Connect with us

Published

on

The ghost of FTX haunts the crypto industry, but Bitcoin is attempting to leave it behind as BTC price gains endure. 3911 Total views 18 Total shares Listen to article 0:00 Markets News Own this piece of history

Collect this article as an NFT Bitcoin (BTC) starts a new week at new 2023 highs, but still divides opinion after a blistering price rally.

In what is shaping up to be the antidote to last years slow bleed to lower prices, January has delivered the volatility Bitcoin bulls were hoping for but can they sustain it?

This is the key question for market participants going into the third week of the month.

Opinion remains divided on Bitcoins fundamental strength; some believe outright that the march to two-month highs is a suckers rally, while others are hoping that the good times will continue at least for the time being.

Beyond market dynamics, there is no shortage of potential catalysts waiting to assert themselves on sentiment.

United States economic data will keep coming, while corporate earnings could deliver some fresh volatility to stock markets this week.

Cointelegraph takes a look at five potential BTC price movers as all eyes focus on new support levels and the fate of the Bitcoin bear market.BTC price due consolidation, analysts agree

Bitcoin has faced increasing skepticism after passing some key resistance levels throughout the past week.

As Cointelegraph reported, the consensus remains skewed to the bearish side long term, with few believing that current momentum will end up any more than a bear market rally.

With warnings of new macro lows of $12,000 still in force, analysts are watching for signs of a comedown. So far, however, this has not materialized.

The weekly close tied with those from just before the FTX collapse, with BTC/USD still above $20,000 at the time of writing, having hit new local highs of $21,411 overnight, data from Cointelegraph Markets Pro and TradingViewshowed.

Volatility remained in action, with moves of several hundred dollars commonplace on hourly timeframes. A flash dip below the $21,000 mark was described by commentator Tedtalksmacro as a liquidity hunt.

Analyzing levels to hold in the event of a broader retracement, on-chain analytics resource, Material Indicators identified the 21-week moving average (MA) at $18,600.

Another $11M bid wall placed to defend the Bitcoin 2017 Top, it noted alongside an additional chart of the Binance order book. Holding above that level is symbolic and increases the probability of extending the rally, but IMO holding the 21-Week MA is critical for a sustained rally. TradFi is closed Monday for MLK Day. Volatility continues.BTC/USD 1-day candle chart (Bitstamp) with 21-week MA. Source: TradingView

A previous post added that whale activity was indeed helping to buoy the market on exchanges.

Eyeing the reversal of FTX losses, meanwhile, trading account Stockmoney Lizards called for a little (sideways) consolidation at current levels.

Michal van de Poppe, founder and CEO of trading firm Eight, said that Bitcoin might indeed consolidate due to changes in flagging United States dollar strength.

The U.S. Dollar Index still traded near its lowest levels since early June 2022 on the day, having hit 107.77.U.S. Dollar Index (DXY) 1-day candle chart. Source: TradingViewFocus shifts to earnings as stocks catalyst

This week will get off to a brisk start in terms of macro data, with producer price inflation data coming on Jan. 18.

This will come amid various speeches from Federal Reserve officials, while stocks will likely be swayed by another phenomenon in the form of corporate earnings reporting throughout the week.

As noted by Bank of America strategists in a note last week, the S&P 500 has become particularly sensitive to earnings reports, with their impact overtaking classic data releases such as the Consumer Price Index.

We see this as a narrative shift in the market from the Fed and inflation to earnings: reactions to earnings have been increasing, while reactions to inflation data and FOMC meetings have been getting smaller, they wrote, quoted by media outlets including CNBC.

The strategists referred to the Federal Open Market Committee (FOMC) meeting on Feb. 1 to decide on interest rate hikes.

The rate hike is currently expected to be lower than any since early 2022, with sentiment favoring a 0.25% increase, according to CME Groups FedWatch Tool.Fed target rate probabilities chart. Source: CME Group

The lower the Fed Funds, the more liquidity there is in the system, Ram Ahluwalia, CEO of digital asset investment advisor Lumida Wealth Management, wrotelast week.

An accompanying chart showed what Ahluwalia suggested was a beneficial relationship between lower Fed funds rates and Bitcoin liquidity.

He continued by referencing an appearance on mainstream media by veteran economist Larry Summers on Jan. 13, in which the latter made positive noises about inflation abating.

Larry made a statement saying the Feds fight against inflation is much, much closer to being done. This is a positive surprise to risk assets and supports the Fed pivot camp, he argued. BTC benefits from QE Hypothesis: One of the big macro desks listened and went long bitcoin.Bitcoin vs. Fed funds rate chart. Source: Ram Ahluwalia/ TwitterGBTC winning streak continues

On the topic of institutional interest recovery, another chart retracing the entirety of its FTX losses is the largest Bitcoin institutional investment vehicle, the Grayscale Bitcoin Trust (GBTC).

Data from Coinglass shows that as of Jan. 13, the latest date for which data is available, GBTC shares traded at a discount to the net asset value of 36.26%.

