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Crypto overview November 2022

  • Cryptocurrency prices have declined significantly in 2022, with crypto assets tracking the performance of stocks such the Nasdaq 100.
  • An overview of three top cryptocurrencies  in Bitcoin, Ethereum and Ripple highlights the opportunities and risks that abound.
  • Investors seeking to trade on contracts for differences, CFDs, for crypto need to do due diligence and understand how the contracts work.

Crypto has tracked high-risk assets like the Nasdaq 100 for much of 2022, crumbling as a result of the high inflation and high interest rates prevalent in the financial markets. 

Bitcoin, the world’s largest digital coin, failed to get past $20,000 for most of September and October. However, amid multiple price predictions BTC managed to rise late that month after some modest indications that the US Federal Reserve was ready to ease policy. 

Bitcoin price shot up 6.5% to $20,700 on October 29, and Ether followed by 19%. In context, the two largest crypto powers had suffered losses five of the last six months. Perhaps it wasn’t one single factor driving it, but rather “a more favorable backdrop for risky assets and short liquidations,” suggested NYDIG’s Greg Cipolaro.

One of the drivers for the rally may have been Dogecoin’s massive 40% surge that month, as crypto traders expected Elon Musk’s takeover of Twitter to give him a platform to promote the dog-themed coin. 

One notable aspect of the crypto upswing was the fact that it happened at the same time as major tech stocks like Meta Platforms and Amazon.com were in the red. “Digital asset markets have shown early signs of tech decoupling,” Fundstrat’s Walter Teng announced.

Below are 3 top cryptocurrencies that we have used to outline and distinguish the above-mentioned “signs”, and crypto performance in November. Read on to find what else you can learn about trading cryptocurrency CFDs.

Bitcoin

In the second week of November, Binance CEO Changpeng Zhao said his company was on track to acquire FTX.com – the well-known crypto exchange co-founded by Sam Bankman-Fried – after the exchange lost liquidity following Zhao’s own sale of 530 million dollars from its FTX holdings. 

Crypto trust was hit by the demise of FTX, whose native FTX token FTT, lost 75% of its value in a single day on November 9. SOL (the token of the Solana blockchain) reacted dramatically (because Solana is connected to FTX), dropping 36% on that day and bringing the total loss for the year to 90%. Bitcoin was 7.7% in the red, after an 11% loss the day before, which kept Bitcoin from breaking above $17,430. 

The sentiment was memorable for Modular Asset Management’s Dan Liebau, who said that since 2016, “few periods have tested [the crypto industry’s] market infrastructure and participants as much as the past 24 hours.”

Ether

Has ETH been able to maintain momentum after its monumental September merge? Not according to some analysts such as BeQuant’s Martha Reyes who said in mid-September, “Now that the Merge excitement is over, we don’t have a catalyst for Ethereum any time soon“. 

Ether lost 3.8% that day to hit $1,475 after dropping 6% the day before. Excitement over the upcoming Merge into a proof-of-stake system of validation, which would reduce the blockchain’s environmental impact and make it more efficient, had kept Ether afloat since mid-June. 

The Merge itself was “certainly a success,” in the words of Ethereum developer Preston Van Loon. “What we’ll see over time is whether the stats hold up.”

A month later, Ether rallied 10.25% in just 24 hours. Internet lawyer Andrew Rossow thought it was due to a “combination of traders capitalizing” and “the success we’re seeing with some of the NFT projects thriving in the current bear market.” 

According to Brett Sifling of Gerber Kawasaki Wealth & Investment Management, it was an overflow from the stock market rally. It will certainly be interesting to see how ETH prices will perform in the coming months for those trading cryptocurrencies in the form of CFDs.

Ripple

On September 19, traders braced themselves for higher interest rates on both sides of the Atlantic. This would mean that the cost of borrowing goes up, draining the liquidity needed in the crypto market. Bitcoin and Ether continued their losing streak, dropping 7.4% and 6.6% respectively, but XRP – the token created by Ripple Labs Inc. – fell as much as 13.5%. 

