Cointelegraph’s Crypto Trading Secrets podcast welcomed Brian Krogsgard, aka Ledgerstatus on Twitter, for Episode 6.
Cointelegraph’s Crypto Trading Secrets podcast has published Episode 6, covering an array of content that should pique the interest of cryptocurrency traders. This episode’s guest is Brian Krogsgard, also known as Ledgerstatus on Twitter. Krogsgard is a trader and one of the co-founders of Flip.xyz, a nonfungible token (NFT) platform. He is also a podcaster in the crypto space.
Among the questions fielded during the Feb. 16 recording, host Benjamin Pirus asked Krogsgard to give his opinion on what he thinks has most impacted the price of Bitcoin (BTC) over the past year. “Liquidity,” he responded.
“People just do not have spare liquidity for a multitude of reasons. They have counterparties that went bankrupt, and that might have forced them to lose money. They got coins stuck on places that went bankrupt. Lost access to them, lost in trading, lost because of taxes, whatever.”
“Those are all challenges for liquidity, and you need liquidity for the healthiest of markets, and so that’s been a challenge,” he added. Amid the runaway train that was the 2022 crypto bear market, the space saw significant turmoil. Several cryptocurrency companies failed, including the likes of crypto exchange giant FTX.
“I would actually say the problems go way before that with Bitcoin because we saw with FTX there was massive rehypothecation of Bitcoin,” Krogsgard continued. “Rehypothecation” is when entities use customers’ collateral for other activities, according to Investopedia. The collapse of FTX in November 2022 sparked numerous headlines, such as allegations of customer asset misuse by FTX and sister entity Alameda Research.
“So, the Bitcoin people thought they had on FTX was not there, and FTX was selling it to do other things. And that rehypothecation was actually a burden to Bitcoin’s price even in a bull market. And now that we have liquidity issues, it’s just been a consistent kind of drag on price and presented challenges for a year and then some.”
Krogsgard provided his thoughts and opinions on several other points during the episode and also chatted about his background.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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On this week’s episode of The Market Report, Cointelegraph’s resident experts discuss the recent concerns surrounding Binance and why Solana went down yet again.
This week on The Market Report, the resident experts at Cointelegraph discuss the recent fear, uncertainty and doubt (FUD) around the popular cryptocurrency exchange Binance and what the CEO of Solana had to say about recent outages.
In the aftermath of the FTX collapse, Forbes published an article focused on the recent “shuffling” of funds by the Binance cryptocurrency exchange. However, the following day on Feb. 28, Binance co-founder and CEO Changpeng “CZ” Zhao took to Twitter to respond. Our experts weigh in on what CZ had to say and also what exactly the FUD surrounding Binance was. If you are a Binance user, should you be worried?
Anatoly Yakovenko, founder and CEO of Solana Labs, has denied claims that Solana’s network outages were being caused by a high volume of validator messages and its on-chain voting system clogging its consensus layer. While the Solana Foundation confirmed in a Feb. 27 post that the “root cause” of the recent 20-hour network outage is still unclear, the CEO responded to speculation that Solana’s decision to include on-chain votes as transactions is a “massive design flaw” that has led to its many outages. We take a deep dive into why Solana has had so many issues in the past and continues to do so. We also take a look at some of the responses from the crypto community regarding the recent outage of the network.
Cryptocurrency lawyers have rebuffed comments made by the head of the United States securities regulator, who claimed in a recent interview that every cryptocurrency except Bitcoin (BTC) is a security that falls under its jurisdiction. In a wide-ranging Feb. 23 New York Magazine interview discussing crypto, Securities and Exchange Commission Chair Gary Gensler claimed “everything other than Bitcoin” falls under the agency’s remit. Gensler may claim command over the crypto sector, but unfortunately for him and fortunately for the rest of us, his opinion is not the law. Our experts give you their unbiased opinions about the comments made by Gensler.
Our experts cover these and other developing stories, so make sure you tune in to stay up-to-date on the latest in the world of crypto.
Lastly, we’ve got insights from Cointelegraph Markets Pro, a platform for crypto traders who want to stay one step ahead of the market. Our analysts use Cointelegraph Markets Pro to identify two altcoins that stood out this week, so make sure to tune in to find out which ones made the cut.
Do you have a question about a coin or topic not covered here? Don’t worry — join the YouTube chat room and write your questions there. The person with the most interesting comment or question will have a chance to win a one-month subscription to Markets Pro worth $100.
The Market Report streams live every Tuesday at 12:00 pm ET (5:00 pm UTC), so be sure to head on over to the Cointelegraph Markets & Research YouTube page and smash those Like and Subscribe buttons for all our future videos and updates.
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Universities in the U.K., including Cambridge, Imperial, Edinburgh, Oxford and University College London, offer blockchain-related programs.
Universities in the United Kingdom have started offering cutting-edge research programs, courses and practical experience in various aspects of blockchain technology, including cryptocurrencies, smart contracts, privacy, security and scalability. Students who graduate from these programs will be well-equipped with the knowledge and skills necessary to become leaders in the field of blockchain technology and drive innovation and adoption in various industries.
Here are top five universities to study blockchain in the United Kingdom.
University of Cambridge
The University of Cambridge is a public research university located in Cambridge, and its Cambridge Centre for Alternative Finance (CCAF) is a leading research center in the field of alternative finance, which includes research on blockchain and cryptocurrencies.
The CCAF conducts research on various aspects of blockchain technology, including adoption, regulation and policy. Postgraduate students at Cambridge can take blockchain courses such as “Distributed Ledger Technologies: Foundations and Applications” at the department of computer science and technology. In this 16-hour course, concepts such as consensus mechanisms, smart contracts, Bitcoin (BTC) and its variants, Ethereum and other permissionless decentralized ledger technologies are covered.
In addition, the Cambridge Digital Assets Program is a multi-year research program that intends to shed light on the quick digitalization of assets and value-transfer systems. It builds on the solid foundations of the CCAF’s prior work and current ties. It is centered around three workstreams, including:
Climate Aspects of Digital Assets: It focuses on providing reliable information and insights regarding the wider environmental effects of digital assets in order to promote a fair dialogue based on factual and empirical evidence.
Distributed Financial Market Infrastructure (dFMI): Research projects in this thematic stream, which focuses on the “infrastructure” side of the digital asset ecosystem, will examine the fundamental building blocks — the rails, platforms and applications — that enable new digital financial services as well as their broader effects on market structures, regulatory frameworks and the real economy.
Emergent Money Systems: This study stream focuses on examining the socio-economic, financial, legal, regulatory and cultural effects of asset digitization and tokenization on payments, commerce and money in general, with a focus on the “asset” side of the ecosystem. Understanding how technologically enabled asset types and forms impact consumer and corporate behavior, current payment and monetary arrangements and the stability of the larger financial system is the key objective.
Imperial College London
Imperial College London is a public research university, and its Centre for Cryptocurrency Research and Engineering is a leading research center in the field of cryptocurrency and blockchain technology.
