA, with the 100-day EMA narrowing to the 200-day EMA, delivering bullish price signals. A bullish cross of the 50-day EMA through the 100-day EMA would support a run at the August high of $65.83.

However, a fall through the 200-day EMA ($57.23) would bring sub-$55.00 and the August low of $51.59 into view.

EMAs bearish.
LTCUSD 030922 4 Hourly Chart

Polygon (MATIC)

For the week, MATIC is up 12.66% to $0.881. Bullish throughout the week, MATIC rallied from a Monday low of $0.762 to a Friday high of $0.913 before easing back.

This week, Robinhood (HOOD) announced the inclusion of MATIC. According to the announcement, Robinhood supports the sending and receiving of MATIC tokens via Polygon and Ethereum.

Looking at the trends, a MATIC move through the August high of $1.055 would support a run at the May high of $1.187 and a return to $1.50. A breakout from $1.50 would give the bulls a run at the March high of $1.752. MATIC struck a 2022 high of $2.665 on January 1.

However, a fall through the August low of $0.754 would bring the June and the current year low of $0.317 into view.

MATIC gets Robinhood support.
MATICUSD 030922 Daily Chart

Looking at the EMAs and the 4-hourly candlestick chart (below), it was a bullish signal going into Saturday. MATIC sat above the 100-day EMA, currently at $0.842. Significantly, the 100-day EMA crossed through the 200-day EMA, with the 50-day EMA converging on the 200-day EMA.

A bullish cross of the 50-day EMA through the 200-day EMA and the 100-day EMA would support a bearish trend reversal and a run at the August high.

However, a pullback from the EMAs would support a fall through the August low to bring the 2022 low ($0.317) into view.

EMAs turning bullish.
MATICUSD 030922 4 Hourly Chart

Crypto Market Daily Highlights – DOGE Drops Out of the Crypto Top Ten

Key Insights:

  • It is a mixed Friday session for the crypto top ten, with Dogecoin (DOGE) falling out of the top ten and Solana (SOL) leading the way down.
  • US labor market stats and geopolitics sent the NASDAQ 100 and the crypto market into the red.
  • The total crypto market cap is down $4.2 billion to $958.6 billion.

It is a mixed Friday session for the crypto top ten. Bitcoin (BTC) is on target to end the session at sub-$20,000 for the second time this week. However, SOL leads the way down, while DOT leapfrogged DOGE to return to the top ten by market cap.

US economic indicators provided brief crypto market relief before weighing on investor sentiment.

In August, nonfarm payrolls increased by 315k versus a downwardly revised 526k surge in July. Economists forecasted a 300k rise. Despite the increase in hiring, the unemployment rate increased from 3.5% to 3.7% as the participation rate climbed from 62.1% to 62.4%.

While nonfarm payrolls beat expectations, wage growth disappointed. In August, average hourly earnings increased by 0.3% versus a forecasted 0.4% rise. Average hourly earnings increased by 0.5% in July. Year-over-year, wages were up 5.2%. Economists forecast a 5.3% increase.

The positive market response was short-lived, with US Treasury Secretary and Former Fed Chair Janet Yellen weighing on risk sentiment. The Former Fed Chair reportedly said that inflation remained too high, and the onus sat with the Fed to bring inflation down.

Crypto correlation with the NASDAQ 100 remained firmly in place throughout the Friday session. The NASDAQ 100 coughed up early gains to end the day with a 1.31% loss.

NASDAQ correlation.
Total Market Cap – NASDAQ – 030922 5 Min Chart

Crypto Market Cap Finds Brief Relief from US Labor Market Stats

On Friday, the total crypto market cap rose to an early afternoon high of $983.4 billion before sliding to a low of $944.4 billion. Weaker than expected US labor market indicators delivered initial support before sentiment chilled.

Concerns over softer labor market conditions and fear that the Fed would remain committed to delivering its interest rate goals weighed. Adding to the downside was news of Russia reversing plans to resume gas supplies to Germany.

The total market cap is down by $4.19 billion on Friday, with two hours of the session remaining. For the current week, the market cap is up $37 billion to $958.6 billion.

Crypto market sees red.
Total Market Cap 030922 Daily Chart

The Crypto Market Movers and Shakers from the Top Ten and Beyond

It is a mixed Friday session for the crypto top ten.

Polkadot (DOT) bucks the top ten trend, rising by 2.65% to retake the number 10 spot.

However, it is a bearish session for the rest of the top ten, with SOL falling by 1.38% to lead the way down.

BNB (-0.40%), BTC (-0.64%), ETH (-0.15%), and XRP (-0.63%) are also in the red while ADA is currently flat.

From the CoinMarketCap top 100, it is a mixed session.

Litecoin (LTC), yearn.finance (YFI), and Synthetix (SNX) are among the front runners. YFI leads the way, rallying by 8.4%, with LTC and SNX up by 7.0% and 4.6%, respectively.

At the other end of the table, Helium (HNT) continued to slide, falling by 6.6%. UNUS SED LEO (LEO) and Flow (FLOW) are also among the worst performers, with losses of 2.3% and 3.9%, respectively.

24-Hour Crypto Liquidations Fall Despite Bearish Sentiment

Over 24 hours, total liquidations have slipped back, supported by improving market conditions late in the Friday session.

At the time of writing, 24-hour liquidations stood at $149.87 million, down from $154.58 million on Friday morning.

Liquidated traders over the last 24 hours also declined. At the time of writing, liquidated traders stood at 43,947 versus 52,615 on Friday morning. Liquidations over 12 hours and four hours have increased while one-hour liquidations eased back.

Crypto liquidations ease back.
Total Crypto Liquidations 030922

According to Coinglass, 12-hour liquidations stood at $122,97 million, up from $105.75 million on Friday morning, with 4-hour liquidations up from $25.37 million to $28.83 million. However, one-hour liquidations are down from $4.59 million to $1.10 million. The chart below shows market conditions throughout the session.

Crypto market finds late support.
Total Market Cap 030922 Hourly Chart

Adoption Grows as 75% of Retailers Are Eyeing Crypto Payments

Key Insights

  • Deloitte has found that 75% of U.S. retailers plan to accept crypto payments within the next two years. 
  • More than half of large retailers are building the required infrastructure to integrate digital currencies into their services. 
  • 64% of merchants said that their customers have expressed interest in using crypto for payments. 

Despite the crypto market collapsing in May, wiping out nearly $40 billion in investors’ capital, a new survey published by Deloitte suggests that merchants are optimistic about cryptocurrency’s future.

Deloitte, a leading global provider of audit and assurance, consulting, financial advisory, risk advisory and tax services, has found that 75% of U.S. retailers plan to accept crypto or stablecoin payments within the next two years.

As it currently stands, there are over 320 million crypto users worldwide, with global crypto adoption rising by over 880% last year, according to data from Chainalysis and TripleA. As more and more people continue to invest in cryptocurrencies, it is expected that digital assets will make an even larger impact on the retail sector in the coming years.

Merchant Adoption of Digital Currencies

According to Deloitte, more than half of large retailers with revenues over $500 million are currently spending $1 million or more building the required infrastructure to integrate digital currencies into their services.

A large chunk of surveyed merchants (85%) said they anticipate that cryptocurrency payments will become more prevalent in their respective industries within five years, while 60% expect budgets of more than $500,000 to enable crypto payments this year.

In addition, small to medium-sized companies are also entering the space, with 73% of retailers with revenues between $10 million and $100 million investing between $100,000 to $1 million to create the necessary infrastructure.

The survey also found that consumer interest is fuelling merchant adoption, with 64% of retailers confirming that their customers have expressed interest in using crypto for payments. Around 83% of merchants anticipate that this interest is only set to increase in the future.

To this end, a recent study by research firm Insider Intelligence revealed that the number of adults in the U.S. relying on digital assets for everyday purchases is set to surge 70% by the end of this year. This means that 3.6 million Americans, or 10.7% of all crypto owners, will be paying for goods and services in crypto by December 2022.

Insider Intelligence expects cryptocurrencies to exceed $10 billion in global transaction value this year. In fact, the company believes that as digital asset adoption accelerates, the number of users worldwide may eclipse 37.2 million by 2023. This figure is feasible considering that investors entering the global crypto fray have nearly doubled across countries like India and Brazil within the last 12 months.

Push for Crypto Payments

While nearly half expect that cryptocurrency adoption will enhance the customer experience, 93% of retailers that are already accepting cryptocurrency have reported a positive impact on their customer metrics.

However, challenges remain and many merchants cited concerns related to the security of payment systems (43%) fluctuating regulations (37%), volatility (36%) and a lack of budget (30%).

Indeed, the complexities linked to the integration of cryptocurrencies with legacy systems poses the largest challenge, according to 45% of surveyed retailers. Deloitte expressed that wider adoption is more likely across a broader set of products and services as partnerships with regulated and established institutions in the industry help to deliver the benefits of digital currencies.

Additionally, more than 80% of surveyed merchants would be motivated to adopt digital currency payments if third-party processors avoided the traditional holding period or offered no conversion fees for digital and/or fiat currencies.

