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Cryptocurrency

Bitcoin news before Fed meeting — what trader needs to know?

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Bitcoin started the new week with a fall. Quotes are testing the strength of the 21,900 level, which served as support. Whether it will hold or not is doubtful, because of the Fed meeting this week, which is expected to raise interest rates.

Fed meeting and bitcoin — what to expect? Technically, the major cryptocurrency has two possible scenarios right now. The first is a recovery if the support of 21,900 holds. The target remains at the level of $25,000 per coin. The second is a return to the 18,900 — 21,900 range and a decline towards its support.

Bitcoin price and Fed meeting — be careful, or what is the connection?

What effect will the Fed meeting have on bitcoin prices? On July 27, the Fed is expected to decide on interest rates. Not only will the fact of raising will matter, but also the rhetoric regarding inflation and the central banks’ further plans for monetary policy.

The cryptocurrency market, as we have seen before, does not like tight monetary policy, and expensive money in a collapse of the crypto market will not help the demand for digital assets. And while technical benchmarks are important and described above, the encouraging predictions of analyst PlanB, creator of his own method for analyzing the crypto market, is worthy of interest.

The analyst noted that the speed at which bitcoin bounced back from its 200-week moving average this month could be one of the drivers missing from similar bearish phases.

Fed meeting and bitcoin: Small buyers take the lead

A recent study by crypto analytics firm Arcane Research noted that cumulative institutional sales reached more than 236,000 BTC during the May 12 Terra/LUNA crash.

Meanwhile, data from another analytics platform, Glassnode, measures that the number of market participants owning amounts of 1 BTC or less has grown faster than ever in the total BTC supply. This trend accelerated sharply in 2022.

Fed meeting: Falling amount of crypto assets under management

While the crypto market rebounded unabashedly last week, the total value of global crypto assets under management (AUM) fell to $30.2 billion last week. And that’s despite a weekly inflow of $30 million. Bitcoin has seen a significant drop in the value of BTC assets under management during the current crypto-winter period.

A CoinShares report shows that international digital asset managers currently hold $19.3 billion in BTC assets. In November 2021, asset management companies owned more than $40 billion in bitcoin assets.

Investment products associated with other crypto-assets, such as Ethereum, BNB and Litecoin, have also run into serious problems over the past eight months.

Regarding annual performance, Ethereum investment products suffered the most. ETH has experienced a record $316 million in outflows since the beginning of 2022.

BNB came in second with an outflow of $22 million. Because of the latest price drop, the total value of ETH’s global assets under management is now about $7 billion, down from nearly $20 billion in November 2021.

Will the Fed regulate Bitcoin: what’s happening to liquidity in the market

A recent weekly CoinShares report noted that inflows into digital assets last week totaled $27 million, compared with a late-week transaction report that adjusted inflows from $12 million to $343 million the previous week. This was the largest inflow for the week since November 2021.

Current inflows were $394 million and total assets under management (AuM) returned to early June 2022 levels of $30 billion. Bitcoin inflows last week were $16 million, with the previous week’s inflows adjusted to $206 million, the largest inflow in a week since May 2022.

The research firm emphasized that Switzerland accounted for most of the recent weekly inflows. Germany and the U.S. accounted for inflows of $8 million and $9 million, respectively.


Cryptocurrency

Bitcoin Price to Soar as Japan’s Economy Worsens: BitMEX’s Arthur Hayes

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The weakening Japanese yen could potentially lead to actions that drive up the price of bitcoin and other cryptocurrencies, according to former BitMEX CEO Arthur Hayes.

His central argument revolves around the fact the Japanese yen has been rapidly weakening against the US dollar due to the large interest rate differential between the two currencies. This hurts Japan’s export competitiveness against China.

China may threaten to devalue the yuan if Japan doesn’t strengthen the yen, as a weaker yen makes Japanese exports more competitive against Chinese exports.

To avoid a yuan devaluation that would hurt US manufacturing, the US could pressure Japan to strengthen the yen by having the Federal Reserve engage in unlimited dollar-yen currency swaps with the Bank of Japan, Hayes explained in his latest blog post.

