2024-03-20 16:45

Amid a broader downturn in the cryptocurrency market, with Bitcoin and Ethereum facing declines, Solana price has also seen a strong pullback. The token saw its value retreat to a critical support level at $164, which sparked discussions on whether Solana (SOL) can sustain its upward trajectory or if further declines are on the horizon. Solana price decline could extend on news that the U.S. Securities and Exchange Commission (SEC) is probing crypto companies in its Ethereum investigation. The increased regulatory concerns could yield a deeper pullback in SOL price. Solana has captured the attention of investors this month after its price soared past $200 for the first time since November 2021. The weekend saw a remarkable surge in network activity for Solana, even outpacing Ethereum in terms of total trading volume. On March 16, Solana's trading volume hit $3.52 billion, eclipsing Ethereum by $1.1 billion. This surge was largely driven by a heightened demand for Solana-based memecoins, with the newly launched Book of Meme (BOME) memecoin reaching a market capitalization of $1.45 billion in just 56 hours. Solana's decentralized finance (DeFi) sector has grown dramatically, with its total value locked (TVL) increasing by over 80% in the past month. This growth spurt has elevated Solana's DeFi TVL to its highest point in two years, positioning it among the top five DeFi networks by TVL. Despite the recent decrease in trade volume, Solana's market capitalization hit $91.56 billion. The cryptocurrency has also seen a 9.05% rise in open interest to $3.20 billion, though short traders have dominated liquidations in an effort to mitigate losses from the ongoing price rally. Elsewhere, the Solana community has started speaking out against meme coin presales, which have become a more frequent and questionable practice. In these presales, crypto traders often send large sums of money to unfamiliar individuals, hoping to get in early on the next big thing like BONK, WIF, or BOME. Following the multi-billion dollar surges of several Solana-based meme coins over the past three months—a trend that has propelled the blockchain back into the spotlight—many crypto influencers have started capitalizing on the frenzied atmosphere of FOMO. They are offering early, discounted allocations of certain meme coins before their launch to traders who send SOL to the promoters' wallets. https://www.investing.com/news/cryptocurrency-news/solana-price-pullback-could-deepen-amid-crypto-regulatory-concerns-3346325

2024-03-20 16:13

Amidst anticipation surrounding BTC’s upcoming halving event in 2024, cryptocurrency experts project a potential surge in Bitcoin price, with historical data suggesting significant growth and a buying opportunity. Past halvings in 2016 and 2020 witnessed an average price increase of 400% within a year, potentially propelling Bitcoin to $84,145 three months post-halving and soaring to $361,152 within a year, according to a study by CoinLedger. With every 210,000 blocks mined, the block reward halves, controlling the supply of new Bitcoin entering circulation and historically leading to positive price action. During the 2016 halving, Bitcoin's price increased by 10.99% within three months, while in 2020, it surged by 32.91% within the same period. The average increase across these two events stands at 21.95%, suggesting a potential rise to $84,145 three months after the 2024 halving. Six months post-halving, Bitcoin's price historically continued to rise. In 2016, it increased by 51.57%, while in 2020, it surged by 83.17%. Based on these figures, experts estimate a potential rise to $115,733 six months after the 2024 halving. The year following a halving has seen remarkable price action for Bitcoin. In 2012, it witnessed an unprecedented 8,000% increase, while in 2016 and 2020, it saw increases of 284% and 562%, respectively, averaging at 423%. This suggests a potential price of $361,152 for Bitcoin one year after the 2024 halving, although such a figure is deemed unlikely by analysts. CoinLedger analysts emphasized the importance of cautious optimism, urging investors to conduct thorough research, stay informed about industry developments, and only invest what they can afford to lose. Bitcoin price is trading at $64,137 as of writing. https://www.investing.com/news/cryptocurrency-news/crypto-experts-predict-bitcoin-price-spike-to-115000-in-2024-after-halving-event-3346290