Imperial College London offers a Master of Science in Financial Technology (fintech) course structured into pre-study modules, foundation modules, core modules, electives and a project. The modules cover topics such as “Applications of R and Databases for Finance,” “Data Structures and Algorithms with Python,” “Accounting and Corporate Finance,” “Financial Econometrics in R and Python,” “Asset Allocation and Investment Strategies,” and “Text Mining for Economics and Finance.”
All students beginning the Master of Science in Financial Technology program should have a strong background in probability, calculus, matrix algebra and real analysis. The program is designed to equip students with a comprehensive understanding of quantitative and analytical skills, including coding and programming capabilities.
In addition, the college also offers a 12.5-hour (spread over six weeks) masterclass on “Blockchain Technology: Foundations, Applications, and Implications.” The curriculum covers topics such as cryptography, smart contracts and decentralized finance (DeFi).
University of Edinburgh
The University of Edinburgh is a public research university located in Edinburgh, Scotland. The university is renowned for its research and teaching in a wide range of subjects, including science, engineering, humanities and social sciences.
Within its School of Informatics, the University of Edinburgh operates a Blockchain Technology Laboratory (BLT) that is devoted to conducting research and developing blockchain technology. To create and test novel blockchain technologies, the BLT works with business partners, governments and academic institutions.
In addition to research, the University of Edinburgh offers several courses related to blockchain technology, including an undergraduate course module called “Blockchain and Distributed Ledgers,” which covers the fundamental concepts of blockchain technology, including consensus protocols, cryptography, smart contracts and game-theoretic analysis of blockchain protocols.
The university’s Master’s in Finance, Technology and Policy aims to equip students with diverse skill sets in machine learning, principles of economics and big data analysis. And its four-year doctoral program in fintech in collaboration with companies allows students to undertake extensive applied research with commercial relevance.
University of Oxford
The University of Oxford is a world-renowned public research university located in Oxford, England. It is known for its excellence in research and teaching across a wide range of disciplines, including science, engineering, humanities and social sciences.
The University of Oxford offers a program in blockchain strategy, which is part of the Oxford Blockchain Strategy Program. The course is intended for executives and business owners who are curious about how blockchain technology might affect their companies. The course covers subjects, including blockchain protocols, decentralized governance, the blockchain ecosystem and regulation.
University College London
University College London (UCL) is a public research university located in London, England. UCL is a member of the prestigious Russell Group of research-intensive universities in the U.K. and is considered one of the world’s leading multidisciplinary universities.
The Blockchain Executive Education Program, an eight-week executive course offered by UCL, aids business leaders, innovators, regulators and public policy leaders in developing a thorough understanding of blockchain business models, including their advantages and disadvantages.
Additionally, it provides an Master of Science in Financial Technology that emphasizes developing quantitative finance abilities and the application of emerging technologies in financial services, as well as how new digital business models in financial services are affecting company practises.
The Emerging Digital Technologies program at UCL can assist individuals looking to pursue jobs focused on new technologies in challenging corporate settings. Participants in a range of core modules will gain practical experience with technology in fields such as data science, blockchain technology and information management systems.
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The crypto and blockchain industry grew up with Twitter, and the platform remains a vital networking tool.
Social media and the crypto and blockchain industries seem to be a perfect fit. What better way for companies in the industry to communicate in real time and build communities than through the platforms designed for doing just that? While many marketing firms and industries are highlighting “fresh” sites like TikTok, much of the crypto audience remains devoted to Twitter, and the platform offers its own slate of tools and trends that fit industry needs.
Still, using Twitter to build, grow and interact with your community takes more than posting or sharing an occasional tweet. Below, 13 members of Cointelegraph Innovation Circle share their tips for leveraging Twitter to build crypto and blockchain communities.
Learn Twitter’s ‘language’
Crypto and blockchain companies can best engage their communities on Twitter by learning to speak the language. Understanding the shorthand, lingo and memes is key to ingratiating a brand or thought leader with a community. – Molly Glennon, Ditto
Keep your community involved in your build process
Being authentic is everything on Twitter, especially with crypto audiences. Share updates, build in public and keep your community involved in the process. You can get tremendous buy-in from your audience if they feel they contribute to the company’s success. Ask for feedback as much as possible. – Ty Smith, Coinbound
Seek real-time feedback
Twitter is a super beneficial platform for crypto companies to engage with their communities in order to get real-time feedback. Whether it’s input on new features that have been released or news that’s just been announced, it’s crucial to engage with your community and show your users that you value their opinions and that you actually take them into account in your decision-making process. – Ayelet Noff, SlicedBrand
Incorporate humor and visual elements
Twitter can be a powerful tool for crypto and blockchain companies to connect with their communities and grow their audiences. Incorporate humor by posting eye-catching graphics, infographics and engaging Twitter polls; live-tweet events; and respond to and retweet posts from other enthusiasts. Stand out and make a lasting impression by bringing humor and visual elements to your Twitter presence. – Erki Koldits, OÜ Popspot
Engage with your audience
While it’s tricky to predict anything related to Twitter these days, there’s one thing that the platform will continue to do: remain a massive tool for community engagement and word-of-mouth marketing. Talk to and listen to your audience. Engage with them. Be reachable. Prioritize transparency and honesty, share regular updates and demonstrate your capabilities. Twitter Spaces is a great tool for this. – Sheraz Ahmed, STORM Partners
Have fun, but stay accountable
Despite the rise of reels in social media platforms, Twitter remains the most efficient way to communicate crypto news and updates. Crypto companies that remain in regular contact and keep their communities informed and engaged stand to gain a wider audience. However, where bravado can be leveraged to gain followers, it’s no match for market realities. You can have fun, but stay accountable. – Oleksandr Lutskevych, CEX.IO
Join the community where you can transform the future. Cointelegraph Innovation Circle brings blockchain technology leaders together to connect, collaborate and publish. Apply today
Focus on community interaction and socialization
Keep the community updated with new technology breakthroughs, and use Spaces to interact with community members who may be curious. Organically growing is now a key ingredient for achieving sustainability in crypto projects. VC-based projects will not be able to compete in the long term with organic versions where distribution is broader, so community interaction and socialization are critical to reaching the end goal. – Jagdeep Sidhu, Syscoin Foundation
Leverage interactive events
Twitter can be used to share updates and information about a company’s projects, developments and partnerships, as well as to host live Q&A sessions, AMAs and other interactive events. These might help in keeping the community informed and engaged. Moreover, sharing educational content about crypto and blockchain, such as articles, videos and infographics, also helps kick off engagement on Twitter. – Vinita Rathi, Systango
Maintain a regular presence and participation level
Focus on the four key elements of social media: Share valuable content, engage with your followers, host giveaways and content and make use of Twitter features like polls, AMAs and live Twitter Spaces. Maintain a regular presence and level of participation, and always behave honestly and openly with other members of the community. – Theo Sastre-Garau, NFTevening
Host recurring Twitter Spaces
A blockchain company can host recurring Twitter Spaces to give its community the opportunity to ask questions about the company’s products, engage with the team directly and learn more about developments in the blockchain space. Companies can also use these Spaces as opportunities to be transparent with their community, which is key for establishing trust and building excitement. – Anthony Georgiades, Pastel Network
Share industry knowledge and updates
It’s important to share knowledge — and not just about your own product. Providing clear explanations of new developments is a great way to grow your community and position yourself as a serious player in the Web3 space. Whether you post single tweets or deep-dive threads, your audience will appreciate your providing value and engaging with the broader ecosystem. – Wolfgang Rückerl, ENT Technologies AG
Bridge the knowledge gap between builders and users
Aim to reduce the knowledge gap between builders and users in crypto. Inform, consider the wider environment, ask questions and encourage discussion and disagreement — all of this will help to keep people engaged. Promotions are great, but they’re just one element of crypto Twitter. – Yaoqi Jia, AltLayer
Try airdrops (but watch out for scammers)
Airdrops announced through Twitter have worked pretty well these past few years. The problem is that everyone knows about them, and there are a lot of people hiding behind aliases who scam people. You need to identify and report it if someone is copying your company’s Twitter account to build their own fan base, or it could end up destroying your brand. – Zain Jaffer, Zain Ventures
This article was published through Cointelegraph Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cointelegraph.
