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Data Suggests Shark Were Behind Litecoin’s 89% Rise To $97, But What About Now?

Data Suggests Shark Were Behind Litecoin’s 89% Rise To $97, But What About Now?

Litecoin (LTC) has seen one of the highest rallies among the top 20 largest cryptocurrencies, jumping over 89% since the market crash following the FTX collapse. While there are a number of factors that could’ve prompted this news, on-chain data suggests that sharks are the likely culprit. Sharks Holding 100-10,000 Coins Went On A Feeding Frenzy According to a Sentiment report, the sharks may be the ones behind the upward rally that Litecoin has embarked on in the last two months. It shows that these shark addresses holding between 100-10,000 LTC on their accounts went on a massive accumulation trend that saw them add a reasonable portion of supply to their holdings. Related Reading: U.S. Institutions Are Driving Bitcoin Prices, Matrixport Research Santiment reveals that in the two-month period, these addresses accumulated 1.15 million LTC. This works out to around a 4.92% increase in their holdings and 0.5% of the total LTC supply. As the image below shows, there was a significant uptick around this point coinciding with the increase in the price of the digital asset. LTC sharks accumulate in two months | Source: Santiment The accumulation trend continued into January 2023 when LTC’s price movement had ramped up. Thus, this shows that while accumulation by sharks may not have been the main driver of the price rally, they may have played a significant role. Further movements point toward these shark addresses having an effect on the price. Like the chart shows, there has been some profit-taking after LTC hit its local peak of $97 and this profit-taking coincided with the price of the cryptocurrency falling back down to the $94 level. Will Litecoin Continue To Rally From Here? Despite the sharks taking profit on their Litecoin buys over the last two months, the bull case for LTC is still not destroyed. The chart shows that even these large investors are still holding on to a good portion of the coins accumulated over the last two months. As long as there is still a large gap between what was accumulated and what is being sold, the price of LTC can be expected to hold up. It is also important to note that 2023 is an important year for Litecoin. A lot of the bullish sentiment around it has originated from the expectations surrounding the Litecoin halving. Litecoin, which works similarly to bitcoin, is about to reduce its block reward once more, reducing the number of coins going into circulation, and triggering FOMO (fear of missing out).   LTC halving happening in 2023 | Source: Coinwarz The halving is expected to take place in early August which puts it about six months away. But already, positive sentiment is already ramping up, contributing to the price increase that the coin has recorded. Related Reading: Bitcoin Mining Difficulty Touches New ATH Following 4.68% Adjustment Perhaps the most important thing is the fact that LTC is currently trading at almost 50% above its 100-day and 200-day moving averages. This suggests that despite the market drawdown, the LTC price is likely to hold at the $90 support.  LTC price retraces to $93.75 | Source: LTCUSD on TradingView.com Follow Best Owie on Twitter for market insights, updates, and the occasional funny tweet… Featured image from The Coin Republic, chart from TradingView.com

Bitcoin Spiked to $23,960, But Traders Are Not Very Greedy

Bitcoin Spiked to $23,960, But Traders Are Not Very Greedy

Sentiment data reveals that the Bitcoin price upwards trend from November lows to as high as $23,960 on January 30 was marked by “sober” traders. Related Reading: Gala Games Plans for Mobile Gaming, GALA To Be The Primary Token Bitcoin Traders Are Not Greedy Per the Fear and Greed Index, the 40% surge of BTC prices to January highs is unlike other periods in the coin’s boom and bust cycle. When BTC rose to bottom-up from November lows following the FTX contagion, the Fear and Greed Index spiked to a maximum of “55”. Although this is still “Greed,” indicating a possible Fear of Missing out (FOMO) amongst traders, it is suppressed compared to the 2018 to 2019 cycle. By overlaying the sentiment index’s reading with BTC prices over months and years, it is clear that the spike to spot levels was approached with caution and even levels of risk management. Fear gripped the market in late 2018 when prices sank below $4,000. However, once prices began turning around ahead of the Bitcoin halving in 2019, traders doubled in droves, forcing the index reading to “69”, the Greed territory, from “21.” Even after a minor retracement, the index’s reading was persistently above the “60” mark throughout late Q4 2018 and H1 2019, pointing to general confidence by traders and investors. Sentiment and Bitcoin Correlation A big part of BTC’s price action is shaped by how market participants perceive prevailing market conditions. Hype can trigger demand, and prime volatility as billions of dollars pour into Bitcoin. The crypto space is new and still needs a regulatory framework. Crypto regulations are being developed and improved across the board. Complex products, including Exchange-Traded Funds (ETFs), may be approved months ahead. Whether they are given the go-ahead depends on the availability of monitoring tools aimed at preventing price manipulation. The former United States Securities and Exchange Commission (SEC) Chair, Jay Clayton, cited the absence of sufficient monitoring tools as one of the reasons for rejecting the launch of an ETF tracking the spot price of Bitcoin. Traders are confident Bitcoin has turned the corner, shaking off the bears of November. However, considering the state of the general economy and inflation readings, BTC and crypto prices remain in a precarious position. Related Reading: Dogecoin Surges 6% After Elon Musk Unveils Crypto Payment Master Plan Beyond macroeconomic factors, the surge of BTC prices is at the back of decreasing stablecoin deposits to cryptocurrency exchanges. Historical data shows a direct correlation between stablecoin issuance and BTC prices.

