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Is investing in a bear market in crypto a good idea? Situation as of June 27

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investing in a bear market in crypto a good idea

Is investing in a bear market in crypto a good idea? Experts told about the dangers of investing in digital assets during a bear market and named some projects to watch out for

Everyone understands what causes a bear market in crypto. This is due to current world events. Cryptocurrency investing is a risky business. Even at a time when the market is growing steadily, there are plenty of dangers faced by their owners. Now that the market has entered a bearish phase and analysts are predicting even greater declines, cryptocurrency investments pose more and more risks.

Investors consider less risky products or take wait-and-see positions. However, even during the correction and the bear market, there are projects that may be interesting. What are the dangers of investing in altcoins in a downtrend? Tokens to watch out for.

A bankrupt portfolio in the longest bear market in crypto

Even with proper risk management, high-risk strategies are good for growth markets, but hardly justified in periods of recession and turbulence. The situation with Celsius and other major crypto platforms highlights the need for prudent risk management and careful project selection.

The crypto market may also have been affected by macroeconomic conditions, not just the problems of Celsius and 3AC. Against the backdrop of tighter Fed policies and even just expectations of a key rate hike, many investors are trying to get rid of high-risk assets. In such an environment, the liquidity of many tokens is decreasing, making their prices more sensitive to “whale” selling.

While some tokens may seem interesting in the short term (e.g., Avalanche), it is worth looking at the portfolios of large cryptocurrency companies that have crashed, such as Three Arrows Capital. But be aware that buying anything on this list is a bad idea.

Rare exceptions

Right now, on the bitcoin chart, the upper and lower limits of price fluctuations form a large wedge that could end with a bullish rise to the $26-27k level. If that happens, many altcoins could skyrocket by tens or even hundreds of percent.

Of interest are the coins of the decentralized exchanges DYDX, UNI, 1INCH. Large volumes have come in and large investors are likely hoping for growth in these tokens, Podolyan said. The whales on UNI (Uniswap native coin) have been especially strong, buying nearly $100 million worth of tokens in a short time.

The cryptocurrency waves is also worth a look. This altcoin can lag behind the main market, but then “shoot up” very strongly while the whole market “cools down”.

Waiting position

The cryptocurrency market is in a complete bearish trend. Any price impulse in such a situation should only be considered for finding an entry point for a short position or for profit taking.

Since mid-June, bitcoin has been in a “price channel” – a structure on the chart that often marks some pause before further movement within the global trend, in this case a downtrend. The condition for the cryptocurrency to continue falling is the exit from the upper boundary, the collection of liquidity, and the following return. After that, quotations head to the lower boundary and go further to the lower targets. The nearest bitcoin targets are $19.0k and $17.4k.

Negative sentiment in the global market also plays an important role: investors are looking for salvation from recessionary risks in the rising U.S. dollar, the specialist explained. Only the U.S., despite the problems in the economy, can offer stability and rising interest rates.

In the current situation it is extremely risky to buy coins. Now it is better to take a wait-and-see attitude or not to buy anything but BTC and ETH, because they are the only coins that can survive a bear market, which may last for the next two years.

Now you know how to make money in a bear market crypto. But remember that all investment decisions must be balanced.

Cryptocurrency

EY Launches Ethereum-Based OpsChain Contract Manager for Business Contracts

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Ernst & Young (EY) has launched OpsChain Contract Manager (OCM), an Ethereum solution that leverages zero-knowledge proofs technology.

The solution will help private businesses efficiently manage and execute intricate business agreements while ensuring confidentiality, timeliness, and cost-effectiveness.

EY Launches the OpsChain Contract Manager

EY, one of the top “big four” accounting firms alongside Deloitte, KPMG, and PwC, has been exploring the business applications of zero-knowledge proofs (zk proofs) since at least 2018.

OpsChain Contract Manager (OCM) is tailored to facilitate the secure management of business contracts on a public blockchain. By leveraging zero-knowledge proofs, OCM ensures contract integrity and confidentiality while enhancing efficiency and reducing costs.

The platform integrates with existing enterprise systems through a standardized API and supports various contract types, including volume purchase agreements and pricing models linked to market data feeds.

The development of OCM came from EY’s previous client engagements, where it realized that contract term accuracy could be enhanced while significantly reducing cycle times and administrative costs by approximately 90% and 40%, respectively.

Meanwhile, EY chose Ethereum, a public blockchain, over a private network to prevent any party from gaining undue advantage while mitigating the risk of sensitive business information leakage.

Paul Brody, EY Global Blockchain Leader, highlighted that the technology behind OCM, Nightfall, initially emerged on Ethereum and underwent testing on its test network. The upcoming update will transition Nightfall to Ethereum’s mainnet and may incorporate a Layer-3 upgrade to enhance scalability and functionality.

EY’s Venture Into Blockchain

EY’s launch of OpsChain Contract Manager comes amid increasing blockchain adoption by major financial players. BlackRock also recently entered the space with a tokenized fund on Ethereum.