As it currently stands, 7879 global merchants accept Bitcoin (BTC) as a payment method, according to data from Cryptwerk. That figure stands at 4081 for Ethereum (ETH), 3284 for Litecoin (LTC), 2935 for Bitcoin Cash (BCH), 2058 for Dogecoin (DOGE), 1770 for Dash (DASH), 1658 for Ripple (XRP) and 1299 for Monero (XMR).

Also, leading fashion brands Balenciaga and Gucci announced recently that they are accepting cryptocurrencies across flagship U.S. stores, while PayPal expanded its offering to enable users to transfer cryptocurrency to external wallets after launching a new service last year that enables customers to buy, hold and sell cryptocurrency directly from their PayPal account.

Overall, Deloitte polled 2,000 senior executives at U.S. retail organisations between December 3 and December 16, 2021. The participants were distributed equally among the cosmetics, digital goods, electronics, fashion, food and beverages, home and garden, hospitality and leisure, personal and household goods, services and transportation sectors.

Growth

In other news, a new report by Messari and Dove Metrics has found that $30 billion was raised from 1199 funding rounds in the first half of this year, outpacing the entire year of fundraising in 2021. The centralised finance (CeFi) sector received a third of the total funds raised, while decentralised finance (DeFi) saw $1.8 billion in funding.

Meanwhile, Venture Capital (VC) investments in the space have reached $18.3 billion so far this year, which is nearly triple the amount invested in 2020 and also on pace to surpass 2021’s record of $32.4 billion, according to Steven Alexopoulos, an analyst at JP Morgan. With such developments in mind, it is clear that the cryptocurrency industry is set to expand further, with increased adoption setting the stage for future growth.

Litecoin Price Prediction: Can LTC Sustain its Bull Run?

Key Insights:

  • LTC’s price has risen 25% in just five days. 
  • The token ranks 21st in the list of cryptocurrencies worldwide by market capitalisation at $4.2 billion. 
  • The daily simple and exponential moving averages are giving mostly buy signals.

LTC, the cryptocurrency that was created from a fork in the Bitcoin (BTC) blockchain and is based on BTC’s original source code, has been on somewhat of a bull run recently after rising from $46.95 on July 13 to $58.81 by July 18 – a 25% spike in just five days.

The token, which has stayed above the 50-day moving average (MA) for nearly ten days, is currently up over 11%.

Litecoin was initially designed to improve several of Bitcoin’s shortcomings, such as slow transaction processing speeds and mining monopolies. It uses a form of proof-of-work (PoW) mining to enable anyone who dedicates computing hardware to earn LTC by adding new blocks to its blockchain.

Price Action

LTC started its journey at $3.0449 on May 3, 2013. However, the token did not see much price action until 2017 when it surpassed the $50 level in August before rallying to $318.72 on December 17 that same year.

A strong correction followed and by early February 2018, the Litecoin crypto had dropped to a low of $138.2. Further lows came in July when LTC fell to the $70 level and it ended up closing the year at $31.57.

Despite reaching a high of $135.48 in mid-2019, the coin struggled to break through the $50 barrier in a meaningful way for most of 2020 and remained a long way off its previous year highs.

 

LTC weekly price chart
LTC 280722 Weekly Price Chart

However, by late 2020, LTC witnessed a significant surge, climbing from $69.12 on November 27 to $129 by the end of that year, and then to $236.68 on February 19, 2021, with yet another rally taking place on April 16 to the $310 level.

By May 10, 2021, the Litecoin token had achieved its all-time high (ATH) price of $412.96, before crashing to $199.22 on May 26 – a 51% drop in just 17 days.

The coin opened this year at $151.26 on January 2 but had fallen below the $100 level by early March. Despite failing to regain its 2021 highs, LTC has seen some positive price action since July 18 when it started hovering around the $60 mark. By July 20, it had reached $60.97 but it stayed below this level until today when it regained momentum and hit the $60 level yet again.

LTC is currently trading at $59.69 and ranks 21st in the list of cryptocurrencies worldwide by market capitalisation at $4.2 billion.

 

LTC daily price chart
LTC 280722 Daily Price Chart

Technical Indicators

Technical analysis shows that short-term sentiment on LTC is neutral, with 17 indicators displaying bullish signals compared to 15 bearish signals at the time of writing.

The daily simple and exponential moving averages (EMA) are giving mostly buy signals, while the relative strength index (RSI) stands at 58.05.

An RSI reading of 30 or below indicates an oversold or undervalued condition, while a reading above 70 would suggest the asset is becoming overvalued or overbought.

In terms of a Litecoin crypto price prediction, LTC could see its price rising to $60.660 by August 2022, reaching $113.222 in January 2024 and increasing to $131.543 by January 2025.

Kraken Faces Investigation for Letting Users in Iran Buy and Sell Crypto

Key Insights:

  • The US Treasury is probing whether Kraken allowed users in Iran to trade cryptos.
  • The exchange has been under investigation since 2019 and is likely to be fined, reports noted.
  • Crypto payment platforms BitGo and BitPay faced hefty fines for apparent sanctions violations.

Crypto exchange Kraken (KRAK) would face a probe from the US Treasury for reportedly allowing users from sanctioned nations to trade cryptocurrencies.

According to a New York Times report, the Department of Treasury has suspected Kraken of violating US sanctions, a powerful tool in dealing with countries that defy US foreign policy interests.

The exchange has allegedly permitted users from Iran to buy and sell cryptos from its platform.

According to five unnamed persons familiar with the matter, the Treasury’s Office of Foreign Assets Control (OFAC) has been involved in probing the Kraken exchange since 2019. It is expected to slap the crypto behemoth with a hefty fine in the near future.

A spokesperson from the Treasury noted,

“The Treasury does not confirm or comment on potential or ongoing investigations. We remain committed to using all of our tools and authorities to enforce the sanctions that protect US national security.”

Per the US sanctions against Iran, exports to the mid-east nation are prohibited. If investigations find Kraken guilty, the exchange would be the largest US crypto firm to face an Office of Foreign Assets Control enforcement action related to sanctions against Iran.

Kraken has been mum when asked about the investigation and pending fine. In an email to the Times, Marco Santori, Kraken’s chief legal officer, said that the company does not comment on specific discussions with regulators. He added,

“Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.”

Uncle Sam Cracks Down on Crypto Companies

The federal government has scrutinized several crypto firms as the market multiplies.

For instance, California-based crypto wallet service BitGo was booked for 183 apparent US sanctions violations and was fined more than $98,000 in 2020. This was followed by BitPay, which paid over $500,000 for 2,102 violations.

Jesse Powell, the co-founder of Kraken, shared a spreadsheet last month on a company Slack channel that showed where the company’s customers are located. The data noted 1,522 users with residences in Iran, 149 in Syria, and 83 in Cuba, all of which are sanctioned nations, the Times reported.

However, this isn’t the first time the $11 billion value Kraken has been under the lens of the Department of Treasury. In 2019, a former employee from the company’s finance department, Nathan Peter Runyon, accused the startup of generating revenue from accounts based in sanctioned nations. The lawsuit was settled last year.

The Treasury noted last year that cryptocurrencies like bitcoin (BTC), ether (ETH), and litecoin (LTC) “potentially reduce the efficacy of American sanctions.” The department suggested crypto firms in the US use geolocation tools to cut out customers from those nations.

US SEC Investigates Coinbase Over Unregistered Securities Listings

Key Insights:

  • Coinbase is facing an SEC probe for reportedly listing unregistered securities.
  • The regulator is looking into an alleged insider trading scheme revealed last week.
  • SEC’s scrutiny has increased since Coinbase expanded the number of trading tokens.

Crypto trading platform Coinbase (COIN) is facing a fresh probe from the US Securities and Exchange Commission (SEC) over allegedly listing unregistered securities.

Per a Bloomberg report, the largest U.S.-based cryptocurrency trading platform, Coinbase, has boosted its token offerings in the recent past. This has triggered SEC to investigate whether the exchange has prompted Americans to trade tokens that should have been registered as securities, two sources familiar with the matter said.

Probe predates insider trading lawsuit

The recent probe by the SEC’s enforcement unit predates last week’s investigation into insider trading charges against a former Coinbase product manager and two others.

The accused perpetrated a scheme to trade ahead of multiple announcements regarding certain crypto assets that would be made available for trading on the Coinbase platform, SEC’s announcement read.

“[The perpetrators] allegedly purchased at least 25 crypto assets, at least nine of which were securities, and then typically sold them shortly after the announcements for a profit.”

However, Coinbase firmly stated that the company “does not list securities. Period.”

Paul Grewal, Chief Legal Officer at Coinbase, noted last week that seven of the nine digital assets claimed by the SEC are listed on Coinbase. He continued,

“None of these assets are securities. Coinbase has a rigorous process to analyze and review each digital asset before making it available on our exchange — a process that the SEC itself has reviewed.”

Coinbase also questioned SEC by filing a petition to state a workable regulatory framework for digital asset securities clearly.

Coinbase has been facing scrutiny from the regulator, and the firm noted in its first-quarter earnings report that it had received “investigative subpoenas from the SEC.”