Fantom (FTM) Gains 39% In 7 Days Following Its Integration With Axelar Network

Fantom (FTM) Gains 39% In 7 Days Following Its Integration With Axelar Network

Fantom (FTM) has been one of the best-performing tokens of 2023, pulling off a series of impressive gains in the last few weeks. Following the market crash in late 2022, FTM began the new year trading as low as $0.2007, representing a 94.19% decline from its all-time high value of $3.46. However, with the entire crypto market attempting to pull off a recovery, FTM has been one particular token with lots of investor attention, as its price has surged by over 136% since the start of 2023.  Related Reading: Shiba Inu Observes Highest Rise In Burn Rate – Is This Normal? Fantom Records 39% Profit In Seven Days According to data from CoinMarketCap, Fantom (FTM) gained by 38.77% in the last seven days alone, outperforming major cryptocurrencies such as Ethereum (ETH), Cardano (ADA), Ripple (XRP), and Bitcoin (BTC) itself. While FTM has been on an upward trend since the first week of the year, its price rally in the last week can be attributed to Fantom’s recent integration with the Axelar Network. On Jan. 24, the Fantom Foundation announced a partnership with Axelar, which will introduce interchain communication to the Fantom Network. As of the time of writing, FTM is trading at $0.4724, having gone up by 1.98% in the last 24 hours. Based on more data from CoinMarketCap, the daily trading volume of FTM is currently $240.7 million, while its total market cap is $1.312 billion. FTM trading at $0.4790 | Source: FTMUSD chart of Tradingview.com Related Reading: AAVE Seeks Proposal To Clear Itself Of Bad Debt – Can It Overcome These Obstacles? What Does Axelar’s Integration Mean For Fantom Users? According to a blog post by Fantom, “Axelar network is a blockchain that connects blockchains, enabling universal Web 3 interoperability.” Basically, Axelar functions as a medium for communication and transfer of value between several blockchains. Following the integration with the Axelar network, Fantom automatically becomes part of an ecosystem that consists of over 30 different blockchains capable of seamlessly interacting with one another.  Using the General Message Passing (GMP) protocol, developers on the Fantom network will be able to easily access smart-contact codes on any chain connected to Axelar. The GMP protocol will also allow dApps and users to send and receive data and function calls across the multiple chains in Axelar’s ecosystem. Another benefit of Axelar’s integration with Fantom is the introduction of one-click cross-chain swaps on the platform’s biggest decentralized exchange, SpookySwap. Using Squid, an Axelar-based protocol that reroutes liquidity between chains, SpookySwap users will seamlessly swap native tokens of different chains in one click. In every transaction, the Axelar network will process the cross-chain gas conversions from the source-chain token to the destination-chain token, ensuring that users need not own crypto wallets on multiple chains or hold native tokens of other chains for gas fees, That said, other chains on the Axelar Network aside from Fantom include Arbitrum, Moonbeam, Polygon, Osmosis, etc. Featured Image: Zipmex, chart from Tradingview.com