A trigger may have been the news that the Securities and Exchange Commission (SEC) wanted an immediate ruling in the lawsuit they were pursuing against Ripple for its “reckless” conduct in failing to register XRP as a security. Also in September, Ripple filed a motion to dismiss the lawsuit, based on their position that XRP is ineligible as a security.

In the second week of October, Ripple CEO Brad Garlinghouse said the case would be resolved by the first half of 2023. The issue, he said, was “about the whole industry,” not just the world’s sixth-largest crypto.

In summary

When trading cryptocurrencies in the form of CFDs, it is always a good idea to understand the prevailing macro environment. For instance, what was Fed Chair Jerome Powell’s tone the last time he spoke? What did the latest inflation data tell us? And what recent events are shaping crypto sentiment? 

Answering these questions and listening to the popular opinion of reputable analysts can help those trading cryptocurrency CFDs make more informed decisions.

The post Crypto overview November 2022 appeared first on CoinJournal.

Bitcoin slides, but you do not want to miss out on a low price this analyst calls a “steal”

  • Bitcoin has lost a weekly 1.52%, and bear pressure is high

  • A quantitative analyst expects a bottom in around 3 months but says Bitcoin is attractive

  • Bears have an edge as long as BTC does not recapture $19,000

Bitcoin (BTC/USD) has lost 1.52% in a week as most cryptocurrencies struggle. Despite recovering slightly by 0.25% in the day, the price of the largest cryptocurrency was struggling to retain the $17,000. As of press time, BTC was trading at $16,860. That has raised questions over the potential of Bitcoin to recover to the $19,000 resistance. 

But a renowned crypto analyst thinks Bitcoin is a bargain at the current low valuation. The crypto analyst dubbed PlanB expects Bitcoin to rally at least 5,800%. Consider that Bitcoin is trading at about 4 times less value than its all-time high of over $68,000. Reflecting on the stock-to-flow model, the analyst says the current BTC price is a “steal.”

Typically, the stock-to-flow model assesses assets’ value by comparing their current price to the supply. In his view, if we consider BTC’s original 2019 model or the $55,000 model, BTC’s next halving could catapult prices to $100k-$1 million. He expects the supply to be squeezed in 2024, around the halving event. But how about the short-term price?

PlanB opines that BTC’s bottom could occur in around three months. He says the price of BTC hits the bottom 18 months from the record high.

BTC is struggling to rise at the 20-day MA

BTC/USD Chart by TradingView

From the daily chart technical outlook, BTC’s upside is limited. Although the price has kept the $16,000 support intact, bears are exerting pressure as prices recovered above the 20-day MA. 

The RSI is pointing lower and sliding further from the 50-midpoint reading.

Will BTC remain bearish?

The limited upside on BTC price indicates that the bear market is far from over. The $19,000 remains the crucial resistance. If BTC breaks below $16,000, the next level to watch is around $13,000.

Where to buy BTC

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post Bitcoin slides, but you do not want to miss out on a low price this analyst calls a “steal” appeared first on CoinJournal.

Normalcy returning to crypto markets, on-chain data shows

Over the last few months, the crypto market has largely been pretty serene. Bitcoin had been in crab motion around $20,000 for quite a while, as it plodded along while waiting for the wider macro conditions to make a move.

I wrote in late October to be cautious around this price action, and that Bitcoin could be one bearish event away from an aggressive downward wick. What I did not except was that event to be shake crypto to its bones, as one of the blue-chip companies in the space, FTX, inexplicably descended into insolvency.  

This obviously shook markets. Last week I assessed how the flow of bitcoins out of exchanges has been fierce, as people’s trust in these central entities to store their coins was understandably at an all-time low. 

In fact, I saw yesterday that 200,000 bitcoins have left exchanges since the FTX implosion. But now, the data suggests that the market is calming down a bit. And again, it seems like we may enter crab mode until macro provides an impetus one way or another – or an unexpected crypto-specific development comes out of the woodwork. 