The regulator had demanded “information about certain of our customer programs, operations, and intended future products, including our stablecoin and yield-generating products,” it noted.

Securities – as opposed to other assets like commodities – are strictly regulated and require detailed disclosures to inform investors of potential risks.

In 2017, the then SEC Chair Jay Clayton warned crypto exchanges that many of their digital assets qualified as securities and therefore require registration under federal securities laws. However, in 2018, Clayton clarified in an interview with CNBC that cryptos are “commodities rather than securities.” This includes digital assets such as bitcoin (BTC), ether (ETH), and litecoin (LTC).

However, the SEC has not clarified which coins fall under securities, and crypto platform operators are looking for a clear digital-asset rule to avoid listing unregulated assets.

Bitcoin and ETH Price Prediction: Bulls Keeps Pushing, NEAR Price Targets $8

Key Insights:

  • Bitcoin remains in a positive zone above the $23,000 level.
  • Ether (ETH) is eyeing more gains above $1,625.
  • NEAR broke out of major resistance level and is now targeting $8.

Bitcoin (BTC)

The price of bitcoin (BTC) has recently surged past the $23,000 resistance and is now consolidating above the 21-day simple moving average (H1).

The next major resistance is near the $24,000 level. A clear move above the $24,000 zone could send the price further towards the $25,000 psychological level.

Bitcoin BTC Hourly Chart
BTC Hourly Chart by FXEmpire

If there is a downside correction, there is support on the H1 indicator, as well as the $23,000 mark. If those fail to hold, then BTC may hurtle back to $22,000 where it previously found support.

Ethereum (ETH)

ETH also followed a bullish path after it broke the $1,440 resistance zone. The price cleared the key $1,550 level and is now consolidating.

The price briefly surpassed the $1,600 level but was unable to maintain its rally, falling back down towards the 21-day simple moving average (H1).

An immediate support on the downside sits near the $1,400 level and a connecting bullish trend line on the hourly chart.

Ether ETH Hourly Chart
ETH Hourly Chart by FXEmpire

If ETH is able to consolidate above $1,500 until the end of the week, the bulls may attempt to push past $1,600 level again, as long as the wider crypto markets continue their rallies as well.

Should ETH fail to push past this level, then we may see a correction towards the $1,400 and even lower yet to $1,200 if there are wider market downturns.

NEAR Protocol (NEAR)

After a failed breakout above $4.60, NEAR is now seeing a pullback towards the $4 level again.

This recent price action follows a few weeks of widespread declines in the market which saw NEAR dropping to as low as $2.80 for a brief period of time.

The token then consolidated for a few weeks before shooting up and recovering some losses.

This week, it gained over 30% and surpassed a key bearish trend line with resistance near $3.20 on the daily chart.

If the bulls are able to form a new support above the $4 region, then we may see another attempt to push past $4.60 in the coming days.

If this level cannot hold, then the previous resistance at $3.20 may provide some support going forward.

NEAR Daily Chart
NEAR Daily Chart by FXEmpire

If bullish price action continues in the wider crypto markets, then the next resistance level for NEAR is at $5 and $6.80 above that.

The most significant resistance above that would be the $10 level which serves as a psychological barrier due to being a round number.

ADA, BNB, and DOT price

Cardano (ADA) is now consolidating near the $0.525 level. If current price action continues, the price could test the $0.55 level in the coming days.

Binance Coin (BNB) is slowly moving higher towards the $275 resistance zone. If the bulls are able to carry the price higher, then the next resistance is at $290.

Polkadot (DOT) is consolidating above the $7.50 support. On the upside, there will likely be some resistance at $8 due to previous price action.

A few trending coins are DOGE, SHIB, and LTC. Out of these, DOGE is gaining pace for a move toward the $0.0735 resistance zone.

Crypto Price Analysis July 5: SNX, COMP, LTC, GMT, BAT

Key Insights:

  • Synthetix was one of the worst performers of the day, marking an 8% decline.
  • STEPN (GMT) stood on the other end of the spectrum, up by 6.48%.
  • Bitcoin and Ethereum slipped to $19k and $1k once again today.

With the entire market in red, most of the altcoins kept following the broader market cues, while some other rebelled. Bitcoin and Ethereum sadly fell into the former category trading at $19k and $1k, respectively.

Synthetix (SNX)

Trading at $2.58, SNX was one of the leading altcoins today to paint red on the charts. Declining by 9.12%, the cryptocurrency wiped out half of the 27.63% rally from the previous 48 hours.

At the moment, the altcoin is somehow maintaining the bullishness it obtained from the 109% rise, saving Awesome Oscillator from falling below the neutral line.

Compound (COMP)

Following in the footsteps of Synthetix, Compound also noted a 7.89% fall in price, however, investors will not be affected too severely in the case of COMP.

This is because it is still sustaining most of the 92.22% rally from June, and in addition to that, the candlestick is keeping above the bias of the Bollinger Bands, which will help it in continuing the price rise.

Litecoin (LTC)

The silver to Bitcoin’s gold, Litecoin, adhered to the broader market trend sinking by 8.18%  in the last 24 hours. This further added to the 18% decline LTC has observed in the previous ten days.

In addition to this, the streak of inflows it had been noticing since the mid-June 35.4% rally finally came to an end 48 hours ago when Chaikin Money Flow market outflows.

STEPN (GMT)

The DeFi fitness protocol was observed treading against the active market trend and climbed by over 7% in the last 24 hours.

The 8.82% rise in 2 days only makes up for half the 18% drawdown from the previous week, but the same is still keeping the 66.5% rally from June intact.

Furthermore, with the MACD keeping away from a bearish crossover, for now, GMT might be able to continue rising towards $1.

Basic Attention Token (BAT)

BAT kept GMT company with an 8.52% rise bringing the coin to trade at $0.43. The coin recently fell by 14.46%, however, the surge that followed helped BAT recover to the price point it was at after the 52.47% rally.

The Relative Strength Index (RSI) is also keeping above the neutral line in the bullish area, exhibiting no selling pressure on the altcoin for now.

Top 3 Trending Coins: BTC Primed For Breakout, Possible Vauld Acquisition Fails to Lift NEXO

Key Points

  • Bitcoin has formed a pennant structure that could see it push into the mid-$20Ks or to fresh annual lows.
  • NEXO has shown no signs of picking up amid news that Nexo is looking to buy Vauld.
  • Litecoin is underperforming on Tuesday and eyeing a drop back to annual lows just above $40.

Amid a more risk-averse macro mood as US market participants return to the fray following a public holiday extended weekend, cryptocurrency prices have been pulling back from earlier weekly highs. Market commentators were on Tuesday citing another big intra-day jump in European gas prices as raising risks of a stagflationary recession there, which has resulted in a bid for safe-haven assets like the US dollar and US bonds.

Stocks have been under pressure ahead of the US open and it, thus, isn’t too surprising to see that Bitcoin has pulled back about $1,000 to new session lows under $19,500. That means the cryptocurrency is back to close to flat on the week, having been as much as 6.0% higher when it came close to hitting $20,500 during Asia Pacific trade.

BTC/USD was thus last trading down by just shy of 4.0% on the day, while the world’s second-largest cryptocurrency by market capitalization Ethereum was trading closer to 4.5% lower on an intra-day basis. ETH/USD was last changing hands almost bang on the $1,100 level, having dropped back under its 21-Day Moving Average at $1,120 per token.

Like Bitcoin, Ethereum is still trading well within this week’s and recent ranges. Crypto trading conditions are likely to remain rangebound for the remainder of Tuesday’s session amid a lack of any notable US economic/central bank events to drive any macro volatility.

Focus has already shifted to the release of US ISM Service PMI survey results on Wednesday ahead of the publishing of the minutes from the Fed’s ultra-hawkish meeting last month. Traders will recall that, in June, the Fed implemented its largest rate hike in 28 years of 75 bps in a bid to demonstrate that it is serious about getting inflation under control.

Just a few days before the June Fed meeting, data showed that US inflationary pressures according to the Consumer Price Index had unexpectedly accelerated in May. The tone of the minutes tomorrow are likely to be very hawkish, with the Fed signaling for the first time back in June that it is willing to sacrifice growth and the health of the labor market (to an extent) if that is required to bring down inflation.

With US 10-year yields currently down nearly 70 bps from their mid-June highs near 3.5%, markets seem to have become much more pessimistic on the US growth outlook. Wednesday’s ISM data will be viewed in this context. A combination of poor data but a still very hawkish sounding Fed could weigh on risk assets like stocks and crypto.

Below is a list of Tuesday’s trending cryptocurrencies.

Bitcoin (BTC)

There has been lots of chatter in recent days about whether or not Bitcoin might have already or be close to printing its bottom for this bearish cryptocurrency market cycle. Various on-chain indicators of wallet activity cited by crypto analysts have been put forth as supporting the argument that Bitcoin is at/near a bottom. Usually, they argue in some way or another that 1) capitulation of weak-hand investors is advanced/nearly complete and 2) Bitcoin is oversold/under-valued.

