bitcoin

Saturday, February 26, 2022

3 reasons why Lido DAO Token could be on the verge of breaking its downtrend

LIDO price made a double-digit move after the liquid staking platform added support for KSM and partnered with Apricot Finance to form a lending marketplace for SOL.

Ethereum (ETH) and decentralized finance (DeFi) are undergoing a seismic shift as the transition to Eth2 and a proof-of-stake consensus mechanism is helping to increase the value proposition for the network which has historically has been plagued with scaling issues and high transaction costs.

Alongside this transition has been the introduction of liquid staking, which is helping to add utility to DeFi and giving investors the option to do more with their assets than just lock them up indefinitely. Liquid staking could also help investors build more capital efficient portfolios.

One protocol that has benefited from the shift toward liquid staking is Lido (LDO), a platform that allows investors to earn staking rewards on their tokens while also enabling them to put the resulting LP tokens to work in a variety decentralized finance (DeFi) protocols.

Data from Cointelegraph Markets Pro and TradingView shows that the price of LDO has rallied 28% from a low of $1.27 on Feb. 21 to a daily high of $1.64 on Feb. 22.

*LDO/USDT 4-hour chart. Source: TradingView*

Three reasons for the price reversal for LDO include the launch of support for Kusama (KSM) staking, an increase in the total value locked on the protocol and the rising popularity of liquid staking in the cryptocurrency market.

LIDO adds KSM staking

The most recent development to come from the Lido platform was the addition of support for Kusama liquid staking.

Lido for Kusama on Moonriver is here ️

Stake your KSM with Lido for daily rewards and to put your staked assets to use across the Kusama DeFi space.

Learn more here: https://t.co/BOqLg6oFAv
— Lido (@LidoFinance) February 18, 2022

This integration was made possible through a developmental partnership with the Moonriver Network, a protocol that focuses on compatibility between Kusama and the Ethereum (ETH) network.

KSM holders who choose to stake on Lido will be able to continuously earn staking rewards at an APR of 18% while also being able to use the staked Kusama (stKSM) on various DeFi platforms to earn additional yields.

Other benefits include staking without the delay of bonding and un-bonding periods and the ability to maximize staking rewards through Lido’s dynamic reallocation to the most profitable KSM validator nodes.

TVL soars

A second metric to note is the total value locked on the platform. Lido's current TVL stands at $10.97 billion according to data from Defi Llama.

*Total value locked on Lido. Source: Defi Llama.*

After reaching a peak of $13.26 billion on Dec. 26, 2021, the total value locked on Lido fell to a low of $7.74 billion on Jan. 31 as the market-wide sell-off significantly reduced the value of tokens held on the protocol.

Since that time, the TVL has recovered to $10.97 billion, despite the fact that the total market cap of the cryptocurrency market has remained flat. The addition of new assets like KSM could be a reason for the rising TVL.

Lido also supports Ether, Terra (LUNA) and Solana (SOL).

Liquid staking makes interacting with DeFi more pragmatic

Another factor helping bring a boost of momentum to LDO is the rising popularity of liquid staking.

*History of searches for liquid staking. Source: Google Trends*

Prior to the addition of liquid staking, token holders had to choose between earning rewards through single staking on the network and removing them from circulation, or by putting them to work in DeFi protocols through paired liquidity pools.

With liquid staking, investors can benefit from the best of both worlds by staking tokens to help secure the network along with the ability to earn a yield by in DeFi by pledging staked assets as collateral.

For example, users who stake Solana (SOL) on Lido can also lend their stSOL on Apricot Finance for an additional APR of 32%. There is also a proposal vote on AAVE that suggests adding stETH as collateral on the AAVE v2 marketplace.

If Lido continues to add multi-chain assets for staking and liquid staking, it could open the door for further price appreciation from the platform's native LDO token.

Furthermore, as the cryptocurrency ecosystem continues to embrace the transition to POS, liquid staking is likely to rise in popularity, which might also result in future gains for LDO.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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Blockchain forensics is the trusted informant in crypto crime scene investigation

As mainstream adoption of crypto increases, blockchain forensics is enabling law enforcement to recover stolen crypto, making the space more secure.

The seizure by the U.S. Department of Justice of $3.6 billion worth of Bitcoin (BTC) lost during the 2016 hack of Bitfinex’s cryptocurrency exchange has all the ingredients of a Hollywood film — eye-popping sums, colorful protagonists and crypto cloak-and-dagger — so much so that Netflix has already commissioned a docuseries.