BTC’s correction to $22,750 followed negative remarks from financial regulators, but key Bitcoin price metrics show bulls remain optimistic.
Bitcoin (BTC) price broke above $25,000 on Feb. 21, accruing a 53% year-to-date gain at the time, it made sense to expect the rally to continue after U.S. retail sales data from the previous week vastly surpassed the market consensus. This fuelled investors' hope for a soft landing and the possible aversion of a recession in the U.S. economy.
The apex of the U.S. Federal Reserve’s strategy success would be increasing interest rates and scaling back its $9 trillion balance sheet reduction without significatively damaging the economy. If that miracle happens, the outcome would benefit risk assets, including stocks, commodities and Bitcoin.
Unfortunately, the cryptocurrency markets took a hit after the $25,200 level was rejected and Bitcoin price plunged 10% between Feb. 21 and Feb. 24. Regulatory pressure, mainly from the U.S., partially explains investors' rationale for the worsening market conditions.
In a Feb. 23 New York Magazine interview, Securities and Exchange Commission (SEC) Chair Gary Gensler claimed "everything other than Bitcoin" is potentially a security instrument and falls under the agency's jurisdiction. However, multiple lawyers and policy analysts commented that Gensler's opinion is "not the law." Hence, the SEC had no authority to regulate cryptocurrencies unless it proved its case in court.
Additionally, at a G20 meeting, U.S. Secretary Janet Yellen stressed the importance of implementing a strong regulatory framework for cryptocurrencies. Yellen's remarks on Feb. 25 followed the International Monetary Fund (IMF) managing director Kristalina Georgieva pointing out that "if regulation fails," then outright banning "should not be "taken off the table."
Let's look at Bitcoin derivatives metrics to better understand how professional traders are positioned in the current market conditions.
Asia-based stablecoin demand is stagnant
Traders should refer to the USD Coin (USDC) premium to measure the demand for cryptocurrency in Asia. The index measures the difference between China-based peer-to-peer stablecoin trades and the United States dollar.
Excessive cryptocurrency buying demand can pressure the indicator above fair value at 104%. On the other hand, the stablecoin's market offer is flooded during bearish markets, causing a 4% or higher discount.
USDC peer-to-peer vs. USD/CNY. Source: OKX
After peaking at 4% in late January, the USDC premium indicator in Asian markets has declined to a neutral 2%. The metric has since stabilized at a modest 2.5% premium, which should be interpreted as positive considering the recent regulatory FUD.
BTC’s futures premium stuck even after price rejected at $25,000
Bitcoin's quarterly futures are the preferred instruments of whales and arbitrage desks. Due to their settlement date and the price difference from spot markets, they might seem complicated for retail traders. However, their most notable advantage is the lack of a fluctuating funding rate.
These fixed-month contracts usually trade at a slight premium to spot markets, indicating that sellers are requesting more money to withhold settlement longer. Consequently, futures markets should trade at a 5% to 10% annualized premium on healthy markets. This situation is known as contango and is not exclusive to crypto markets.
The chart shows traders flirting with the neutral sentiment between Feb. 19 and Feb. 24 as the Bitcoin price held above $23,750. However, the indicator failed to enter the neutral-to-bearish 0% to 5% area as additional regulatory uncertainty was added, especially after Gensler's remarks on Feb. 23. As a result, it became clear that pro traders were not comfortable with Bitcoin price breaking above $25,000.
Since Feb. 25, Bitcoin price has gained 4.5%, indicating that the impact of the regulatory newsflow has been limited. More importantly, the global stock market reacted positively on Feb. 27 after the U.S. Commerce Department reported durable goods orders down 4.5% in January versus the previous month. This data added pressure for the U.S. FED to reduce its interest rate hike program earlier than expected.
Since Bitcoin's 50-day correlation with the S&P 500 futures presently stands at 83%, cryptocurrency traders are more inclined to support risk asset prices strengthening throughout the week. A correlation indicator above 70% indicates that both assets are moving in tandem, meaning the macroeconomic scenario is likely playing a pivotal role in determining the overall trend.
Unless there's added pressure from regulators or conflicting economic data, odds favor Bitcoin bulls considering the BTC futures and Asian stablecoin metrics.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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United States Representative Tom Emmer introduced legislation in the U.S. House of Representatives that could prevent the Federal Reserve from issuing a central bank digital currency.
Last week was relatively calm regarding enforcement news but brought some peculiar local developments in regulation. United States Representative Tom Emmer introduced legislation in the U.S. House of Representatives that could prevent the Federal Reserve from issuing a central bank digital currency (CBDC). According to the Minnesota lawmaker, the bill could prohibit the Fed from issuing a digital dollar “directly to anyone,” bar the central bank from implementing monetary policy based on a CBDC, and require transparency for projects related to a digital dollar.
The Canadian Securities Administrators published a notice describing new commitments it expects from crypto asset trading platforms seeking registration in Canada. The new commitments touch on issues that include segregation of assets, leverage, determination of capital, transparency and others. But, most notably, it anticipates a ban on algorithmic stablecoins.
In a joint statement by three U.S. federal agencies, the banking sector was advised against creating new risk management principles to counter liquidity risks from crypto-asset market vulnerabilities. The Board of Governors of the Federal Reserve, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency released a statement reminding banks to apply existing risk management principles when addressing crypto-related liquidity risks.
By July 2023, The Financial Stability Board, the International Monetary Fund (IMF) and the Bank for International Settlements will deliver papers and recommendations establishing standards for a global crypto regulatory framework. The announcement was made by representatives of the 20 biggest economies of the world, collectively known as the G20.