The first way to demonstrate that the dust is beginning to settle is by looking at Bitcoin’s volatility. This obviously spiked as Sam Bankman-Fried’s “games” were revealed to the public. But after remaining elevated throughout the last few weeks, it has fallen back down to more standard levels in the last few days.  

Another way to view this is the falloff in large transactions. These transactions (defined as greater than $100,000) jumped up in the few days around the bankruptcy, but have fallen gradually since, back to the same levels we have seen throughout much of 2022.

Another useful metric to track is the net realised profit or loss of moved coins. This spikes in times of crisis as the price abruptly drops, before typically coming back towards the $0 mark as the markets calm down.

The below chart shows this well, with trades on November 9th netting an ugly $2 billion loss, before November 18th then topped this with a $4.3 billion loss. That is lower than the worst mark post-Celsius crash ($4.2 billion loss) and Luna ($2.5 billion loss).

This reflects the continued downward pressure on Bitcoin’s price, but the trend has bounced back up to close to zero again.

FTX was a central part of the ecosystem, and its bankruptcy understandably rocked the market. As I wrote recently, this contagion is not over.

Yet data from the last week or so suggests that normalcy is returning to the crypto markets. Going forward, it may tread water again for a while. With China opening up post-lockdown, the latest inflation numbers imminent and the EU ban on Russian crude imports, macro certainly has a lot going on. 

Crypto investors will just need to hope that the crypto-native scandals are out of the way for the time being.  

The post Normalcy returning to crypto markets, on-chain data shows appeared first on CoinJournal.

Bitcoin dips by 2% today as mining difficulty falls by 7.2%

  • Bitcoin is trading below $17k once again after losing roughly 2% of its value today.

  • Bitcoin mining difficulty is down 7.2%, the biggest drop in more than a year. 

  • The total crypto market cap is also down by nearly 2% in the last 24 hours.

Bitcoin mining difficulty dips by 7.2%

Bitcoin, the world’s leading cryptocurrency by market cap, has been underperforming over the last 24 hours. At press time, the price of Bitcoin stands at $16,900 and could dip lower before the end of the day.

This latest cryptocurrency news comes after BTC.com revealed that Bitcoin mining difficulty is down 7.2%, the biggest drop since July last year. The recent decline in Bitcoin mining difficulty is the biggest one since the 28% plunge recorded following China’s crackdown on mining in the summer of last year.

The broader cryptocurrency market has also been underperforming over the past 24 hours. At press time, the total cryptocurrency market cap stands at $851 billion, down by 1.9% so far today.

Ether, the second-largest cryptocurrency by market cap, isn’t fairing any better. ETH is down by nearly 3% today and is now trading at $1,256 per coin.

Key levels to watch

The BTC/USD 4-hour chart remains bullish despite BTC underperforming over the past few hours. This is because BTC is still in the green zone when you look at its seven-day performance.

The MACD line remains above the neutral zone but has been declining and could enter the negative region if the bears remain in charge. The 14-day RSI of 50 shows that BTC could enter the oversold region in the near term unless the bulls regain control of the market.

With the bears now in control, BTC could test the first major support level at $16,368 before the end of the day. However, unless there is a massive bearish run, the bears could find it tough to drop BTC’s price below the $15,909 support level. 

Where to buy Bitcoin now

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post Bitcoin dips by 2% today as mining difficulty falls by 7.2% appeared first on CoinJournal.

This analyst relies on on-chain metrics to support a Bitcoin rally. Is BTC a buy now?

  • Bitcoin rose to $17,000 on Monday.

  • InvestAnswers thinks BTC is about to become bullish based on realised value.

  • The token faces resistance at $19,000 and 50-day MA.

Bitcoin price (BTC/USD) was up marginally on Monday as most cryptocurrencies made slight recoveries. BTC was back to $17,000 even as data by crypto derivatives exchange Deribit showed that sentiment had shifted in favour of the cryptocurrency. But as this happens, a popular crypto analyst is projecting a rally.

