• Bitcoin is trading above $28,000 on Monday, as cryptocurrencies extend a bull run to start the week.
• Ethereum continues to trade close to $1,800 after hitting its highest point since last August.
• The Federal Reserve and other major central banks made coordinated moves to enhance market liquidity.
Bitcoin Starts Week Above $28K
Bitcoin (BTC) was trading above $28,000 on Monday, extending a bull run that began with news of coordinated action by the Federal Reserve and other global central banks. This move aimed at enhancing market liquidity comes as Credit Suisse was bought out by rival UBS in a move engineered by Swiss authorities. BTC/USD hit an intraday peak of $28,527.72 earlier today, which follows a low of $27,196.76 recorded on Sunday. Trading at its strongest point since last June, many are now expecting BTC to soon break the $30k mark due to the overbought sentiment indicated by the 14-day relative strength index (RSI), currently tracking at 72.73 with 75.00 being the next visible resistance level for bitcoin bulls.
Ethereum Close To $1,800
Ethereum (ETH) was consolidating recent gains during Monday’s session as prices fell below $1,800 following Sunday’s high of $1,843.84 and intraday bottom of $1,744.86 which opened the week’s trading session for ETH/USD pairings. Ethereum bulls appear to be securing recent gains with some attributing this decline to the RSI falling below a long-term ceiling at 6600 mark – currently tracking at 63.74 with 62 being a possible target for bears should this decline continue further downwards towards that value level in support of ETH price actions against US Dollar markets this week so far..
Rally Boosts BTC Price To Overbought Territory
The rally has sent bitcoin into overbought territory – as indicated by its 14-day relative strength index (RSI). The index is now tracking at 72.73 and should it reach 75 or higher there is a strong chance BTC will be testing levels above 30k before long if current momentum holds steady through coming days ahead according to technical analysis charts from various brokers providing their insights into near term price action expectations across crypto markets globally right now..
Analysis Of Market Movements
The rise of bitcoin has been interpreted as markets responding positively to news that several G7 central banks took coordinated measures in order to enhance market liquidity; while Ethereum’s drop may have been caused due its RSI level falling below 6600 mark – which indicates bearish sentiments and suggests lower values may be expected short term if current trend persists and no bullish reversal happens anytime soon according traders paying close attention these developments more closely than ever before..
Conclusion: Predictions For Upcoming Weeks Ahead?
Overall both cryptocurrencies have seen positive uptrends recently despite some minor fluctuations throughout this past trading week so far – leaving many wondering what upcoming weeks ahead might bring for Bitcoin & Ethereum price movements respectively? Will we see ethereum hit 2k & bitcoin break 30k barrier in January 2021? Only time will tell but sentiment looks good so far!
• Elizabeth Warren blamed the liquidation of Silvergate Bank on “crypto risk,” however critics dismissed this opinion as “terribly misinformed.”
• US regulators closed Silicon Valley Bank due to financial turmoil and a reported bank run.
• Airdropped ERC20 tokens from Ethereum co-founder Vitalik Buterin’s address caused negative price moves and India-Russia oil deals could potentially challenge U.S. dollar dominance in international trade.
Extreme Market Turbulence
It’s been a turbulent week in finance with the so-called crypto-friendly Silvergate Bank announcing its liquidation, U.S. Senator Elizabeth Warren blaming the event on “crypto risk,” and individuals on social media pointing out that Warren is “terribly misinformed”. Additionally, U.S. Regulators closed Silicon Valley Bank after reports of a bank run and other troubles, while Ethereum co-founder Vitalik Buterin’s address allegedly sold trillions of airdropped ERC20 tokens, causing negative price moves, and India-Russia oil deals could be challenging U.S. dollar dominance in international trade.
Elizabeth Warren Blames ‘Crypto Risk’ for Silvergate Bank’s Liquidation
After Silvergate Bank announced its voluntary liquidation, U.S senator Elizabeth Warren attributed the financial institution’s downfall to “crypto risk.” According to Warren, she had previously warned about Silvergate; however some critics have dismissed her opinion as “terribly misinformed” and claim that she is “tossing out egregious accusations.”