EY’s OCM reflects its commitment to revolutionizing how enterprises handle contracts, focusing on enhancing process efficiency and transparency through blockchain solutions. By integrating blockchain into traditional business practices, EY sets a precedent for the industry’s progression toward embracing this transformative technology in routine operations.

This latest development builds upon EY’s ongoing engagement with the blockchain sector. EY recently made headlines with a “healthcare breakthrough” by leveraging blockchain technology in collaboration with Canadian Blood Services.

In October 2023, EY unveiled the fourth generation of its EY blockchain analytics tool, Reconciler, designed to aid Fidelity in enhancing internal risk management for digital assets.

In September 2021, EY also announced its collaboration with Polygon to integrate Polygon’s solutions with EY’s flagship blockchain services, including EY OpsChain and EY Blockchain Analyzer.

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ChatGPT Analyzes Which Meme Coin Will Perform the Best After the Bitcoin (BTC) Halving

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TL;DR

  • The Bitcoin halving has slashed the miners’ block rewards in half, reducing the daily issuance of BTC and likely resulting in a price rally.
  • While it is speculative to predict which meme coin will perform best post-halving, Dogecoin and Shiba Inu have historically done well, with potential boosts from technological advances, celebrity endorsements, and community support.

The BTC Halving’s Impact

One of the most important events in the cryptocurrency industry – the Bitcoin halving – occurred the other day. It reduced the miners’ block reward from 6.25 BTC to 3.125 BTC, slashing in half the daily issuance of the primary digital asset. 

The mechanism is integral to Bitcoin’s supply system and has a direct impact on its inflation rate. The decreased amount of coins entering the market makes them scarcer. As basic economics dictates, a reduction in supply with the same or more demand results in an increasing price.

The halving happens roughly every four years and historically has been a precursor of a massive resurgence of BTC and the entire cryptocurrency market. As such, we decided to ask ChatGPT whether meme coins will experience such a revival in the following months, as well as which asset of that type will perform the best.

ChatGPT’s Answer

The popular chatbot forecasted that the halving may fuel a substantial green wave in the crypto sector, with the volatile meme coin niche benefiting, too. It claimed that predicting which asset of that kind will be the best performer in the following months is highly “speculative” but reminded that Dogecoin (DOGE) and Shiba Inu (SHIB) witnessed explosive price growth after the previous halving.

Nowadays, though, there are many more meme coins that oppose the dominance of the aforementioned leaders. Notable examples include dogwifhat (WIF), Pepe (PEPE), and Floki Inu (FLOKI), which all have market capitalizations in the billions.

ChatGPT estimated that technological advancements, endorsements from popular figures, and community activity could boost their value toward the top. However, Shiba Inu is the meme coin with the biggest community base, while Dogecoin enjoys the support of Tesla’s CEO – Elon Musk.

Subsequently, the chatbot alerted people to enter the meme coin ecosystem with a grain of salt due to the risks associated with it. If you are about to hop on the bandwagon, please check our dedicated video to avoid some common mistakes related to the matter:

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Cryptocurrency

Shiba Inu (SHIB) Explodes 18% Daily, Bitcoin (BTC) Taps $65K (Weekend Watch)

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Bitcoin’s price recovery continues following the recent massacres, and the cryptocurrency has jumped to about $65,000 as of now.

The altcoins are even more in the green now, with ETH and BNB surging by approximately 4%, while SHIB has stolen the show.

Bitcoin Aims at $65K

It’s safe to say that the week leading to the fourth Bitcoin halving was quite painful. The asset fell from over $70,000 to $65,000 last Friday before it dumped to $61,000 a day later.

After regaining some traction by Monday, BTC went for another freefall in the middle of the week and one more on Friday amid the escalating tension between Iran and Israel. The last massive drop took BTC to below $60,000 just hours before the highly-anticipated halving was supposed to take place.

However, the cryptocurrency soared by over five grand in the next half a day and stood at around $65,000 when the halving was completed.

Since then, there has been little volatility and Bitcoin currently sits around $65,000 once again after failing at $66,000 earlier today. Its market capitalization remains below $1.3 trillion, while its dominance over the alts has taken a hit and is down to just under 51%.

BTCUSD. Source: TradingView
BTCUSD. Source: TradingView

SHIB Takes the Main Stage

The altcoins have performed a lot better than BTC in the past 24 hours, led by the second-largest meme coin – Shiba Inu. SHIB has skyrocketed by 18% and now trades above $0.000027.

Other lower-cap meme coins have also presented double-digit gains, such as BONK, FLOKI, and PEPE.

Solana, Avalanche, Bitcoin Cash, Dogecoin, Chainlink, Polygon, and Polkadot are also well in the green, with gains of around 6-8%.

The total crypto market cap has increased by over $50 billion in a day and sits above $2.5 trillion on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto
Cryptocurrency Market Overview. Source: QuantifyCrypto
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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.

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