The Bitcoin price is currently moving around $ 21k after an exciting day in the markets yesterday. The largest cryptocurrency by market value has taken a loss over the past five days, but the bearish storm appears to have eased slightly now. All eyes were on the announcement of the Federal Reserve (FED) rate hike in the US yesterday. At 20:00 Dutch time, the Fed announced that it would raise interest rates by 0.75%. It is the largest single interest rate increase since 1996. The market had already priced this interest rate increase, which caused prices to rise after the news was announced. The Bitcoin price had touched $ 20,200 earlier in the day and remained flat for the rest of the day pending the interest rate decision. The crypto market also responded with relief to the news and rose. Altcoins performed slightly better than Bitcoin, causing the large cryptocurrency to lose some of its market dominance. More on that later.
In other news, crypto exchanges are witnessing record-breaking crypto influx approaching 2018 levels. The exchange platforms are witnessing this level of inflow after the BTC price registered a massive drop and some panicked sellers stood in line to liquidate their assets. More on that later.
Bill Gates, the founder of Microsoft and one of the most well-known tech pioneers, has once again questioned the value of Non Fungible Tokens (NFTs). He had long had serious doubts about the NFTs and has now stated that the sector is “100% based on Greater Fool Theory”. He specifically mentioned the Bored Ape Yacht Club (BAYC) NFT Collection and said it did nothing to make the world a better place and they were not great pictures. Aside from NFTs, Gates is not crazy about the larger cryptocurrency sector either. He made these comments during a recent interview with TechCrunch.
The Russian government is playing a double game in digital assets and the larger crypto sector. While the government wants to use crypto as a means of circumventing massive Western sanctions against the country, they are simultaneously introducing laws to severely restrict the crypto sector in the country. This shows that Russia, despite popular rhetoric, does not trust the digital currency sector and does not just unconditionally embrace it.
The large Defi platform Celsius is in big trouble. With interest in the digital currency sector cooling significantly, the DeFi company is in serious trouble due to liquidity issues. So much so that there are rumors that it is going bankrupt. Nexo has already expressed interest in acquiring the company and all of its liabilities in full.
Ari Paul, the founder of the investment company Block Tower, has drawn parallels between the recent cryptocurrency and the dotcom bubble in the year 2000. He mean that Bitcoin is the Amazon of the situation and that it will recover by leaps and bounds. However, he is not sure if other cryptocurrencies will survive and thrive.
The Office of the Inspector General (OIG) of the U.S. Department of Justice recently issued one research to funds seized by US Marshalls in several raids. As expected, the results show some unprofessional handling of the seized crypto. The OIG has called for a review of the Federal Agency and its crypto-holding procedures.
ONE bill in the Brazilian parliament will make cryptocurrencies legal in the country and will also include provisions on private keys. However, it must be seen how much support this bill can get before it is approved.
The Securities and Exchange Commission (SEC) has launched an investigation into insider trading on major cryptocurrency exchanges. It will likely perform routine checks on these platforms.
Bitcoin is recovering after interest rate hike
Yesterday, the Bitcoin price started at around $ 21.8k. It traded sideways for a while before starting to fall at. 4:50. The price first fell below $ 21k and then came painfully close to the psychologically important $ 20k support by trading as low as $ 20.2k. However, the bulls managed to make some desperate recovery attempts and managed to push the price back over $ 21k. Then came the aforementioned interest rate decision from the US Federal Reserve, which brought relief to the financial markets. Bitcoin also managed to gain some ground on the news. It is currently trading around $ 21.7k after briefly touching $ 23ki last night.
Bitcoin survived another bearish attack earlier today as the price moved close to $ 20k but failed to move further down. So much so that the 24-hour shutdown was just around the starting value, which is the first for the digital asset within the last 5 days. But do not let this move fool you, as the bears are still very strong and can strike back quickly enough.
Bitcoin’s total market value was around $ 416 billion and its share of the crypto market was 45.4%.
Altcoins provide mixed profits
Other cryptocurrencies, also known as altcoins, remained stable for a long period of the day, some even recorded price increases despite BTC’s difficult situation. Big winners were Cardano (ADA, 9.3%), Solana (SOL, 9%), Polkadot (DOT, 4%), Dogecoin (DOGE, 7%), Tron (TRX, 9%), Shiba Inu (SHIB, 5.5%) and Litecoin (LTC, 7%).
In other news …..
The currency supply hit 4-year highs as sellers panicked
Crypto exchanges are witnessing a record influx of crypto as panicked sellers rushed to the big business to liquidate their digital assets. Users of 21 major exchange platforms have significantly increased their deposits for this. This is an important bearish signal and was one of the reasons behind the recent price drop.
The situation is also exacerbated by many miners wishing to liquidate some of their extracted crypto, as higher prices are likely to be difficult to achieve in the near future. FTX and Binance experienced the bulk of the panic sales.