InvestAnswers, a popular crypto analyst, says that on-chain signals suggest BTC is overdue for a rally. The pseudonymous analyst examines Bitcoin’s realised price or RP metrics in making the argument. Normally, RP posts the value of all BTC at the price the tokens were bought and then divides it by the number in circulation. InvestAnswers says that BTC never stays below the RP for long. 

The analyst says BTC has been under RP for 170 days. In 2020, BTC stayed below the RP for 8 days, while in 2018, it was 115 days. In 2015, it stayed a little longer at 240 days and only 110 days in 2011. According to the analyst, the RP of BTC lies at $21,000. Using the analogy, he says that the Bitcoin price is about to soar.

Besides the RP, InvestAnswers says that the rising weakness in the US dollar index suggests a likely rally. The index is inversely correlated to the risk-on assets, meaning that if it goes lower, cryptocurrencies go the other way.

BTC price analysis and outlook amid slight recoveries

BTC/USD Chart by TradingView

BTC trades above the 20-day moving average. Bulls have been winning the war at $16,000, although the bears are still relentless. The RSI remains below the midpoint, and the bullish momentum looks somewhat weak but improving.

Bulls will have the next test at the 50-day MA and the $19,000 resistance.

Should you buy BTC?

BTC is still largely bearish. However, all indications are buyers looking for the next opportune moment. In the meantime, BTC’s eyes $19,000 and a recovery past the level could usher in more upsides.

Where to buy BTC

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post This analyst relies on on-chain metrics to support a Bitcoin rally. Is BTC a buy now? appeared first on CoinJournal.

Why BTC rose to $17K. Here is the potential price action next

  • Bitcoin rose on Thursday after Powell’s statement indicated slower rate hikes.

  • BTC price has recovered above the 20-day MA.

  • The long-term momentum is bearish for BTC unless bulls win back the $19,000 level.

Bitcoin (BTC/USD) saw increased buyer interest on Thursday, rising to over $17,100. The price increase reflected renewed optimism in all markets after a soft statement by the US Fed.

A Wednesday statement by Fed Chair Jerome Powell showed that the central bank might slow rate hikes. According to Powell, smaller rate increases could be pursued starting in December. The suggestion raised hopes of slower economic tightening, which has been hitting markets. However, Powell still warned that monetary policy could remain restrictive until real progress to contain inflation is made.

Powell’s statement may boost prices of cryptocurrencies for some time, led by Bitcoin after the FTX-inspired selloff. Nonetheless, DFD Partners President Bilal Little shared insights from the gains. Little says that any time markets undergo periods of distress, they tend to oversell. As markets regain clarity again, the prices look up again. However, the DFD Chief warned that the rally would be hard to sustain.

According to Little, Bitcoin would likely touch the $12,000 to $13,000 level. He warns of other contagion impacts of the FTX collapse amid liquidity risks grappling crypto firms. As such, Little says many crypto firms may be unable to meet liquidity demands or counter the risk concerns.

BTC is recovering above the 20-day moving average

BTC/USD Chart by TradingView

Technically, BTC bulls are pushing the cryptocurrency above the 20-day moving average ($16,586). The cryptocurrency is breaking above a consolidation zone at $16,000. 

The RSI is slightly below the midpoint, indicating that demand is catching up with the supply. Still, BTC sellers have the upper hand.

Should you buy BTC?

Despite the latest gains, BTC remains largely bearish. The price recovery above the 20-day MA may offer optimism that BTC price may rise in the short term. However, bears may try to exert their influence at the 50-day MA. The $19,000 resistance may also counter the upside.

Where to buy BTC

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post Why BTC rose to $17K. Here is the potential price action next appeared first on CoinJournal.

Bitcoin price prediction as fear and greed index improves

  • BTC has been in a consolidation phase in the past few days.

  • Bitcoin’s fear and greed index has moved to the fear level.

  • The broad fear index by CNN Money is still in the greed zone.

