Bitcoin Facing Market Turbulence
Welcome to the Daily Tribune on Tuesday, January 23, 2024 ☕️
Hello Cointribe! 🚀
Today is Tuesday, January 23, 2024, and like every day from Tuesday to Saturday, we will summarize the news of the past 24 hours that you shouldn't miss!
But first…
✍️ Cartoon of the day:
A quick look at the market…
🌡️ Temperature:
Rainy 🌧️
24-hour crypto summary ! ⏱️
📉 Bitcoin in Free Fall: Below $40,000!
The cryptocurrency market is currently in turmoil, with Bitcoin (BTC) experiencing a significant decline, falling below the $40,000 mark. This 2.15% drop in 24 hours has resulted in a general depreciation of altcoins. Ether (ETH), Solana (SOL), XRP, and Dogecoin (DOGE) have all recorded noticeable declines. This situation occurs despite the recent approval of the first Bitcoin Spot ETF, which had raised high expectations for a market increase. The reasons behind this decline appear to be related to a trend of profit-taking by investors and traders holding substantial portfolios.
The decline of Bitcoin directly impacts the majority of other cryptocurrencies, plunging the market into a red hue. Cryptocurrencies like Manta Network (MANTA), Action Frax (FXS), Flow (FLOW), Ronin (RON), and Litecoin (LTC) are exceptions, as they remain in the green. This market correction period is closely watched by investors, especially regarding the activity of crypto whales, which can often provide insight into the ongoing dynamics in the cryptocurrency landscape.
The recent drop of Bitcoin below $41,000 reflects a volatile and reactive trend in the cryptocurrency market. This drop, despite the approval of a Bitcoin Spot ETF, suggests a complex dynamic where market expectations do not always translate into predictable price movements. The profit-taking by major investors and the chain reaction in altcoins demonstrate the interdependence of assets in the crypto ecosystem and the market's sensitivity to whale actions.
🤝 SwissBorg and Cointribune: A Strategic Alliance for Read To Earn
SwissBorg, the leading crypto platform in Europe, has partnered with Cointribune to offer exclusive rewards through the media's Read To Earn program. This initiative aims to encourage reader engagement in the crypto world by providing them with unique benefits. The program offers various rewards, ranging from exclusive crypto opportunities to derivative products such as t-shirts, mugs, and socks.
Founded in 2018 and based in Lausanne, SwissBorg has quickly grown to become a major player in the crypto sector, with a valuation of $1 billion reached in 2021 and over 700,000 users. The partnership with SwissBorg marks an important step in the expansion of Cointribune's Read To Earn program, which aims to provide an enriching and educational experience to a wider audience.
By rewarding users for their participation and learning, this initiative underscores the importance of financial education in the crypto field. This could potentially attract a wider and more diverse audience to cryptocurrencies, promoting more widespread adoption.
🔄 ETF vs Halving: Major Impact on Bitcoin?
The debate between the impact of Bitcoin ETFs and the Halving on Bitcoin's value is at the heart of discussions. Bitcoin ETFs, which do not trade on weekends, currently have a demand of approximately 14,000 BTC per business day. Since January 11, they have absorbed 95,000 BTC, an average of around 10,000 bitcoins per day. This demand is ten times greater than the daily supply of mined bitcoins (900 bitcoins). However, this demand is temporarily offset by Grayscale's GBTC ETF sales due to its clients' exodus. On the other hand, the upcoming Halving in May will reduce miners' reward from 6.25 to 3.125 BTC per block, decreasing the daily supply to 450 BTC. Adam Back, CEO of Blockstream, believes that the impact of ETFs on Bitcoin's price will be much more significant than that of the Halving.
The Halving, a recurring event every four years, is permanent and halves the creation of new bitcoins. In comparison, the increased demand due to ETFs will not last forever. Although ETFs currently have a more significant impact, the permanent reduction in bitcoin supply due to the Halving is a factor not to be overlooked.