IMF says no crypto as legal tender
The IMF’s executive board endorsed a crypto asset policy framework that did not grant crypto assets an official currency or legal tender status. The “Elements of Effective Policies for Crypto Assets” paper develops a framework of nine policy principles that address macro-financial, legal and regulatory, and international coordination issues. According to the first principle, safeguarding monetary sovereignty and stability, “do not grant crypto assets official currency or legal tender status.”
Emojis count as financial advice and have legal consequences
The United States District Court judge for the Southern District of New York ruled that emojis like the rocket ship, stock chart and money bags indicate a financial return on investment. In his decision on Dapper Labs’ motion to dismiss the amended complaint alleging that its NBA Top Shot Moments violated security laws, federal judge Viktor Marreo wrote: “And although the literal word ‘profit’ is not included in any of the tweets, the ‘rocket ship’ emoji, ‘stock chart’ emoji, and ‘money bags’ emoji objectively mean one thing: a financial return on investment.”
SEC files objection to Binance.US bid for Voyager assets
The U.S. Securities and Exchange Commission (SEC) has objected to Binance.US’ move to acquire over $1 billion of assets belonging to the defunct cryptocurrency lending firm Voyager Digital. The SEC is formally investigating whether Binance.US and related debtors violated anti-fraud, registration and other provisions of the federal securities laws. The agency noted particular concern around the security of assets through the planned acquisition. According to the regulator, the information provided in the planned purchase of Voyager assets fails to adequately outline whether Binance.US or affiliated third parties will have access to customer wallet keys or control over anyone with access to such wallets.
Nigeria in talks with NY-based company for CBDC revamp
After multiple attempts to create an efficient digital currency, the Central Bank of Nigeria is turning to a New York tech firm to revamp the underlying technology. According to sources close to the matter, the Nigerian financial authority has discussed the plans to develop a new and improved system with the New York-based technology firm R3. Although it is one of the first countries to have launched a CBDC, Nigeria’s eNaira got off to a sluggish start, with low adoption among the population. According to some reports, the ambitious project is “crippled,“ with only 0.5% of Nigerians using the CBDC.
The fundraising round included Polygon, Ripple, Octava, NEO Global Capital, Appworks, Sebastien Borget of The Sandbox, GSR, LD Capital, Metavest Capital and others.
Blockchain Founders Fund, a venture capital fund supporting the adoption of Web3 and blockchain technology, has announced the close of a $75 million fundraising round from companies such as Polygon, Ripple, Octava, NEO Global Capital, Appworks, GSR, LD Capital, Metavest Capital and others, such as Sebastien Borget, chief operating officer of The Sandbox.
According to the announcement, the fund will focus on supporting high-potential early-stage pre-seed and seed projects that encourage the mass adoption of Web3 and blockchain technology. The fund has already invested in over 100 startups, including Altered State Machine, Splinterlands, GRID, Krayon and Magna.
In an interview with Cointelegraph, Michiko Yuda, marketing coordinator at Blockchain Founders Fund, shared that the venture capital fund will potentially be spread across more than 200 companies within the next 12 months.
Speaking on the requirements and ways Web3 startups can seek funding from the Blockchain Founders Fund, Yuda shared that it will focus on early-stage Web3 companies with strong teams and a demonstrated ability to execute their vision. In addition, the projects must offer products or services that solve real market needs and offer clear pathways for revenue generation or monetization over time. The projects must also have a clear, viable business plan that demonstrates a solid understanding of the target market and competitive landscape.
Discussing some of the major challenges in the crypto venture capitalist landscape and how the Blockchain Founders Fund is helping to address them, Yuda shared: “There is a high level of competition for deals in the space, regulatory uncertainty, as well as a limited track record of successful projects. In order to address these challenges, we focus on making investments in high-quality startups that have strong fundamentals and demonstrate solid indications of traction."
Yuda also told Cointelegraph that the Blockchain Founders Fund takes a team-centric approach when evaluating investments to ensure that only well-rounded teams are chosen for funding. He added:
"We take necessary precautions to navigate regulatory uncertainty by staying abreast with emerging trends in blockchain governance as they continue to evolve over time. Finally, we leverage our industry connections, including leading institutions and investors in the space to help our portfolio companies succeed.”
On Feb. 24, Cointelegraph covered a report describing a pullback in venture capital spending by investors in Q4 2022. But despite the pullback, investors are still looking to bankroll blockchain-based technologies, applications and startups.
The report also suggests that venture capital investments are shifting toward “non-volatile innovations,” including cross-chain bridges, payments and remittances, lending, decentralized autonomous organizations, asset management and digital identity management.
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Blur’s liquidity heist on OpenSea continues as each project competes in royalties, fees and decentralized governance.
Blur, a NFT marketplace, has seen its trading volumes and total sell-side liquidity skyrocket since conducting an airdrop on Feb. 14, 2023. The reason for the spike could be the start of season 2 airdrops, where 10% of BLUR token’s total supply will be distributed to certain users based on their activity. The team allocated 12% toward an early user airdrop in the first season that ran from the marketplace’s gated launch in March 2022 to February 2023.
Blur trading volumes (in ETH). Source: Dune
Blur has made a significant dent in OpenSea’s position as the leading marketplace. Analytics from data scientist Hildobby shows that Blur is eating into the market share of OpenSea and other aggregators like X2Y2. Blur's incentive program and advanced NFT trading features are causing users to shift from OpenSea to Blur.
The share of NFT marketplaces by trading volume. Source: Dune
OpenSea feels the heat
Following Blur’s example, OpenSea discontinued its marketplace fee of 2.5% per sale. The fact that OpenSea LLC was willing to let go a significant chunk of its earnings—close to around $336.8 million for one year—suggests that Blur’s growth threatens it.
The two NFT giants also recently locked horns on the critical issue recently of creator royalties. By restricting the ability to earn full creator royalties on both platforms, creators have to choose between Blur and OpenSea to list collections.
Pacman, the founder of Blur, told Cointelegraph on Feb. 23 that OpenSea started the spat first. They were forced to retaliate with restrictive features like limited royalties on Blur if a collection is also listed on OpenSea as well. However, ideally, he would want both creators to be able to earn their royalties on both platforms without having to choose. It appears that Pacman wants OpenSea to succumb to the competition and instead of fighting Blur, it should accommodate the aggregator progressively.
Blur has also incentivized creators and users through the Blur token. It was also a way to compensate for the earnings creators would have made in missed royalties on the platform when it didn’t support them earlier. NFT traders, on the other hand, receive token rewards for adding liquidity to the platform by listing NFTs. So far, the plan has worked successfully, as Blur’s liquidity has skyrocketed after the token launch.
Blur has also earned the reputation of a “marketplace for pro traders” thanks to its innovative features for experienced NFT traders like sweep optimization, near-instant update of aggregate price, filtering based on rarity score and gas optimization.
Blur’s success is contingent on governance and upgrades
There are two paths that the BLUR token can take from here, either stay a non-yielding token with governance- features like Uniswap (UNI) or shift to allocate value accrual methods to token holders.
