It’s been a difficult start to the week, for crypto investors. The total market cap slumped below $1 trillion for the first time in 18 months. Bitcoin spearheaded the crash, falling to $21,000 on Monday, and Ether (ETH) dropped to as low as $1,093.
The sell-off deteriorated following news that the U.S. Federal Reserve might raise interest rates this week. This could increase the chance of a country in recession.
Novogratz: Bitcoin Will Bottom at $20k
While the U.S. stock market also tumbled to the news, the crypto market suffered the most, leaving many investors in panic as they feared both Bitcoin and ETH would crash below $20,000 and $1,000, respectively, if the bloodbath continues.
But Mike Novogratz (founder and CEO of cryptocurrency investment firm Galaxy Digital) believes that the top cryptocurrencies will continue to be strong at these levels.
During a Morgan Stanley Financials Conference on Monday, the billionaire investor noted that the crypto market is closer to the “bottom” than the stock market. He believes the equity market risks plummeting further while Bitcoin and Ether would bottom at $20,000 and $1,000, respectively.
“Ethereum should hold around $1,000 and it’s $1,200 right now. Bitcoin is around $20,000, $21,000 and it is $23,000, so you are much closer to the bottom in crypto than you are where I think, stocks, are going to have another 15% to 20% [decline],” Novogratz said.
He also noted that this is not the time to “deploy a lot of capital” due to the Fed’s spiking rates. This would only change if the Fed recognizes that the economy is in crisis and reduces interest rates.
Crypto Will Rebuild the World
Meanwhile Mike Novogratz is a strong supporter of Bitcoin and crypto-assets. The BTC proponent said earlier this year that blockchain will reshape the world while crypto will transform the financial sector like never before.
But while he remains bullish on the crypto industry, Novogratz believes many crypto hedge funds will not survive the bear market. According to him, about two-thirds of the 1,900 existing hedge funds in the industry will go out of business as the crypto winter intensifies.
Cypherpunk Holdings Takes a Risk with ‘Significant Drawdowns,’ and Sells Their Whole Stock of Bitcoin and Ethereum
On Tuesday, the Canada-based investment firm Cypherpunk Holdings Inc. announced that the company has sold all of its bitcoin and ethereum due to the “risk of further significant drawdowns.” The company has transitioned its treasury to cash after selling 214. 72 bitcoin and 205. 82 ethereum as Cypherpunk Holdings continues “to see systemic risks propagating” across the crypto economy.
Cypherpunk Holdings Sells All of the Bitcoin and Ethereum on Its Balance Sheet
Crypto winter has done a lot of damage since the bull run’s price highs, as more than $2 trillion has left the digital currency economy since the first week of November 2021. Today, the crypto economy is worth roughly $945 billion and bitcoin (BTC) is coasting along just above the $20K per unit range.
BTC is down more than 70% from the all-time high ($69K) on November 10, 2021, and ethereum (ETH) has lost more than 77% since the ATH ($4,878) recorded on the same day. On June 28, 2022, or eight months later, the publicly listed Canadian investment company Cypherpunk Holdings revealed it had dumped all of its bitcoin and ether holdings.
Cypherpunk Holdings (CSE: HODL) (OTC Pink: CYFRF) was one of the many publicly listed companies that held bitcoin and ethereum on its balance sheet. According to the company’s update, the sale was necessary due to risk. It also stated that there may be “significant drawdowns” in the future for the crypto economy.
Cypherpunk Holdings sold approximately 214. 7203 BTC and 205. 8209 ETH and it got around $4,927,000 for the lot of crypto assets. The company said that it currently has just over $14 million worth of “cash and stables” on hand. Jeff Gao, Cypherpunk Holdings’ CEO and President, talked about selling the digital assets to make room for cash.
“Recently, Cypherpunk liquidated all of its treasury holdings in BTC and ETH for cash and withdrew back to custody,” Gao wrote in an update concerning the company’s cryptocurrency holdings and strategy.
” We continue to see systemic risk propagating throughout crypto ecosystem. In our assessment of the risks and opportunities involved in holding asset tokens and in the time it takes for volatility and illiquidity to end, we believe the best approach is to wait and watch. “On balance of probabilities, weaker price action opens the way for lower levels to come as reports about the number of chains placing a ‘temporary suspension’ on withdrawals increases
The executive of Cypherpunk Holdings continued to add:
Until such a time as our thesis on market conditions change, our treasury will remain in cash. Cypherpunk will continue to be bullish on crypto in the long-term and will actively pursue compelling risk-reward opportunities when they become available.
Company Sold 196. 74 Bitcoin and 382 Ether Prior to the June 28 Announcement and Amid the Terra LUNA Fallout
Furthermore, Cypherpunk Holdings dumped bitcoin (BTC) before the June 28 announcement, as it told investors on June 13 that it sold 96. 74 BTC for $2.9 million and 50 ETH for $100K. Cypherpunk Holdings’ management also decided to unload shares of Animoca Brands, as it sold the company’s last block of 500,000 Animoca shares for “a realized profit of 234%.” Amid the Terra LUNA and UST fallout, on May 11, 2022, Cypherpunk Holdings sold 100 BTC and 332 ETH for just over $4 million.