Macro strategists have warned, however, that unless global inflationary pressures begin to tame, thus allowing central banks like the Fed to ease off on the tightening, Bitcoin’s bear market may still have some way to run. The situation could be made even worse if fears about a recession continue to rise, but this isn’t also coupled with expectations for easier central bank policy.

Bitcoin appears to have formed a pennant structure in the last few weeks since prices stabilized following their early/mid-June collapse. If Bitcoin can manage a sustained break above its 21DMA, that opens the door to a push towards the $23,000/$24,000 area.

But at the same time, a break below last week’s lows in the upper-$18,000s could trigger selling pressure that has the potential to push Bitcoin to fresh annual lows under $17,600. In the absence of a broad macro rebound in risk assets (like stocks) on bets that inflation will ease (perhaps due to a recession), the downside break looks the more likely outcome.

BTC/USD
BTC/USD forming a pennant. Source: FX Empire

Nexo (NEXO)

Cryptocurrency lending/yield generating service Nexo continues to project strength at a time when many of its competitors are imploding. Coinbase-backed digital assets platform Vauld has become the latest to halt withdrawals, but Nexo has immediately pounced. The two firms signed a so-called term sheet outlining plans for Nexo to acquire Vauld’s troubled assets within the next 60 days.

Nexo also offered to buy troubled Celsius Network assets immediately after the rival lending platform halted withdrawals amid “extreme market conditions” more than three weeks ago. Nexo has said that it is planning a mass consolidation of the crypto industry during the current bear market, indicating to crypto investors that its balance sheet must be looking much stronger than many of its competitors.

However, recent price action in Nexo’s utility token (holders get cheaper loans, and higher yields on deposits) tells a different story. NEXO/USD is down a little over 5.0% on Tuesday despite the news that Nexo is looking to buy Vauld, losses that are in line with the rest of the crypto market.

Since the start of May, NEXO/USD has dropped over 75% from above $2.30 per token to current levels just under $0.58. It only currently trades around 5.5% above the sub-$0.55 record lows printed last week.

The bulk of these losses came when Terra’s algorithmic stablecoin UST collapsed from its 1:1 peg to the US dollar back in early May, sending a chill across the Decentralised/Centralised Finance (DeFi and CeFi) space. Nexo is categorized as a CeFi platform.

NEXO/USD’s continued failure to get above its 21DMA, which was most recently evident in the last few days, suggest a downside break of the all-time lows looks very much on the cards. Crypto investors are obviously still very worried about the health of Nexo’s balance sheet given the fate being suffered by many of its competitors.

NEXO/USD
NEXO/USD eyeing annual lows despite Nexo’s potential Vauld acquisition. Source: FX Empire

Litecoin (LTC)

Litecoin was last down 7.5% on Tuesday, taking its losses in the last 24 hours to nearly 5.0% as per CoinMarketCap. That makes Litecoin the worst-performing cryptocurrency in the top 50 by market cap in the last day.

LTC/USD failed an attempt earlier in the day to break back above its 21DMA (just above $52.0) and has since slumped to fresh lows since 19 June in the low-$48.0s. Its technicals are looking bearish, with the pair very much still capped by a negative trend line that has been in play since mid-May.

The implication is that a near-term test of the 2021 lows just above $40 looks to be on the cards for the coming sessions/weeks.

LTC/USD
LTC/USD also looking on course for a test of annual lows. Source: FX Empire

Crypto Casino Stake.com Unfazed by Crypto Winter with Everton FC Deal

Key Insights:

  • This week, Australian crypto casino Stake.com signed a new deal with English Premier League side Everton Football Club.
  • Stake.com was unfazed by the adverse effects of the crypto winter on the broader crypto market, which has led to numerous exchanges cutting costs.
  • Several crypto exchanges are looking beyond cutting headcounts, with some revisiting sponsorship plans to reduce costs further.

The crypto market and sport have forged a strong partnership in recent years. At the forefront of evolution into sports is Dapper Labs (FLOW).

Behind the Flow blockchain, Dapper Labs has been a leading name in linking US sports franchises with digital assets.

In 2020, Dapper Labs partnered with the US National Basketball Association to launch the NBA NFT marketplace Top Shot. The launch followed a partnership with the National Football League (NFL) that culminated in the launch of the NFT marketplace NFLALLDAY.

Since then, crypto exchanges have also embraced the world of sport. Sports gives crypto platforms access to an untapped customer base in more prosperous regions, including North America and Europe.

In recent months, however, the crypto winter has impacted the cash flow of several prominent exchanges. Reports of reducing workforces have added to the gloomy mood.

However, it isn’t all doom and gloom, with several crypto-linked companies seeing the crypto winter as an opportunity.

Stake.com Expands Its Bandwidth with Everton FC Sponsorship Deal

This week, the Sydney Morning Herald reported news of Australia-founded crypto casino Stake.com signing a new sponsorship deal with Everton FC.

According to reports, Stake.com signed a multi-year deal with the English Premier League side, who lost its previous shirt sponsor due to Russian sanctions.

The deal is reportedly the “highest value front-of-shirt deal in the Club’s 144-year history.”

It is not the casino’s first foray into English football.

Stake.com is also the main sponsor of Watford Football Club. The platform committed to its second year as the official sponsor despite relegation to the Championship.

Stake.com also has sponsorship deals with individuals, including hip-hop star Drake and other sporting franchises. Franchises include Boxing Japan and Rugby League Brazil.

Established in 2017, Stake.com has become one of the leading casino and sports betting platforms for cryptocurrencies, including bitcoin (BTC), Dogecoin (DOGE), EOS (EOS), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and Tron (TRX).

The latest sponsorship deal, however, comes at a tumultuous time for crypto exchanges.

In recent weeks, numerous crypto exchanges announced workforce reductions, with some looking beyond payrolls to reduce costs.

Crypto Platforms Drop Sports Sponsorship Deals As Crypto Winter Bites

While some platforms are ever-expanding into the world of sport, others are tightening their belts.

According to the New York Post, leading crypto exchange FTX reportedly pulled out of a multi-million dollar deal with the Major Baseball League’s Los Angeles Angels.

FTX had been particularly active in the sports world before hitting the brakes.

In February, FTX joined the leading crypto exchanges in the Superbowl LVI half-time show. FTX reportedly paid $6.5 million for a 30-second ad, with Crypto.com, eToro, and Coinbase also paying for airtime at the half-time show.

Another unnamed exchange recently pulled out of a deal with the NBA’s Washington Wizards.

The marked shift in the landscape places an even greater emphasis on Stake.com and its unwavering appetite to access an untapped customer base through sport.

Crypto Price Analysis June 20: GMT, 1INCH, AAVE, APE, LTC

Key Insights:

  • Ethereum is barely holding on to $1k as support, with the alt trading at $1,096.
  • Stephen and 1Inch were some of the leading cryptocurrencies in the last 24 hours.
  • Litecoin, along with a few other alts, led the downfall.

The broader crypto market gained $62 billion yesterday, but the same does not compensate enough for the losses witnessed throughout June.

As the month comes to an end, the crypto market is yet to recover and rise back above the $1 trillion mark in the next nine days.

STEPN (GMT)

The altcoin, with a market cap of $456 million, was one of the highlights of the last 24 hours when GMT registered an almost 30% rally. Trading at $0.7569, this rise brought the coin closer to reclaiming the $1 mark and flipping it into support.

The MACD has always been supportive of a price rise as not once in the last 1 month has there been a bearish crossover in the case of GMT. With more green bars appearing, the price rise might continue.

1Inch (1INCH)

The native token of the Decentralized Exchange, 1INCH, was leading the cryptocurrencies on the charts as the altcoin achieved a rally of 20.15% rally in 24 hours. Lingering at $0.6636, 1INCH is showing promise of sustained growth with the recent green candles. 

According to the Parabolic SAR’s white dots, the proximity of the asset to the indicator is a sign that a trend reversal in inbound could place the aforementioned white dots beneath the candlesticks.

AAVE (AAVE)

Next up on the list of the best performing cryptocurrencies of the day is AAVE which managed to register a 20.51% rally right after the altcoin lost almost 58% owing to the recent market crash. The coin is attempting to close above $60 at the time of writing.

This would bring AAVE closer to its 50-day Simple Moving Average (SMA), which is a critical support level. Reclaiming this would also push AAVE above the $100 mark.

ApeCoin (APE)

The Bored Ape Yacht Club’s native token ApeCoin has managed to mark a substantial rise of 30.26% for itself, moving up from the lows it hit after the 53.32% crash it witnessed this June.

Trading at $4.4 at the time of writing, the altcoin, although it is nowhere close to its highs, the broader market’s support might push it to that level.

Plus, the rally also placed the Relative Strenght Index (RSI) closer towards the neutral line and might eventually pull it out and place the indicator back into the bullish zone after more than 45 days.

Litecoin (LTC)

While the rest of the altcoins continued their rally for more than two days, LTC cut the rise short and noted a 4% decline over the last 24 hours. This is despite the fact that just a day before that, LTC managed to spike up by almost 15%.

Now, as the silver to Bitcoin’s gold trades at $52, it is also noting the gradual disappearance of the bearishness from the market.