U.S. Government Releases Roadmap To Mitigate Crypto Risk For Investors

U.S. Government Releases Roadmap To Mitigate Crypto Risk For Investors

The U.S. government is set to tighten regulations to mitigate the growing risks associated with the crypto industry. This development comes after increased scrutiny following the collapse of FTX and Terra Luna in 2022.  In a press release on January 27, the White House put forward a comprehensive roadmap designed to protect investors and hold bad actors accountable. The roadmap highlighted several measures for more effective regulations in the crypto industry.  A Two-Pronged Approach By U.S. Government The U.S. government revealed that it had spent the past two years identifying the risks of cryptocurrency and finding ways to mitigate them. To ensure these measures are implemented, the White House intends to utilize a two-pronged approach.  Firstly, the U.S. government has developed a framework for individuals and organizations to safely and responsibly develop digital assets. This includes addressing the risks they pose as well as highlighting poor practices within the crypto industry.  Secondly, agencies have been mandated to increase enforcement and develop new regulations where needed. While there’s an increase in public awareness programs designed to help consumers understand the risks of buying cryptocurrencies.  Related Reading: US Federal Regulators Warn About Crypto Activities The White House also pointed out that Congress had a major role in expanding regulators’ powers and passing transparency laws for cryptocurrency companies. It also warned about passing legislation that would reverse the current gains and tie cryptocurrency with the U.S. financial system.  In addition, the government intends to commit significant resources toward digital assets research and development, and this would help technologies power digital currencies and protect investors by default.   Crypto Industry Still Reeling From FTX Collapse The crypto industry is still recovering from the bearish markets resulting from several CeFi platforms’ high-profile collapses. 3AC, Voyager, BlockFi, and FTX were among the top platforms to file for bankruptcy, with the quartet holding more than $100 billion in assets.  The nature of FTX collapse brought about increased scrutiny of the crypto industry. Congress testimonials exposed the risk-averse nature of crypto companies’ executives as details emerged that Sam Bankman-Fried misused clients’ funds through his trading firm Alameda Research.  The ripple effect was massive as several individuals and firms exposed to the platform suffered huge losses, with some companies forced to shut down. These events caused concerns and reactions from within and outside the crypto space. It is, therefore, unsurprising that the U.S. government is looking to tighten its grip on regulations.  Related Reading: Crypto-Friendly Bank Silvergate Suspends Dividend Payouts Months after the FTX crash, there’s still increased skepticism about the crypto industry. There’s an increase in the amount of bitcoin withdrawn from exchanges, and earlier this month crypto bank, Silvergate revealed that clients withdrew almost $8 billion of their crypto deposits.  Featured image from Pixabay, chart from TradingView.com

Does the Crypto Market Have The Strength To Break To The Upside? QCP Capital Weighs In

Does the Crypto Market Have The Strength To Break To The Upside? QCP Capital Weighs In

The conditions of the cryptocurrency market have changed drastically; according to an analysis by QCP Capital, the options market in its current state makes the crypto industry look like a major crisis, such as the shutdown of crypto exchange FTX after filing for bankruptcy, never happened. Related Reading: Bitcoin Exchange Outflows Reach Highest Value Since FTX Crash, Bullish? Trading desk QCP Capital published observations on the crypto industry, revealing some key points to consider for the coming months. The Crypto Market Comes Back To Life QCP’s analysis points out that Bitcoin (BTC) risk reversals have been trading in positive territory over the past week, which tells us that calls (buys) have been more expensive than puts (sells) since 2021 across multiple tenors. This is unusual for the sector as BTC typically has a persistent put skew, mainly due to miner/treasury hedging activity. The chart below depicts this market behavior and the bullish sentiment impacting the options sector. Put skew drives the price of puts higher and calls lower. This difference in pricing between options is called skew and, under normal circumstances, puts trade with higher volatility than calls precisely because investors are hedging some of their bullish positions. For the trading desk, this means that the sentiment in the cryptocurrency market has shifted from bearish to bullish, a culmination of what has been happening in the macro market and the slight recovery in the economy. Bulls Might Get Their Hearts Broken On Valentines Day Ethereum’s (ETH) implied volatility (IV), which represents the expected volatility of a stock or currency over the option’s life, has fallen, indicating complacency as the market prices out fears of a price collapse, according to the analysis. The enthusiasm in the market can be measured by the amount of “fear of missing out” (FOMO) that has set in, with many chasing prices and the top by buying high delta calls and going long in the spot market over the past week. With the upcoming “Big Bad” Federal Open Market Committee (FOMC) meeting, the trading desk expects the market to be more cautious and conservative. According to QCP, the following potentially problematic date will be February 14th, when the following CPI report will occur, which can potentially “break the heart of the bulls.” For QCP, this is the same scenario the market experienced in December. Similarly, the price may experience a topside breakout characterized by a highly sharp and violent movement. Bitcoin is currently trading at $23,200 and seems to be paving the way for the conquest of new levels. It has gained 0.7% in the last 24 hours and 10.3% in the last seven days. Bitcoin is trying to break the next obstacle represented by the $24,400 level. Ethereum is trading at $1600, up 0.3% in the last 24 hours, with sideways price action. The next resistance wall is at $1,691, a zone the bulls have not visited since September 2022. Ethereum has gained 3.8% in the last seven days. Related Reading: U.S. Institutions Are Driving Bitcoin Prices, Matrixport Research Cover image from Unsplash, charts from Tradingview.

Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback

Dogecoin (DOGE) Soars 8%, But An Uptick In This Metric Suggests A Pullback

Dogecoin (DOGE) and other altcoins are stealing some of Bitcoin’s shine as the benchmark crypto stalls at its current levels. However, the recent rally could spell trouble for optimistic traders and investors waiting for a continuation of the trend. Related Reading: Cardano Adds 50,000 New Wallets As ADA Market Cap Surges As of this writing, Dogecoin (DOGE) trades at $0.08 with sideways movement in the last 24 hours. Over the previous seven days, the meme coin still records an 8% profit. In the crypto top 10, DOGE stands amongst the best performers, surpassed only by Cardano (ADA) and Polygon (MATIC). Dogecoin’s Rally Stirs The Crowds, Is A Retrace Imminent? Data from Coingecko indicates positive development for meme coins. The sector records around $20 billion in total market cap, a 2% increase in 24 hours, and $1 billion in trading volume over the same period. In addition to Dogecoin, Shiba Inu (SHIB), Baby Dogecoin, and Bonk have captured the attention of crypto investors. The second of these assets experience a 23% rally in the past week alone, hinting at the increase in risk appetite from digital asset enthusiasts. The Bitcoin rally deep into the $20,000 territory has flipped the crypto market’s sentiment. As a result, Dogecoin and other meme coins are resurging and outperforming more significant digital assets. Additional data from analytics firm Santiment registered increased levels of positive interaction across social media platforms. This suggests that users are more willing to take long positions, swelling the liquidity to the downside. In other words, people are experiencing fear of missing out (FOMO), as recorded by Santiment, increasing the chances of a pullback. Market makers could squeeze long positions before resuming the bullish momentum. As seen in the chart below, the altcoin sector has recently seen important growth. Tokens such as APTOS and LCX saw around 40% of weekly profits. Related Reading: XRP Whales Accumulate Massive Tokens – Is A Bull Run Coming? Santiment wrote: Altcoins are on another impressive run, with several notable assets up 20% or more. After a 5-day crypto dip, prices are seeing little resistance. Social spikes & FOMO may cause a top, or traders will scoff at this run (allowing rallies to continue).

What Is VVS Finance: Deep Dive Into Cronos’ Main DEX

What Is VVS Finance: Deep Dive Into Cronos’ Main DEX

VVS Finance

VVS Finance, or Very Very Simple Finance, is an automated market maker (AMM) DEX and the largest project built on the Cronos blockchain, launched by Crypto.com in 2021.

VVS facilitates liquidity pools, swaps, and staking and offers an intuitive UI aiming to drive global adoption of DeFi. 

Read on for a deep dive into the VVS Finance protocol and its key features. 

Executive Summary

  • VVS Finance is an AMM DEX that facilitates trading with no order books or intermediaries. It implements a smart contract that uses the assets and liquidity offered by liquidity providers. 
  • VVS Finance’s unique selling points (USPs) include Bling Swap, Liquidity Provision, Crystal Farming, Glitter Mining, Initial Gem Offerings (IGOs), and Analytics.
  • VVS is the VVS Finance protocol’s utility, reward, and governance token. 

What Is VVS Finance?

VVS Finance is a decentralized finance (DeFi) platform built on the Cronos blockchain. It was created to simplify the DeFi market for everyone and empower the masses to take control of their finances. 