Bitcoin price remained under intense pressure as concerns about the crypto industry continued. It was trading at $16,516 on Tuesday, where it has been in the past few days. This price is a few points above this month’s low of $15,733. The BTC/GBP and BTC/EUR have also been consolidation phase as well.

FTX and Alameda contagion continues

Bitcoin and other cryptocurrencies have been on edge following the collapse of FTX. At its peak, the company was the second biggest cryptocurrency exchange in the world after Binance. It was also seen as a savior of the blockchain industry as the founder made significant investments in a struggling company.

The contagion in the industry has continued. On Monday, BlockFi, a struggling crypto lender, filed for bankruptcy after the collapse of FTX. FTX had reached a definitive agreement to acquire the company, as we wrote in this report.

Other companies are struggling as well. For example, over 150 firms have applied for financing from a fund created by Binance and other large players. At the same time, Digital Currency Group (DCG) has hired restructuring experts as its portfolio companies come under pressure.

Crypto fear and greed index improves

Bitcoin price has been in a tight range as the cryptocurrency fear and greed index improves. According to AlternativeMe, the fear and greed index was at the fear level of 26 on Tuesday, which was higher than last week’s extreme fear of 22. 

The fear and greed index is an important gauge in the crypto industry since it measures the overall sentiment of the coin. It looks at key data like Google Trends, market dominance, and social media activity.

On the other hand, the broader CNN Money fear and greed index remained at the greed level of 59. Key numbers like stock price strength, stock price breadth, and put and call options are at the greed level. Bitcoin tends to do well in periods of sustained greed.

Bitcoin price forecast

        Bitcoin chart by TradingView

The daily chart shows that the BTC price has been under intense pressure in the past few months. It remains slightly below the important support level at $17,606, which was the lowest level in June. The coin has also moved below all moving averages. It has also formed what looks like a bearish pennant pattern.

Therefore, the coin will likely have a bearish breakout as sellers target the next key support at $15,000. A drop below that support means that the coin has higher chance of falling to $10,000.

How to buy Bitcoin

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post Bitcoin price prediction as fear and greed index improves appeared first on CoinJournal.

What crypto analyst Benjamin Cowen thinks of BTC before a reversal occurs

  • Bitcoin could undergo another Capitulation event around Christmas – Cowen

  • The cryptocurrency is consolidating but lacks an upside momentum

  • BTC price could break into upside or downside

When will Bitcoin price (BTC/USD) bottom-up after slipping below the crucial $19,000 level? Crypto analyst Benjamin Cowen believes Bitcoin has to undergo one capitulation event before a price reversal. Cowen examines the historical patterns to explain when this is likely to occur.

Cowen points out that the final capitulation event will occur around Christmas this year. A capitulation event occurs when a sizable portion of investors succumb to bear pressure and sell their holdings. Capitulation events are characterised by unusually high trading volumes coinciding with sharp price falls. When the price reaches its lowest point, it signals a market bottom that ushers in a bullish move.

Relating to the historical patterns, Cowen says that Bitcoin bear markets last around a year. In 2014, he says, the bear markets lasted 14 months, while in 2018, it was 12 months. Thus, if the current one is to reflect historical patterns, the dates around December 25th, 26th, and 27th, could be.

Bitcoin has been very choppy heading to this important prediction at year-end. Cowen thinks that $15,000 is the balanced price for Bitcoin. The analyst says that the cryptocurrency has to fall below this level to hit bottom. That will prompt attempts to recapture the fair value.

BTC outlook as price consolidates at $16,000

BTC/USD Chart by TradingView

On the daily chart, Bitcoin is choppy and consolidates around $16,000. The MACD indicator is in the bearish zone. The RSI remains below the midpoint, indicating that the sellers are in control.

What next for BTC?

Bitcoin lacks a directional bias. Although bulls have continually defended $16,000 successfully, they are unable to take the price higher. That’s despite the recent Fed statement indicating slower rate increases.

