Bitcoin and Ethereum remain bullish, but does Digital Currency Group pose a threat?

  • Bitcoin
  • January 18, 2023
  • No Comment
  • 8

Bitcoin (BTC) hit a fresh new-year high of US$21,650 in the past 24 hours, effectively cancelling all of the benchmark cryptocurrency’s losses that followed in the wake of the FTX collapse in early November.

The BTC/USDT pair has since pulled back to US$21,100, but the one-hour chart is showing stability at the price point, suggesting it could act as a support line going forward.

Bitcoin (BTC)’s bathtub-shaped recovery – Source: currency.com
Bitcoin (BTC)’s bathtub-shaped recovery – Source: currency.com

Danger could be looming on the horizon though. 

Digital Currency Group (DCG), owner of the US$11bn Grayscale Bitcoin Fund (GBTC) and stakeholder in hundreds of crypto-related projects, has suspended dividend payments in an effort to shore up cash reserves and stave off bankruptcy.

We have seen what happens to the digital asset market when a mainstay of the crypto sector goes bust, so it is a small miracle that investors have yet to be sufficiently spooked.

Putting the FUD aside, BTC remains over 20% higher week on week, while Ethereum (ETH), the second-largest cryptocurrency by market value, is currently 18% higher.

The ETH/USDT pair hit a high of US$1,610 on Tuesday but has since crawled back to US$1,580, having failed to touch pre-FTX highs.

Shiba Inu is on a roll right now, rallying a massive 13% today alone, as traders hotly anticipate the Layer-2 protocol upgrade due in the coming weeks.

Dubbed the ‘Shibarium’, the upgrade will greatly enhance Shiba Inu’s scalability in a similar fashion to Ethereum’s ongoing upgrades.

Metaverse game Decentraland remains the top weekly mover in the altcoin space following a tie-in with the Australian Open tennis tournament, but the game’s MANA token is showing signs of being overbought, having drawn down nearly 2% yesterday and a further 1% today.

Decentraland’s main competitor, The Sandbox, seems to be sharing in the metaverse goodwill, having added 40% this week.

 

 

Top movers in the decentralised finance (DeFi) space include Compound Finance (COMP), Curve (CRV) and Convex Finance (CVX), all of which have added over 40% week on week.

Global crypto market capitalisation currently stands at US$995bn, while total value locked across all DeFi protocols is at a two-month high of US$45.5bn.

Source link

Related post

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs

Bitcoin pro traders warm up the $24K level, suggesting…

On Feb. 1 and Feb 2. Bitcoin’s (BTC) price surpassed even the most bullish price projections after the U.S. Federal Reserve…
Troubled Crypto Miners Get Breathing Room as Bitcoin Rebounds

Troubled Crypto Miners Get Breathing Room as Bitcoin Rebounds

(Bloomberg) — Rising Bitcoin prices are buying some time for distressed crypto miners as they renegotiate debt with lenders to stay…
Financial Accounting Standards Board votes to release draft cryptocurrency in March

Financial Accounting Standards Board votes to release draft cryptocurrency…

The Financial Accounting Standards Board, in its Feb. 1 meeting, voted to advance its first standard on cryptocurrencies and digital assets.…

Leave a Reply

Your email address will not be published.