The crypto market is still very bearish, even Bitcoin. Support may be building around $20k for Bitcoin, but is a bit early to know for sure. Long-term investors and holders are just as happy as a wife shopping at a clothing store when there is a buy one, get ten deal. However, short-term holders who bought between $40,000-$60,000 still feel the pain.
Although the market is still in a bear market, institutional interest continues to grow in the cryptocurrency market. It is important to keep an eye on the leading figures in the crypto industry so that you can see where the industry may go.
Here’s a quick overview of crypto this morning:
|Bitcoin Cash USD
Growing Institutional/Governmental Interest in Crypto
The following is the positive financial news regarding cryptocurrency today: Citigroup unveiled a prototype of its own digital asset custody service ($C). They have partnered with Metaco, a Swiss company. The list of banks that offer or are creating cryptocurrency services is growing now that Citigroup has joined it. Citigroup joins JP Morgan ($JPM), Wells Fargo ($WFC) and Goldman Sachs (GS) in the cryptocurrency market.
Jim Himes, a US Representative (D-CT) has written a whitepaper titled “Winning the Future of Money” that examines the benefits and drawbacks of a digital currency central bank (CBDC).
Louisiana Governor John Bel Edwards signed today a bill that allows financial institutions to keep Bitcoin and other digital assets in client custody. This isn’t a new development, as the OCC (Office of the Comptroller of the Currency), already recognized that banks can keep cryptocurrency in custody. State adoption is a contributing factor to the sector’s expansion and acceptance.
The European Central Bank (ECB), Wants to Go Hard on Crypto
Many politicians and regulators dislike crypto. They don’t understand it and don’t have any control over crypto. Christine Lagarde, the President of the ECB, is widely regarded to be one of crypto’s most vocal critics. She is probably the second-most powerful central bank figure.
Lagarde (She) stated in May 2022 that “My modest view is that it…is…based on nothing.” There is no underlying asset that can provide a safety net.
It is strange because it almost matches the Euro’s definition.
In response to Celsius’s ongoing effects ($CEL.X), the President of the ECB made remarks about what she believes are necessary and required regulations. Despite this, she and the ECB continue to work towards their own CBDC.
In this way, the ECB could create something from nothing. To create new money, simply add zeros to an endless supply of magical fairy dust. This will not have any effect like inflation.
Solana is this week’s largest loser.
The Solana ($SOL.X), once called the “golden kid” of cryptocurrency, has been described as an Ethereum competitor. It still has a loyal following, with substantial financial investment. Strangely, the Solana network seems to go down about once per month. Today’s significant drop was due to ongoing problems with the Solend platform, not Solana’s stability issues.
Solend is one of many cryptocurrency lending protocols on the Solana network. One of the biggest SOL wallets destroyed 95 percent of the SOL posted on the Solend platform. The short version is that SOL was used to secure a loan of $100+ million made to the whale account with Tether ($USDT.X.X.) and US Dollar Coin (USD.X.X.). Due to the fall in Solana’s value over the past week, almost all of Solend’s SOL were at risk of being forcefully liquidated.
The owner of the whale wallet transferred nearly $25 million USDC to another Solana lending company in order to lessen the danger Solend was facing. The Solend community voted to approve a $50 million borrowing limit per account.
It is a mystery as to how Solana endures each trash show.
Are On-Chain Metrics Signifying Coming Pamp Time
There is nothing to worry about with on-chain measurements. It’s just another way to say, “This is what’s going on.”
On-chain analytics tracks cryptocurrency wallets such as those for Cardano ($ADA.X.X) or Bitcoin ($BTC.X.X). On-chain metrics track where cryptocurrency is traveling to/from an exchange/wallet, how long it has been there and how much has been bought/sold.
Two of the most important and closely monitored measures are the inflows and outflows from bitcoin exchanges (to use more formal terminology). Investors and traders in the space view inflows to exchanges, which historically has been seen as pessimistic.
Outflows can sometimes be seen as bullish. The exchange is closing, but cryptocurrency often goes into wallets that keep it for a long time.