The algo-stablecoin Djed from DeFi service provider COTI deployed on the Cardano mainnet after its successful security audit.
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Bitcoin (BTC) swapped bullish gains for chop into Jan. 31 as the end of the month saw nervous price action.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
$46 million of longs liquidated
A rebound saw the pair flip $23,000 to short-term resistance, and was still trading below that level at the time of writing.
The stakes remained high for traders, long and short, with the monthly close just hours away. This was followed by interest rate decisions from the United States Federal Reserve on Feb. 1, along with the European Central Bank a day later.
With volatility likely lying in wait, liquidations mounted despite Bitcoin maintaining a fairly narrow trading range.
Bitcoin mining stocks usually follow BTC’s price because it directly influences the company's earnings. These stocks were beaten down heavily in the last quarter of 2022, especially in the month of December. The downturn after FTX's collapse worsened with the bankruptcy filings of the largest U.S.-based Bitcoin mining company, Core Scientific.
During this time, other mining stocks, like Marathon Digital Holdings (MARA) in the chart below, exhibited a weak correlation with Bitcoin’s price, suggesting that December’s downturn was probably overblown.MARA/USD price chart with MARA-BTC Correlation Coefficient index. Source: TradingView
The negative trend reversed at the start of 2023 as most mining stocks posted impressive gains. The Hashrate Index mining stock index, which tracks the average price of publicly listed mining and hardware manufacturing companies, increased by 62.5% year-to-date. The positive price spike also restored the strong correlation between BTC price and mining stocks.
However, the mining industry remains under stress, with low-profit levels expected for prolonged periods. Since Q2 2022, mining companies have funded operations selling BTC from reserves, selling newly mined BTC, raising debt and issuing new shares. Unless Bitcoin’s price consolidates above $25,000, the industry will likely witness a few takeover attempts or further treasury sales to pay off debt.
Some mining companies are operating at a loss
Currently, the top mining companies' price-to-earnings (PE) ratio is negative, suggesting that they're operating at a net loss, making their stock prices vulnerable to steep downturns.
According to CoinShares, digital asset investment products saw $117 million in inflows last week.
Bitcoin (BTC) struggled to maintain bullish momentum on Jan. 30 as the countdown to the monthly close kept the market nervous.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
BTC price sees flash dip below $23,000
These, while Bitcoin’s best performance for nearly six months, encountered problems with staying power as the week began, with pre-Wall Street trading seeing a brief trip below $23,000.
At the time of writing, Bitcoin traded at around $23,250 as United States equities limped into the final few days of January.
Among the topics of interest for analysts was the CME Bitcoin futures gap from the weekend getting swiftly “filled” by spot.
Bitcoin (BTC) starts a key week with a familiar cocktail of price spikes mixed with fear that the bear market will return.
After sealing its highest weekly close in almost six months, BTC/USD remains over 40% up year-to-date, with the monthly close just 48 hours away — can the gains hold?
Against all odds, Bitcoin has rallied beyond expectations this month, making January 2023 its best in a decade.
Throughout, concerns have called for an imminent comedown and even new macro BTC price lows as disbelief swept the market.
That grim turnaround has yet to come to fruition and the coming days could yet turn out to be a crucial period for Bitcoin’s long-term trend.
The community has been divided as to whether the NFT-like "digital artifacts" are the right fit for the Bitcoin ecosystem.
An internal conflict at the privacy-focused Secret Network has resulted in at least one validator throwing in the towel.
The scammer referred to their pseudonym during a blockchain message argument which may have revealed their actual identity, according to CertiK.
Bitcoin's huge price surge in January has meant that 64% of Bitcoin investors are in profit, according to data from IntoTheBlock.
Bitcoin (BTC) has rallied nearly 40% so far in January, which is the best start to the year since 2013. The sharp up-move has turned several on-chain signals bullish, according to on-chain analyst Cole Garner.
Usually, a sharp recovery from the market lows, driven by the leader, is a sign that strong hands may be buying aggressively. That could be because traders believe the selling may have been overdone in the near term or they found the valuation to be attractive.Crypto market data daily view. Source: Coin360
After the initial runup, a swift correction could be expected, which will shake out the weak hands. The next fall will also confirm whether Bitcoin has formed a bottom or not. If the low is confirmed, several altcoins may start to outperform Bitcoin in the near term.
Which altcoins are showing promise in the near term? Let’s study the charts of Bitcoin and select altcoins to see which could extend their up-move in the next few days.
Bitcoin has been trading above $22,800 since Jan. 25, which suggests that bulls are trying to flip the level into support.
Bitcoin (BTC) spiked into key liquidity for a third time into Jan. 29 as the weekly and monthly closes loomed.BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader on Bitcoin: $25,000 "in sight"
The move, although short lived, marked the pair's third such attempt to take sell-side liquidity above $23,400 in recent days.
In each instance, bulls appeared to lack momentum to reclaim new support levels, and at the time of writing, the status quo remained the same, with Bitcoin trading just below liquidity at $23,250.BTC/USD order book data (Binance). Source: Material Indicators/ Twitter
Previous order book data from Binance uploaded to Twitter by monitoring resource Material Indicators demonstrated the firepower needed to neutralize bears.
Aronow said he will still be contributing as a board member and strategic advisor. However, his priority will be to get the best medical treatment he can to make a full recovery.