These massive Fed dollar swaps would increase the supply of dollars globally, thereby weakening the dollar but allowing China to stimulate its economy without devaluing the yuan.

As such, the weakening greenback would drive up the prices of dollar-denominated assets like US stocks and cryptocurrencies like BTC.

Hayes further went on to argue that this “easy button” solution of currency swaps avoids more painful actions like the Bank of Japan raising rates or the Fed enacting yield curve control overtly.

He also sees the weakening yen pressures coming to a head around the US election, motivating policymakers to act. Such a situation would potentially be very bullish for bitcoin as a hedge against the rising global liquidity.

The primary cryptocurrency has been on a roll this year, mostly driven by ETF hype and demand. It shot up to $72,000 yesterday amid hopes about the US SEC approving Ethereum ETFs.

However, numerous experts suggested that the real rally will start once global superpowers like the US start reducing the interest rates.

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Common AMM launches on Aleph Zero: The First Step Towards Releasing the Ultimate ZK DeFi Suite

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[PRESS RELEASE – Zug, Switzerland, May 21st, 2024]

Cardinal Cryptography, core developer of the zero-knowledge, privacy-focused blockchain Aleph Zero, announced today the launch of Common Automated Market Maker (AMM), the first mainnet release of a novel DeFi platform, Common. Positioned as a decentralized exchange (DEX), Common’s Automated Market Maker (AMM) delivers a user-friendly trading experience, complete with the built-in bridge between Aleph Zero and Ethereum, MOST, and the initial rollout of the platform’s broader capabilities.

Introducing Common AMM and Bridging on Aleph Zero

With the Common AMM rollout, Common takes the first step on a journey to becoming a multi-chain DeFi suite designed to optimize the trading experience by addressing trading efficiency, enhancing on-chain confidentiality, and boosting liquidity–all while ensuring users retain full custody over their assets. Rooted in research developed by Cardinal Cryptography and Nethermind, Common will transcend traditional trading platforms by integrating a comprehensive all-in-one app experience. This will include a built-in wallet, seamless on- and off-ramps, and IBAN account integrations, setting a new standard in user convenience and financial integration.

Launched on Aleph Zero, Common AMM embodies the network’s commitment to on-chain privacy, robust security, and high performance within a user-friendly framework.

Key Features of Common AMM Now Live:

  • Liquidity Pools and Farming: Allows users to provide liquidity and to potentially earn through farming, starting May 21st.
  • Bridging: Common AMM includes a built-in bridge between Aleph Zero and Ethereum called MOST, which allows users to seamlessly move assets between the different networks.
  • Swapping Mechanism: Enables straightforward token exchanges, to be enabled on May 23rd, after a liquidity building period.

Looking forward, Common is set to expand into a full-scale DeFi suite, as detailed in the Common Whitepaper. Future upgrades will include a privacy-enhanced order book, comprehensive solutions for institutional trading, as well as support for EVM-based blockchains. These features are built on Aleph Zero’s commitment to data confidentiality and regulatory compliance, addressing the needs of an evolving DeFi environment.

Common Drops: A New Reward Initiative

Concurrent with the launch, the Common Drops campaign will reward the community’s engagement. These tokens, initially non-transferable, will later be redeemed for CMN, the platform’s native token, after it goes live. Users can participate in Drops by staking AZERO and providing liquidity in Common AMM.

For more information, users can refer to the latest blog post.

Navigating Regulatory Challenges with Privacy-Focused Solutions

As regulatory landscapes evolve, Common offers a robust platform that aims to seamlessly blend stringent compliance with financial privacy.

Uses can experience seamless trading on Common AMM today and follow the development of the Common platform as it evolves to become the ultimate privacy DeFi suite.

For more information about Common, users can visit https://common.fi/ and read the Common Whitepaper. Users can already try the app on the Aleph Zero Mainnet.