But, who are the unsung heroes in this action-packed thriller? Federal investigators from multiple agencies including the new National Cryptocurrency Enforcement Team have painstakingly followed the money trail to assemble the case. The Feds also seized the Colonial Pipeline ransoms paid in crypto, making headlines last year. The Internal Revenue Service (IRS) seized $3.5 billion worth of crypto in 2021 in non-tax investigations, according to the recently released Chainalysis cryptocrime 2022 report.

The trends point to the diminishing ability of nefarious criminals and terrorists to use cryptocurrencies as safe havens to stash their ill-gotten gains, illicit profits, donations and funding away from law enforcement officials. For example, the Bitfinex hackers are reported to have moved a small portion of Bitcoin to darknet exchange Alphabay and from there to regular crypto exchanges. This is one of the leads that the Feds used to apprehend the defendants.

Law enforcement agencies are getting better at investigating crypto crimes

Regulators and law enforcement agencies in a select few countries have really upped the ante on blockchain forensics. Although initially lost at sea, some G-men and women have honed the playbook on the search and seizure of assets, prosecution in courts and disposal of seized digital currency after winning the case. Each of these specific steps demonstrates a deep understanding of this disruptive technology.

There are several considerations during the process of investigation, and all require an intimate knowledge of the blockchain space. The blockchains may be transparent but various techniques such as tumblers, mixers, chain hopping and structuring (doing multiple small transfers to avoid scrutiny) must be understood and analyzed. The suspects may be apprehended physically but law enforcement officials must also ensure that digital assets are not moved out of reach by the defendants or by their alleged accomplices. The seized crypto assets must be safely in custody during the pending case.

The financial cops certainly do not want the crypto assets stolen while the case is being prosecuted. Usually, confiscated crypto assets are auctioned and the proceeds go into designated government accounts. But, when there are innocent victims, a process for restitution is essential for there to be trust in the judicial system.

Blockchain forensics is a part of the larger digital forensics domain

Blockchain analysis and forensics do not live alone on a deserted island. There are several layers of collaboration required to bring wrong-doers to justice. Firstly, the growing success of law enforcement in tracking crypto crimes is due to the tightening of Know Your Customer (KYC) norms of entities that handle fiat to crypto and crypto to fiat currency conversions. Then, there are other digital forensic technologies involved, for example, gathering data and evidence from seized mobile phones and computers.

Next, there are private sector partners that support crypto monitoring, enforcement actions and cases. There are now several companies that provide tools for blockchain intelligence such as identifying tainted wallets, assigning risk scores to wallet addresses, using analytics and artificial intelligence techniques to flag suspicious patterns and much more. With such tools and techniques, investigative agencies can be more effective. Armed with KYC information as per Anti-Money Laundering (AML) laws, prosecutors and their colleagues in regulatory agencies involving securities, commodities, tax and currency matters pursue the inquiries in the real off-chain world.

International collaboration is also critical. Criminal actors would like to keep their assets out of reach of the long arm of the law. Law enforcement agencies need to collaborate with partner agencies in other countries. The Financial Action Task Force (FATF) which helps harmonize rules and assists in the prosecution of money laundering and stems the funding of terrorism is an important inter-governmental policymaking body. It has made recommendations regarding virtual assets, for example, the case of the Travel Rule, but countries are still in different stages of implementing them. Such are the vagaries of sovereignty and statehood in a financial world in transition, the rules of engagement for which are still under development.

Blockchain forensics expertise is unevenly distributed

The recent success of the agencies in the U.S. and a few other countries’ may give the impression that law enforcement agencies everywhere are on top of blockchain forensics. In reality, specialist teams, armed with state-of-the-art blockchain analysis tools, are the exception. Many national agencies have yet to begin building capabilities in this area.

As of 2022, more than 50 countries have instituted either absolute or implicit bans on cryptocurrencies. Ironically, even countries that ban crypto or look at them askance will need to master blockchain analysis because digital assets easily cross borders. Watch for law enforcement agencies to hire more blockchain specialists and White Hat hackers.

The intricate dance involved in investigating the Bitfinex hack shows that they might even become BFFs. With financial crimes, the mantra for the legal authorities has always been to “follow the money.” The public nature of blockchain transactions actually makes it easier to track and trace criminal activity. Working with technologists who know what they are doing makes it even easier.