VVS Finance Utility
VVS Finance Utility

To make DeFi more accessible to billions of consumers worldwide, VVS Finance offers fast transactions, minimal charges, and high potential earnings. The DeFi platform also intends to create passive revenue streams for users through various options, such as yield farming.

Definition: Yield farming is an investment strategy allowing users to lend their digital assets in exchange for benefits like interest or a share of the platform’s transaction fees.

Based on the Cronos blockchain, VVS Finance enables users to swap cryptocurrencies or stake their digital assets to provide liquidity in different liquidity pools. In exchange, VVS Finance allows investors to receive two-thirds of the collected swap fees. Similarly, the platform permits users to collect liquidity awards in the form of 0.2% of trading transaction fees.  

The use of the AMM protocol enables VVS Finance to provide incentives to users to ensure long-term sustainable growth. The platform focuses on making it simple for users to transfer tokens and receive dividends “while having fun.” VVS Finance emphasizes the “fun” aspect of DeFi to onboard as many users as possible, including those with little to no prior experience in blockchain and cryptocurrency. The VVS team believes the more users on the platform, the better value there will be for network participants. 

Who Created VVS Finance?

The VVS Finance team calls its members the “Craftsmen” – “Coming from a deep product design background, a team of humble farmers got together, determined to build DeFi products for our aunts and neighbors, to bring amazing protocols to the masses.” 

While staying anonymous, VVS Finance has successfully created several valuable partnerships with key strategic partners, such as the Crypto.org and Crypto.com ecosystems. 

What makes VVS Finance Unique?

VVS Finance’s unique selling points (USPs) include the following:

Bling Swap

Bling Swap is an algorithmic routing system that enables users to swap tokens across several liquidity pools to obtain a better price for the requested pair. Users can swap tokens for a small fee of 0.3%. 

Liquidity Provision

Users can become Liquidity-Providers (LPs) by adding tokens to a liquidity pool. As evidence of their share of the pool’s assets, each LP is given a CRC-20 pool token (LP token). To trade through their liquidity pools, users must pay swap fees to LPs.

  • Liquidity providers get two-thirds of swap fees (0.2% of swap volume at launch);
  • 0.1% of the swap volume at launch, or one-third of swap fees, is held in treasury.

The swap fees are kept in liquidity pools’ reserves. Users will receive their proportionate part in exchange for their share of the reserves when pool tokens are returned. 

Before choosing to contribute to a liquidity pool, LPs are advised to weigh the risk of impermanent loss against the anticipated share of fees and income because they may experience impermanent loss if the tokens’ prices decrease.

CRYSTAL Farming

LPs can stake their LP tokens in “Crystal Farms” to get VVS tokens as rewards. 

VVS FInance Farms
VVS FInance Crystal Farms

  • View: Users can view the eligible pool, as well as the staked, earned, and APR percentages for each pool (accessible after Pioneer Farming Mode);
  • Stake: Allows users to pay gas fees and quickly stake qualified LP tokens in a few clicks;
  • Claim: Facilitates customers’ quick and easy claims of their accumulated VVS by paying gas fees;
  • ROI calculator: Allows users to calculate their ROI by entering the stake amount, time frame, and compounding duration. (accessible after Pioneer Farming Mode).

Glitter Mining

The “Glitter Mine” allows non-LP users to stake VVS tokens and get VVS tokens or other partner tokens as rewards. In addition to the View, Stake, Claim, and ROI calculator features, users can also use auto-compounding, which allows users to activate the auto-compounding of staked VVS tokens for each user in the Auto VVS pool in exchange for VVS tokens. 

Initial Gem Offerings (IGOs)

Users can benefit from larger rewards and early access to Cronos ecosystem’s new projects through the VVS Initial Gem Offerings. They can buy the new projects’ tokens using VVS-CRO LP tokens by participating in one of the two sale options: basic sale or unlimited sale. Let’s explore their characteristics.

Basic Sale

  • Users can commit VVS-CRO tokens up to a maximum determined amount (differs for each project, e.g., $100, $500 worth)
  • No participation fees
  • If there’s an overflow in the subscription, any unspent LP token will be returned.

Unlimited Sale

  • No cap on the amount of VVS-CRO to commit
  • The participation fee will decline based on the percentage of overflow. The initial participation fee is set at 1%.
  • If there’s an overflow in the subscription, any unspent LP token will be returned.

