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Bitcoin price nears dangerous $20k level as crypto plunge continues

If bitcoin dips below this level, it could be game over for the cryptocurrency. And it’s only $87 away from that point.

The world’s top ranked cryptocurrency is just $87 away from slipping into oblivion.

In the last 24 hours, bitcoin hit a low of US$$20,087 but was trading slightly higher at time of writing, at US$21,920.

However, several experts have warned that if BTC dips below the all-important $20,000 mark, it could spell disaster for the blockchain.

One trading pro has warned that if bitcoin slips below $20,000 and ethereum below $1000, then “massive sell pressure” will ensue which will further drive down prices.

Another pointed out that once bitcoin drops below that price point, it would have lost all the value it had gained from the last five years, since its 2017 high.

Arthur Hayes, former BitMEX chief, took to Twitter to voice his concerns.

“If these levels break, $20k $BTC & $1k $ETH, we can expect massive sell pressure in the spot markets as dealers hedge themselves,” Mr Hayes wrote.

“We can also expect that there will be some otc dealers and that will be unable to hedge properly and might go belly up.

He continued in his Twitter thread: “As far as the charts go, you better get out your Lord Satoshi prayer book, and hope the lord shows kindness on the soul of the crypto markets.

“Bc [because] if these levels break, you might as well shut down your computer bc [because] your charts will be useless for a while.”

In the same vein, Charlie Morris, founder of digital asset management firm ByteTree, believes that $20,000 could be a support level for bitcoin to rally.

However, if it goes past $20,000, all bets are off.

It “might prove to be a support level,” he told CNBC.

“At $20k, bitcoin has made no money since the 2017 high,” he added.

The bitcoin and ether token have been suffering, as have the rest of the world’s cryptocurrency in the wake of economic turmoil and major crypto exchanges pausing transactions.

Around midday on Monday, UK-based Celsius pays interest on cryptocurrency deposits, loans them out and also sells its own token, CEL, but it ceased all activities around midday on Tuesday.

In a blogpost the company warned it was “pausing” all withdrawals and transfers between accounts, adding: “Due to extreme market conditions, today we are announcing that Celsius is pausing all withdrawals, swap, and transfers between accounts.

“We are taking this action today to put Celsius in a better position to honour, over time, its withdrawal obligations.”

They have currently still frozen all their customers’ accounts.

In response, cryptocurrency’s total market cap dipped drastically below US$1 trillion. At time of writing, it was resting at US$924 billion.

Cryptocurrency has been facing a reckoning in recent weeks – and particularly the last few days – as fears mount over a global recession amid rampant inflation and the US central bank hiking interest rates.

On Friday, data found the USA’s inflation rate had reached a new high — rising to 8.6 per cent in May, the worst its been since 1981.

Over the weekend, cryptocurrency plunged in reaction to the news.

This Wednesday, the US Federal Reserve is expected to raise its interest rate to combat spiking inflation.

Economists predict the rate will be increased to settle on 0.25 per cent or 1.50 per cent for July, with the central bank doing a similar thing last month.

Cryptocurrency is closely aligned with the traditional stock market and over the last few days, markets like Dow Jones have tanked and entered a bear run.

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Bitcoin price: Crypto billionaire Winklevoss twins’ sing amid crash

Just days after announcing staff cuts amid a spiralling cryptocurrency crash, billionaire twins Cameron and Tyler Winklevoss have gone wild.

Just days after laying off 10 per cent of their staff amid a spiralling cryptocurrency crash, tech billionaires Cameron and Tyler Winklevoss have gone wild with a heinous rendition of Don’t Stop Believin’ that has broken the internet.

The twins – best known for accusing Mark Zuckerberg of stealing their idea for Facebook – covered the classic Journey tune at a New Jersey rock club after laying off staffers at their cryptocurrency start-up Gemini.

In a bizarre video of the gig, which has gone viral on Twitter, Tyler strains to hit the high notes while Cameron tackles a questionable solo on an electric guitar.

