Hello Cointribe! 🚀
Today is Tuesday, January 16, 2024, and like every day from Tuesday to Saturday, we summarize the news of the past 24 hours that you shouldn't miss!
But first…
A quick look at the market…
🌡️ Temperature:
Partly sunny 🌤️
24-hour crypto summary ! ⏱️
🚀 Bitcoin ETFs: Unprecedented Bull Run Ahead?
After a decade of rejections, a major change has occurred in the Bitcoin universe with the approval and launch of 11 Bitcoin ETFs. This development coincides with the upcoming Bitcoin halving scheduled for 2024, creating a favorable environment for a significant bull run and massive adoption of Bitcoin. Bitcoin ETFs can be divided into two categories: spot ETFs, which directly invest in Bitcoin and reflect its current price, and futures ETFs, which hold Bitcoin futures contracts, potentially resulting in a divergence between the contract price and the current Bitcoin price. This difference affects the performance and risk associated with each type of ETF.
The United States Securities and Exchange Commission (SEC) finally relented after years of refusals, partly due to a court decision characterizing its refusal to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF and approve Bitcoin futures ETFs as "arbitrary and capricious". The SEC had to reassess its position. However, it is important to note that Bitcoin ETFs are not the same as actual Bitcoin. Investors in Bitcoin ETFs are exposed to counterparty risks and continuous fees, unlike direct Bitcoin purchases. Despite this, Bitcoin ETFs are likely to attract substantial investments, thanks to the marketing efforts of major financial institutions.
As we have already mentioned many times, the approval of ETFs could improve liquidity and reduce Bitcoin's volatility, reflecting a significant change in regulatory perception and institutional adoption of cryptocurrencies.
💧 XRP: The Liquidity Champion
According to the latest quarterly report from Kaiko, a leader in cryptocurrency analysis, XRP has surpassed competitors such as BNB, Solana, and Cardano in terms of liquidity despite having a lower market capitalization. The ranking, based on criteria such as market depth, number of exchanges offering the asset, and trading volumes, places XRP in third position, just behind Bitcoin and Ethereum but ahead of Dogecoin. This leading position in terms of liquidity confirms XRP's strong foothold in the cryptocurrency market. In comparison, BNB and Cardano, although higher in market capitalization, rank 13th and 10th, respectively.
Solana (SOL) is another major player that has experienced a rapid rise in the ranking, moving from 11th to 5th place. This progression is attributed to the massive enthusiasm for Solana between October and December 2023, during which the price of SOL rose from 23 to over 120 dollars. The attraction for NFTs and decentralized projects on Solana has attracted a large number of investors, resulting in a significant increase in trading volumes and market depth.
Liquidity is a more reliable indicator of adoption and stability of a cryptocurrency than market capitalization, which can be influenced by speculative factors. Similarly, cryptocurrencies with strong liquidity like XRP can provide better resilience and more reliable trading options for investors.
📉 Crypto sentiment: Neutral and Uncertain
The Crypto Fear and Greed Index, a gauge of sentiment among cryptocurrency market participants, indicates an unexpected neutrality in investor attitudes. Recently, this index dropped to a neutral level of 52 out of 100, the lowest point since October 2023. This decline comes shortly after the approval of the first Bitcoin ETFs in the United States, a period during which the index had reached a level of extreme investor appetite at 76 out of 100. At that time, Bitcoin was trading around $46,000, while it is currently around $42,600.
The Crypto Fear and Greed Index is calculated taking into account several key factors, including market volatility and dynamics, trading volume, social media activity, survey data, Bitcoin dominance, and trends. Each of these elements contributes to a certain proportion of the index. The current neutrality of the index suggests uncertainty among investors, perhaps reflecting hesitation to fully engage in the cryptocurrency market in the current context.
The decline in the index is likely symptomatic of the disappointment of many crypto enthusiasts who were hoping for a price surge that did not materialize! However, this index does not necessarily capture long-term investment strategies or institutional interest, which may differ from the general market sentiment.
💰 USDT: The Tool of Choice for Scammers?
According to a United Nations report, the USDT stablecoin has become a preferred tool for criminal networks, particularly in Southeast Asia, to launder the proceeds of complex scams. These scams, known as \"pig butchering,\" involve enticing a victim on social media before extorting large sums of money from them. USDT is then used to disguise the fraudulent origin of the funds, taking advantage of the speed of transfers and the difficulty of tracing transactions on the blockchain.
USDT, as the leading stablecoin in terms of market capitalization, enjoys strong liquidity and widespread adoption. However, its governance is often criticized for its lack of transparency, particularly regarding reserves and the operation of its issuer, Tether. This opacity facilitates criminal activities and allows fraudsters to trade and transfer significant volumes of USDT without being bothered.
Concerns about the use of Tether in fraudulent activities highlight the need for greater transparency and regulation in the stablecoin space.
Crypto of the Day: Chiliz (CHZ)
Chiliz (CHZ) is an innovative cryptocurrency that primarily operates on the Ethereum blockchain, with extensions on the BNB Beacon Chain (BEP2) and Solana platforms. Launched in 2019, it stands out for its focus on the sports and entertainment industry. It was designed to revolutionize fan engagement in the sports sector by enabling direct and active interaction between fans and their favorite teams or clubs.
The main added value of Chiliz lies in its ability to create a new form of currency for sports clubs, thereby giving fans direct influence over certain club decisions through blockchain-based voting platforms. CHZ holders can purchase \"Fan Tokens\" of their favorite teams, giving them the right to vote in exclusive polls and access unique rewards and experiences. This approach creates a new level of interaction and engagement, strengthening the bond between teams and their supporters.
Recent Performance of Chiliz
Current Price (in €): 0.09627 €
Percentage Variation (in 1 day): +21.06%
Market Capitalization (in €): Approximately €855.67 million
Rank on CoinMarketCap: 72nd
Crypto Analysis of the Day: Bitcoin (BTC)
After reaching an impressive peak at $49,100, Bitcoin surprised many of us by initiating a significant drop, falling to around $41,500. This development brought BTC back into its previous range, oscillating between $45,000 and $40,000. This is a pivotal moment, my friends, because although the medium and long-term trend remains bullish (thanks to the 50-day and 200-day moving averages!), technical indicators like RSI and MACD show consolidation around $42,700, suggesting a possible period of decline or stagnation.
Let's take a closer look at BTC derivatives, particularly the open interest, which has decreased by about 12%, representing nearly one billion dollars in positions. Interestingly, this decrease has not led to major liquidations. On January 12, a divergence between open interest and the price of Bitcoin was observed, indicating increased interest from sellers. Currently, open interest appears to be stagnating, reflecting some indecision among traders. The heat map of BTC/USD liquidations reveals that Bitcoin has crossed a zone of accumulated orders, with significant orders formed above the current price. The nearest and most significant liquidation zone is around $40,000, a key level to watch.
In conclusion, after failing to sustain $49,000, Bitcoin is in a delicate phase. If BTC manages to stay above $40,000, we could see a rise towards $45,000 or even $50,000. On the other hand, if BTC falls below $40,000, it could drop to $38,000, or even $37,000 or $36,500.