Analytics

Analytics allows users to access the overall VVS Finance protocol’s per-token/pair data, including liquidity, trading volume, etc. Users can access the VVS protocol via a dedicated web interface and connect using the Crypto.com Wallet Extension or any mobile wallet that supports WalletConnect (available on the Crypto.com DeFi Wallet).

VVS Finance intends to provide native wallet integration with popular wallets and API access in the future.

Why Is VVS Finance Popular?

VVS Finance intends to simplify DeFi by offering a user-friendly interface, seamless swaps, liquidity pools, staking, fast and cheap transactions, etc.

A cryptocurrency project’s health is also evaluated according to the following criteria:

  • Substantial market cap: In the first few months since its launch, VVS Finance’s market cap increased from $20 to $170 million and has mirrored the general market trend since then. 
  • Reasonable trading volume: VVS Finance’s trading volume has primarily stayed within 5 and 20% of its market capitalization range. 
  • Price action: The protocol’s VVS token’s price action is approximately as volatile as you would anticipate from a new DEX project and a new chain, but without strange pumps.

What Is VVS Token?

VVS is the VVS Finance protocol’s utility, reward, and governance token. The VVS token was created on the Cronos blockchain’s CRC-20 architecture. VVS adopts an emission model in which 50 trillion VVS will be created in the first year and half of that every year after that  (for example, 25 trillion in the second year), and the per-block emission is based on the chain’s technological design.

VVS Finance Token
VVS Token

VVS tokenomics is as follows:

  • 30% to farms and liquidity mining
  • 23% to the team
  • 15% to the community wallet for future initiatives
  • 13.5% for network security and maintenance
  • 13.5% for ecosystem development
  • 2.5% to traders and referrers
  • 2.5% to market makers.

In addition to the Cronos blockchain’s core VVS and CRO tokens, the protocol also supports USDT, USDC, SHIB, ATOM, and other tokens.

The VVS Finance team makes the current governance decisions in consultation with the community feedback; however, to fully decentralize the protocol, VVS Finance intends to hand the project over to VVS token holders gradually.

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How Many VVS Tokens Are in Circulation?

VVS’s total circulating supply is 2.2 trillion. Its total supply is over 36 trillion, increasing to 100 trillion over ten years through its emissions schedule. 

How Does VVS Finance Work?

VVS Finance focuses on tested and audited protocols. It provides a lucrative creative program supported by the native VVS Finance token (VVS). 

The protocol offers liquidity pools, each consisting of two tokens. Tokens are added to the pool by liquidity providers and then traded amongst traders.

The methodology is based on a formula for producing a consistent product. To clarify, after a swap is carried out, the sum of the quantities of both tokens in a pool stays the same. Additionally, the price slippage from the swap may differ according to the total number and distribution of tokens in the pool.

The stakeholders can profit from VVS Finance’s underlying mechanisms in the following ways:

  • Liquidity providers (LPs): LPs receive 2/3 of the individual pools’ transaction fees. You will get VVS incentives for staking valid LP tokens under the “Crystal Farm” tab.
  • VVS stakers: Stakers are rewarded in  VVS and partner tokens for staking VVS on the “Glitter Mine” page.
  • Trading incentives: Rewards for trading tokens on VVS Finance are promised to users who swap tokens on the platform but have yet to be made public. Referral program: Users recommending others to trade on VVS Finance will receive benefits that have yet to be disclosed.

A sizable amount of the VVS supply is set aside for future community projects to ensure benefits for the  VVS Finance contributors and users.

Bottom Line

VVS Finance is built on the Cronos blockchain that facilitates cheap and fast transactions and leverages proven and audited protocols. It also provides a rewarding incentive scheme powered by the VVS Finance token.

The VVS Finance price prediction anticipated steady growth, drawing inference from its market capitalization moving from $20 to $170 million and then to $350 million in early April. If VVS Finance continues its steady growth, the protocol could retain its large market share on the Cronos blockchain.