The comparison between the impact of Bitcoin ETFs and the Halving on Bitcoin's value highlights two key driving forces in the market: supply and demand. While ETFs increase the demand for Bitcoin, the Halving reduces the supply by decreasing mining rewards. This dynamic underscores the importance of supply and demand balance in determining Bitcoin prices and suggests that short-term influences (such as ETFs) can be surpassed by long-term structural changes in Bitcoin supply.
⚖️ Coinbase vs SEC: Ripple's Lawyer Raises a Serious Mistake
In the case between the United States Securities and Exchange Commission (SEC) and the cryptocurrency exchange platform Coinbase, Stuart Alderoty, Ripple's chief legal officer, revealed crucial information. He denounced a major mistake by the SEC regarding allegations of unregistered securities sales by Coinbase. This revelation could influence the course of the litigation. The case revolves around the SEC's accusation that Coinbase sold unregistered securities, an allegation contested by the platform. Alderoty questions the SEC's main argument, stating that the focus on pooling investors' capital with the promoter's efforts is incorrect.
This statement by Alderoty, although not mentioned during the hearing, could change the game in this case. The hearing provided an opportunity for Judge Failla to question the SEC about the regularity of cryptocurrencies like Solana (SOL) and Cardano (ADA), cited in the complaint for violating securities laws. The defense attorney responded that these tokens are simply computer code. The legal battle between the SEC and Coinbase continues and underscores the importance of clear and fair regulation in the dynamic world of crypto.
Ripple's lawyer's intervention in the Coinbase vs SEC case highlights the legal and regulatory complexities surrounding cryptocurrencies. The questioning of the SEC's definition of securities and the interpretation of the Howey test in the context of cryptocurrencies indicates a gray area in current regulation.
Crypto of the day: UMA (UMA)
UMA (Universal Market Access) is a decentralized finance (DeFi) platform operating on the Ethereum blockchain. It stands out for its innovation in the field of synthetic derivative products. UMA enables the creation of self-executing and self-verifying financial contracts, offering added value in terms of transparency, security, and accessibility. This technology opens the way to a wider range of decentralized financial products, making financial markets more accessible and efficient.
The native cryptocurrency of UMA, also named UMA, is used for governance and protocol security. UMA holders can participate in the protocol's governance, voting on key proposals and contributing to its development. UMA is also used in the protocol's liquidation mechanism, providing incentives to maintain the proper functioning and security of the system. UMA holders, therefore, have an active role in the ecosystem, with the ability to influence its future. While the market is in the red, UMA is one of the few cryptocurrencies that are still holding strong!
Recent Performances of UMA
Current Price: Approximately $6.06 (converted to euros, this would be approximately €5.60, depending on the current exchange rate).
Price Variation (24h): Increase of approximately 19.67%.
Market Cap: Approximately $462.30 million (converted to euros, this would be approximately €426.92 million).
Rank on CoinMarketCap: 110th.
Crypto Analysis of the Day: Bitcoin (BTC)
Bitcoin has recently gone through a corrective phase, dropping below the psychological threshold of $40,000. After falling from $49,000, BTC is currently trading around $39,000. This decline has led Bitcoin below its 50-day moving average, a key indicator for traders. This could signal a potential trend reversal, prompting investors to exercise increased caution. But remember, nothing is set in stone!
From a technical point of view, the current Bitcoin oscillators are below the median threshold. For optimists, this could indicate an oversold condition, suggesting that Bitcoin might be undervalued. For pessimists, this could mean a bearish momentum. A divergence between these oscillators and the price of Bitcoin would reinforce this idea. It's like reading the pulse of the market to anticipate its next moves.
If Bitcoin manages to reenter the $40,000 level, we could envision a rise towards $45,000 or even $50,000. On the other hand, if Bitcoin fails to surpass $40,000 again, a return to $38,000 might be considered. These levels are crucial and could trigger significant reactions in the market. As always, stay cautious and informed, as the crypto market is as exciting as it is unpredictable!