US Regulators Close Silicon Valley Bank
The U.S Federal Deposit Insurance Corporation (FDIC) and the California Department of Financial Protection and Innovation closed Silicon Valley Bank (SVB) after it experienced financial issues including a reported bank run . Insured depositors can withdraw their funds on Monday after FDIC took over the failed bank..
Ethereum Co-Founder Vitalik Buterin’s Address Sells Trillions of Airdropped Tokens
On March 7th,,onchain observers noticed that Vitalik Buterin had allegedly sold billions and trillions of airdropped ERC20 tokens resulting in an estimated $700000 gain in value for him personally but causing illiquid coin prices to plummet due to market liquidity being shallow for these unknown ERC20 tokens .
India-Russia Oil Deals Could Challenge US Dollar Dominance
Reuters reported that Western sanctions on Russia in combination with Moscow & India trading oil together could lead to eroding away at The US dollars decades old dominance when it comes to international trade .
• Bitcoin and Ethereum markets marginally stabilized from Friday’s sell-off on March 4.
• BTC/USD rose to an intraday high of $22,444.19, and ETH/USD hit a high of $1,575.87.
• The 14-day relative strength index (RSI) has appeared to have found a floor, while the 10-day (red) and 25-day (blue) moving averages are on the brink of a downwards crossover.
Bitcoin Consolidates Recent Losses
Bitcoin (BTC) consolidated recent losses to start the weekend, as market volatility eased in today’s session. Following yesterday’s low of $22,213.24, BTC/USD rose to an intraday high of $22,444.19 earlier in the day – moving back above a long-term support point at $22,300 following Friday’s breakout. Additionally, the 14-day relative strength index (RSI) has also appeared to have found a floor which has helped ease the decline in price strength – tracking at 42.89 and marginally above the support point at 42.00. There is a risk however that the 10-day (red) and 25-day (blue) moving averages are on the brink of downward crossover which could signal future declines ahead for Bitcoin prices.
Ethereum Moves Back Into The Green
Ethereum also recovered following bearish momentum wearing off with ETH/USD hitting a high of $1,575.87 less than 24 hours after trading at a low of $1,552.45 – rising back above a price floor at $1,560. The RSI is now tracking at 45.21 – relatively higher than yesterday’s bottom at 44.51 as bulls rejected break out from 44 support level – should price strength move closer to resistance level at 48 there is strong possibility that ETH will be above 1 600 mark soon enough .
Key Support & Resistance Levels
For Bitcoin key levels remain same: 22 300 USD for support and 23 500 USD for resistance while for Ethereum these levels stand : 1560 USD for support area and 1650 USD for resistance one .
Sentiment appears to have shifted somewhat as both Bitcoin and Ethereum moved into positive territory as we start weekend , however values remain volatile so caution should be taken when trading cryptocurrencies .
Cryptocurrency markets appear to have stabilized after Friday’s sell off , however any further gains can only be determined by performance over upcoming days .
• The Central Bank of Nigeria (CBN) is seeking a new technology partner to help it implement a system that gives it greater control over its central bank digital currency (CBDC), the e-naira.
• R3, a provider of enterprise technology and services, is one of the prospective partners that has reportedly discussed deploying different tech for the e-naira.
• According to Lucky Uwakwe Arisukwu, the CEO of Sabi Group, the CBN’s desire to control digital currency could be the primary motivating factor behind its search for a new partner.
New CBDC Tech Partner Sought by Nigerian Central Bank
The Central Bank of Nigeria (CBN) is looking for a new technology partner to support its central bank digital currency (CBDC) project. The aim is to create a system which gives it greater control over the CBDC, commonly known as e-naira. This comes more than a year after launching its CBDC with initial technology partner Bitt Inc.
