Bitcoin

USDC Re-pegs After Fed’s $25B Bailout, Bitcoin Price Bounces To $22.2k

Published

3 weeks ago

March 13, 2023

USDC Re-pegs After Fed’s $25B Bailout, Bitcoin Price Bounces To $22.2k

The fear, uncertainty, and doubts surrounding the second largest stablecoin USDC, issued by Circle, have significantly reduced in the past 24 hours following a bailout by the United States Federal Reserve. As a result, Circle’s USDC has re-pegged to the ratio of 1:1 with the United States dollar, following a dip towards $0.87 during the weekend.

Notably, Circle’s USDC de-pegged after the collapse of several banking institutions in the United States, including Silicon Valley Bank, Signature Bank, and Silvergate Capital, where the stablecoins’ issuer had secured part of its reserves.

According to on-chain analytics by Lookonchain, the total supply of USDC has increased by approximately $493.2 million in the past 24 hours following two whale mints on the Ethereum network.

Fed Rescues Crypto Market

The cryptocurrency market faced possible capitulation as top investors in the United States were exposed to the neo-banking crisis. Bitcoin price dropped as much as $19k during the weekend, with the altcoin market bleeding further. However, Fed’s actions have restored faith in the cryptocurrency market, which has gained approximately 8 percent to a total capitalization of about $1.06 trillion. According to our latest crypto price oracles, Bitcoin is exchanging around $22,283 during the early Asian market.

“After receiving a recommendation from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, Treasury Secretary Yellen, after consultation with the President, approved actions to enable the FDIC to complete its resolutions of Silicon Valley Bank and Signature Bank in a manner that fully protects all depositors, both insured and uninsured,” the United States Federal Reserve announced on Sunday.

However, the Fed has been called out for its selective bailout despite the monetary measures to reduce inflation through interest rate hikes.

Once you do one bailout, you end up in a dilemma.
If you don’t bailout this time, why not? You were suppose to. To “protect consumers”, by diluting all your citizens.
If you do bailouts, then banks have 0 incentive to manage risk. It would be stupid not to take max risk for max… https://t.co/rIXZUNx5mr

— CZ 🔶 Binance (@cz_binance) March 12, 2023

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Analysis

Bitcoin, Ethereum Technical Analysis: BTC Drops Below $28,000, ETH Under $1,800

Published

6 hours ago

March 31, 2023

Eliman Dambell

Bitcoin was once again trading below the $28,000 level on Friday, as markets consolidated ahead of a key day of economic data. The University of Michigan releases its monthly consumer sentiment report, which is expected to come in lower than February’s sum. Ethereum also declined in today’s session.

Bitcoin

Bitcoin (BTC) fell below the $28,000 level on Friday, as markets consolidated ahead of a key day of economic data.

BTC/USD slipped to an intraday low of $27,583.72 in today’s session, which comes a day after the price rose to a high of $28,683.53.

The decline came as traders were unable to sustain a breakout above the $28,500 level, following a nine-month high the day prior.

Overall, it appears that earlier bulls moved to secure gains, as the 14-day relative strength index (RSI) collided with a ceiling at 65.00.

As of writing, the index is tracking at the 60.84 level, which is marginally above a lower floor at 59.00.

BTC is now trading at $27,928.58, however there will likely be some movement following this afternoon’s data release.

Ethereum

Ethereum (ETH) was once again trading below $1,800, as prices failed to breakout from a recent key resistance point.

Following a high of $1,827.28 on Thursday, ETH/USD fell to an intraday low of $1,766.25 in today’s session.

Friday’s sell-off transpired as ETH bulls were unable to move beyond a long-term ceiling at $1,830.

The world’s second largest cryptocurrency is now trading at $1,795.69, which seemingly suggests that some bullish sentiment still remains in the market.

This seems to be a result of price strength failing to drop below a floor at 52.00, and it has since moved to a reading at 57.35.

Should the RSI surge past the 58.00 mark, which is the next visible point of resistance, then ETH will likely be back above $1,800.

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Tags in this story

Will ethereum start April trading above $1,800? Leave your thoughts in the comments below.

Eliman Dambell

Eliman was previously a director of a London-based brokerage, whilst also an online trading educator. Currently, he commentates on various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

adoption

Bitgo Launches Storage And Tracking Solution For Bitcoin-Based Ordinal Inscriptions

Published

7 hours ago

March 31, 2023

Jamie Redman

Bitgo Launches Storage And Tracking Solution For Bitcoin-Based Ordinal Inscriptions

On Thursday, digital asset custody provider, Bitgo, announced the launch of its storage and tracking solution for Bitcoin-based Ordinal inscriptions. Moreover, users can use Bitgo’s Ordinal inscription storage system to inscribe their own inscriptions onto the Bitcoin blockchain.

