Cryptocurrencies are beginning to benefit from a global increase in risk appetite after news of more entities infected by the collapse of the FTX exchange temporarily ceased, and the S&P 500 index climbed to levels not seen since August on hopes of a slow easing of Fed monetary policy and falling inflation. Market sentiment was also boosted by reports of easing covid restrictions on China's economy:
Bitcoin is holding above $17,200 at the start of the week, and Ethereum is struggling to climb above $1,300 per token. Other altcoins are also doing well, including Litecoin, Cronos, Waves, Intercomp, Sandbox and Kusama.
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Source: xStation5
News
- Litecoin's gains are accelerating in the face of a halving some 250 days away, which will halve the available supply of the second oldest cryptocurrency. Developers continue to work on a protocol to provide more privacy for users and increase transaction speed;
- CEO of the world's largest investment fund, BlackRock, Larry Fink indicated that most cryptocurrency companies will cease operations in the coming years. However, he stressed the growing role of technology and cryptocurrencies themselves;
- The creator of the Ethereum cryptocurrency, Vitalik Buterin stressed that the market should always focus on improving technology more than on prices, which are volatile;
- Analyst firm Glassnode pointed out the cryptocurrency exchanges that have published their 'proof of reserves' so far are: Binance, Crypto.com, Kucoin, Bitfinex, Okex, BitMex, ByBit, Deribit and Huobi;
- A wave of layoffs continues to sweep through cryptocurrency companies. The ByBit exchange announced 30% job cuts, and Australian exchange SwyftX also laid off employees;
- U.S. Senator Ted Cruz shared his vision of making Texas a 'basin' for so-called Bitcoin miners, pointing to the possibility of transforming excess power into electricity needed for air conditioning and home heating.
The graphic above shows that the risk appetite of the cryptocurrency market persists. The bankruptcy of FTX in the context of the behavior of on-chain investors was ultimately interpreted by them similarly to the implosion of Luna. All addresses took advantage of this period to accumulate (blue) by increasing their cryptocurrency reserves at potentially 'attractive prices'. Source: Glassnode
Bitcoin chart, H4 interval. The major cryptocurrency is heading for levels not seen since mid-November. Bulls are likely to want to confront the 200-session average (red line), which runs around $17,500. A rise above it could herald an appetite for a return to the $20,000 area. A drop, on the other hand, could be a sign of an impending retest of the lows near $15,300. Source: xStation5