Prospective Partners Discussed
R3, an enterprise technology and services provider, has reportedly been in discussions with the CBN regarding deploying a different tech for e-naira. While no official comment has been given on this matter by either party involved, Bitt Inc acknowledged that it still works closely with the CBN and is “currently developing additional features and enhancements.”
Motivating Factor Behind Search For New Partner
Lucky Uwakwe Arisukwu, CEO of 4th industrial revolution technology hub Sabi Group believes that the central bank’s desire to have more control over digital currency could be what drives it to seek out new partners. He pointed out recent developments such as Afrigo domestic card scheme – launched by CBN – as evidence that it wants to have more control over electronic platforms in Nigeria. Despite this, governor Godwin Emefiele rejected claims that Afrigo was meant to push out international service providers from the country’s national payment system.
Improving E-Naira User Experience Could Help Adoption
In order for more Nigerians to adopt the e-naira, experts suggest improving user experience be considered by CBN when choosing partners or when implementing any other changes related to their digital currency projects. With better user experience come wider adoption which will ultimately result in greater success for such initiatives taken up by Nigeria’s central bank .
It remains unclear if or when another partnership will be established between the Central Bank of Nigeria and R3 or any other tech firm but reports suggest that talks are ongoing between both parties nonetheless so we might soon see some development in this regard.
• Total value locked (TVL) in decentralized finance (defi) has surpassed the $50 billion mark for the first time since FTX collapse.
• Ethereum is dominant with over 60% of TVL, while Tron and Binance Smart Chain battle for second place.
• The largest protocols and exchanges in terms of TVL include Lido, Makerdao, Curve, Aave, Uniswap, and more.
Crypto Prices Surge: Total Value Locked in Defi Surpasses $50 Billion
Total Value Locked Reaches All-Time High Since FTX Collapse
Crypto prices have surged in value over the past few days, pushing the total value locked (TVL) in decentralized finance (defi) to a new all-time high of $51.1 billion – surpassing the $50 billion mark for the first time since the collapse of FTX back on Nov 8th 2022.
Ethereum Dominates with Over 60% of TVL
The entire cryptocurrency market has seen an increase of 5% against the U.S dollar over the past 24 hours. During this same period Ethereum increased by 6.5%, BNB rose by 4.2%, Cardano increased by 2.4%, Polygon rose by 8.3%, Solana saw a 3.9% increase and Polkadot rose by 3.6%. As a result of these increases Ethereum now holds more than 60% ($30.98 billion) of total value locked into defi across all blockchains – making it easily the most popular platform when it comes to staking funds in projects such as MakerDAO and Aave lending protocols etc.. Tron is currently placed second with 10.39%, with Binance Smart Chain still battling it out for third place at 9.57%.
Top Protocols & Exchange Platforms By TVL
The top protocols according to TVL are Lido capturing 17
Coinbase CEO Brian Armstrong Expresses Concerns
• Coinbase CEO Brian Armstrong expressed concern about rumors of the U.S. Securities and Exchange Commission (SEC) possibly eliminating cryptocurrency staking for retail customers in the United States.
• Armstrong clarified that “staking is not a security”, and that it allows users to participate directly in running open crypto networks.
• He argued that new technologies need to be fostered, not stifled, in the U.S., and called for clear rules for financial services and Web3 industries for national security reasons.
What is Staking?
Staking is an important innovation in cryptocurrency technology which enables users to take part in maintaining open crypto networks without having to mine them or buy specialized hardware such as ASICs (Application-Specific Integrated Circuits). It involves holding coins or tokens on a blockchain platform, locking them up over a certain period of time and earning rewards from it, similar to interest earned on savings accounts at traditional banks. Staking also offers several benefits such as scalability, increased security, and reduced carbon footprints.
SEC Rumors Discouraging Crypto Innovation?
The news of potential SEC regulations banning staking has been met with criticism from many cryptocurrency industry leaders including Coinbase CEO Brian Armstrong who believes this could be a major setback for innovation within the space if allowed to happen. He further suggested that proper rules should be put in place so that companies don’t have to operate offshore like FTX did recently due to lack of proper regulations by the SEC.
