Bitcoin is currently trading at around $16.5ki at the time of writing. The largest cryptocurrency by market capitalization is currently doing damage control as it appears to be holding on to the small gains it posted 2 days ago. Altcoins were also largely stable with few exceptions. More on that later.
In other news, crypto exchanges continue to witness a drop in reserves due to the major FTX scandal rocking the market. This trend has continued in recent weeks, even as the news of the movement of the first batch of Mt. Gox Bitcoin to be distributed to affected investors. This will result in an increase in crypto to the exchanges, but the net result still seems negative, more on that later.
Speaking of centralized crypto exchanges, Binance has announced plans to deposit more than $1 billion into a crypto recovery fund. It is likely to help financially distressed crypto platforms affected by hacks or fraudulent activity. However, this plan is easier said than done, as the industry’s recent history has seen clear frauds totaling over $15 billion and directly affecting hundreds of thousands of users around the world. This could easily be another PR stunt.
Bitcoin price is stable above $16.5k
Bitcoin is hovering steadily around the $16.5k level for now. The cryptocurrency was generally quite stable throughout the day yesterday as it appeared to have small gains.
In the last 36 hours, BTC started trading at around $16.45k. It traded sideways for a while before seeing a price rally around midnight. It started to climb steeply and reached a peak of around $16.8ki within a few hours. However, further price increases proved difficult for the digital currency. The price slowly fell for most of the rest of the day yesterday, finding some support around $16.55k and holding for the rest of the day. In general, the price also showed little or no change last night and this morning.
Bitcoin is now back around the familiar $16.5k support level. While the bulls have made a desperate attempt to hold on to this newfound support, they have been outworked for now. This is because the bears are still lurking and will undoubtedly strike again in the near future if consistent profits are not made. The best the bulls have offered recently is a slight rise to around $17,000. That likely won’t be enough for the foreseeable future as the bears gain strength over time due to multiple market forces working in their favor. The only option for the bulls is to keep posting price gains until Bitcoin is above $19k, but that may be too much to ask at this point. Analysts are currently giving a price target of around $13,000-$14,000.
Bitcoin’s total market capitalization was approximately $318 billion and its share of the crypto market was 40.3%.
Altcoins remain largely stable
Other cryptocurrencies have been largely flat at the end of the past 24 hours with a few exceptions: Ethereum (ETH, 2.8%), Ripple (XRP, 6%), Solana (SOL, 3%), Tron (TRX , 3.7% ) and Cosmos (ATOM, 3%).
In other news….
Net foreign exchange outflow continues to rise despite the first tranche of Mt. Gox compensation comes in
Crypto continues to fly away from popular centralized exchanges. This is primarily due to the FTX scandal that rocked the industry and exposed users’ lack of power over their own crypto.
The largest centralized exchanges in the world now have 180,000 BTC less parked than last month. This is worrying for these platforms as it directly affects their earnings. If there is no deposit, there is no trading and if there is no trading, there is no income for these exchanges. For them, it’s a simple deal. This is why many of the top platforms like Binance, Coinbase and others are desperately trying to show proof of reserves to demonstrate their good business practices. They also provide some innovative solutions to overcome the lack of trust between them and their users. However, the flight continues.
However, an unlikely savior may come to the rescue of the exchanges. Approximately 65 BTC was transferred from the reserve of Mt. Gox is banking on the HitBTC exchange, which has set alarm bells ringing in the crypto sector, that it could trigger another selloff. More than 170,000 BTC can potentially be sold, which will significantly increase the cryptocurrency’s supply. For the stock exchanges, however, it may provide some temporary relief, as it will increase their reserves somewhat in the short term.