2024-03-20 15:59

The cryptocurrency market has been experiencing a selloff over the last few days, causing ripples of concern among investors, with the Bitcoin price now trading around the $64,000 mark. The recent volatility has led to a flurry of activity, with prices fluctuating and presenting both challenges and potential openings for those keen on capitalizing on the pullback. Crypto Market Cap: How This Selloff Will Affect It The sell-off across the various cryptocurrencies will, of course, significantly impact the crypto market cap. Bitcoin’s dominance of the market cap currently stands at over 52%, while ETH takes up 16.3%. Both have experienced share moves lower over the last few days, with Bitcoin down over 10% in the last week and ETH falling over 15% in the last seven days. The current crypto market cap stands at around $2.43 trillion. However, this week, as cryptos initially moved lower on Wednesday, the market cap dropped as much as 18% from its March highs. That was before the reversals during Wednesday’s session, with both BTC and ETH currently sitting in positive territory. Despite the shaky week, Bernstein analysts said in a recent note that they believe the crypto market cap can reach $7.5 trillion in 2025. The firm stated, “We continue to see a cross-cycle 18-month opportunity with Bitcoin and the entire crypto ecosystem.” Why Is The Crypto Market More Volatile Than Usual? Jonny Huxtable, CEO of LinkPool, told Investing.com that they "see a confluence of factors that are currently impacting the price of Bitcoin.” “The first is that BTC traditionally struggles to reclaim previous cycle all-time-highs and this cycle is no different,” he explained. “It took approximately 3 weeks at the end of 2020 for BTC to go into price discovery and truly clear $20k.” Huxtable noted that an interesting aspect of this cycle is that Bitcoin has never broken above its .618 cyclical fib on its first attempt. “We saw this happen in each past cycle where it was swiftly rejected at each .618 tag, but this time was different and came as a shock to many traders and analysts,” Huxtable stated. “This is a testament to the spot BTC ETFs and the asset managers that oversee them. If there’s one thing they’re good at doing, it’s diligent profit taking.” Overall, LinkPool anticipates sideways and “downwards chop” going into the halving and for some time after, similar to the 2015-2017 uptrend. Huxtable declared: “BTC is seeing more demand than ever, and with its daily output about to be cut in half, we anticipate an unprecedented market reaction to the great supply shock BTC will face to date." Elsewhere, Nejc Kržan, Head of NiceX Exchange, NiceHash, told Investing.com that we "are seeing a natural market shift at this point.” He believes this is a culmination of several important factors.”On one side, many investors who recently came into the market who were hoping the BTC price would continue to break through the all-time high and rise further, have sold to take short-term gains,” he explained. Kržan added: “On the other hand, we have the Fed and other central banks looking a lot more cautious about cutting rates to soon, which has really dampened the high optimism from the previous month, and so bigger investors are more cautious with less traditional assets” He also notes that the BTC-to-Gold correlation is at an all-time high, signaling that “we can expect Bitcoin to follow the global markets more closely now that such massive volumes of institutional money are flowing in and out of the ETFs.” Crypto Prices Today Despite an initial decline to below $61,000 earlier in the session, Bitcoin is now up 3.8% on the day, trading at $64,256, as of 10:59 ET. Ethereum has followed a similar pattern. It fell to around $3,059 earlier in the day but is now up more than 7% at $3,394.3. Elsewhere, Solana, after declining over the past two sessions, is up around 3.5% Wednesday, trading at $175.75. How To Invest in Crypto Investing in cryptocurrencies offers various avenues, from direct cryptocurrency purchases to investments in crypto funds and companies. Cryptocurrencies can be purchased through crypto exchanges or specific brokers, and once bought, they can be stored, managed, and traded within a cryptocurrency wallet. Find the Best Crypto ETFs Cryptocurrencies have time and again shown their potential for explosive growth, with a continued focus on their revolutionary technology and implementation cases. Whether you're a seasoned trader or a newcomer to the crypto space, exploring the top cryptocurrency Exchange-Traded Funds (ETFs) is essential for maximizing your portfolio's potential. Dive into our comprehensive list of the top Bitcoin Crypto ETFs, carefully curated to provide you with diversified exposure to this exciting asset class, without the complexities of physical ownership. https://www.investing.com/news/cryptocurrency-news/crypto-market-selloff-dont-miss-out-on-further-crypto-opportunities-3346268