Crypto libertarians may not like the increased involvement of investigative agencies in the space but the writing on the wall is clear: Such guardrails are better for all involved, consumers and crypto companies alike. The industry cannot be worth trillions of dollars and not attract the watchful eye of regulators.

This article was co-authored by Kashyap Kompella and James Cooper.

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.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Kashyap Kompella, CFA, a technology industry analyst, is CEO of RPA2AI, a global artificial intelligence advisery firm. Kashyap has a bachelor’s degree (honors) in electrical engineering, an MBA and master’s in business laws. He is also a CFA Charter holder. Kashyap is the co-author of Practical Artificial Intelligence: An Enterprise Playbook.

James Cooper is professor of law at California Western School of Law in San Diego and research fellow at Singapore University of Social Sciences. He has advised governments in Asia, Latin America and North America for more than two and a half decades on legal reform and disruptive technologies. A former contractor for the U.S. Departments of Justice and State, he advises blockchain and other technology companies.

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Friday, February 25, 2022

Cointelegraph’s Top 10 in blockchain are here, but why should anyone care?

Or why I promised myself for the third year in a row to never work on it again… and again became fascinated by the process.

Have you ever compiled a ranked list? Perhaps the best movies about finance, your favorite wineries in France, the coolest bars in your city, or simply the people you want to grab a coffee with while in New York City for only two days? If so, I think you will agree with me: It may be extremely fun, but it is also extremely difficult. And the more contenders you plan to feature, the more difficult it is to establish an order that satisfies you.

Now, imagine that you are compiling this list not alone but in discussion with dozens of your colleagues, every one of whom has an opinion you greatly appreciate. Then comes the moment in which you start repenting for ever asking for anyone’s opinion, as it is technically impossible to include everyone’s take. Moreover, you have to update the list at least 20 times — or maybe even more — because we work in an industry where the speed at which success stories are made would make Usain Bolt envious.

DISCOVER COINTELEGRAPH’S TOP 100 IN CRYPTO AND BLOCKCHAIN 2022

The ordeal was even more challenging for me because it was the third time I worked on it with the Cointelegraph team. At some point, you realize that 100 entries are just not enough to include everyone you want to praise or mention, and you start having nightmares where last year’s awardees come to request their spot this year. (In my dreams, they looked like the statue of the Commendatore from Don Giovanni, I guess as a tribute to the Top 100 2021’s visual theme of cosmic marble busts.)

The list of the most influential figures in blockchain presented this year by Cointelegraph’s editorial team was, as usual, highly subjective and in many ways spontaneous, but also the result of a long series of chess moves, with the combinations of figures inspired by outside events as well as subtle changes in the mood of the conversation brought by the industry’s well-known volatile weather.

This year, we wanted to experiment with the idea of what, not just who, was most influential. We realized that some of the most significant events are, for us, associated with a whole community, a company, or a group of people working on a new trend — rather than a particular person. So, we asked ourselves the question: What impacted our perception of the industry the most? Which names, teams, creations or concepts made the biggest difference? Thus, alongside Vitalik Buterin, Snoop Dogg and Kristin Smith, you will find a dog, an ape, a museum, climate change organizations, several concepts we are excited to continue exploring this year, and a reflection of us all.

The theme of this year’s list is also part of a tribute we wanted to make to a visual phenomenon in the crypto industry: CryptoPunks, which found new life in 2021 and which we expect to continue being a significant influence in 2022.

I hope some of our choices made you smile, while others no doubt filled you with indignation. It’s great that we all have different opinions, and I would like you to share with us who, or what, your top figures in crypto in 2022 are — on social media with the hashtag #CTTop100 or via email at editor@cointelegraph.com. And if you change your mind after sending them over, don’t hesitate to share an updated version as well.

We know the crypto community thinks big and adapts to changes, both within and without, better than anyone. This year’s list represents that resiliency. And I believe that our community has an enormous potential to bring peaceful, sustainable solutions to future challenges, so let’s use it! WAGMI!

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Crypto community rallies with Ukraine as local NFT artists' works sell out

In an act of solidarity, crypto enthusiasts from all over the world are helping the people of Ukraine press through difficult times.

It appears that crypto enthusiasts worldwide are rallying in support of Ukrainians during the difficult times.

According to reports, Bitcoin (BTC) donations to Come Back Alive, a non-governmental organization helping Ukraine's military efforts, received $3 million in BTC in a single donation on Friday. Users also took to social media to ask the country's Ministry of Defense to accept crypto donations, such as Tether (USDT). At the same time, the founder of Ukraine's Kuna exchange created a crypto fund to assist charities in the country.