FTX will be the subject of a U.S. Senate hearing, authorities take HashFlare founders into custody and New York finalizes its PoW ban.
Top Stories This Week
FTX creditor list shows airlines, charities and tech firms caught in collapse
The complete list of creditors owed money by the bankrupt cryptocurrency exchange FTX has been released, revealing a wide range of global companies. Among the potential creditors are airlines, hotels, charities, banks, venture capital companies, media outlets and crypto companies, along with United States and international government agencies. According to another headline regarding the FTX scandal, U.S. federal prosecutors allege that Sam Bankman-Fried invested $400 million in the venture capital firm Modulo Capital with money from the FTX’s customers. Investigators allege that Modulo was likely built with criminal proceeds or misappropriated funds. Lawyer costs in the case are estimated to reach hundreds of millions of dollars before the firm’s bankruptcy investigation is over.
BlockFi uncensored financials reportedly shows $1.2B FTX exposure
Bankrupt crypto lending firm BlockFi uploaded uncensored financials by mistake, revealing $1.2 billion in assets tied up with bankrupt exchange FTX and defunct trading firm Alameda Research. The unredacted filings show that, as of Jan. 14, BlockFi had $415.9 million worth of assets linked to FTX and a whopping $831.3 million in loans to Alameda. BlockFi filed for Chapter 11 bankruptcy on Nov. 28, citing the collapse of FTX just weeks earlier as the cause of its financial troubles.
Commentators believe that Bitcoin (BTC) bulls do not need to wait long for the United States to start printing money again.
The latest analysis of U.S. macroeconomic data has led one market strategist to predict quantitative tightening (QT) ending to avoid a “catastrophic debt crisis.”
Analyst: Fed will have “no choice” with rate cuts
The U.S. Federal Reserve continues to remove liquidity from the financial system to fight inflation, reversing years of COVID-19-era money printing.
While interest rate hikes look set to continue declining in scope, some now believe that the Fed will soon have only one option — to halt the process altogether.
“Why the Fed will have no choice but to cut or risk a catastrophic debt crisis,” Sven Henrich, founder of NorthmanTrader, summarized on Jan. 27.
Bitcoin (BTC) remains firmly “bullish” at $23,000, according to new on-chain metrics from one of the industry’s best-known names.
In a preview on Jan. 28, market cyclist and on-chain analyst Cole Garner revealed what he said were “backtested and validated” Bitcoin trading tools.
Garner: BTC price signals should excite bulls
While BTC/USD attempts to push through liquidity above $23,000, the debate rages as to whether a significant BTC price correction is due.
For Garner, who offered a snapshot of several trading signals to Twitter users at the weekend, there is no doubt — the picture is firmly green.
“They are looking so bullish right now,” he summarized in part of accompanying commentary.
California DMV’s chief digital officer Ajay Gupta emphasized that the agency is looking to modernize its current systems and bring greater transparency to car title transfers.
Despite the recent negative crypto and macroeconomic newsflow, the total cryptocurrency market capitalization broke above $1 trillion on Jan. 21. An encouraging sign is that derivatives metrics are not showing increased demand from bearish traders at the moment.Total crypto market cap in USD, 1-day. Source: TradingView
One area of concern is Genesis Capital's largest debtor is Digital Currency Group (DCG), which happens to be its parent company. Consequently, Grayscale funds management could be at risk, so investors are unsure if the Grayscale Bitcoin Trust (GBTC) assets could face liquidation. The investment vehicle currently holds over $14 billion worth of Bitcoin positions for its holders.
A United States appeals court is set to hear the arguments relating to Grayscale Investment's lawsuit against the Securities and Exchange Commission (SEC) on March 8. The fund manager questioned the SEC's decision to deny their asset-backed exchange-traded fund (ETF) launch.
Regulatory concerns also negatively impacted the markets after South Korean prosecutors requested an arrest warrant for Bithumb exchange owner Kang Jong-Hyun. On Jan. 25, the Financial Investigation 2nd Division of the Seoul Southern District Prosecutor's Office sentenced Kang and two Bithumb executives on charges of conducting fraudulent illegal transactions.
Aptos’ APT reached a new all-time high of $20.39 after posting gains exceeding 400% since the start of 2023. While the rally could just be a pump-and-dump event due to the perception of weak fundamentals, increasing negative sentiment toward the token will likely fuel the prices in the short term.
Let’s explore some of the factors that could be propelling the Aptos price rally.
A rich history and strong investor backing
Aptos is a byproduct of Facebook’s attempt with the Libra blockchain, which regulators forcibly shut down. Two of Libra’s leadership team members, Mo Shaikh and Avery Ching, later found Aptos, a decentralized version of the abandoned blockchain project.
The project is based on the Move programming language and introduces a new class of layer-1 blockchains that will compete against the likes of Solana and Cardano. The primary reasons behind the tailwinds for the APT token include investors’ hope for a technological breakthrough that could finally provide a scalable, secure, decentralized blockchain.
Aptos raised $350 million in 2022, which included a $200 million seed round led by Andreessen Horowitz and a $150 million Series A funding round led by FTX Ventures and Jump Crypto. Later, Binance made a follow-on strategic investment to help boost the Aptos ecosystem.