2024-03-20 12:30

Copyrighted Image by: Reuters. This week, Bitcoin mining stocks experienced losses amidst a broader weakening in Bitcoin prices. Despite a multi-day correction phase that appears to be decelerating, the overarching bullish sentiment for digital assets remains intact. One of the primary concerns rattling the market is the anticipated Bitcoin halving event, slated to occur in late April at a block height of 840,000. The halving is a predetermined event that reduces the reward for mining new blocks by half, thereby diminishing the rate at which new bitcoins are generated. “...Many big mining farms know they potentially face a tough few months after the halving and are converting to fiat while prices are good, to prepare to dig in,” Nejc Kržan, Head of NiceX Exchange, told Investing.com. In a recent in-depth analysis by JPMorgan, the financial giant revisits the operational and financial trends of the bitcoin mining industry amidst a crypto selloff. The report evaluates the performance and strategic positioning of leading mining companies such as Cipher Mining Inc (NASDAQ:CIFR), CleanSpark (NASDAQ:CLSK), Iris Energy Ltd (NASDAQ:IREN), Marathon Digital (NASDAQ:MARA), and Riot Platforms (NASDAQ:RIOT), projecting a hopeful outlook for the sector in 2024. According to JPMorgan equity analysts, "the broader mining industry recorded its largest quarterly gross profit since 2Q22" during the fourth quarter of 2023, signaling a strong recovery. The report further anticipates "industry-wide gross profits ticking higher in 1Q24," although it expects a downturn in "2Q24 as the block reward is halved," indicating the cyclical nature of the mining industry's profitability. Marathon Digital notably stood out as the industry's top performer in 2023, with JPMorgan highlighting its capacity additions and Bitcoin output. "MARA was the runaway winner in '23, adding the most capacity and mining more bitcoin than any operator in our coverage universe," the report states. Looking ahead, the report identifies Riot Platforms and CleanSpark as key players poised for strong growth. "RIOT and CLSK are poised for the most capacity growth in '24, which bodes well for stock performance in our view," JPMorgan analysts predict. In addressing operational efficiencies, the report reveals a competitive edge for Cipher due to its low power costs per coin mined at $9900 in Q4 2023, contrasting with Marathon's higher costs. Yet, it praises Marathon's operational strategies, saying, "Marathon posted the lowest cash SG&A cost per coin in 4Q23 ($4800) driven by its scale and relatively lean operations." The analysis also sheds light on the sector's financing activities, revealing that "the five miners in our coverage universe issued more than $2bn in equity via ATM offerings in '23," a significant uptick from the previous year. JPMorgan's report concludes with an optimistic view of the mining industry's resilience and adaptability. "We think miner profitability will tick higher in 1Q24 before declining meaningfully in 2Q24 due to the halving," it states. https://www.investing.com/news/cryptocurrency-news/bitcoin-mining-stocks-jpmorgan-revisits-coverage-amid-crypto-selloff-3345848