In its current state, BLUR token is similar to UNI, which puts it at a disadvantage because the market has moved on to concepts of real yields (for example, GMX and SUSHI) or other innovative value accrual methods (like Curve’s voting escrow model) that encourage buying.
UNI token’s underperformance relative to Bitcoin in the recent January to February 2023 crypto rally is a testament to the fact that the market is discounting non-yielding tokens. UNI rose by 40% in 2023 to the top against Bitcoin’s 50% rise.
BTC/USD and UNI/USD price action. Source: TradingView
Since its inception, Blur has charged zero fees on its platform. Pacman also discussed the potential value accrual to BLUR holders by flipping the “fee switch” and directing rewards toward holders.
Staking is also a widely implemented feature that protocols use to deter selling by providing inflationary rewards. While this strategy helps retain investors to some extent, without real yields would likely do more harm in the long run through inflation.
Blur’s token performance will be highly contingent on the decisions voted on by the BlueDAO. Until then, Blur’s growth in the NFT marketplace will likely influence BLUR’s price because investors may not want to give up the opportunity of exposure to the niche market leader. However, the overall trajectory could remain on the downside, similar to what DYDX experienced in 2022.
DYDX price chart. Source: CoinGecko
The decentralized derivatives exchange is close to implementing significant changes to its platform, including improved value accrual to DYDX holders. However, while the dYdX team is working toward its V4 launch, platforms like GMX and Gains Network are benefiting from the Ethereum layer-2 liquidity and LP-focused rewards and incentives.
Since Feb. 14. airdrop, the BLUR’s selling pressure has subsided considerably. Dune data scientist PandaJackson42’s Blur analytics page shows that 76.7% of the BLUR airdrop receivers sold their tokens.
This suggests that selling pressure from airdrop receivers should end soon. However, the token’s vesting schedule risks dilution from investor and team token unlocks starting in June 2023 and the distribution of Season 2 rewards sometime later this year.
BLUR token release schedule. Source: Blur Foundation
Blur is well-positioned to capture a huge market upside, especially considering OpenSea’s last raise in January 2022 valued the company at $13.3 billion. The fully diluted market capitalization of Blur is currently five times less at $2.7 billion. The project can generate significant buying demand for its token by improving the value accrual.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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The San Francisco-based cryptocurrency exchange referred to its "listing standards" in a tweet.
Coinbase will suspend trading for Binance USD (BUSD) stablecoin on March 13, the exchange announced Feb. 27 on Twitter. The message mentioned “listing standards” as it announced its decision.
The decision will apply to Coinbase.com (simple and advanced), Coinbase Pro, Coinbase Exchange, and Coinbase Prime, according to the tweet thread. The exchange added, "Your BUSD funds will remain accessible to you, and you will continue to have the ability to withdraw your funds at any time."
A Coinbase spokesperson told Cointelegraph:
“Our determination to suspend trading for BUSD is based on our own internal monitoring and review processes. When reviewing BUSD, we determined that it no longer met our listing standards and will be suspended.”
According to the Coinbase website, its digital asset listings group votes on assets to be listed on the exchange, “informed by a rigorous vetting/review process that evaluates assets against legal, compliance, and technical security standards.” In addition, there are additional business assessments and ongoing monitoring to ensure an asset continues to meet standards.
We regularly monitor the assets on our exchange to ensure they meet our listing standards. Based on our most recent reviews, Coinbase will suspend trading for Binance USD (BUSD) on March 13, 2023, on or around 12pm ET.
Mantle Core is an Ethereum layer-2 network developed by the BitDAO ecosystem. The fund aims to boost the adoption among developers and Dapps.
A proposal seeking to create a $200 million fund dedicated to early-stage Web3 startups was submitted on Feb. 26 by Mantle Core on BitDAO's governance forum. The ecosystem fund aims to boost the adoption of Mantle's network among developers and Dapps.
Mantle is an Ethereum layer-2 network developed by the BitDAO ecosystem. According to the proposal, a capital pool of $200 million would be deployed within the Mantle ecosystem over the next three years. BitDAO's treasury would provide $100 million USD Coin (USDC), while another $100 million would be supplied by external matching capital from "strategic venture partners".
Funds that have expressed interest in participating include Dragonfly Capital, Pantera, Folius Ventures, Play Ventures Future Fund, Spartan, Lemniscap, Selini Capital, Cadenza Ventures, and QCP Capital, notes Mantle's proposal.
[DISCUSSION] Mantle EcoFund@0xMantle has posted a discussion proposing:
✅ Authorization to establish Mantle EcoFund 1 of a capital pool of $200M (catalyzed with a target size of $100M from BitDAO).
✅ Authorization of first capital call: $10M USDC from the #BitDAO Treasury.
If approved, the Mantle EcoFund and venture partners will participate in projects with 1:1 co-investment ratio. Web3 startups raising pre-seed, seed, and series A round will be targeted by the ecosystem fund.
The fund is proposed to have a three-year active investment period, plus two years of optional extension, a Mantle's spokesperson told Cointelegraph by email. The initial fund operator is proposed to be Mirana Ventures, Bybit and BitDAO’s venture partner, with an investment committee comprising representatives from Mirana Ventures, Mantle, BitDAO, and Bybit.
"The fund targets to invest in more than 100 projects deployed on Mantle and have a multiple on invested capital (MOIC) of 1.5x of cumulative performance through the fund’s lifecycle," noted Mantle's spokesperson.
EcoFund proposal summary from Mantle Core. Source: BitDAO's governance forum.
Management fees would match "industry standard", with 2% of management fee to support operational expenses of the EcoFund team, including sourcing, due diligence, legal, portfolio support, and fund administration.
Across the crypto industry, similar initiatives aim to drive adoption and innovation. Last year, Ethereum scaling solution Polygon launched a $100 million fund aimed at improving access to decentralized finance (DeFi), onboarding users and accelerating adoption.
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Texas claims that Binance.US's terms of service and restructuring plan contain inadequate disclosures, and discriminate against Texas creditors.
Texas' State Securities Board and the Department of Banking are objecting to a proposed deal between Binance.US and bankrupted crypto lender Voyager Digital, shows a court filing from Feb. 24.
According to the document, Binance.US's terms of service and restructuring plan contain a number of "inadequate" disclosures, including not informing unsecured creditors adequately that under the plan they may only get 24%-26% recovery, rather than the 51% they would receive under Chapter 7. Binance.US disclosed in December an agreement to buy Voyage's assets for $1.022 billion.
The filing also notes the company's disclosure statement fails to inform that account holders are required to allow the transfer of "personally sensitive information to any party in any part of the world as required by Binance.US, and then strips the account holders of any legal recourse for any issues that may arise." As explained in the objection:
"So, under these ToUs, customers’ information can be transferred to almost any company or person that Binance.us desires, and, if any issues arise in the customers’ access to or use of Binance.us’s Services, the customers have absolutely no right to challenge the issue."