In response to these rumors, Armstrong took to Twitter vowing his support against any kind of ban on staking while also advocating clear rules and sensible solutions that protect consumers while preserving innovation and national security interests in the US. Despite some criticism from people who poked fun at SEC Chairman Gary Gensler stating “Realistically, the Howey test is so broad that pretty much everything is a security,” Armstrong maintained his stance insisting that regulation by enforcement does not work rather regulatory clarity needs to be established so as not discourage innovation within this space.
It remains unclear what will happen next but one thing is certain; industry leaders like Brian Armstrong are determined more than ever before fight against any attempts by regulators which might potentially hamper innovation within the crypto sector while also ensuring consumer protection is taken into account alongside national security concerns are taken seriously into account when forming policies related cryptocurrencies going forward.
• Bitcoin (BTC) retreated from a recent five-month high on Tuesday, with prices falling below the $23,000 mark in today’s session.
• Ethereum (ETH) was also in the red in today’s session, with prices falling further below $1,600.
• Traders are preparing for a big few days of economic data from the United States and Federal Reserve policy meeting on Wednesday.
Bitcoin Price Retreats Below $23k
Bitcoin (BTC) fell below the critical $23,000 mark on Jan. 31 following a recent move to a five-month high over the weekend. Market volatility has since increased as traders prepare for an important week of US economic data.
Ethereum Price Also Lower
In addition to BTC, ethereum (ETH) was also in the red on Tuesday, with prices dropping further below $1,600. After hitting a four-month high at $1,680 two weeks ago, ETH/USD has mostly been consolidating since then.
Key Economic Data Ahead
Traders are bracing themselves for key economic data releases this week from the United States including consumer confidence report later today and Federal Reserve policy meeting on Wednesday.
Technical Analysis: RSI Floor Tested
As can be seen from BTC/USD daily chart analysis above, today’s drop saw BTC move closer to its price floor at $22,500 with the relative strength index (RSI) hitting its own floor at 68.78 – marginally above its long-term support point at 68.00. A ceiling of 77 for bulls rejecting an earlier breakout could be possible if prices consolidate until fundamentals settle this week.
The market is awaiting more key economic news that could affect Bitcoin and Ethereum trading this week as both digital assets currently sit lower than their previous highs last month and will need to break out of consolidation cycles before gaining bullish momentum again soon.
• Red Date Technology, the designer of China’s state-backed Blockchain-based Service Network (BSN), has launched a new project called Universal Digital Payments Network (UDPN) to enable the interoperability between stablecoins and central bank digital currencies (CBDCs) in cross-border payments.
• The goal of the UDPN is to allow businesses from different countries to transact and settle in different regulated digital currencies.
• The UDPN is seen as an alternative to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) which has been seen as a leverage for the West.
Red Date Technology, the designer of China’s state-backed Blockchain-based Service Network (BSN), recently launched a new project called Universal Digital Payments Network (UDPN) in Davos, Switzerland at the World Economic Forum. This project is aimed at allowing the interoperability between stablecoins and central bank digital currencies (CBDCs) in cross-border payments.
The UDPN would serve as a platform that would allow businesses from different countries to transact and settle in different regulated digital currencies. This would help to create a common standard across different settlement systems, much like the Society for Worldwide Interbank Financial Telecommunication (SWIFT) which is currently the most common system for interbank transfers globally.
The UDPN is seen as an alternative to SWIFT, which has been seen as a leverage for the West in the past. For example, following the Russia’s invasion of Ukraine, the West cut off Russian banks from the SWIFT network. Both Russia and China have sought greater autonomy from SWIFT, so the UDPN could provide them with an opportunity to achieve this goal.
Red Date Technology hopes that the UDPN will allow countries to use a variety of digital assets in foreign trade. This would include both fiat-based digital assets such as stablecoins and state-issued digital currencies. It would also facilitate the use of digital assets for international settlements, eliminating the need for traditional payments systems.