The receding green bars here on the Awesome Oscillator aren’t signs of receding bullishness, but actually, bearishness as these bars will flip the trend once they rise above the neutral mark.

Part One: It Is Time for CBDCs To Consider the Environment

Key Insights:

  • CBDCs should primarily focus on environment-friendly factors while choosing platforms, software, and hardware designs.
  • The IMF notes that the annual energy consumption of the global payment system is 47.3 TWh.
  • Energy consumption of POW-based cryptos like Bitcoin remains high, while POS consumes less energy.

The environment has constantly been questioned when the topic of cryptocurrencies such as bitcoin (BTC) and ether (ETH) pops up. Some crypto networks use significant amounts of electricity to maintain the blockchain, generating substantial greenhouse gas emissions. This applies to central bank digital currencies (CBDC) too.

These have raised concerns among regulators and global banks that have stepped in, proposing best practices to address the issue. 

For instance, the International Monetary Fund (IMF) released a report at the start of June, recommending countries looking to develop CBDC consider energy consumption while laying their design work.

The international organization, which has been studying digital assets and their impact on global financial stability, has now turned its focus to sustainable digital assets. The report read,

“Major cloud service providers are shifting toward renewable sources of energy such as geothermal and hydropower, as well as toward locations with colder climates, to reduce the carbon footprint in generating power. Adding the environmental footprint as a selection criterion of a cloud partner can benefit not only the CBDC project but also any future digitization project of a central bank.”

Most central banks across the globe have already agreed to work toward fighting climate change while designing their payment system.

How alarming are significant energy costs?

The IMF estimates that the annual energy consumption of the global payment system is around 47.3 TWh [terawatt-hours]. This comes close to the overall yearly energy consumption of countries like Portugal and Bangladesh.

In particular, the evaluations noted that bitcoin consumes about 144 TWh per year.

Per the Crypto Carbon Ratings Institute (CCRI), which tracks the carbon emissions of various crypto networks, BTC and ETH’s energy consumption is enormously higher than other networks.

Source: CCRI

These estimates seem more alarming as several nations are making strides toward launching their own digital version of national currency.

How can CBDCs adhere to sustainability?

IMF study suggested national banks and crypto firms to move away from energy-intensive proof-of-work (POW) protocols. Per the report, blockchain networks that use the POW mechanism consume large amounts of energy.

By definition, POW is a common consensus algorithm that is used by popular crypto networks like bitcoin and litecoin (LTC). Critics of bitcoin miners have argued that the POW mechanism is “overly energy-intensive” and takes longer processing time.

Alternatively, IMF said that energy-conscious crypto networks could rely on non-POW models such as proof-of-stake (POS) protocols. These mechanisms likely consume relatively little energy.

“The potential of non-PoW permissioned crypto assets to reduce energy consumption relative to the existing payment system comes about from energy savings on both core processing architectures and user payment means.”

IMF noted that depending upon the specific configuration details, CBDCs, and certain digital assets could be more energy-efficient. The report compared energy consumption of the current payment landscapes, including credit and debit cards.

According to a blog post on Thursday, IMF noted that replacing POW with other consensus mechanisms is the “first green leap for crypto,” and using permissioned systems is the second. It further said,

“Together, these advances put crypto’s energy consumption well below that of credit cards.”

Energy Consumption of POS Blockchain networks

According to new research by the CCRI, Avalanche (AVAX) blockchain is one of the most energy-efficient among other extensive blockchain networks.

The report said that Avalanche used just 0.0005 percent of the energy used by the Bitcoin blockchain and 0.0028 percent of the energy used by the Ethereum blockchain.

On the other hand, DeFiLlama data showed that the “total value locked (TVL)” for Avalanche was the highest per unit of electricity. TVL is the value of all financial applications on the blockchain.

The TVL of Avalanche per kWh is recorded as $18,454, more than four times compared $4,395 per kWh on Solana (SOL) blockchain. Tezos (XTZ) recorded $943 per kWh, while the TVL is $161 on Algorand (ALGO), $120 per kWh on Cardano (ADA), and $19.18 per kWh for Polkadot (DOT).

These six POS networks selected do not employ identical algorithms. They have different prerequisites in terms of hardware, network size, transaction throughput, and other properties, according to the CCRI.

Another user noted that SafeCoin (SAFE), which offers a new algorithm, Proof of Resource, consumes only ~0.0000027kW per transaction.

When it comes to the design of CBDCs, Richard Dennis, founder of the Dragon IT Security, emphasized that,

“The key criteria for central banks are speed, scalability, the need for it to be very efficient and for the cost to be low.”

Top 5 Cryptocurrencies to Watch this Week: BTC, ETH, SOL, LTC, ETC

Key Insights:

  • The top cryptocurrency, bitcoin (BTC), was still below the crucial $20,000 support.
  • Volatile market conditions and BTC’s minor price upticks gave way to certain altcoin recoveries.
  • ETH, SOL, LTC, and ETC could be some altcoins to watch over the coming week closely.

While the global crypto market cap was still below the $1 trillion mark, there was some optimism in the market in the early trading hours of the Asian session on 20 June. The global crypto market cap stood at $899.00 billion, noting an 8.97% increase over the last day.

Bitcoin, the top cryptocurrency by market capitalization, traded at $20,379 noting a 9.81% rise in the 24-hour window. In tandem with BTC’s momentum, altcoins like ether (ETH), Solana (SOL), Litecoin (LTC), and Ethereum Classic (ETC) enjoyed decent gains in the short-term window.

Seemingly, top altcoins such as ETH, SOL, LTC, and ETC could be worth watching in the coming week.

Bitcoin (BTC)

On 18 June, bitcoin’s price fell below $20,000, which has acted as a historic long-term support. The $20,000 mark was also the all-time high price of the last cycle when BTC made a new all-time high at that price range in the year 2017.

Bitcoin’s price drop came alongside the larger market correction, which resulted in most cryptocurrencies trading deep into the negative territory. Bitcoin’s price fell to the lowest price level since December 2020.

At press time, BTC traded at $20,379, noting a 9.81% rise in the 24-hour window. However, over the last 24 hours, the asset tested lower $18,926 levels before rebounding marginally above.

Last week, the US stock market started to show a minor recovery as the three major US stock indexes finished higher, marking an end to their longest weekly losing streaks in decades. S&P 500, Dow Jones Industrial Average, and Nasdaq Composite were closed higher, making investors optimistic.

From a price perspective, BTC’s current short-term trajectory favored bulls as the price established above the crucial $20,000 psychological support.

FXempire, BTC, Crypto, bitcoin
BTC Price Action | Source: FXEmpire

BTC’s recent pullback below the $20,000 mark disproved the market theory about bitcoin’s price not falling below its previous cycle’s highs. The last cycle ATH theory held true during the 2018 drawdown but has now been disproven for the current cycle.

With the short-term relative strength index (RSI) noting a significant recovery, the same presented a rise in buyers. Higher buying pressure in the market could fuel BTC for gains in the near term.

However, looking at technicals, it could be said that the upside would be limited for BTC unless bulls take control and a price action like July 2021 takes place.

All in all, the top cryptocurrency’s price action would be crucial to watch in the coming week and could direct the larger market’s trajectory.

Ethereum (ETH)

The king altcoin, ether (ETH), was one of the top gainers in the top 20 coins by market cap at press time, noting close to 20% gains on the daily chart. In the bigger picture though, ETH’s price chart didn’t look pretty.

While ETH was still down 76.49% from its all-time high, the coin managed to push itself above the crucial $1000 mark over the last 24 hours. ETH’s price made a parabolic recovery above the $1000 psychological price barrier.

FXempire, ETH, Crypto
ETH Price Action | Source: FXEmpire

As we advance, if bulls can push ETH’s price above the $1200 mark, a recovery could be confirmed from the lower lows. At press time, ETH’s price traded at $1,131.63 as the coin’s RSI presented a rise in buying pressure.

Solana (SOL)

In tandem with BTC’s price rise, altcoins, too, saw a decent price recovery on their short-term chart. Solana’s four-hour price chart presented the asset’s recovery above the $30 mark.

In the near term, if buyers are able to push SOL above the $35 mark and then above the $40 resistance, a recovery could be confirmed for the altcoin.

FXempire, SOL, Crypto
SOL Price Action | Source: FXEmpire

That said, the market looked largely volatile, and a price push in either direction could be seen in the short-term depending on BTC’s price action.

Litecoin (LTC) and Ethereum Classic (ETC)

In a bear market, when shorter periods of bullish price action take place, generally, coins with a high correlation with bitcoin do well. Both LTC and ETC have been highly correlated with the top cryptocurrency.
Additionally, the two coins often see lower volatility swings in a largely volatile market.

Litecoin’s price tested the $55 resistance, trading above the level briefly. At press time, the coin traded at $54.83, noting a 23.16% rise on the daily and a 9.21% rise on the weekly chart.

FXempire, LTC, Crypto
LTC Price Action | Source: FXEmpire

In the near term, if LTC bulls can push the coin above the $60 mark, the same could fuel further gains. On the contrary, a pullback to the $50 level could be expected if bears take control.