2024-03-20 12:19

Copyrighted Image by: Reuters. Bitcoin (BTC) price experienced a brief but severe crash on the cryptocurrency exchange BitMEX late Monday, plummeting to as low as $8,900 while other exchanges maintained prices well above $60,000. The dramatic dip began at 22:40 UTC and within a mere two minutes, Bitcoin's price dropped to its lowest point since early 2020. However, the rebound was just as quick, with prices rising back to trade around the $67,000 by 22:50 mark as of writing. During this tumultuous period, Bitcoin's global average price hovered around $67,400, indicating the crash was localized to BitMEX's spot market. Speculations arose on social media, particularly on X (formerly Twitter), with some users suggesting that the crash was triggered by a whale selling over 850 BTC ($55.49 million) on BitMEX, resulting in a notable drop in the XBT/USDT spot pair to $8,900. In response to the flash crash, BitMEX has since launched an investigation into the incident. The platform acknowledged the unusual activity but assured users that their systems were operating normally, and all funds are secure. The cryptocurrency derivatives exchange identified "aggressive selling behavior involving a very small number of accounts" which deviated widely from expected market ranges. BitMEX also clarified that the incident affected its BTC-USDT spot market specifically and had no impact on its derivative markets or the index price for its XBT derivatives contracts. “We launched an investigation as soon as we saw unusual activity on our BTC-USDT Spot Market. All of our systems were operating as normal, but we identified aggressive selling behavior involving a very small number of accounts widely beyond expected market ranges. We can’t comment on any specific behavior of a user or actions taken, and we continue to investigate,” BitMEX added in a statement. This flash crash has reignited discussions around the volatility of cryptocurrency markets and the impact of large-scale sell orders by institutional investors or "whales." Flash crashes are not uncommon in the crypto space, with Bitcoin and other cryptocurrencies having experienced similar rapid price fluctuations in the past. https://www.investing.com/news/cryptocurrency-news/bitmex-flash-crash-what-happened-to-bitcoin-price-on-this-exchange-3345804

2024-03-20 09:56

Copyrighted Image by: Reuters. Investing.com - The U.S. dollar rose in European trade Wednesday ahead of the Federal Reserve latest policy decision, while sterling fell after signs of cooling U.K. inflation and the Japanese yen continued to retreat. At 05:55 ET (09:55 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.3% higher at 103.800, sitting near two-week highs. Fed decision looms Fed officials conclude their policy-setting meeting later in the session, and are widely expected to keep interest rates at elevated levels as they continue to battle inflation. However, traders will be studying carefully comments from Chair Jerome Powell at the accompanying press conference as well as the central bank’s new economic projections for clues as to when the officials deem it possible to start cutting interest rates. Earlier in March, Powell said the Fed was "not far" from gaining the confidence it needs in falling inflation to start easing rates, but a recent run of resilient U.S. inflation data has prompted a change in expectations for the pace and scale of Federal Reserve rate cuts this year. Traders are pricing in a 59% chance of the Fed starting its easing cycle in June, the CME FedWatch tool showed, sharply lower than earlier expectations. Sterling weakens after CPI release GBP/USD traded 0.2% lower at 1.2696, after U.K. inflation prices fell by more than expected in February, the day before the Bank of England announces its latest monetary policy decision. Consumer prices rose by 3.4% in annual terms in February, slowing from a 4.0% increase in January, and below the 3.5% expected. This was the lowest rate of inflation since September 2021, and offers hope that inflation, which has been persistent for some time, will finally fall back to the central bank's 2% target in the coming months. The BoE is widely expected to keep interest rates unchanged on Thursday, but signs of cooling inflation could provide the central bank officials with room to offer more dovish future guidance. EUR/USD traded 0.2% lower to 1.0845, with the euro trading near to two-week lows amid growing expectation that the European Central Bank will soon agree to a series of interest rate cuts, starting in early summer. ECB President Christine Lagarde tried to rein these expectations Wednesday, saying the central bank cannot commit to a pre-set number of interest rate cuts even after it starts reducing borrowing costs as that will depend on incoming data. That said, eurozone inflation has fallen from a double-digit percentage increase in the autumn of 2022 to 2.6% last month - dropping close to the bank’s 2% medium-term target. Yen continues to drop USD/JPY traded 0.6% higher to 151.75, climbing to its highest level since mid-November, even with Japan on holiday. The Japanese yen continued to weaken in the wake of the Bank of Japan’s latest policy-setting meeting. BOJ Governor Kazuo Ueda said the central bank will maintain accommodative conditions to support the Japanese economy, and these comments largely overshadowed the bank’s move away from negative interest rates and yield curve control. USD/CNY edged higher to 7.1996, trading very close to the psychologically important 7.2 level. The People’s Bank of China kept its benchmark loan prime rate unchanged as expected earlier Wednesday. https://www.investing.com/news/forex-news/dollar-strengthens-ahead-of-fed-decision-sterling-slips-after-cpi-3345405