The UDPN is still in the early stages of development, but it is expected to have a major impact on the global financial system in the near future. It has the potential to revolutionize the way international payments are done, as well as provide countries with greater autonomy and flexibility. As the project develops, it will be interesting to see how this new technology will change the global payments landscape.
• Ukraine’s Financial Monitoring Service has blocked access to online crypto exchangers operating out of Russia.
• The SFMS has identified crypto exchanges associated with Russian financial institutions placed under sanctions.
• The SFMS has also introduced a mechanism for “blocking of crypto wallets of the Russian Federation.”
The State Financial Monitoring Service (SFMS) of Ukraine, a unit of the country’s financial intelligence, has recently issued a report on the results of its operations in 2022. This report revealed that the agency has contributed to the protection of the state from the aggression of the Russian Federation in the virtual asset market.
To combat money laundering and other financial crimes, the SFMS has blocked access to a number of online crypto exchangers operating out of Russia. It worked closely with crypto service providers in Ukraine and abroad to identify crypto exchanges associated with Russian financial institutions placed under sanctions, including Sber, the largest bank in Russia. It is unclear the exact number of these platforms or their domain names but the aim was to fully block them.
In addition to blocking access to these crypto exchanges, the SFMS has also introduced a mechanism for the “blocking of crypto wallets of the Russian Federation.” It is not clear whether this is referring to Russian wallets in general or those linked to the government in Moscow. The SFMS also stated that it had requested the world’s largest crypto exchange, Binance, to take action to curb the aggression of the Russian Federation in the virtual assets market and prevent peer-to-peer transactions for users of these wallets.
The SFMS is determined to protect Ukraine from the threat of the Russian Federation in the virtual assets market. It will continue to take steps to restrict access to crypto exchanges and wallets linked to Russian financial institutions, as well as to identify and block transactions made from these wallets. This will ensure the safety of the Ukrainian citizens and the security of the country’s financial system.
• FTX debtors recently reported the discovery of $5.5 billion in liquid assets, with $3.5 billion being crypto assets.
• Two of the firm’s top cryptocurrency caches are not liquid as the company’s 47.51 million SOL tokens are locked and the firm’s FTT holdings distort the realization of actual liquidity due to FTX’s control of more than 80% of the supply.
• The discovery of locked Solana and illiquid FTT assets is likely to complicate FTX’s bankruptcy process.
FTX is a digital asset trading platform and cryptocurrency derivatives exchange that filed for Chapter 11 bankruptcy protection on November 11, 2022. Recently, FTX debtors published an update for unsecured creditors claiming the discovery of $5.5 billion in liquid assets. Of the total, $3.5 billion is in cryptocurrency assets and eleven different digital currencies were classified as “liquid assets” in the visual presentation.
However, two of the firm’s top cryptocurrency caches are not liquid as the company’s 47.51 million SOL tokens are locked and the firm’s FTT holdings distort the realization of actual liquidity due to FTX’s control of more than 80% of the supply. It has been reported that FTX/Alameda managed to purchase 16% of the SOL supply from the Solana Foundation, but there is a lockup schedule. The current stash of 47.51 million SOL equates to 8.82% of the total supply the Solana network will eventually issue over time. Presently, there is only 370,992,365 SOL in circulation and that does not include the locked tokens owned by FTX.
As for FTT, FTX holds a considerable amount of the total supply, which is a staggering 82.58%. This means that the company can manipulate the market and make it difficult for other investors to realize actual liquidity. The discovery of locked Solana and illiquid FTT assets is likely to complicate FTX’s bankruptcy process. Unsecured creditors may need to consider the long-term nature of the lockup schedule for SOL and the company’s control of the FTT supply before making any decisions about the liquidation of assets.
In conclusion, FTX’s discovery of $5.5 billion in liquid assets is a positive development for unsecured creditors, however, the presence of locked Solana and illiquid FTT holdings may complicate the bankruptcy process. It will be interesting to see how the committee of unsecured creditors handle the situation in the coming weeks.