ETC’s price action could take some interesting turns if BTC bulls support bitcoin’s positive momentum in the coming week.

FXempire, ETC, Crypto, BTC
ETC Price Action | Source: FXEmpire

In the short term, if buying pressure pushes ETC’s price above the $18.5 mark, further gains could be expected. Furthermore, a push to the $24 mark could reignite positive momentum for the coin.

While the downside for ETC looks limited, further downward momentum could bring the coin down to the $10 mark if another set of sell-offs follows.

Is There a Good Time To Invest in Cryptocurrencies Amid Current Turmoil?

Key Insights:

  • Investing in crypto and holding it for a long time might help escape the current meltdown.
  • Crypto experts seem to be optimistic about the market recovery.
  • Crypto assets diversifying could help in minimizing risks and mass loss.

As most crypto investors are having a nail-biting moment about whether their assets will return to them amid the unexpected market turmoil, many newcomers and existing users are looking to buy the dip.

A recent GOBankingRates survey noted that one-quarter of people invest in crypto assets, be it bitcoin (BTC) or ether (ETH). The majority of investors and traders are relative newbies to the crypto world, many of whom got into investing during the pandemic.

But that did not save them from being hardly hit by Monday’s brutal selloff, which pulled down bitcoin to below $24,000. Garcia, a 24-year full-time trader from Miami, lost $7K on Monday from her initial investment of $10,000 on digital assets. She noted that the losses weren’t unexpected but shocking. The trader told Bloomberg,

“It’s scary for sure. If you’re a professional trader, you know not to risk anything you can’t afford to lose. I think I’m just going to be a lot more diligent.”

Many investors are clinging to the nascent asset class, given the potential of the promising technology that is changing the world. Users believe that the current rout could rebound back shortly.

Is “Buy the Dip” mantra applicable now?

Usually, the “buy the dip” principle pops up when price drops are temporary and recover themselves over time. Dip buyers buy at a relative discount and reap the rewards when prices go up.

As the crypto market, on the whole, is very unpredictable, investing any time, including buying the dip, could be risky. While there are chances that the prices would bounce back, so are the probability that it could plunge further.

Oleg Giberstein, the co-founder of Coinrule, told Forbes publication that it is not just that crypto is down, but the overall economic outlook is bad. 

Regarding buying the dip, he advised that investors must decide on the amount they are comfortable investing to buy cryptos like BTC or ETH and not worry too much about their prices for the next two years.

When is the best time to buy crypto assets?

With crypto, everything is constantly changing. Timing a cryptocurrency buy can be difficult, if not treacherous, as all kinds of elements determine a coin’s price action.

This is so true that some people have made significant gains on the right buy at the right time, mostly not from timing the market but often by luck.

As cryptos trade all day long, even during the wee morning hours, timing crypto trades would be fraught with peril. However, experts suggest that analyzing a few months of data could generate a general trading pattern, which can be considered when buying digital assets. 

Cryptos, like any other investment asset, the best bet would be to hold in for a longer-term. According to Bob Mason, a financial consultant and subject matter expert at FX Empire, 

“Buying now for a long-term hold may make sense, though buying on the rise would be a more sound investment decision than during this current downtrend.”           

Experts are “optimistic”

A recent bitcoin report by Block, formerly known as Square, revealed that the more people believe their knowledge to be about cryptos, the stronger optimistic they are about bitcoin’s future.

On Monday, founder and CEO of SkyBridge Capital wealth management fund Anthony Scaramucci told during the CNBC’s Squawk Box show that despite the current bear market, he remains optimistic and that his fund has purchased more BTC and ETH.

Scaramucci said that bitcoin still contributes over 50% of the overall crypto market, and thus, “there is a flight to quality here.” He urged crypto investors to stay “disciplined” and not panic about the heavy drop.

One of dogecoin’s (DOGE) founders has opined on how long the current bear market would last.

According to Bob Mason, previous selloffs and regulatory uncertainty have been key factors that make investing in crypto more precarious in the current cycle. But on the positive front, he added,

“Mainstay cryptos such as bitcoin aren’t going anywhere and will rebound. It does, therefore, depend on the investment time horizon.”

Possible mistakes to avoid

One of the primary mistakes that investors commit is not diversifying their investments. The primary purpose is to limit risks, especially in highly volatile asset classes.

The mantra is simple – to maximize returns while minimizing the risks. According to the Winklevoss twins’ Gemini crypto exchange, a well-diversified portfolio usually has a mixture of stocks, fixed income, and commodities such as gold (XAU) and oil. Or it might include one or more crypto assets too.

Anjali Jariwala, the founder of FIT Advisors, notes that investors have to diversify their asset allocations within cryptos further. One way to diversify crypto holdings is by investing in them with different use cases or purposes.

For instance, an investor could hold bitcoin, ethereum, cardano (ADA), and litecoin (LTC), each of which might perform differently under different circumstances. If an investor has deep knowledge about cryptos, there could be various other coins to hold as well. Jariwala added,

“If one cryptocurrency fails and your investment goes all the way to zero, other crypto investments may still do well.”

She said that in cases like the current extreme market meltdown, the whole crypto portfolio won’t be wiped off because of the plunge in one or two coins.

Crypto Market Daily Highlights – June 14 – BTC and ETH See Red

Key Insights:

  • Crypto market conditions calmed on Tuesday, with the broader market ending extended losing streaks.
  • Ethereum (ETH) bucked the trend, falling for an eighth consecutive day, with bitcoin (BTC) also seeing red.
  • The choppy session saw the total crypto market cap fall by $69 billion to a new current-year low of $858.7bn before late support kicked in.

It was a mixed session for the crypto market on Tuesday. While the broader crypto market ended an extended losing streak, the bitcoin (BTC) fell for an eighth consecutive day.

The eighth day in the red saw bitcoin fall to a new current-year low of $20,838 before a partial recovery to $22,000. Bitcoin last stood at sub-$21,000 in December 2020.

Helium (HNT) was a front runner, while Monero (XMR) and Tron (TRX) saw heavy losses.

Dip buyers delivered much-needed support ahead of the Fed’s monetary policy decision on Wednesday, which has weighed on the crypto market.

Crypto Market Cap Slides to sub-$900 Billion

Following Monday’s $130.6 billion wipeout, the total crypto market cap fell by just $3.6 billion on Tuesday.

Significantly, however, the market cap fell to a new current-year low of $858.6 billion before returning to $900 billion. Tuesday’s decline marked the eighth consecutive daily fall.

Crypto market cap falls again.
Total Market Cap Daily Chart 150622

For June alone, the total crypto market cap is currently down $379 billion, following a $380 billion tumble in May and a $375 billion slump in April.

While the crypto market found support on Tuesday, downside risks remain as the market looks ahead to the Fed monetary policy decision on Wednesday.

The markets have priced in a 50 basis point rate hike. A hike in line with expectations would leave investors to focus on the Fed’s inflation, GDP, and interest rate projections.

Investor fear of a more aggressive rate path trajectory has hit riskier assets. An upward revision to the March projections will likely further test the appetite for riskier assets.

Other market considerations include plans to roll out more stringent regulatory measures and the stability of stablecoins.

On Tuesday, TRX came under selling pressure as investors reacted to algorithmic stablecoin USDD losing its dollar peg. TRX slumped by 12.9% on Tuesday, following a 16.1% slide on Monday.

From the top ten cryptos, ADA (+3.88%), SOL (+3.46%), and XRP (+3.41%) led the way.

BNB (+0.09%) and DOGE (+2.69%) also found support.

BTC slid by a further 1.58% to lead the way down, however, with ETH ending the day with a 0.02% loss to buck the broader market trend.

From the CoinMarketCap top 100, Monero (XMR) joined TRX in the deep red, with a loss of 10.83%.

Total Crypto Liquidations Eased but Remained Elevated

Following Tuesday’s spike, total liquidations eased going into the Wednesday session.

According to Coinglass, 24-hour liquidations stood at $578 million, down from $1,070 million levels on the day prior. While down from Tuesday levels, however, 24-hour liquidation levels remained elevated.

Crypto liquidations ease.
Total Crypto Liquidations 150622

One-hour liquidations pointed to a steadying in market cap conditions, with one-hour liquidations at $7.7 million.

Crypto Daily News Highlights

  • Bank of England Governor Andrew Bailey took another swipe at the crypto market.
  • Crypto investors prep for the Fed monetary policy decision and projections.
  • Tron (TRX) took a hit in response to algorithmic stablecoin USDD losing its dollar peg.
  • Ripple general counsel Stuart Alderoty took aim at the SEC over a muddied regulatory environment.
  • BlockFi was fined $943,000 for failing to register securities in the State of Iowa.
  • While the crypto winter takes its toll on crypto platforms, Ripple Labs, Binance, and Tron announced upbeat plans.
  • CEO and co-founder of Terraform Labs Do Kwon denied cashing out $2.7 billion.

The $2 Trillion Crypto Markets’ Impact On The High-End Luxury Goods Industry

Gucci now joins a list of high-end luxury consumer brands that are looking to stake their claim in the $2 trillion crypto market, as interest and widespread adoption of digital assets have become increasingly popular across the world.