“Uh so I saw the Winklevoss twins’ band?” wrote an attendee who posted the video clip to Twitter, calling the show “by far one of the strangest and most tragically hilarious/infuriating things I’ve ever witnessed”.

The brothers also sold NFTs as band merchandise, according to the Twitter user who posted the video of the show at Asbury Park’s Wonder Bar.

In addition to Journey, the Winklevoss twins have also covered songs by Fall Out Boy, Blink 182, U2, Nirvana, Kings of Leon and The Killers, according to Page Six.

Announcing last week’s lay-offs, the crypto brothers cited difficulties related to “current macroeconomic and geopolitical turmoil” for forcing them to slash jobs for the first time since they founded Gemini in 2014.

“Today is a tough day, but one that will make Gemini better over the long run,” the brothers said in a note to employees while announcing the lay-offs.

“Constraint is the mother of innovation and difficult times are a forcing function for focus, which is critical to the success of any start-up.”

The staff cuts also came amid a lawsuit by the Commodity Futures Trading Commission accusing the company of making false and misleading statements concerning a bitcoin futures contract the firm was pursuing in 2017.

The brothers have also reportedly personally lost billions of dollars each during the ongoing crypto crash.

They had banked on a crypto comeback following the collapse of TerraUSD last month due to the rise of interest rates and recession fears.

The Sydney Morning Herald reported the brothers had their fortunes invested in crypto start-ups ranging from trading platform Slingshot to tax facilitator Taxbit.

According to their portfolios, the 40-year-old siblings have stakes in about 50 crypto or blockchain start-ups.

Bloomberg reports their fortunes have slumped to $3 billion each, from a high of $5.9 billion, as the cryptocurrency market continues to plummet amid fears of an impending recession.

Their business Gemini is not the only crypto start-up to cut staff as the market continues to tumble.

Crypto exchanges Coinbase and BlockFi are laying off hundreds of staff members, equivalent to a fifth of their workforces, as they struggle to survive.

On Monday, bitcoin – the world’s largest cryptocurrency token – reached its lowest level since December 2020 to trade at below $US23,000 ($A33,000). And on Tuesday, it was trading at $US22,130.40 ($A32,147.59). As of 8am today it has sunk to $US21,500 ($A31,231).

It’s a far cry from the coin’s all-time highs in November last year: Bitcoin was worth almost $US69,000 ($A100,000) while ether was $US4,865 ($A7067) at its peak, 70 per cent more than it is worth now.

Cryptocurrency has been facing a reckoning in recent weeks – and particularly the last few days – as fears mount over a global recession amid rampant inflation and the US central bank hiking interest rates.

On Friday, data found the USA’s inflation rate had reached a new high, rising to 8.6 per cent in May, the worst it’s been since 1981.

Over the weekend, cryptocurrency plunged in reaction to the news.

This Wednesday, the US Federal Reserve is expected to raise its interest rate to combat spiking inflation.

Economists predict the rate will be increased to settle on 0.25 per cent or 1.50 per cent for July, with the central bank doing something similar last month.

Cryptocurrency is closely aligned with the traditional stock market and over the last few days, markets like Dow Jones have tanked and entered a bear run.

– with Alex Turner-Cohen

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Bitcoin, ethereum price freefall gets dire: ‘Don’t buy this dip’

Cryptocurrency is in for a rough couple of weeks as experts warn that the embattled digital tokens haven’t hit anywhere near rock bottom.

Cryptocurrency is in for a rough couple of weeks as experts warn that the embattled digital tokens haven’t hit anywhere near rock bottom.

Last week, an eye-watering $US100 billion ($A142 billion) was wiped from the combined cryptocurrency market capitalisation, according to Forbes.

Prominent blockchains suffered a significant hit including bitcoin, ethereum, BNB, solana, cardano, XRP, dogecoin, polkadot, tron and avalanche.

