First Mover Asia: Bitcoin Erases Prior Days’ Gains; Altcoins Slide

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good morning. Here’s what happens:

Market moves: Bitcoin price dropped along with tech stocks.

Technical Takes: Bitcoin downtrend may continue into Asian trading day; Support about 40 thousand dollars.

Watch the latest episodes From CoinDesk TV for insightful interviews with crypto industry leaders and analysis.

the prices

Bitcoin (BTC): $42.581 – 3.2%

Ether (ETH): $3,250 – 3.5%

markets

S&P 500: $4,659 – 1.4%

DJIA: $36,113 – 0.4%

Nasdaq: $14806 – 2.5%

Gold: $1,822 – 0.1%

market moves

Bitcoin price chart over the past month.  (CoinDesk)

Bitcoin (BTC) fell on Thursday, erasing the previous day’s gains but remaining within the last few weeks’ trading range of around $40,000 to $44,000.

The news in the market included a possible ban on the use of cryptocurrencies in Pakistan along with signs that bitcoin miners are increasing their cryptocurrency accumulation, apparently refusing to sell at current prices.

One prominent Wall Street commodity analyst said that Bitcoin is likely to outperform basic raw materials such as oil and copper over the next decade.

Tether said it has frozen $160 million of its stablecoin USDT on the Ethereum blockchain, while CoinDesk columnist David Morris weighs in on Bitcoin, inflation and the expectations game.

But a likely culprit for bitcoin’s slide on Thursday was that it traded alongside technology stocks, with the Nasdaq 100 fainting due to investor fears that the Federal Reserve would move within the next few months to begin raising interest rates for the first time since 2018. .

San Francisco Fed President Mary Daly told Reuters in an interview that it “seems perfectly reasonable” to start raising rates in March.

The tightening of monetary conditions by the Federal Reserve could put downward pressure on the prices of risky assets, from stocks to cryptocurrencies, while also curbing inflation – potentially reducing the attractiveness of bitcoin, which has been bought by many investors as a hedge against inflation. It is rising at its fastest pace in nearly four decades.

Is this a bullish or bearish signal? Time may tell.

“It appears that markets are at the height of fear about US monetary policy, which could make relief hikes more likely,” Craig Erlam, an analyst at forex brokerage Oanda, wrote Thursday in a market update. “But there is also a fundamental concern in the markets that could lead to some volatile price movements for the foreseeable future.”

Erlam predicts that if bitcoin exceeds $45,500, “we could see another sharp move higher as belief begins to grow that the worst of defeat is behind it.”

take technician

Bitcoin stops near resistance; Support about 40 thousand dollars – 42 thousand dollars

The four-hour price chart of Bitcoin shows support/resistance with the RSI at the bottom.  (Damanic Dantes/CoinDesk, TradingView)

Bitcoin retreated after buyers took some profits near the $44,000-$45,000 resistance area.

The cryptocurrency is still in a short-term downtrend, although support around $40K could hold a pullback.

Bitcoin price is down about 2% in the past 24 hours and is almost flat over the past week. A decisive break above $45,000 is needed to reverse the short-term downtrend, but the sluggish momentum indicates that price weakness may continue in the Asian session.

The Relative Strength Index (RSI) on the four-hour chart has fallen near overbought levels, similar to what happened in late December, which preceded the pullback in price. Buyers will likely remain on the sidelines until oversold conditions materialize, most likely over the next few days.

important events

8:30am HKST/Singapore time (12:30am UTC): Home Loans in Australia (November)

10am HKST/Singapore (2am UTC): China’s imports and exports (December annually)

10am HKST/Singapore time (2am UTC): China Trade Balance (December annually)

3pm HKST/Singapore (7am UTC): UK GDP (November)

3pm HKST/Singapore (7am UTC): UK Industrial Production (November per month, yearly)

3pm HKST/Singapore (7am UTC): UK Industrial Production (November per month, yearly)

CoinDesk TV

In case you missed it, here are the latest episodes of “First Mover” on CoinDesk TV:

Legendary cryptographer David Chum on Web 3, Quantum Computing and Digital Currency

World-renowned cryptographer and privacy advocate and Elixxir CEO David Chaum were joined by hosts of “First Mover”, who shared his views on the current state of cryptocurrency, blockchain, and Web 3 development, among other topics. Wade Peery, Chief Administrative Officer at First Bank, shared insights into the plan to introduce a stablecoin “USDF”. Additionally, “First Mover” interviewed James Burnham, a partner at law firm Jones Day, about the crypto-regulatory war.

Latest headlines

Bitcoin miners are starting to ‘Hodl’ again, but for how long?: Some bitcoin miners are likely to spend some of their coins to pay expenses and grow as bitcoin prices fall.

Palau President Talks About Stablecoin’s Plans After Rolling Out “Digital Residency” for Island Nation: The country of 20,000 people is turning to blockchain in a digital renewal of its economy.

ConsenSys sues former chief investment officer, alleging appeal fraud: The complaint comes two weeks after Kavita Gupta’s lawyer filed a complaint against Ethereum seeking at least $30 million in monetary damages.

There’s a reason Bitcoin is worth 500 barrels of oil: Bloomberg McGlone: According to the commodity analyst, “supply, demand, dependence, and technological advances suggest that cryptocurrency will continue to outpace fossil fuels for the next 10 years.”

The House of Lords committee finds “there is no compelling case” for CBD in the UK: “Although the CBD may provide some advantages, it may present significant challenges to financial stability and protection of privacy,” the committee said.

Important readings

Why 2022 should be the year of Govcoin: We need a third way between fiat and risky cryptocurrencies, says a British entrepreneur.

Today’s coding explanation: What is encryption?

Other sounds: As Kazakhstan descends into chaos, cryptocurrency miners are at a loss.

said and heard

“While there are design options that will provide some guarantee of privacy, technical specifications alone may not be sufficient to address public concern about state surveillance risks.” (House Committee Report on the Possibility of a Central Bank Digital Currency) … “If adopted, ERC-4626, the ‘token vault standard’, would provide a generic way for platforms like Aave or Yearn to build assets that reward users. The original scope of the proposal was It standardizes only yield tokens to make them easier to build, but now covers a wider range of use cases.” (CoinDesk Editor and Writer Daniel Kuhn)… “In October we announced that we were considering building a Bitcoin mining system, both publicly and next to the community, and we decided… WE ARE DOING IT!” (General Manager Block Hardware Thomas Templeton)

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