Everyone! Thank you for all the support and donations! The current plan is separated into 3 parts to involve as many as possible

1) direct donations (aimed at individuals)
2) NFT Auction (via telegram & Opensea)
3) Project % pledge (aiming at collections and projects)
(1/4) https://t.co/eo4Vgyz95a
— dan//l pan (@pan_danil) February 25, 2022

On Friday, the outpouring of support gained further traction. Nonfungible token (NFT) artist "pan_danil" began organizing a campaign to direct donations, launch NFT auctions and pledge a percentage of project sales to NFT artists in Ukraine. At the time of publication, a group of volunteers had formed to curate a community list of Ukrainian NFT artists and links to their artwork on NFT platforms such as Rarible, Foundation and OpenSea.

I need a trackable list of Ukranian artists to support. Tweets/Lists not working...I spend time just wading through replies than helping.

If a few people can volunteer their time to add links for Ukranian artists to this Sheet it would be great. DM me.https://t.co/APeZEEGGjd
— Nik Kalyani (@techbubble) February 24, 2022

Meanwhile, other Ukrainian artists, such as "voplividchau," have reported their NFT drops selling out due to community support. But despite the successful sale, she wrote:

It's very scary in Kiev [Kyiv] now; it was scary at night, and what will happen next is so scary. I admire how brave people are here.

SOLD OUT Friends! I am eternally grateful for your support! Now it means HUGE!@Ac3033 @Art_via_lens @muradon13 @unblockgallery @ALCrego_ @SashaBAM @pleshkova_art @hen_collector @berni_omar @BayBackner @HowdyDooNFT @PapaBeardedNFTs https://t.co/B09E9itngB
— Chernaya Rechka (@voplividchau) February 24, 2022

NFT platform Orica, which launched an NFT campaign to help build a school in Uganda last year and coordinated an NFT charity drop to help victims of human trafficking, voiced its support for Ukraine's NFT artists on Twitter. It also appears the platform is directly onboarding Ukrainian NFT artists for upcoming exhibitions.

Support Ukraine's NFT artists:@voplividchau @AnaStardust_art @Avlevytska @cadaversky @PashaYouz @spasi___sohrani

'A Girl With A Butterfly' by @voplividchau pic.twitter.com/0oIuMACqAl
— Orica (@orica_io) February 24, 2022

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Bitcoin whales fuel BTC price comeback as stocks brush off Russia-Ukraine shocks

A demand for a reclaim of higher levels enters to end the week, with traditional markets recouping losses.

Bitcoin (BTC) kept $40,000 in play at the Wall Street open on Feb. 25 after 16% daily gains increased bulls' confidence.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

Whales "leading the charge" towards $40,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD circling the $39,000 mark at the start of trading Feb. 25, geopolitical turmoil failing to induce a fresh major sell-off.

Stocks also benefited as the week came to a close, with Germany's DAX up 3% on the day and the FTSE 100 up 4% in London.

Signals from the Russia-Ukraine conflict provided an additional boost, with the prospect of talks being raised by Ukrainian president Volodymyr Zelensky to end hostilities.

With $34,300 this week's floor, optimism was slowly increasing over a rematch with $40,000 resistance.

"Purple Whales are leading the charge," monitoring resource Material Indicators noted about a chart showing a fresh spate of buying from both small and large investors.

"Historically, this class has had the most direct correlation to Bitcoin price. If BTC bulls can push past $41.5K, then $45K should come into focus rather quickly."

*Binance orderbook chart. Source: Material Indicators/ Twitter*

Popular trader and analyst Pentoshi, meanwhile, revealed that he planned to wait for $40,000 to hit before reducing BTC exposure.

Have my next sells at 40.3k (initial was 38.5 for TP1)
(1) 38.5k
(2) 40.3
(3) 41.6k

40.7k is the summer range high and looks like market will likely get another stab at it for $BTC

Will look for 37.5-38k to hold on any dips this weekend

Still no HH so playing this range https://t.co/u6JTk0WCxl pic.twitter.com/Ra1Ej46HdG
— Pentoshi (@Pentosh1) February 25, 2022

As he noted, however, on longer timeframes, there was still no overall shift in the paradigm for BTC price action, which continued to stick to a rigid range.