Following the announcement by Gucci, who will accept Bitcoin, Ethereum, and Litecoin, among other cryptos, market movements remained somewhat unchanged, as the previous day – the Fed’s announced it will increase its base interest rate by 0.50%, the highest of such increase in more than two decades.

Political turmoil, regulatory government intervention, and rampant consumer inflation have caused major cryptos to trade under high-volatile conditions, with BTC down 21% year-to-date, and ETH falling more than 40% from its 52-week high.

Crypto prices have been anything but stable, and the recent Fed hike is looking to make even a bigger impact on the crypto price range, as some experts predict the current economic landscape could soon cause a crypto market crash, as companies and traders rush to purchase digital assets as a way to hedge inflation.

While the crypto market has now interested the likes of high-end luxury clothing brands, to Tesla – it’s perhaps possible to consider how these influences could drive up prices, as demand and adoption become more commonplace in major industries.

Not only do we see crypto being sprinkled across different industries from clothing to Electrical Vehicles (EV), but the entire blockchain industry has captivated multinational brands to jump on the bandwagon as Web 3.0 brings innovation and development to the table.

Crypto is more than a coin

Looking at how far the crypto market has come in the last few years, it’s now clearer than ever before that crypto is more than just a digital coin – it’s become a luxury item.

As consumers build up more wealth through the trade and purchase of digital assets, there will come a point in time when their need to utilize these coins will be more important than trading them on the decentralized market.

The landscape of the crypto industry is completely different, as it encompasses the institutional notion of digital assets. Today, crypto has become a way of life for many, from investors looking to purchase digital assets to hedge inflation, to novice traders using crypto as a way to get onto the DeFi marketplace.

Crypto offers a diversified offering as it allows for transparent and deregulated trading.

Tying this to other industries, we see how some major multinational brands have caught onto the idea of using crypto as a form of payment for goods and services.

For some high-end brands, crypto is more than just a coin, it’s become an indication of wealth and status, innovation, and progressivism. These are the qualities that these high-end brands want to be associated with.

Just how much has crypto changed the luxury goods industry?

Lolli is a platform that can be integrated with eCommerce sites that allow shoppers and customers to earn Bitcoin while they shop, instead of offering loyalty points, customers can now earn crypto.

Some well-known global brands, including Nike, Bloomingdale’s, Sephora, and Ulta, among some 1,000 partners have all collaborated with Lolli.

Consumers are now able to get more than what they bargained for with their crypto. For big-name businesses and high-end luxury brands, it allows them the opportunity to attract lucrative clients who are open to splurging on luxury items.

The luxury brand industry wants to be a part of the movement that blockchain and Web 3.0 have to offer. That’s why we now see names such as Nike, Gucci, and Balenciaga, among others all spending millions to become part of the Web 3.0 movement.

We can’t overlook those brands that are willing to take the plunge into the world of blockchain, but at the same time, we need to consider that there are still a host of high-end brands that are looking to keep their market share well within the real world.

Crypto Created High-End Consumers

From Teslas to watches, we already see high-end brands leaping into the crypto market.

Phillip Plein, a German-based designer, and design house was one of the first major fashion brands to accept crypto as payment back in August 2011 when the price of a Bitcoin went as high as $30.00 only to tumble again back down to $1.00.

Recently, Phillip Plein has also launched a Web 3.0 concept store on the Metaverse, as the company expects more consumers and customers to start using crypto as form of payment.

It wouldn’t be until 2017 when the price of BTC soared to more than $10,000 that consumers and high-end brands started noticing the noise coming from the crypto market.

Today, the average price of BTC is closer to $40,000, with prices swinging as high as $67,000 as we experienced back in November 2021.

In just over 10 years, we now see luxury brands such as Hubolt, Franck Muller and Norgain accept crypto as a form of payment at their stores. Swiss luxury watchmaker, Hubolt went as far as to create a limited edition range of BTC-inspired watches, available to be purchased via Bitcoin – all 201 limited edition watches were sold during its pre-launch announcement.

Then we see a luxury travel agent, Travala.com that now offers travel packages and promotions to high-end clients who prefer to pay in cryptocurrency. Some of their travel deals are customer exclusive and are only available to those travelers that can pay for them using crypto.

Fashion brand, Off-White, which saw more than $7 billion in revenue last year announced in April 2022 that it will now accept crypto as payment in some of its major flagship stores, including London, Milan, and Paris.

In 2021, Sotheby’s Auction House sold Banksy’s “Love is in the Air” (2005) for $12.9 million, a one-of-a-kind sale that was all paid for using cryptocurrency.

We see TJB Super Yacht who at the start of 2021 announced that it will be embracing the crypto-verse, and allow its high-end customers to pay for their yachts with crypto, including BTC and ETH.

Of course, the most well-known in recent years was when Tesla CEO, Elon Musk tweeted that the company will accept BTC as a form of payment for its EVs. Musk would later reverse this announcement, pointing out that the environmental impact Bitcoin mining has does not in the part line up with the company’s sustainability goals.

It wasn’t until late November 2021 that Musk again made a move, tweeting that certain services, goods, and merchandise can now be paid using the popular meme coin, Doge.

Tesla now only accepts Doge and has yet to make any further announcements regarding their acceptance of BTC and other major cryptos as payment.

Bitcoin went from being the same price as an Ebook on Amazon Kindle to becoming the most traded and valuable digital asset in the 21st century. But not only does BTC lead this market, but it’s also helped to establish the playing field for other cryptos to be born, traded, and used within the DeFi market.

Besides the fact that the value of crypto has immensely increased, it’s also become a namesake for high-end luxury brands who are looking to attract a new set of consumers to their stores.

It’s only looking to become more prevalent in the coming years. Insider information from Stephen Pair, CEO at BitPay revealed that transaction volumes related to luxury goods paid for by crypto increased by more than 31% in 2021.

Further insight has indicated that crypto traders and users are more likely to purchase luxury items, with a typical AOV or average order volume being $450.00, while non-crypto users tend to have an AOV of $200.00.

While it makes sense that crypto traders and buyers have more leniency when it comes to the utilization of their crypto – designer brands have quickly caught the traction of these wealthy spenders, and are now bringing their brand and offering directly to these consumers.

The Bottom Line

Cryptocurrencies have gone from digital assets to physical assets that can now be used and transferred between traders and businesses. While the value thereof has immensely increased over the last few years, high-end fashion and consumer goods name brands have caught onto the growing need for crypto utilization.

Instead of investors and traders having to leave their crypto in their digital wallets, luxury brands now offer services and goods on which they can spend their crypto.

From expensive watches to EV-inspired merchandise, to superyachts, the high-end market of luxury goods just became a lot richer, and a lot more decentralized.

Over Half of Investors in Asia Already Hold Crypto: Accenture Report

Key Insights:

  • 52% of wealthy Asian investors already hold digital assets.
  • A further 21% is expected to invest by the end of 2022.
  • Cryptos represent 7% of surveyed investors’ portfolios and make the fifth-largest asset class in Asia.

Last year, several reports noted that Asian nations are leading the world in crypto investments. For instance, the comparison website Finder.com found that of 27 countries surveyed, the top five countries were all in Asia.

From India’s rise in trading volume by 500% in 2020 to one-third of South Korea’s population owning or getting paid in cryptocurrencies, it became clear that Asian populations are embracing these burgeoning financial instruments.

But it is important to note that, despite the current crypto market downfall, over half of the affluent investors in Asia hold cryptocurrencies such as bitcoin (BTC), ether (ETH), litecoin (LTC), in some sort or the other.

Cryptos – fifth largest asset class in Asia

Professional services giant Accenture released an industry poll on Monday, which found that Asian wealth managers are reluctant to sell digital assets to investors, despite its growing demand among investors.

Dubbed “the Future of Asia Wealth Management,” the analysis noted,

“Currently, 52 percent of affluent investors in Asia hold digital assets. Accenture’s research indicates this could reach 73 percent by the end of 2022.”

The results were drawn from two surveys involving 3,200 investors and over 500 financial advisors from wealth management firms across Asia. The polls were conducted between December 2021 and January 2022.

The business further stated that affluent investors in Asia allocated their portfolios to digital assets, which is more than they allocated to foreign currencies, commodities, and collectibles. The percentage of crypto investors is expected to further grow by this year. The report continued,

“A further 21% expect to invest in them by the end of 2022. Digital assets represent 7% of surveyed investors’ portfolios — making it the fifth-largest asset class in Asia.”

Additionally, digital assets, the $54 billion revenue opportunity, are being ignored by most wealth management firms because they lack the necessary knowledge. Accenture added,

“Among firms’ barriers to action are a lack of belief in (and understanding of) digital assets, a wait-and-see mindset, and – given that launching a digital asset proposition is operationally complex – choosing to prioritize other initiatives.”

Source: Accenture.com

Driving adoption in Asia

Mainstream crypto adoption in the Asian markets is rising, with governments eyeing the industry and trying to compete with other major economies in testing and releasing a central bank-backed cryptocurrency (CBDC).