Bitgo’s New Solution Allows for Safe Sending of Ordinal Inscriptions

Bitgo has announced a new storage solution for Bitcoin-based Ordinal inscriptions that allows users to store and track inscriptions. Bitgo has detailed that in the “coming days,” users who leverage Bitgo’s new solution will be able to send “inscribed satoshis to an address of their choice safely.” The company says that starting today, “you can add inscription tracking to any bitcoin hot wallet on Bitgo.”

Transactions received into the Bitgo wallet are now checked for inscriptions and frozen to prevent the loss of inscriptions. Bitgo’s dashboard will have a new “Unspents” view that displays inscriptions and links to the public Ordinals explorer for more information. Users can unfreeze the inscription from this view if they want to use the bitcoin in a normal transaction without worrying about where the inscribed satoshis are sent.

Ordinal inscriptions have become quite popular this year, and to date, there are more than 657,000 inscriptions residing on the Bitcoin blockchain. So far, close to 150 BTC worth $4.24 million have been paid to miners to confirm Ordinal inscriptions. At present, the ecosystem is still nascent, but certain Ordinal inscription collections have swelled in value, and statistics show that 13 markets have seen $15.74 million in trades.

“Bitcoin Ordinals brought an entirely new layer of engagement to the Bitcoin Network but, upon launch, the surrounding ecosystem missed key security components to ensure high-value Ordinals inscriptions were safeguarded,” Chen Fang, Bitgo’s COO said in a statement on Thursday. “That’s why we’re very excited to announce the release of Bitgo’s solution to securely store inscriptions and prevent them from being accidentally transferred or sent to mining fees.”

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What do you think the future holds for the use and adoption of Ordinal inscriptions in the Bitcoin ecosystem? Share your thoughts in the comments section below.

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Bitcoin

Bitcoin [BTC] attempts another resistance breakout: Will it crack $30,000

Published

22 hours ago

March 30, 2023

Michael Nderitu

Bitcoin [BTC] attempts another resistance breakout: Will it crack $30,000

Bitcoin saw a higher net outflow despite large exchange outflows.
Support retest yielded some sell pressure, but long-term holders were still going strong.

Bitcoin [BTC] peaked at $29,380 on 24 March before experiencing a resurgence of sell pressure. Fast forward almost one week later, and the bulls are showing their strength once again.

Is your portfolio green? Check out the Bitcoin Profit Calculator

Bitcoin crossed back above the $29,000 price point within the last 24 hours, raising bullish hopes that it will soon cross the $30,000 mark. But how likely is this outcome before the end of the week, especially now that the price has to contend with resistance?

Recent market observations may offer some insights into what to expect. For example, on 30 March, Glassnode revealed that Bitcoin’s Percent Supply Last Active 1+ Years was at a new ATH.

📈 #Bitcoin $BTC Percent Supply Last Active 1+ Years just reached an ATH of 68.090%
View metric:https://t.co/1j255TMTVz pic.twitter.com/cpiDmxXEjT
Advertisement

— glassnode alerts (@glassnodealerts) March 30, 2023

The Glassnode observation suggested that the amount of HODLed Bitcoin was still growing. However, there was also a surge in sell pressure over the last few days. Bitcoin’s daily on-chain exchange outflow peaked at $1.1 billion while inflows were lower at $921 million. The cryptocurrency has thus been experiencing more sell pressure.

📊 Daily On-Chain Exchange Flow#Bitcoin $BTC
➡️ $921.0M in
⬅️ $1.1B out
📉 Net flow: -$148.1M#Ethereum $ETH
➡️ $580.6M in
⬅️ $444.9M out
📈 Net flow: +$135.7M#Tether (ERC20) $USDT
➡️ $646.1M in
⬅️ $851.7M out
📉 Net flow: -$205.6Mhttps://t.co/dk2HbGwhVw
— glassnode alerts (@glassnodealerts) March 30, 2023

Will Bitcoin bulls yield to prevailing sell pressure?

A look at Bitcoin’s press time position explained why it had been experiencing sell pressure. The upside, especially within the last 24 hours at press time, pushed back into the ascending resistance line. As such, many investors have been taking profits, thus triggering the pullback to the $28753 press time price.

Source: TradingView

Bitcoin was likely to experience sell pressure with the resistance line retest. Enough sell pressure may trigger more downside, while a bullish dominance may push past resistance and possibly above $30,000.

A look at exchange data revealed that both inflows and outflows were down notably in the last 24 hours. However, exchange outflows slightly dominated at 22,178 BTC, compared to exchange inflows at 20,548 at the time of writing.

Source: CryptoQuant

How many are 1,10,100 BTCs worth today?

Investors should also note that Bitcoin open interest in the derivatives market is back to its two-month highs, an indication that there was strong demand for BTC in the derivatives market. This surge was accompanied by an uptick in the demand for leverage, as indicated by the estimated leverage ratio.

Source: CryptoQuant

The last time that both metrics peaked at the same level was on 19 March. This was followed by a bit of sell pressure, but it was not enough to trigger a large pullback. The fact that the same metrics are back at the same level confirmed relative strength, but the bears may not be far behind.

Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael’s writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.