Further, the document claims that the plan "unfairly discriminates against Texas consumers." Since Texas is not a supported jurisdiction by Binance.US, customers in the state would have their digital assets held by Voyager for six months after the agreement, during which time Binance.US would seek licensing in the state.
According to the objection, however:
"It will be almost impossible for Binance.us to be licensed by the Texas SSB and the DOB within six months and, as such, holding the Texas consumers’ coin for six months accomplishes nothing."
The filing comes just a few days after the Securities and Exchange Commission (SEC) submitted a filing to a bankruptcy court in New York alleging securities law violations in some aspects of the restructuring plan. Binance.US and related debtors are being investigated by the SEC for possible anti-fraud, registration, and other violations of federal securities laws.
In the document, the SEC expressed concerns about the security of assets acquired through the proposed acquisition, among other issues.
Binance.US did not immediately respond to Cointelegraph's request for comments.
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The latest move marked a modest comeback after a grim week for risk assets which saw United States equities suffer thanks to above-expected inflation data.
Despite that, Bitcoin still remained below levels flagged by analysts as important to reclaim before the end of the month.
Only isolated voices remained optimistic, these including popular trader Kaleo, who maintained that $30,000 remained a BTC price “magnet.”
Crypto trader Altcoin Sherpa meanwhile offered a reference period for hitting the $30,000 mark — “4-6 weeks.”
“$BTC is still in a transition phase from bear -> bull , up only begins once the neckline is broke!” fellow trader and analyst Mags continued in part of a further summary.
BTC/USD annotated chart. Source: Mags/ Twitter
Bloomberg analyst on Bitcoin: "Trend remains downward"
Also looking ahead, meanwhile, Mike McGlone, senior macro strategist at Bloomberg Intelligence, voiced misgivings about bulls’ ability to overcome the $25,000 resistance zone.
“Headwinds Remain Strong; Markets Have Bounced - ‘Don't fight the Fed’ was the dominant headwind for markets in 2022, and remains so in 1Q,” he wrote in a Twitter summary of new research.
“Bitcoin $25,000 resistance may prove significant for all risk assets.”
The research itself predicted that “the more tactically orientated are likely to focus on responsive selling” when it comes to BTC/USD, while it “may be a while before buy-and-hold types gain the upper hand.”
The week prior, hopes remained high that $25,000 would not pose a major hurdle and that BTC/USD would be able to dispatch it without too much effort.
In the event, however, the magnitude of the task became apparent — in addition to asks on exchange order books, key moving averages (MAs) lay above, notably Bitcoin's 50-week and 200-week trend lines.
The declining 50-week MA itself led McGlone to conclude that "the trend remains downward."
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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A series of recommendations and papers setting standards for a global crypto regulatory framework will be released by the institutions in July and September.
The Financial Stability Board (FSB), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS) will deliver papers and recommendations establishing standards for a global crypto regulatory framework, announced on Feb. 25 the group of the 20 biggest economies of the world, collectively known as G20.
According to a document summarizing the outcomes of the meeting with finance ministers and central bank governors, the FSB will release by July 2023 recommendations on the regulation, supervision and oversight of global stablecoins, crypto assets activities and markets.
India’s Finance Minister Nirmala Sitharaman during FMCBG meeting in Bengaluru. Source: Ministry of Finance.
The next guidance is expected for September 2023, when the FSB and the IMF jointly should submit "a synthesis paper integrating the macroeconomic and regulatory perspectives of crypto assets." In the same month, the IMF will also release a report on the "potential macro-financial implications of the widespread adoption" of central bank digital currencies (CBDCs). According to the G20 statement:
"We look forward to the IMF-FSB Synthesis Paper which will support a coordinated and comprehensive policy approach to crypto-assets, by considering macroeconomic and regulatory perspectives, including the full range of risks posed by crypto assets."
The BIS will also submit a report on analytical and conceptual issues and possible risk mitigation strategies related to crypto assets. This report's deadline is not mentioned in the document. A G20's financial task force will also look at the use of crypto assets to fund terrorist activities.
The announcement came after two days of official meetings in Bengaluru, India. In the first financial meeting under India's presidency, the group addressed key financial stability and regulatory priorities for digital assets, Cointelegraph reported.
During the event, United States Treasury Secretary Janet Yellen said it was “critical to put in place a strong regulatory framework" for crypto-related activities. She also noted that the country is not suggesting an “outright banning of crypto activities.“ Speaking to reporters on the sidelines of the event, IMF managing director Kristalina Georgieva stated that banning crypto should be an option for G20 countries.
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On the sidelines of the G20 meeting, U.S. Treasury Secretary Janet Yellen said the country is not pushing for an outright banning of crypto activities.
United States Treasury Secretary Janet Yellen stressed the importance of implementing a strong regulatory framework for cryptocurrencies during a G20 meeting on Feb. 25.
Speaking to Reuters, Yellen said that it was "critical to put in place a strong regulatory framework." She also noted that the United States is not suggesting an "outright banning of crypto activities."
Yellen's remarks follow earlier ones from the International Monetary Fund (IMF) Managing Director Kristalina Georgieva, stating that banning crypto should be an option:
"There has to be very strong push for regulation... if regulation fails, if you're slow to do it, then we should not take off the table banning those assets, because they may create financial stability risk."
In addition, Georgieva pointed out to reporters that it is necessary to differentiate central bank digital currencies (CBDCs) from stablecoins and cryptocurrencies - which are issued by private companies.
The country's Finance Minister Nirmala Sitharaman called for a coordinated global policy to address the macro-financial implications of crypto assets. Sitharaman has historically supported working with other jurisdictions in the development of crypto regulations. For several years, India's government has debated whether to regulate or even ban cryptocurrencies.
On Feb. 23, the IMF released an action plan on crypto assets, urging countries to abolish legal tender status for cryptocurrencies. The paper, titled “Elements of Effective Policies for Crypto Assets,” outlined a framework of nine policy principles addressing macrofinancial, legal and regulatory, and international coordination issues.
After a visit to El Salvador earlier this month, the IMF suggested the country reconsider its plans to increase exposure to Bitcoin, citing the cryptocurrency risk to El Salvador's fiscal sustainability and consumer protection, as well as its financial integrity and stability.
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Pfizer is now the first big pharma to participate in a decentralized autonomous organization (DAO).
Having emerged as a movement in the research community, Decentralized Science (DeSci) initiatives are progressing at a pace even big pharma cannot ignore. In fact, Pfizer is now the first pharmaceutical to vote on decentralized autonomous organization (DAO) proposals of German blockchain-based organization VitaDAO.
The collaboration is part of VitaDAO's latest fundraising disclosed in late January from strategic members, including Pfizer Ventures, Shine Capital and L1 Digital, among other longevity enthusiasts. The $4.1 million raised will be used to fund longevity research projects and accelerate the spinout of VitaDAO's first biotech startups, with two more in development for 2023.
"Pfizer is now bringing some of their own scientists to join with the community of researchers who are part of VitaDAO to help incubate some of this research," told Cointelegraph Alex Dobrin, community and awareness steward at VitaDAO.