Bitcoin dominance pushes higher

Altcoins moved in step with Bitcoin, providing some relief for embattled bagholders.

Ten percent daily gains were commonplace, while the top ten cryptocurrencies by market cap were led by Terra (LUNA), which was up 20% on the day to $65.40.

Ether (ETH) hovered near $2,700, still down 5.7% compared to the same time last week.

"Dominance is still on track for further upside, though this upward progression towards the red level may extend into early March," trader and analyst Rekt Capital commented on a chart about Bitcoin's market cap presence versus altcoins.

*Bitcoin dominance annotated chart. Source: Rekt Capital/ Twitter*

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Thursday, February 24, 2022

NFT projects thrive even as OpenSea trading volumes take a hit

Monthly volumes on OpenSea have declined in comparison with January’s record-breaking start, but select NFT collections are still seeing their floor prices soar.

Despite a number of attempted vampire attacks, nonfungible tokens (NFTs) continue to have a strong run on OpenSea, with the number of unique users and transactions increasing. However, the NFT market’s overall volume is falling behind last month’s figure of nearly $3 billion.

While there are NFT projects readying to hit the secondary market, it seems the sector, as a whole, is navigating the next move regarding utility and the integration of NFTs in the metaverse. Adding to this, global political uncertainties are also having a noticeable impact on market environments.

Ether (ETH) price has decreased by nearly 16% in the last seven days, and since most NFT projects are on the Ethereum network, NFT collectors tend to remain unphased, shopping for NFTs at a bargain. For an NFT collection, Azuki made a considerable impact in the last 30-days, amassing over 80,000 Ether ($209,100,216) and have knocked blue-chip collections like Bored Ape Yacht Club (BAYC) and Crypto Punks from their top spots. Similarly, Invisible Friends’ launch on Feb. 23, has already reeled in over $23.1 million with a floor price of 8.95 Ether ($22,010.74)

Azuki 30-day average price / volume. Source: OpenSea

It is not just new entrants rotating collections from their top spots in total volume, older projects are resurging as the market environment sorts out shaky conditions.

Here is the state of the current NFT market as we enter the end of Q1.

3Landers NFT

Surprising the market with its underwhelming yet charming appeal and relatability to Doodles meets The Simpsons, 3Landers slides into the number one spot for total volume, amassing over 11,000 Ether ($28,666,000) since hitting the secondary market on Feb.19.

3Landers all-time average price / volume. Source: OpenSea

3Landers' average sale price has increased 63% in the last seven days and is one of the few projects whose floors continue to increase post reveal, now sitting at a thin 1.55 Ether ($4.056.35.)

Generated on the Ethereum blockchain, 3Landers describes itself as a “...NFT project centered around community, adventure and collaboration.” Perhaps it is the positivity collectors need in light of recent events.

As a community-centered project, 3Landers will rely on the talents, commitments and unity of its community to lead where the project may expand to.

While some NFT projects are community-centered in value sharing, others are exploring uncharted territory building out digital sovereign nations.

NFT Worlds

NFT Worlds is built with the metaverse in mind and at its center. Each of the 10,000 NFT Worlds is explorable and unique with the capacity to build on. Also, it touts being compatible with none other than the sandbox game, Minecraft.

NFT Worlds saw a boost in growth in the last seven days reaching a floor price of nearly 18 Ether.

NFT Worlds 7-day floor price. Source: NFT Price Floor

In the last 30-days, NFT Worlds has generated over $42.3 million in volume, bringing about half that amount in the last seven days alone at $21.3 million.

NFT Worlds 7-day average price / volume. Source: OpenSea

NFT Worlds seems to attract Web3 advocates and developers granting decentralization and APIs. As digital land with a high cost of entry, NFT Worlds is integrating a rental system later this year, allowing owners to rent out their worlds in exchange for a monthly fee of its in-game currency, WRLD.

Operating on the Polygon network, WRLD will have a reward faucet for creators who meet the criteria and are seeking to integrate a play-to-earn (P2E) game using the token.

It seems investors are heavily valuing open-source and interoperable features as good positions for the next phase of the metaverse.

Mfers

Created by Sartoshi, a play on the mysterious Satoshi Nakomoto, Mfers climbed its way to the third spot for total volume. Amassing a growth of nearly 66% in total volume in the last seven days, Mfers floor prices topped 5.84 Ether ($15,330).