Banking Giant Goldman Sachs Ranks Bitcoin As World Best Performing Asset

Banking Giant Goldman Sachs Ranks Bitcoin As World Best Performing Asset

Ahead of Gold, US Treasury, the S&P 500, and others, banking giant Goldman Sachs ranks Bitcoin (BTC) in the top 1 best-performing asset year-to-date, per a Twitter user. Related Reading: MakerDAO Passes Proposal To Deploy $100 Million USDC In Yearn Finance Vault According to Goldman Sachs, Bitcoin has outperformed its cryptocurrency pairs and those major financial institutions of the traditional market with a risk-adjusted return (Sharpe ratio) of 3.1. The Sharpe Ratio is used to measure market volatility-adjusted performance; the higher the ratio, the better the investment, currency, or stock in terms of risk-adjusted returns. Bitcoin Takes The Lead In Broad Market Recovery On smaller timeframes, Bitcoin continues its quest to regain lost territory. Slowly but steadily, Bitcoin is attempting to break above the resistance level of $23,800. Bitcoin appears to have a healthy pullback below the resistance line in search of bullish momentum. Despite the recent crisis of not only the cryptocurrency market with the collapse of FTX and the world economy in free fall, bringing consequences for investors and institutions, the market has also noted the comeback of market makers on cryptocurrency exchanges.  In contrast with Goldman Sachs’ report, according to an annual report by CoinGecko, Bitcoin is the worst-performing asset among the major currencies, with a significant decline of 64%. CoinGecko also noted that since January 2022, the trading volume in the spot market has decreased by 67%.  The new year for Bitcoin and the market started positively, with $200 billion bulking the volume and volatility sheets, according to CoinMarketCap data. Bitcoin’s year-to-date solid rally has shifted market sentiment. Analysts seem bullish in the short term, expecting the cryptocurrency to increase to as much as $30,000. However, in the long term, economist Lyn Alden said that Bitcoin could be in “considerable danger” in the second quarter of 2023 as liquidity risks increase.  As the price of Bitcoin consolidates below the resistance zone, the cryptocurrency is looking for a trendline break to position itself above the $24,500 level, representing its next obstacle.  The rising 20-day moving average at $20,700 and the Relative Strength Index (RSI) in the overbought zone near 80 suggest that BTC’s bullish trend line can continue and conquer new regions. Conversely, bears are ready to stall the Bitcoin price action to the upside and turn the momentum and direction of the market, but bulls seem unwilling to surrender. Speculation is on the rise with no certainties in the market and the upcoming Federal Open Market Committee (FOMC) meetings.  Related Reading: Cardano’s Aggressive Development Activity Will Withstand Bear Assault At $0.3? As of this writing, Bitcoin has gained nearly 8% in the last seven days. It has traded at $22,889 with sideways movement in the last 24 hours. The currency’s current capitalization stands at $440 billion, outperforming all its market pairs.

Chiliz (CHZ) Continues To Record Significant Gains, Moves Over 5% In The Last Day

Chiliz (CHZ) Continues To Record Significant Gains, Moves Over 5% In The Last Day