DeSci has fostered the emergence of a thriving ecosystem with projects ranging from decentralized biotech foundations to funding vehicles. "Some of the major trends in the field can include research & investment platforms, crowdfunding for scientific research, scientists and researcher communities," explained Dr. Tuan Cao, founder of GenomicDAO, a San Francisco-based platform launched on Feb. 19 by AI biotech company Genetica.
This decentralized platform aims to establish a community to drive and govern Asian-focused precision medicine initiatives. Its first subsidiary DAO is working on stroke prevention, targeting awareness and R&D for ischemic strokes.
Worldwide, stroke is one of the most common causes of disability and vascular death. The American Heart Association reports that there were over 77 million ischemic strokes around the world in 2019. Asian populations have higher stroke incidences than Western populations, according to a study published in the Journal of clinical hypertension in 2021.
GenomicDAO claims that the combination of a network of research groups, institutions, organizations, scientists and medical experts with artificial intelligence can reduce time to release a new product from 12–18 months to 4–6 months. According to GenomicDAO, community-driven initiatives are disrupting scientific research:
"In the precision medicine space, R&D is led by a handful of big names in the industry that are de-facto monopolizing the market. Monopolistic and centralized pharmaceutical companies equivalently lead to the stagnation of innovation; simultaneously widening the gap in providing precision medicine to underrepresented populations."
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The issue is linked to the recent network upgrade from 1.13 to 1.14, which slowed block finalization.
Solana network faced a slowdown in block production on Fev. 25 following the upgrade in the validator software. The incident resulted in disruptions to transactions and led validators to downgrade the software in an attempt to restore network performance.
The technical issue started around 6:00 AM (UTC), leading validators to downgrade to version 1.13 in an effort to restore transactions in the network. The downgrade, however, was not enough to restore Solana to normal operations, forcing the decision to restart the network on v1.13.6.
The Solana network is currently restarting after an issue during the upgrade from 1.13 to 1.14 that slowed block finalization
Once validators with 80% of stake have restarted the network will resume
"The network experienced a significant slowdown in block production that coincided with an upgrade to validator software. Engineers are still conducting a root cause analysis," noted Solana's compass website.
The issue is linked to the upgrade from 1.13 to 1.14, which slowed block finalization. The Solana network is currently restarting, and to resume operations is necessary 80% of active stake online:
"As more validators complete their restart this number will rise in line with the amount of stake they have delegated: this means larger validators such as CEX have an outsized impact on restart times."
A solution to the incident was discussed among Solana's validators during a few hours following the issue. Infrastructure provider Chorus One noted in a Tweeter that the incident "demonstrated how genuinely decentralized the network is." Chorus One continued:
"Without all these debates, we would be back up in an hour. But, every decision along the way - whether to downgrade, whether to restart, when to switch from downgrade approach to restart approach - is debated. Voting happens. We end up taking 8-10 hours to recovery, instead of 1."
This is a developing story, and further information will be added as it becomes available.
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At the European Blockchain Convention, Circularr won the award for blockchain startup of the year. Recycling with blockchain was the pitch.
'Recycle to Earn' was the motto presented by Eric Vogel earlier this month while pitching his startup at the European Blockchain Convention, decades after he started recycling plastics and cans from his grandmother's house to earn extra money for a Game Boy.
Vogel's love for video games and increasing interest in the impact of recycling in the world are behind his inspiration for Circularr, a London-based company seeking to connect recyclers, manufacturers, and brands throughout a decentralized recycling ecosystem.
Proper recycling is a growing challenge.According to the Plastic Waste Makers Index, recycling across the world is not expanding fast enough to keep up with plastic waste, resulting in greater chances of being disposed of on oceans, beaches and rivers than going to recycling plants. In 2021, over 139 million metric tons of single-use plastic waste was generated worldwide.
The nearly three-year-old startup is allowing consumers to deposit plastic waste at collection points, such as reverse vending machine manufacturers, recycling points and smart bins through partnerships. The containers are collected and sent to a recycling plant. This widely used process, however, is now powered by blockchain technology.
The plastic waste is rewarded with a deflationary utility token that can be used to swap for exclusive incentives and offers through a native wallet, like a free coffee or meal, or to mint nonfungible tokens (NFT) with underlying data about recycled materials, such as its origin and type of plastic, providing an end-to-end traceability of the recycling process.
"Plastics from a specific event or venue could fetch an even higher price than a standard metric tonne of recycled plastic, as it would have all of the underlying data attached to it. So, brands and organizations could upcycle this plastic to produce limited edition kit or merchandise from key events," Vogel told Cointelegraph, adding that:
"By using blockchain technology, it becomes possible to create a digital trail that records every step of the recycling process, from the collection of waste to the sale of recycled materials."
The concept earned Circularr's team the recognition as blockchain startup of the year at the European event. Also, recently, the startup received a $50 million investment commitment from the alternative investment group GEM, providing liquidity and resources to pilot Material Recycling Facilities (MRFs).
We are beyond honoured to have been selected as the European blockchain startup of the year at the @EBlockchainCon Thank you to the organisers, jury, and all the amazing startups and the community for an unforgettable experience. #EBC23#blockchain#innovationhttps://t.co/AjidLbk4Pz
Similar efforts have been seen in other fields of the global environmental, social, and governance (ESG) agenda. Blockchain technology and automated systems are increasingly being utilized to improve the efficiency and accuracy of the carbon market, a critical component of the fight against climate change. Vogel also noted that:
"Blockchain technology can help to address some of the challenges associated with recycling, such as the lack of trust between stakeholders and the difficulty in verifying the origin and quality of recycled materials."
Circularr facilities and other collection points are planned to be deployed in train stations and freeway service stations across the United Kingdom, as well as subway stations and airports in the United States. Other partnerships with sports stadiums and events are also planned in countries of the Middle East and North Africa (MENA).
The startup's upcoming efforts include the implementation of on and off-ramps with partners to allow users to swap tokens for other cryptocurrencies and fiat money, as well as a track and tracing system planned for the second half of 2023.
Gamifying the recycling process is also one of the startup goals, targeting brands aiming to reward users with tokens and prizes for their recycled waste. "It all started with a Game Boy and a desire to make a difference. And now, here we are, working towards a better, more circular economy."
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Strong inflation data has pulled Bitcoin and select altcoins below their immediate support levels, signaling a few days of corrective action.
Bitcoin (BTC) is struggling to stay above $23,000 as the weekend approaches. The selling pressure increased after the personal consumption expenditures excluding food and energy rose 0.6% in January and 4.7% over the year, above market expectations of an increase of 0.5% and 4.4% respectively.
This could trigger fears that the United States Federal Reserve may have to continue its rate hikes to bring inflation under control. Expectations of a rate hike could strengthen the U.S. dollar index further, which is already near a seven-week high, and that may put pressure on the cryptocurrency markets in the near term.