This discount, formerly positive and known as the GBTC premium, has been ticking higher since the end of December 2022 and is now higher than at any point since the FTX meltdown.

Its largest-ever reading came just before that, when it hit 48.62%, with GBTC suffering as part of parent company Digital Currency Groups own FTX troubles.

That controversy continues to rage, often publicly, but GBTC is delivering its most encouraging results in months.

Behind the scenes, Grayscale continues to battle U.S. regulators over their refusal to allow it to convert GBTC to an exchange-traded fund (ETF) based on the Bitcoin spot price.

In an extensive Twitter update on Jan. 13, Craig Salm, Grayscales chief legal officer, referenced the firms commitment to win its case and bring the first spot Bitcoin ETF to the market in the U.S.

To reiterate, converting GBTC to a spot Bitcoin ETF is the best long-term way for it to track the value of its BTC, he summarized. Our case is moving forward swiftly, we have strong, common sense and compelling legal arguments and were optimistic that the Court should rule in our favor.GBTC premium vs. asset holdings vs. BTC/USD chart. Source: CoinglassDifficulty hits new all-time high

If Bitcoins price recovery were not enough to get bulls excited, its network fundamentals tell a similarly encouraging story.

Roughly in step with the weekly close, network mining difficulty increased by over 10%, marking its biggest uptick since October 2022.Bitcoin network fundamentals overview (screenshot). Source: BTC.com

The move has obvious implications for Bitcoin miners and suggests that the ecosystem already benefits from higher prices.

As Cointelegraph reported, miners had already been slowing the pace of their BTC reserve sales in recent weeks. At the same time, the difficulty increase reflects competition for block subsidies returning to the sector.

Over the past week, however, miner balances have decreased in response to Bitcoins rapid price rise. They stood at 1,823,097 BTC as of Jan. 16, data from on-chain analytics firm Glassnode shows, marking one-month lows.Bitcoin miner BTC balance chart. Source: Glassnode

Despite this, miner difficulty has now erased its FTX reactions and set a new all-time high in the process.

Bitcoin is in the process of retesting the estimated average cost of production price for Miners, Glassnode additionally notd last week before most of the gains came.

It added that breaking above this level like offers much needed relief to miner incomes.

An accompanying chart showed its proprietary difficulty regression model, which it describes as an estimated all-in-sustaining cost of production for Bitcoin.Bitcoin difficulty regression model chart. Source: GlassnodeSentiment exits “fear” as whales buy big

It is no secret that the average Bitcoin hodler is experiencing some much-needed relief this month, but is it a case of unchecked euphoria?

Related:5 altcoins that could breakout if Bitcoin price stays bullish

According to the time-honored yardstick, the Crypto Fear & Greed Index, it could be too much, too soon regarding changes in the mood over Bitcoin price strength.

On Jan. 15, the Index hit its highest level since April2022.While not greedy yet, the move marks a significant change from just weeks prior.Crypto Fear & Greed Index (screenshot). Source: Alternative.me

The crypto market spent a large swathe of 2022 in its lowest extreme fear bracket.

Now, it is scoring above 50/100, dropping slightly into the new week to remain in neutral territory.

For research firm Santiment, which specializes in gauging the atmosphere around crypto markets, there is one overriding factor influencing Bitcoins newfound strength.

The answer, it wrote in a Twitter post at the weekend, lies firmly in whale activity.

Over the ten days to Jan. 15, big and small whales added to their positions, sparking a supply and demand chain reaction. In total, over that period, they purchased 209,700 BTC.

Santiment called the data a definitive explanation on why crypto prices have bounced.BTC accumulation annotated chart. Source: Santiment/ Twitter

The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph. #Bitcoin #Bitcoin Price #Markets #Stocks #Inflation Related News What is total value locked (TVL) in crypto and why does it matter? Can Canada stay a crypto mining hub after Manitobas moratorium? Why is the crypto market up today? 5 cryptocurrencies that could benefit from a positive CPI report Bitcoin derivatives data suggests a BTC price pump above $18K wont be easy

Continue Reading

Sports

Yanks finally score, otherwise sputter in latest loss

Published

on

By

Yanks finally score, otherwise sputter in latest loss

NEW YORK — The good news for the Yankees on Wednesday was they scored a run after 30 consecutive scoreless innings. The bad news was they again didn’t score enough to win.

The Yankees fell to the Los Angeles Angels 3-2 to extend their season-high losing streak to six games. The Angels will look to complete a four-game sweep Thursday afternoon at Yankee Stadium. The Yankees, whose lead in the AL East has shrunk to 1½ games, will look to emerge from an offensive funk that has produced seven runs in seven games.

“That’s baseball,” Yankees right fielder Aaron Judge said. “We know what we signed up for. You’re going to play 162. You’re going to hit a little rut like this, but you can’t give up. You can’t mope about it. You just got to show up the next day and you got to be ready to play.”