With the current choppy trading pattern, Bitcoin can go either way. Just as Cowen predicted, BTC could claim a new bottom. For that to happen, the price must break below the $16,000 support zone.

Where to buy BTC

eToro

eToro is a global social investment brokerage company which offers over 75 cryptocurrencies to invest in. It offers crypto trading commission-free and users on the platform have the option to manually invest or socially invest. eToro even has a unique CopyTrader system which allows users to automatically copy the trades of popular investors.

Buy BTC with eToro today

OKX

OKX is a top cryptocurrency exchange which offers over 140 cryptocurrencies to invest in. OKX takes customer security very seriously, they store almost all of their clients’ funds in cold storage, and the exchange is yet to be hacked. On top of this, the exchange offers very low fees and customers can even use their crypto as collateral for loans on the platform.

Buy BTC with OKX today

The post What crypto analyst Benjamin Cowen thinks of BTC before a reversal occurs appeared first on CoinJournal.

Even Cathie Wood admits institutional adoption of crypto will fall off

Key Takeaways

  • Cathie Wood says that institutions may take step back from crypto
  • She believes that they will allocate more to Bitcoin and Ether once they take time to study the crypto space
  • I believe she may be too optimistic, that the crypto industry has taken a battering and it may take longer to recover from

 

Crypto is in a bad place right now.

The most concerning development coming out of the last few weeks – and I think you will agree, there have been a few – is perhaps what it all means for the reputation of the industry going forward.

What institutions are going to put Bitcoin on their balance sheet now? What pension funds are going to move into digital assets? FTX’s implosion (which I wrote about in detail here) is so high-profile and jarring that it feels delusional to expect anyone connected to traditional finance moving into the space. Is the damage irreparable?

Cathie Wood hints at institutional stepback

On this note, I thought Ark Invest founder Cathie Wood’s interview with Bloomberg last week was telling. Long known for her ultra-bullish views on all things Bitcoin, she even reiterated in the interview her confidence in her price prediction of Bitcoin, which she believes will be worth $1 million per coin by 2030.

This was not a surprise, nor was it wholly unpredictable. Wood is adamant that Bitcoin will change the macro landscape long-term. She has positioned highly aggressively in the market, betting on risky tech stocks, Bitcoin and other assets that have struggled amid the transition to a new interest rate paradigm – as the performance of her flagship ETF shows below:

I felt that something else was notable in her interview, however. “I do think, though, that the one thing that will be delayed is perhaps institutions stepping back and just saying, ‘OK do we really understand this?’”, she said.

This hints at the big danger here. All through the pandemic, one of the most bullish things for Bitcoin was the trend of institutions pouring into the space. There was Tesla. There was ETF chat. There was Grayscale. There were public mining companies. There was Coinbase floating on the stock exchange. Hell, there was even El Salvador declaring Bitcoin as legal tender.

But now that the low-interest environment has come to a close, and liquidity is getting sucked out of the economy, Bitcoin and crypto are facing something they have never had to face before – a pullback in the wider economy.

Let us not forget that Bitcoin was launched in 2009, into the greatest bull market in history. It has not yet been tested amid a bearish macro climate, and hence this is all unprecedented. And against this test, crypto is straining.

BlockFi, Celsius, Voyager, Three Arrows Capital, and all the other bankrupt firms, which are now joined by FTX, have also painted crypto in such a bad light that it is not surprising to hear analysts warn of pullbacks in institutional adoption. Wouldn’t it be more of a surprise if there wasn’t?

Optimism

I should note that Wood did add that she thought Bitcoin is coming out “smelling like a rose” from all this. While I certainly wouldn’t go that far – the entire industry is getting its reputation pummelled if you ask me – I see where she is coming from.  

But while Bitcoin may have no counterparty risk, and hence theoretically is immune to the sorts of implosions we have seen at centralised companies like FTX, this is the real world. And in the real world,  in order for the average citizen to access it – not to mention institutions – centralised companies are needed.