About Aleph Zero

Aleph Zero is a layer 1 blockchain engineered for speed, data confidentiality, and ease of development. It achieves efficiencies akin to conventional web2 systems, upholds rigorous standards for data protection via Zero Knowledge Proofs. Aleph Zero’s versatility is highlighted by over 40 use cases being actively developed, showcasing its adaptability across various sectors and applications. These use cases are part of an engaged community and growing ecosystem of web3 applications that are supported by Aleph Zero programs.

For more information, users can visit https://alephzero.org/

For media inquiry

Josh Adams, josh@serotonin.co

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Axelar Adds Interoperability to Rollkit, Delivering Interconnectivity for Thousands of Blockchains Built With Celestia Underneath

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[PRESS RELEASE – New York, USA, May 21st, 2024]

Axelar Interchain Amplifier’s Integration With Rollkit Streamlines the Creation of Interoperable Rollups, Making it as Simple as Developing any Smart Contract

The Axelar Foundation today announced an integration with Celestia Labs that will make multichain interoperability easy for sovereign blockchains built with Celestia’s Rollkit, the first sovereign rollup framework. This integration will advance the modular thesis, simplifying multichain development for thousands of new blockchains.

Celestia is the first modular blockchain network, envisioning a future with 1 million rollups. Scaling Web3 to this level with great user experience requires smart-contract capability at the cross-chain layer. Integration of Rollkit and Axelar Interchain Amplifier puts this capability into builders’ hands by introducing new interoperability toolkits that easily connect any new rollup across EVM, Cosmos, Bitcoin, Polkadot and beyond, via Axelar’s growing network of connected chains.

Making rollups interoperable across the wider web3 ecosystem

“Opportunities are emerging rapidly in new ecosystems – we’re not far from a future where one in four transactions will be cross-chain,” said Axelar Foundation co-founder and director Georgios Vlachos. “Celestia has laid out the modular vision for accelerating this path to scaling Web3. Axelar Interchain Amplifier will empower applications to make those transactions seamless for their users, no matter what blockchain they build on.”

Rollkit is the modular framework for creating rollups as sovereign chains. Serving as a community-led public good that empowers developers to forge independent communities around diverse applications, Rollkit provides the flexibility to deploy across a modular stack, facilitating rapid innovation.

Axelar network, the Web3 interoperability platform, is set to enhance Rollkit via the integration of Interchain Amplifier. Built on the Axelar Virtual Machine, Amplifier ​​makes new-chain integrations permissionless and easy, automating routing and translation across Axelar’s expansive network, which today numbers 60+ interconnected chains.

Interop Labs, the initial developer of Axelar network, will build the necessary smart contracts and tooling to effect the integration of Interchain Amplifier as a seamless interoperability path for builders developing on Rollkit. Any mainnet upgrades to Axelar network are subject to an on-chain vote, as are future new-chain connections that may be added via Rollkit, once the integration of Amplifier into Rollkit is complete.

About Axelar network

Axelar is the Web3 interoperability platform, delivering the shortest path to scale on an open stack to connect all blockchains. Adopters include Uniswap, Microsoft and dozens of natively multichain startups, building applications to reach all blockchain users at once – 10X as many active users as the leading Web3 application environment. Axelar supports smart contracts on a cross-chain layer that is open, scalable and secure. Backers include Binance, Coinbase, Dragonfly, Galaxy and Polychain.

Users can learn more here :axelar.network.

About Axelar Foundation

Axelar Foundation is a nonprofit established to support the growth and adoption of the Axelar network, a decentralized interoperability platform that serves multiple blockchain ecosystems. Users can learn more at axelar.foundation.

About Celestia

Celestia is a modular data availability network that makes it easy for anyone to securely launch their own blockchain.

About Rollkit

Rollkit is the first sovereign rollup framework that makes deploying any VM or application as its own sovereign chain as easy as rollkit start, reducing the time to launch a sovereign chain from what used to be months to seconds.

About Interop Labs

Interop Labs is a leading developer of blockchain interoperability technology, used by Web3 infrastructure protocols to support scaling the next generation of internet applications to billions of users. Interop Labs is the initial developer of Axelar network. Users can learn more at interoplabs.io.

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