The global cryptocurrency market cap stands at $1.05 trillion, representing a 0.19% increase in the last day. As the cryptocurrency market continues to rally, altcoins are posting incredible gains. For instance, Chiliz’s price is gaining today, reflecting the positive moves of the general market. CHZ’s trading volume has also increased by 82.02% in 24 hours, showing rising interest among investors. CHZ is among the top gainers today, recording an almost 6% increase in value. The asset has outperformed market leader Bitcoin today, which recorded a 0.02% increase in 24 hours. This price increase might support a bull run in the coming weeks. Related Reading: Money Leaves ADA, SOL To Small Cap Altcoins, Here’s Where It’s Headed Some experts have predicted 2023 to be bullish, and the price performance of cryptos so far is leaning toward this prediction. What Is Behind The Chiliz (CHZ) Rally? CHZ acts as a fan token and has always been a community-driven project that relies on voting power from members. The Chiliz project has many lucrative partnerships with soccer giants such as Juventus, Manchester City, FC Barcelona, and Paris Saint-Germain. It equips the club supporters with limited editions of fan tokens. Sports is a lucrative sector worldwide, with fans investing heavily in merchandise and fan tokens to support their favorite teams. The platform’s native token CHZ is the currency for purchasing these fan tokens through smart contracts. These fan tokens are offered in limited supply to preserve their scarcity and uniqueness. The Chiliz development team posted the progressive strides the network has made in 2022 and early 2023 on Twitter. It has formed new partnerships with notable partners such as Italian Serie A teams, MLS teams, and SL Benfica. Also, the Scoville Testnet upgrade launched in 2022 has recorded success in stages 1-5. According to the development team, Stage 6 will launch in 2023. CHZ Price Prediction Where Is it Headed? Chiliz (CHZ) is trading at 0.1461, a 5.29% increase in the token’s value. The Chiliz token is in an uptrend, as the formation of consecutive green candles with higher highs indicates. CHZ is trading above its 50-day Simple Moving Average (SMA) and below its 200-day (SMA). It implies a short-term rally as the bulls seize control of the market. The support levels are $0.130459, $0.133246, and $0.136924, while the resistance levels are $0.143388, $0.146176, and $0.146176.   Chiliz has broken its first resistance level of $0.133246 and turned it to support, leading to a positive movement on the charts. The Relative Strength Index (RSI) is at 64.85, showing that Chiliz is close to the buy zone but not in the overbought region. If the bullish pressure sustains,  Chiliz will likely surpass its next resistance level soon. The MACD (Moving Average Convergence Divergence) is now above the signal line. It also indicates slight bullish pressure. However, the MACD is still tentative and reflects a possible reversal if the bears seize control. Related Reading: Solana (SOL) Network On Hyperdrive As TVL And NFT Trade Volume Soars Expect CHZ to sustain its gains in the coming days. The asset will likely surpass the $0.14676 level soon. However, if the resistance prevails, it will retrace to the $0.133246 support. Featured image from Pixabay and chart from TradingView.com

Bitcoin Puell Multiple Starts To Leave Bear Market Zone, Bull Rally Here?

Bitcoin Puell Multiple Starts To Leave Bear Market Zone, Bull Rally Here?

On-chain data shows the annual rate of change in the Bitcoin Puell Multiple has exited the bear market zone, a sign that a bull rally may be here. Bitcoin Puell Multiple 365-Day Rate Of Change Has Shot Up As pointed out by an analyst in a CryptoQuant post, this could be one of the first indications of the return of the bull market. The “Puell Multiple” is an indicator that measures the ratio between the daily Bitcoin mining revenue (in USD) and the 365-day moving average (MA) of the same. When the value of this metric is greater than 1, miners are making more income than the yearly average right now. On the other hand, values below the threshold imply the revenues of these chain validators is less than usual. As miner revenues shift, these holders become more or less likely to sell BTC (depending on which way of the break-even mark the ratio has swung in), which is a factor that can affect the price of the crypto. Thus, when the Puell Multiple is greater than 1, BTC may be considered overvalued, while being lesser than this value might suggest the coin is undervalued. The relevant indicator here is not the Puell Multiple itself but its rate of change (RoC). The RoC displays the speed at which any metric changes its value over a defined period. Related Reading: Bitcoin Bullish Signal: Whales Go On $1.4B Buying Spree In particular, the 365-day RoC of the Puell Multiple is of interest in the current discussion. Here is a chart that shows the trend in this indicator over the course of the different Bitcoin cycles: Looks like the value of the metric has spiked in recent days | Source: CryptoQuant In the above graph, the quant has marked the relevant zones for the Bitcoin Puell Multiple 365-day RoC. It seems like tops have taken place in the crypto price whenever the metric has touched the red line, while mid-cycle highs have been set around the orange line. And it would appear that bear markets have lasted while the indicator has been around the green line. It also looks like transitions to and from bear markets have generally followed the dotted line historically. Related Reading: Bearish Indicator: Are Big Players No Longer Interested In Bitcoin? Recently, as Bitcoin has sharply rallied, miner revenues have also shot up, leading to the Puell Multiple also observing a rise. As the chart displays, the 365-day RoC of the indicator has naturally seen some rapid rise in recent days. With this spike, the metric has finally crossed above the dotted line, which could mean, if the past pattern is anything to go by, that the bear market may be coming to an end, and the crypto might have started transitioning towards a bullish trend. The analyst notes, however, that it will still take some more price action before this breakout can be fully confirmed. BTC Price At the time of writing, Bitcoin is trading around $22,800, up 9% in the last week. The value of the crypto seems to have been moving sideways in the last few days | Source: BTCUSD on TradingView Featured image from Dylan Leagh on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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