With Cypherpunk Holdings removed from the Bitcoin Treasuries list, and Microstrategy’s recent purchase of 480 bitcoins, publicly-listed companies hold 268,357 BTC worth 5. 382 billion at current bitcoin exchange rates. Exchange-traded products hold 828,641 BTC, countries hold 50,699 BTC, and private companies own 174,381 BTC, according to the Bitcoin Treasuries list on June 29.
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Jamie Redman, the News Lead at Bitcoin.com News, is a Florida-based financial journalist. Redman has been an active member of the cryptocurrency community since 2011. Redman is passionate about Bitcoin, open-source codes, and decentralized applications. Since September 2015, Redman has written more than 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.
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Pocket Network Advances Its Multichain Strategy With Latest Milestone
PRESS RELEASE. TAMPA, Fla., June 27, 2022 / — Pocket Network, an infrastructure middleware protocol which facilitates decentralized multichain blockchain access to developer applications in Web3, including Ethereum, Polygon, Gnosis Chain, Avalanche, Solana, Fuse, Fantom and Near, recently marked a significant milestone in its multichain strategy with 50 supported blockchains on its network after integrating Moonbeam and Moonriver blockchains. Pocket has its sight on the century mark – with 100 blockchains supported by the end of 2022.
“As we see developer demand drive more activity and apps to a wider variety of blockchains, interoperability challenges, as well as latency and reliability, from centralized infrastructure providers will continue to grow,” said Michael O’Rourke, Co-founder and CEO of Pocket Network. “With our multichain strategy, we are positioned to cement Pocket as the true decentralized, full-node RPC protocol in the industry.”
The real breakthrough of a multichain network is in the utility this brings to Web3 developers. This is especially true with the streamlined Pocket Portal that developers can access to deploy apps to any of Pocket’s 50 supported blockchains. This interface vastly simplifies developers’ abilities to connect with any chain of their choosing and provides a one-stop RPC solution with an instantaneous process to get an endpoint, an analytics dashboard, and app notifications to monitor performance.
Regardless of blockchain, users and developers no longer have to pick between speed and security, efficiency and decentralization, and uptime and latency. Being resilient, faster, cheaper, more secure, and better for developers has been the winning formula to Pocket’s scale and dominance. This way, Pocket’s chain-agnostic mission is imperative for the development of decentralized infra.
About Pocket Network
Pocket Network, a blockchain data ecosystem for Web3 applications, is a platform built for applications that uses cost-efficient economics to coordinate and distribute data at scale. It enables seamless and secure interactions between blockchains and across applications. With Pocket, the use of blockchains can be simply integrated into websites, mobile apps, IoT and more, giving developers the freedom to put blockchain enabled applications into the “pocket” of every mainstream consumer. For more information visit pokt.network.
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ETH Testing $1.2K, Is There a Reversal inbound? (Ethereum Price Analyse)
The crypto market is slowly recovering from the recent sharp decline. In recent days, Altcoins have outperformed Bitcoin. Buyers were able to keep the price above $1,000. However, this upward trend is unlikely to last long considering the macro.
The Daily Chart
Ether is now experiencing significant resistance. Horizontal levels at $1,300, $1,500 and $1,700 are a the potential challenge for the ETH recovery. In the meantime, the intersection of the descending line and horizontal resistance (in yellow) at $1,700 has created a resistance zone (in red). Let’s suppose that the bulls still want to dominate the market in the short-term. In that case, the range between $1600 and $1700 appears to be a strong barrier.
In the bearish scenario, ETH has strong support in the area around $700-$900. A positive external force is needed to act as a catalyst for the market. The most probable upcoming event is the ETH 2.0 merger.
Key Support Levels: $900 & $700
Key Resistance Levels: $1300 & $1500 & $1700
The ETH/BTC Chart
The situation with BTC appears to be quite different. Altcoins have outperformed BTC in recent months, as shown in this chart. Horizontal resistance was 0. for buyers, which allowed them to continue their move. 058 BTC. The overall structure of the market is bearish. Unless the bulls push the price higher than the horizontal resistance of 0. 065 BTC, one can not hope for a change in the trend.
Key Support Levels: 0. 050 BTC & 0.0. 045 BTC
Key Resistance levels: 0. 055 BTC & 0. 06 BTC
Definition: The total amount of coins held by digital assets holding such as trusts, ETFs, and funds – this is a proxy for indirect investment or demand for ETH.
Currently, the number of coins they held, which was constant during the fluctuations of 2021 and early 2022, increased in the first downward wave. They saw this as an opportunity to purchase at the time. Their supply fell to its lowest point in two years after the release of macroeconomic negative news and fears about a recession.
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