A Chainalysis report noted that East Asia accounts for the largest crypto market, responsible for 31% of all transactions made in 2020. 

Recently, crypto exchange Gemini found that digital asset adoption skyrocketed in 2021, particularly in countries such as India and Hong Kong.

ForUsAll Drags DOL to Court Over ‘Grave Concerns’ With BTC in 401(k)

Key Insights:

  • Retirement plan provider sued the US Department of Labor over recent anti-crypto guidance.
  • One-third of clients spoken with since the guidance are holding back on crypto options.
  • The Labor Department said ‘grave concerns’ citing Fidelity Investment’s plan for bitcoin in retirement.

Crypto enthusiasts wondering if bitcoin (BTC) could enter their retirement savings had a sigh of relief in April when Fidelity Investments brought cryptocurrencies into 401(k) accounts.

However, cryptos are highly volatile, which was recently proved in the Terra (LUNA), and TerraUSD (UST) crashes, leading investors shocked. Additionally, they have little practical use, given their vulnerability in crimes and the lack of real-world cash flows.

This was the very reason the US Department of Labor had “grave concerns” when Fidelity included bitcoin in retirement plans.

Additionally, DOL published a sternly worded guidance in March, revealing heightened skepticism of 401(k) cryptocurrency investments. The department, which regulates 401(k)-type plans, cautioned retirement fiduciaries to take “extreme care” before adding cryptos into their plans.

DOL under the mallet

Quoting the department’s anti-crypto compliance release, a San Francisco-based 401(k) retirement provider, ForUsAll, filed a lawsuit against DOL on Thursday.

The company said that it is seeking the withdrawal of DOL’s cautionary release, citing the Administrative Procedure Act (APA). The filing noted,

“This lawsuit seeks to preserve the rights of American investors to choose how to invest money in their own retirement accounts. Brought under the APA, this lawsuit challenges DOL’s arbitrary and capricious attempt to restrict the use of cryptocurrency in defined contribution retirement plans.”

ForUsAll accused DOL of focusing only on the risks of cryptos without mentioning its potential benefits, including diversification. 

The DOL has taken the “opposite course” by issuing the release, despite the Biden administration directing federal agencies to work on the development and use of cryptos, the firm stated.

“DOL’s issuance of the Release was arbitrary, capricious, and otherwise not in accordance with law and in excess of DOL’s statutory authority, in violation of the APA.”

According to ForUsAll, one-third of the clients that the company spoke with said, despite their interest in inculcating cryptos, “they do not intend to proceed at this time in light of enforcement threats.”

The retirement provider let workers in retirement plans under its administration invest up to 5% of their 401(k) contributions in bitcoin, ether (ETH), litecoin (LTC), ripple (XRP), and other cryptocurrencies.

ForUsAll CEO Jeff Schulte told CoinTelegraph,

“The government is suddenly trying to restrict the type of investments Americans can choose to make because they’ve decided today that they don’t like a certain asset class. They’re clearly trying to effect a ban, and they don’t have the legal authority to do so.”

Implications still remain

Several crypto advocates have offered various justifications saying Americans deserve more choice in their retirement plans. Surveys have also shown that particularly millennials tend to see crypto as a desirable investment. Advocates say that crypto investments can diversify a given portfolio as their price fluctuations aren’t synced with other markets.

On the other hand, investors have had enough hard times navigating the US retirement savings system without adding an option that even professional investors struggle to hold. 

Challenges like crypto’s limited track record, bitcoin’s latest unexpected slide, which is more than 50% from its November 2021 peak, and technical difficulties such as ensuring safe custody in a largely unregulated realm, remain to be addressed.

NY Fed’s Williams Says Digital Currency Might Impact Monetary Policy

Key Insights:

  • NY Fed President John Williams calls it ‘critical’ for central banks to understand crypto’s impact.
  • He noted that digitizing finance could have “implications for markets” and monetary policy.
  • The Fed is considering whether to launch its digital dollar, while the Biden administration is looking into regulation.

Few senior Federal Reserve officials have been highly vocal on cryptocurrencies and their potential to disrupt the monetary policy. Vice-chair Lael Brainard recently noted that a central bank digital currency (CBDC) could coexist alongside stablecoins and provide a measure of safety.

Federal Reserve Board Governor Miki Bowman also stressed the importance of innovation in community banking, referring to the latest Fed discussion paper on cryptocurrencies.

For the US, it is still early when it comes to crypto regulation or a CBDC, as the country is still in its research stage.

NY Fed’s President calls digital transformation is ‘critical’

John Williams, the president of the Federal Reserve Bank of New York, sees digital transformation in payments as a possible way to change Fed’s monetary policy and impact its balance sheet.

In his speech during a research conference on Wednesday at Columbia University, Williams said that technology is changing rapidly while the role of the central bank remains the same. He noted,

“The role of central banks will always be to supply money and liquidity to bring stability to the economy and financial system.”

He told an audience of financial industry leaders, central bank officials, and scholars that CBDCs and stablecoins backed by safe and liquid assets have room for innovation. 

His remarks come amid the wider crypto sell-offs, with cryptos like bitcoin (BTC) struggling to catch up above $30,000. The world’s first crypto by market cap is still trading below $30,000 after a deep dive from its all-time peak of over $67,000 in November 2021. 

Terra’s network crash throwing down terra (LUNA) and TerraUSD (UST) prices to the far bottom, has also driven Fed officials like Williams to consider the safe digitization of currencies.

Per a Reuters report, Williams stressed that digital transformation could have “implications for markets” and for Fed’s interactions with peers, “as well as how we carry out monetary policy.” He further said,

“It’s critical that we understand how these transformations could affect the economy and the financial system, as well as monetary policy implementation.”

Senators contribute to digital dollar push

A digital dollar or a CBDC could come with a slew of benefits; however, it remains far from sight.

The crypto price turbulence has called US lawmakers to introduce a bill allowing the US Treasury to create a CBDC. The bill noted that the digital dollar would virtually eliminate funds transfer waiting periods and cut fees.

In March, the Biden administration issued an executive order calling for more research on developing a digital dollar and highlighted a need for more regulatory oversight of cryptos such as ether (ETH), Litecoin (LTC), etc.

Additionally, crypto supporters say that financial inclusion is crucial for the US to adopt its digital currency.

That said, several senators stand positive about bringing a digital dollar to the payments system. For instance, Rep. Stephen Lynch (D-Mass) said,

“As digital payment and currency technologies continue to expand rapidly and with Russia, China, and over 90 countries worldwide already researching and launching some form of Central Bank Digital Currency, it is absolutely critical for the US to remain a world leader in the development and regulation of digital currency and other digital assets.”

Members of Congress, including Jesús Chuy Garcia (D-Ill.), Ayanna Pressley (D-Mass.), and Rashida Tlaib (D-Mich), have also joined Lynch.

Cardano, Polkadot Gain Institutions’ Attention As ETH, BTC Lose It

Key Insights:

  • Institutional investors seem to have shifted their focus from Bitcoin to altcoins.
  • This week noted the highest outflows from institutions in more than four months.
  • The most in-demand assets (ADA, DOT) are also the worst-performing assets.

In the wake of market-wide recovery, or more appropriately, the attempt at recovery, institutional investors’ move has finally come forward, and it is surprisingly not what was expected out of them.

Bitcoin Takes a Back Seat

As per the weekly net flows report from CoinShares, the week ending May 20 noted outflows totaling $141 million, the highest figure observed in more than four months.

Weekly netflows | Source: CoinShares

The week before, the same institutions registered inflows worth $247 million despite the entire market crashing and losing billions of dollars.

Interestingly, this week brought forward some previously unseen changes. For the most part of this year, Bitcoin was one of the most preferred assets witnessing mostly inflows, while Ethereum took the heat of bearishness.

This week Bitcoin slipped into the same category as Ethereum and marked outflows worth $153.5 million. At the same time, Ethereum only observed $300k in outflows.

While no other asset explicitly noted inflows high enough to take Bitcoin’s place, Polkadot and Cardano were certainly the more preferred cryptocurrencies for institutions to invest in.

Both the assets saw inflows worth $1 million, while their competitors Solana, Litecoin, Ripple, and Tron were in the sub $1 million categories.

Net flows by asset | Source: CoinShares

However so, Solana still holds the highest value in the altcoin category, even more than the altcoin king Ethereum itself year to date (since January 1, 2022) SOL’s flows have remained net positive at $102 million.

In contrast, Ethereum has observed outflows amounting to $239 million in the same duration.

Are Cardano and Polkdaot Brothers?

Apart from being the highlight of the week, both the assets have also been imitating each other’s price action as from their individual all-time highs to date, ADA and DOT have declined by 84%.

DOT, trading at $10.04 in the span of almost two weeks, has only managed to recover by 17.1% and is still 40% away from its next critical support of $14.04.

Polkadot has recovered by 17% over the last two weeks

On the other hand, ADA has not seen a recovery as high as DOT and has risen by only 9.75% from its lows of May 9.

Trading at $0.518, the altcoin did manage to save itself from the oversold zone but continues to linger in the bearish zone.

Cardano failed to mark a significant rise