These right-facing, slouching, stick Mfers are meme-inspired and created. The ethos of the Mfers seems to have recently triggered something within the sector, as the average sale price increased by 43% at one point in the seven days.

Out of a total supply of 10,000 Mfers in the collection, there are approximately 5,100 unique holders. Currently, at 4 Ether ($10,950.08), the floor price has increased by nearly 81% in the last seven days.

Investors are taking pride that their investment will provide them all the creative freedom since Mfers hold creative commons zero (CC0) meaning, no rights reserved, and owners are enabled to build upon them. CryptoPunk owners encountered blistering issues with their intellectual property (IP) rights, which is why some see the Mfers proof-of-profile (PFP) as a symbol for the culture

Tubby Cats

Speaking of culture, another cat collection has made its way to the scene. Tubby Cats has entered space and reaffirmed the love people have for cats. Tubby Cats by the Tubby collective is a collection of 20,000 anime-inspired cats.

Since its whitelist launch on Feb. 21, 2021, the collection has already amassed 9,000 unique holders and generated over $20.7 million in total volume

Tubby Cats all-time average price and volume. Source: OpenSea

Tubby Cats is not a completely randomly generated collection; instead, each tubby cat is generated from 120 various themed palettes on which the rarity is based.

The Tubby Cat collection seems to have gained the attention and hearts of Crypto Twitter influencers as the collection has slid it’s way to the number four spot in total sales volume.

Although it has long ways to grow before its Cool Cats status, Tubby Cats is already making an impression with collectors of other projects. Tubby Cats may be the most recent feline-inspired project to purr their way to the sector, but it isn’t the last.

CatBlox Genesis Collection

It may have clawed its way to the fifth spot, but CatBlox Genesis collection is 10,000 cute and pudgy cats living in none other than CatBlox. Launched on Feb. 17, there are already 5,400 unique holders out of 10,000 and the average sale price has increased by nearly 50% in the last seven days.

*CatBlox 7-day average price and volume. Source: OpenSea*

CatBlox has since announced its partnership with athletic footwear brand, Puma to further itself with its health and wellness initiatives in place on its roadmap. While it still isn’t clear what the partnership with Puma entails, Puma is gearing itself for Web3. Puma has since changed its domain handle on Twitter to reflect “Puma.eth.” Apparently, the feline brand purchased other cat-like collections including CoolCats, Lazy Lions and Gutter Cat Gang.

Understanding the impact of strong collaboration, CatBlox collection uniquely factors in distinct functionality with each collaboration.

Generating over $15.1 million in total volume so far, CatBlox is making a statement with its stealth reveal and latest announcement.

Disclaimer. Cointelegraph does not endorse any content of product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their decisions, nor this article can be considered as an investment advice.

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IoTeX co-founder urges crypto investors to hodl amid market conditions

The market could “easily reach new all-time highs by the end of the year,” says IoTeX co-founder Dr. Raullen Chai.

As the market dips over escalating tensions in Eastern Europe, Dr. Raullen Chai, the co-founder and CEO of blockchain network IoTeX, is urging crypto investors to hold on to their crypto.

The Russian army recently started its advance on Ukraine, firing missiles on the second-largest European country. Following this, crypto markets took a nosedive, with all the top coins dropping between 8% and 18%, according to Cointelegraph Markets Pro. However, despite the current market conditions, Chai tells holders to think twice before selling their digital assets.

Chai told Cointelegraph that, while it’s not impossible for Bitcoin (BTC) to fall below $10,000 and Ethereum (ETH) to fall below $800, the market could “easily reach new all-time highs by the end of the year.” He explained:

“I would certainly not encourage investors to sell their crypto now in the hopes of buying back at a cheaper price, as the reality is no one knows when we will reach the bottom and when the market will rally again.”

While Chai’s general sentiments are bullish, he identified factors that could drive the crypto market prices further down. The IoTeX co-founder says that the Russian invasion, combined with rising interest rates and the prospect of new COVID-19 variants, could all affect the market negatively in the short term:

“Additionally, tensions between Russia and Ukraine — in addition to other geopolitical and trade tensions — should be monitored, as they can unnerve institutional and retail investors and lead to huge price changes due to reduced risk appetite.”

Meanwhile, a recent report from hedge fund Pantera Capital shows that Bitcoin is currently relatively inexpensive, noting that several factors may affect the next rally. According to Pantera, warning signs from the debt markets and negative real rates could provide Bitcoin with the rocket fuel it needs to resume its bullish uptrend.

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