Bitcoin, the top-ranked cryptocurrency, was trading at $37,140 for each token at the time of writing, representing a drop of eight per cent in just 24 hours.

Ethereum fared even worse; the second most popular cryptocurrency sank by 20 per cent over the weekend, dropping to $1946, which was its lowest level since March 2021.

Cryptocurrency is no stranger to fluctuating price points and its volatility has often led to advocates encouraging other traders to buy while the value is lower.

However, one expert has warned the strategy won’t work this time around.

Peter Schiff, chief economist at Euro Pacific Capital, warned that “buying the dip” was not a good idea.

On Sunday, Mr Schiff warned in a tweet: “This could be a rough weekend for crypto.

“Bitcoin looks poised to crash to $20,000 (USD) and ethereum to $1000.

“If so, the entire market cap of nearly 20,000 digital tokens would sink below $800 billion, from nearly $3 trillion at its peak. Don’t buy this dip. You’ll lose a lot more money.”

Another crypto pro, Benjamin Cowen, warned that many alt coins wouldn’t survive the current bear market.

“The cold hard truth is that many alts (not all) will never see a new all-time high again,” he wrote on social media to his 650,000 followers.

Cryptocurrency has been facing a reckoning in recent weeks – and particularly the last few days – as fears mount over a global recession amid rampant inflation and the US central bank hiking interest rates.

On Friday, data found the USA’s inflation rate had reached a new high, rising to 8.6 per cent in May – which is the worst its been since 1981.

This Wednesday, the US Federal Reserve is expected to raise its interest rate to combat spiking inflation.

Economists predict the rate will be increased to settle on 0.25 per cent or 1.50 per cent for July, with the central bank doing a similar thing last month.

Spooked investors have pulled out of cryptocurrency, and also the broader stock market.

Read related topics:Cryptocurrency

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What Did RBI Governor And FM Sitharaman Say On Cryptocurrency Today? Read Here

New Delhi: In a press conference today, RBI Governor Shaktikanta Das and Finance Minister Nirmala Sitharaman said that the government and RBI are discussing the cryptocurrency matter internally and there is complete harmony between them. Das also cleared the air around Monetary Policy Committee’s inflation projections. He was addressing a press conference after the central board meeting.Also Read – LIC IPO: What We Know So Far

On cryptocurrency, FM Sitharaman said, “With RBI & Ministry, not just on crypto but on every other thing as well, I think there’s complete harmony with which we’re working, respecting each other’s domain also knowing what we’ve to do with each other’s priorities & in interest of the nation. There’s no turfing here.” Also Read – When Will RBI Launch Digital Rupee And How Will it be Different From Normal Currency? Shaktikanta Das Answers FAQs

Also Read – RBI Leaves Repo Rate Unchanged at 4%, Projects Real GDP Growth at 7.8% FY 2022-23 | 10 Points

Das added, “Like several other issues, this particular issue is internally under discussion b/w RBI & Govt. Whatever points we have, we discussed with Govt. Beyond that I think I will not like to further elaborate.”

‘Inflation On A Downward Slope’

Since Thursday, various media reports have emerged that have questioned the MPC’s stance to keep the interest rates unchanged and decrease the inflation projection for the next year amidst rising crude oil prices and geopolitical tensions.

The RBI projected an inflation rate of 4.5 per cent for the year 2022-23. The repo rate has been kept unchanged since May 2020 at 4 per cent. On the other hand, the crude oil prices touched $95 per barrel on Monday.

Das, however, was confident about the projections. “As far as India is concerned, if you look at the momentum of inflation right from last October onward, it is on a downward slope. It’s primarily the statistical reasons, the base effect, which has resulted in higher inflation especially in Q3”, he said.

He further stated that RBI has taken inflation into account before calculating the projection. He added, “The same base effect will play in different ways in the coming months. Today’s inflation print is expected to be close to 6%. That should not surprise or create any alarm because we have taken that into consideration.”




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