Jazz Chisholm Jr. ended the Yankees’ scoreless innings streak in the second inning with a moonshot solo home run down the right-field line, giving New York its first run since the ninth inning Saturday against the Boston Red Sox. Two innings later, Cody Bellinger launched another solo shot to give the Yankees their first lead since last Thursday when they defeated the Kansas City Royals 1-0.

But the Yankees mustered only one other hit — a ground ball from Bellinger in the sixth inning that was ruled a single after it bounced off Trent Grisham as he ran to second base for the inning’s second out. Yankees manager Aaron Boone said he believed his team’s at-bats Wednesday were better than they were Tuesday — when he said he noticed his players pressing — and pointed to four walks as progress.

But the Yankees went 0-for-3 with runners in scoring position and are 5-for-48 (.104) with 12 strikeouts, four walks and three RBIs in such situations over their past seven games.

“We just got to break through now like we’re capable of offensively,” Boone said.

Judge, the two-time AL MVP who is a heavy favorite to win a third this season, has gone 1-for-19 with 11 strikeouts, two intentional walks and a home run over the past five games. He went 0-for-4 on Wednesday with two strikeouts, a 94.7 mph groundout and 107.9 mph flyout.

“Guys are pitching, they’re doing their job,” Judge said. “Sometimes we’re faltering on doing our job. But it’s tough to say. I think it just comes down to us not executing, us not doing our job. Maybe a little passive in certain situations. But all we can do is show up tomorrow ready to go.”

The Angels broke through to retake the lead in the eighth inning Wednesday without a hit when, after three walks, shortstop Anthony Volpe mishandled a ground ball on what should’ve been a routine, inning-ending double play. Volpe, a Gold Glove winner in 2023, was charged with his ninth error of the season, the second most among shortstops across the majors.

“Right off the bat, I got to be aggressive, go get the ball, make the play,” Volpe said. “As far as that, that’s all it is. It’s the first read off the bat.”

The lack of execution trickled to the offensive side in the bottom of the inning. The Yankees appeared ready to mount a rally when Jasson Dominguez walked and Oswald Peraza was hit by a pitch to begin the inning. But they were left stranded as Grisham, who was given the green light to swing away with one strike after failing to drop down a bunt, popped out, before Judge flied out and Bellinger popped out to extinguish the threat.

“When we’re not scoring a lot of runs, we got to execute on the highest level on the little things,” Boone said. “And we haven’t done that this week a handful of times when we had some opportunities.”

Continue Reading

Sports

Rays’ 8-run comeback largest in MLB this season

Published

on

By

Rays' 8-run comeback largest in MLB this season

TAMPA, Fla. — The Tampa Bay Rays overcame an eight-run deficit to beat the Baltimore Orioles 12-8 on Wednesday night in the largest comeback in the majors this season.

Tampa Bay matched the biggest comeback in franchise history. The Rays also rallied from eight down in a 10-8 victory over the Los Angeles Angels on Aug. 18, 2012, and in a 10-9 win over the Toronto Blue Jays on July 25, 2009.

It tied the Orioles’ largest blown lead over the past 50 seasons. Baltimore last gave away an eight-run lead on April 28, 2017, against the New York Yankees. The Orioles led that game 9-1 entering the bottom of the sixth inning before losing 14-11 in 10 innings.

Baltimore had an eight-run second inning on Wednesday. Colton Cowser smacked a three-run home run, Cedric Mullins added a solo shot, Gunnar Henderson had an RBI single and Ramón Laureano hit a three-run homer.

Tampa Bay’s Christopher Morel hit an RBI double in the third, and Jake Mangum‘s two-run single cut it to 8-3. Curtis Mead hit a two-out triple in the fourth and scored on a Junior Caminero single. Brandon Lowe‘s two-run homer in the fifth made it 8-8. And Jonathan Aranda had a two-run single in the Rays’ four-run seventh.

Lowe has at least a hit and a run in seven consecutive games, the longest active streak of its kind in the majors. He is batting .464 (13-of-28) with two home runs, five RBIs and eight runs during that span.

Caminero had four hits and two RBIs for the Rays.

Entering Wednesday, teams were 0-134 when trailing by eight or more runs at any point this season.

“It’s a tough game,” Orioles manager Tony Mansolino said. “It really hurts. But tomorrow, we’ll have to bounce back and try to figure out how to win a game.”

Three teams came back from eight runs behind last season in the majors. Pittsburgh was the most recent team to rally from more than that, erasing a nine-run deficit in a 13-12 victory over the Cincinnati Reds on Nov. 23, 2023.

ESPN Research and The Associated Press contributed to this report.

Continue Reading

Politics

Iran orders crypto exchange curfew after $100M Nobitex hack

Published

on

By

Iran orders crypto exchange curfew after 0M Nobitex hack

Iran orders crypto exchange curfew after 0M Nobitex hack

Chainalysis’s head of national security intelligence told Cointelegraph the curfew is likely an attempt to prevent people from transferring capital out of the country.

Continue Reading

Trending