And until the greed, reckless leverage, naïve risk management and outright fraud (not naming names) in the industry ceases to exist, Bitcoin won’t gain any significant traction in the mainstream financial space. Institutions will be a lot warier of investing in the space now after so many high-profile blow-ups. Regulation is coming in strong. Returns are no longer through the roof.

This is why I disagree with the optimistic tone that Wood set later in the interview:

“And once (institutions) actually do the homework and see what has happened here”, Wood said, “I think they will be more comfortable moving into Bitcoin and perhaps Ether as a first stop, because they will understand it more”.

For me, understanding Bitcoin more also comes with the comprehension that it continues to trade as an extremely high-risk asset, in what is now no longer a zero-rate environment. While the long-term vision may be for Bitcoin to be a reputable inflation hedge, that is not where it is right now – something asset managers will realise.

Crypto has also put a sour taste in the mouth of anyone who has touched it this year. FTX is just the latest embarrassment for the industry, as the world watches on with a mixture of smugness, pity and disgust. Against this backdrop, the reputation of the entire space has taken a hammering.

And as interest rates rise, a cost of living crisis surges and data continues to point towards a struggling economy, the crypto party will take a little longer to resume than Cathie thinks.  

The post Even Cathie Wood admits institutional adoption of crypto will fall off appeared first on CoinJournal.

Eco-friendly Bitcoin mining pool PEGA will launch in 2023

  • PEGA Pool is set to launch next year and will become the first eco-friendly Bitcoin mining pool in the world.
  • PEGA Mining is focused on reducing the environmental effects of Bitcoin mining.
  • Clients that join the “Early Access” waiting list would benefit from a permanent 50% reduction in pool fees.

PEGA Pool will become the first eco-friendly Bitcoin mining pool 

PEGA Pool is set to become the first eco-friendly Bitcoin mining pool and is expected to launch next year.

PEGA Pool, a platform dedicated to reducing the environmental effects of Bitcoin mining, is expected to launch in 2023. The project focuses on making Bitcoin mining eco-friendly.

PEGA Pool is owned and operated by PEGA Mining, a UK-based cryptocurrency mining firm. 

According to the development team, PEGA Pool will focus on reducing bitcoin mining’s carbon footprint to create a more sustainable and eco-friendly industry. On its official website, the company said it would plant trees to help reduce the Bitcoin mining carbon footprint.

PEGA Pool is currently in the pre-launch phase and will be open to the public in Q1 2023. Clients can join the early access waiting list until launch. The team added that the PEGA Pool is open to all bitcoin mining clients regardless of their renewable energy usage.

PEGA Pool added that for clients that mine with non-renewable energy, it would use a portion of their pool fees to plant trees to help offset their mining carbon footprint. Clients that use renewable energy to mine cryptocurrencies will enjoy certain incentives. 

For instance, clients that mine with renewable energy will enjoy a 50% reduction in pool fees. Furthermore, pool fees are 2% for non-renewable energy clients and 1% for renewable energy clients.

Clients that join the early access waiting list will enjoy certain benefits

The use of non-renewable energy to mine Bitcoin is a subject that gained wide coverage over the past few years. Companies like Tesla had to suspend accepting Bitcoin as a payment method due to concerns over its carbon footprint during mining. However, the company said it intends to start accepting Bitcoin as a payment option for its vehicles again in the future. PEGA’s effort toward ensuring eco-friendly Bitcoin mining could be what is needed to convince Tesla to start accepting BTC payments again. 

With PEGA Pool currently in its pre-launch phase, the team said clients that join the “Early Access” waiting list would benefit from a permanent 50% reduction in pool fees.

PEGA Pool said it had planted 41,715 trees so far, for an estimated annual CO2 offset of 1111T. According to their official website, the team said PEGA Pool was built by miners and is run by miners. With years of experience in the crypto mining sector, the team understands what it is that miners need in order to be successful and profitable.

The post Eco-friendly Bitcoin mining pool PEGA will launch in 2023 appeared first on CoinJournal.