A drop in the cryptocurrency markets may start a discussion that the rally in January may have been a bull trap. However, the price action in Bitcoin and several altcoins show that a bottoming formation may have begun. The next dip may form a higher low before attempting a move higher.
What are the important support levels in Bitcoin and altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
BTC/USDT
Buyers successfully held the 20-day exponential moving average ($23,440) for the past two days but the failure to sustain the rebound attracted strong selling on Feb. 24.
BTC/USDT daily chart. Source: TradingView
The negative divergence on the relative strength index (RSI) suggests that the bullish momentum is weakening. The BTC/USDT pair has reached immediate support at $22,800.
A break below this level could retest the crucial support zone between the 50-day simple moving average ($22,052) and $21,480.
Alternatively, if the price fails to sustain below the 20-day EMA, it will indicate that bulls are buying the dips as they anticipate a move higher. A break and close above $25,250 may start the next leg of the uptrend.
ETH/USDT
Ether (ETH) slipped below the 20-day EMA ($1,624) on Feb. 22 but the long tail on the candlestick shows solid buying at lower levels. The bulls tried to build upon the advantage on Feb. 23 and drive the price above $1,680 but the bears held their ground.
ETH/USDT daily chart. Source: TradingView
The selling intensified on Feb. 24 and the price dropped to the 50-day SMA ($1,565). This is an important support for the bulls to guard because if it cracks, the ETH/USDT pair could plummet to $1,461.
Contrarily, if the price rebounds off the 50-day SMA with strength, it will indicate that bulls are buying the dips. The buyers will then attempt to kick the price above the $1,680 to $1,743 resistance zone and resume the up-move.
BNB/USDT
BNB’s (BNB) tight range trading between the overhead resistance of $318 and the 50-day SMA ($304) resolved to the downside on Feb. 24. This indicates that bears have overpowered the bulls.
BNB/USDT daily chart. Source: TradingView
Although the 20-day EMA ($310) is flat, the RSI has dipped below 46, suggesting that the momentum is shifting in favor of the bears. The BNB/USDT pair could slump to the $280 level. This is an important level to watch out for because a break below it will complete a bearish head and shoulders (H&S) pattern.
If buyers want to avoid the sharp decline, they will have to quickly propel the price back above $318. That could clear the path for a rise to the neckline of the bullish inverse H&S pattern.
XRP/USDT
XRP (XRP) traded near the resistance line of the descending channel pattern for the past few days but the bulls could not enforce a breakout.
XRP/USDT daily chart. Source: TradingView
That may have attracted selling from the short-term bears who yanked the price below the moving averages. The XRP/USDT pair could now drop to the solid support at $0.36. If this level also fails to hold up, the decline may extend to $0.33.
Contrary to this assumption, if the price rebounds off $0.36, the bulls will make one more attempt to overcome the barrier at the resistance line. If they can pull it off, the pair may rally to the overhead resistance at $0.43.
ADA/USDT
The bulls managed to keep Cardano (ADA) above the immediate support of $0.38 for the past two days but they failed to sustain the rebound above the 20-day EMA ($0.39). This suggests that bears are selling on minor rallies.
ADA/USDT daily chart. Source: TradingView
The price dropped to the 50-day SMA ($0.37) on Feb. 24. If this support gives way, the ADA/USDT pair could slide to the strong support zone between $0.34 and $0.32. Buyers are expected to defend this zone with all their might because if they fail to do that, the selling may intensify and a drop toward $0.27 could not be ruled out.
Conversely, if the price turns up from the current level, the bulls will again try to thrust the price above the 20-day EMA and retest the neckline of the inverse H&S pattern.
DOGE/USDT
After staying above the 50-day SMA ($0.08) for several days, Dogecoin (DOGE) slipped below the level on Feb. 23. This indicates a minor advantage to the bears.
DOGE/USDT daily chart. Source: TradingView
The DOGE/USDT pair could drop to the strong support near $0.08. Buyers are likely to defend this level aggressively because a break and close below it could complete a bearish H&S pattern in the near term. That could start a downward move toward the critical support of $0.07 and then to the pattern target of $0.06.
If bulls want to gain the upper hand, they will have to push the price above $0.09. That may result in a retest of the $0.10 to $0.11 resistance zone.
MATIC/USDT
Polygon (MATIC) rebounded off the 20-day EMA ($1.32) on Feb. 22 as seen from the long tail on the day’s candlestick. However, the bears sold the recovery and the price tumbled below the 20-day EMA on Feb. 24.
MATIC/USDT daily chart. Source: TradingView
During uptrends, if the 20-day EMA cracks, the short-term bulls tend to book profits. That starts a deeper correction, which sometimes extends to the 50-day SMA ($1.13). Here too, if the bears sustain the price below $1.30, the MATIC/USDT pair may decline to the 50-day SMA. This level is again likely to attract buyers.
If bulls want to prevent a deeper correction, they will have to quickly push the price above the downtrend line. The pair could then rise to $1.50 and subsequently to $1.57.
Solana (SOL) failed to rebound off the 20-day EMA ($23.32) in the past two days, indicating a lack of aggressive buying by the bulls. That may have encouraged the bears who pulled the price to the 50-day SMA ($22.19).
SOL/USDT daily chart. Source: TradingView
The flattening 20-day EMA and the RSI near the midpoint indicate that the buying pressure is reducing. If the 50-day SMA gives way, the SOL/USDT pair may tumble to the next support at $18.73. This is an important level to keep an eye on because a break below it may start a deeper correction to $15.
This negative view will invalidate in the near term if the price turns up from the moving averages and surges above $28. The pair may then quickly run up to $39.
DOT/USDT
Polkadot (DOT) jumped from the 20-day EMA ($6.79) on Feb. 22 and rose above the $7.25 resistance on Feb. 23 but the bulls could not sustain the rebound. This indicates that the bears are attempting a comeback.
DOT/USDT daily chart. Source: TradingView
The selling continued on Feb. 24 and the bears have pulled the price below the 20-day EMA. The immediate support is at the 50-day SMA ($6.25) but if it cracks, the selling could accelerate and the DOT/USDT pair may dive to $5.50.
If bulls want to invalidate the bearish view, they will have to successfully defend the moving averages and push the price above $7.39. That will indicate strong demand at lower levels. The pair may then rise to $8 and thereafter to $9.50.
SHIB/USDT
The long wick on Shiba Inu’s (SHIB) Feb. 23 candlestick shows that bears are selling on rallies close to the overhead resistance at $0.000014.
SHIB/USDT daily chart. Source: TradingView
The price action of the past few days has formed a symmetrical triangle pattern, indicating indecision among the bulls and the bears. The advantage could tilt in favor of the bears if the price breaks and sustains below the triangle. That may start a slide to the 50-day SMA ($0.000012) and eventually to $0.000011.
Contrary to this assumption, if the price turns up and breaks above $0.000014, it will suggest that bulls are back in the driver’s seat. The SHIB/USDT pair could then climb to $0.000016.
The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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