Crypto Market Update: Bitcoin's Rough Weeks, Altcoin Sell-Off, and SEC Lawsuits
BTC Halving, BTC mining and layer 1 investments are positive long term outlooks
Bitcoin has had a rough couple of weeks. While the stock market is breaking out of a multi-month downtrend and showing signs of a bullish run, Bitcoin and the cryptocurrency industry have not been following suit.
In fact, many crypto traders have turned their attention to the stock market until cryptocurrencies regain momentum.
The blow-off top on PEPE marked the beginning of a local top for altcoin traders, and the past month has been nothing but a bloodbath for anyone holding altcoins. This week, the SEC declared certain altcoins as securities, triggering a sell-off in the market, with some coins experiencing a 20-25% dip.
In case you missed it, the SEC has filed lawsuits against both Binance US and Coinbase, alleging the sale of unregulated securities within the United States. Binance is now planning to remove USD on-ramps and off-ramps from its US exchange, while Coinbase has already started expanding its operations beyond the USA to Bermuda.
However, it's important to remember that the world of crypto extends far beyond the borders of the USA. That's the beauty of global digital assets.
Here are some of the coins that the SEC has declared as securities, according to CryptoRank:
Despite the current market conditions, my focus remains on gaining knowledge about the expanding platforms in the cryptocurrency industry. Smart investors should understand the importance of taking a long-term perspective, managing risk, and preserving capital during downtrends.
This week, I delved into topics such as venture capitalists investing during bear markets, secure Bitcoin custody solutions for long-term storage, and the thriving Bitcoin mining sector. It's worth noting that Bitcoin's hash rate has reached all-time highs, indicating the ongoing growth and strength of the Bitcoin network.
While the price of BTC has been experiencing declines in recent months, the underlying fundamentals of Bitcoin continue to strengthen. This is advantageous for Bitcoin miners and contributes to the overall decentralized network.
To gain insights into the current state of Bitcoin mining, I had the opportunity to speak with Fred Thiel, the CEO of Marathon Digital Holdings, a seasoned professional with over 20 years of experience in rapidly developing industries since the dotcom era.
His team has expanded their mining operations from Texas to the UAE, and he shares valuable information about how Marathon manages their BTC reserves leading up to the BTC halving next year. He also provides insights into how BTC holders can benefit from this significant upcoming event.
Paying attention to BTC between now and the halving date (end of March 2024) is highly likely to yield favorable results.
I highly recommend listening to our conversation to gain further insights. You can find the conversation here:
Additionally, I had the honor of engaging in a conversation with Yanislav Malahov, widely recognized as the 'Godfather of Ethereum.' During our discussion, we primarily focused on his groundbreaking contributions to the æternity Blockchain.
Yani is reshaping the blockchain landscape by providing a robust and scalable blockchain platform. His work encompasses concepts such as 'hyperchains,' which offer rapid transaction processing, support for smart contracts, decentralized applications (dApps), and more.
I invite you to watch the full interview below, where Yani elucidates the concept of hyperchains and delves into the potential growth trajectory of the broader blockchain ecosystem:
From the outset, my investment thesis has revolved around identifying platforms with the potential to cultivate network effects, essentially becoming the Web3's equivalent of Microsoft. This week, I had the pleasure of engaging in a conversation with Anthony Georgiades from Innovating Capital, and it was truly inspiring.
Anthony's firm takes a strategic approach by not only providing capital but also validating nodes and actively participating in the governance of layer 1 and layer 2 protocol investments. Our discussion delved into the significance of this unique perspective in delivering value to Layer 1 networks beyond mere financial investment.
I strongly believe that immersing oneself in these protocols, particularly when one has capital at stake, offers invaluable opportunities to gain a deep understanding of their inner workings and track their growth metrics closely. The more involved you become, the more you stand to benefit.
I invite you to listen to my conversation with Anthony as we explore the endeavours of his venture capital firm. It promises to be an enlightening experience.
Click here to access the conversation:
During the course of this week, I had the privilege of conducting a comprehensive interview with Seamus Rocca, the CEO of Xapo Bank. Seamus is a true pioneer in the cryptocurrency space, and I personally know institutional clients have been relying on their platform since 2013 to purchase Bitcoin and securely store it.
I highly recommend listening to Seamus as he shares his extensive knowledge about Bitcoin and provides insights into the future of BTC custody through Xapo Bank's private banking operations based in Gibraltar. Their services are accessible to most investors worldwide.
In the current landscape, Bitcoin and USD stand out as the two most crucial assets to focus on. Altcoins, on the other hand, are facing increased scrutiny from the SEC and are at risk of being classified as securities, and they were smart to stray away from these assets over the years to avoid regulatory risks.
To gain a deeper understanding of the industry and the role of custody in Bitcoin, I encourage you to listen to the interview. Seamus Rocca's expertise is truly enlightening.
You can access the interview here:
Market Analysis:
BTC:
Bitcoin continues to experience a decline since reaching a local high of $30,000 on April 14th. Based on technical analysis (TA), there are two potential buy zones to watch for in Bitcoin's price movement. With today's 3% drop, BTC is approaching the first potential buy zone at $25,000 USD.
While a small rebound may be expected at this level, it is unlikely to surpass the $30,000 mark until the upper green line of the bull flag pattern on the chart is broken.
Monitoring the charts for a buy signal on lower timeframes is advisable. Crypto Birb suggests that the momentum remains positive on zoomed-out charts, but it is crucial to exercise patience and wait for the trend to continue before buying large amounts of BTC.
In the event that BTC does not rebound from the current level and there is no positive news within the crypto industry, there is a possibility of Bitcoin dropping further into a $22,000 buy zone. This would align with a Fibonacci retracement to the 0.236 level, and it is highly probable that a strong rally would follow.
It is important to note that cryptocurrency markets can be volatile, and market predictions are subject to change based on new developments and market conditions.
Stocks:
Stocks have been hot recently. I won’t share any charts specifically, but friends with highly developed TA skills have been discussing many stocks including COST 0.00%↑ , TSLA 0.00%↑ , NIU 0.00%↑ , AMD 0.00%↑ NVDA 0.00%↑ HOOD 0.00%↑ and more. If you happen to be a full-time trader and aren’t having luck in the crypto industry, there are other opportunities in the market to take advantage of. There’s no doubt that Bitcoin will come back, it’s just a matter of when.
That’s all for this week. Thanks for reading!
-Ashton Addison, CEO of Crypto Coin Show
Thanks for the insights!