Tag: Cryptos

  • China will lead crypto’s next bull market

    China will lead crypto’s next bull market

    • Arthur Hayes says the crypto autumn rally will be catalysed by Chinese traders.
    • According to the BitMEX co-founder, a weakening of the yuan amid massive credit issuance will drive capital into crypto markets.
    • He notes that “Hong Kong will be the conduit through which Chinese capital is allowed to own crypto.”

    Arthur Hayes, the co-founder and former CEO of crypto exchange BitMEX, believes the next crypto market rally will be shaped by the Chinese trader.

    In an opinion laid out in his latest blog post, Hayes highlights that the US Securities and Exchange Commission (SEC)’s current crackdown on crypto might be a negative trigger. The crypto market is likely to freak out and crater even further due to this.

    However, according to the entrepreneur, it is not the US but China that could hold the baton as crypto heads into the next bull market. And the one catalyst to watch out for would be the “return of the Chinese trader” amid the weakening of the Chinese yuan.

    The return of the Chinese crypto trader through the financial pipes of Hong Kong will reignite the market at the same time the broke-ass American mass affluent are effectively shut out,” Hayes wrote in the blog post published June 16.

    Hayes explains how China leads the next bull rally

    The current market setup is much like the summer of  2015, that “nuclear bear market” whose catalyst was the implosion of Mt. Gox

    Just as then, the 2022 bear market that included the implosion of FTX has volatility and trading volumes dried up and the sideways price action excruciatingly boring. Indeed, compared to 2015 when Bitcoin price traded near $200 for a long time, 2023 is seeing this with prices ranged below $30k since the breakdown in November 2022.

    But in August of 2015, the PBOC suddenly sparked a rally in China’s interest for Bitcoin with a “shock” devaluation vs. the USD. From August to November of 2015, the price of Bitcoin tripled, with Chinese traders driving the market higher. I believe something similar could happen in 2023,” Hayes noted.

    According to the BitMEX co-founder, the above is an outlook he sees materializing as the world’s second-largest economy embarks on an insane credit issuance spree. On why selling now amid concerns around the US regulatory environment “is misplaced.” Why?

    At some point, the selling will stop, and then we get the dreaded sideways. The boring sideways price action will reign until something jump starts the degen spirits of crypto traders.”

    That trigger, he says, will be a slowdown in China’s economy and the subsequent money printing spree that will weaken the yuan and see massive inflows into crypto. He explained:

    The less the Chinese economy grows, the more credit will be issued. Then the currency will weaken, capital will be allowed to “flee” into appropriate vehicles, and finally, the crypto capital markets will be provided with the spark to hopefully start the autumn rally.”

    To weaken the currency, Hayes says the Peoples Bank of China (PBOC) will look to encourage credit growth sectors of the economy deemed “good.” These areas include semiconductors, artificial intelligence (AI), clean energy, and property. The central bank will allow these “good” sectors to access higher loan quotes, with banks “instructed to lend a certain amount of yuan to these sectors.”

    The weakening of the yuan, and the focused approach to attracting crypto and blockchain in Hong Kong are going to be key factors, he added. It is a trajectory that best suits HODLers. The crypto bull summed up his market outlook:

    I have predicted before and continue to believe that Hong Kong will be the conduit through which Chinese capital is allowed to own crypto financial assets.” 

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  • Crypto’s reputation in tatters, something Cathie Wood underestimates

    Crypto’s reputation in tatters, something Cathie Wood underestimates

    Key Takeaways

    • Cathie Wood says that institutions may take step back from crypto
    • She believes that they will allocate more to Bitcoin and Ether once they take time to study the crypto space
    • I believe she may be too optimistic, that the crypto industry has taken a battering and it may take longer to recover from

     

    Crypto is in a bad place right now.

    The most concerning development coming out of the last few weeks – and I think you will agree, there have been a few – is perhaps what it all means for the reputation of the industry going forward.

    What institutions are going to put Bitcoin on their balance sheet now? What pension funds are going to move into digital assets? FTX’s implosion (which I wrote about in detail here) is so high-profile and jarring that it feels delusional to expect anyone connected to traditional finance moving into the space. Is the damage irreparable?

    Cathie Wood hints at institutional stepback

    On this note, I thought Ark Invest founder Cathie Wood’s interview with Bloomberg last week was telling. Long known for her ultra-bullish views on all things Bitcoin, she even reiterated in the interview her confidence in her price prediction of Bitcoin, which she believes will be worth $1 million per coin by 2030.

    This was not a surprise, nor was it wholly unpredictable. Wood is adamant that Bitcoin will change the macro landscape long-term. She has positioned highly aggressively in the market, betting on risky tech stocks, Bitcoin and other assets that have struggled amid the transition to a new interest rate paradigm – as the performance of her flagship ETF shows below:

    I felt that something else was notable in her interview, however. “I do think, though, that the one thing that will be delayed is perhaps institutions stepping back and just saying, ‘OK do we really understand this?’”, she said.

    This hints at the big danger here. All through the pandemic, one of the most bullish things for Bitcoin was the trend of institutions pouring into the space. There was Tesla. There was ETF chat. There was Grayscale. There were public mining companies. There was Coinbase floating on the stock exchange. Hell, there was even El Salvador declaring Bitcoin as legal tender.

    But now that the low-interest environment has come to a close, and liquidity is getting sucked out of the economy, Bitcoin and crypto are facing something they have never had to face before – a pullback in the wider economy.

    Let us not forget that Bitcoin was launched in 2009, into the greatest bull market in history. It has not yet been tested amid a bearish macro climate, and hence this is all unprecedented. And against this test, crypto is straining.

    BlockFi, Celsius, Voyager, Three Arrows Capital, and all the other bankrupt firms, which are now joined by FTX, have also painted crypto in such a bad light that it is not surprising to hear analysts warn of pullbacks in institutional adoption. Wouldn’t it be more of a surprise if there wasn’t?

    Optimism

    I should note that Wood did add that she thought Bitcoin is coming out “smelling like a rose” from all this. While I certainly wouldn’t go that far – the entire industry is getting its reputation pummelled if you ask me – I see where she is coming from.  

    But while Bitcoin may have no counterparty risk, and hence theoretically is immune to the sorts of implosions we have seen at centralised companies like FTX, this is the real world. And in the real world,  in order for the average citizen to access it – not to mention institutions – centralised companies are needed.

    And until the greed, reckless leverage, naïve risk management and outright fraud (not naming names) in the industry ceases to exist, Bitcoin won’t gain any significant traction in the mainstream financial space. Institutions will be a lot warier of investing in the space now after so many high-profile blow-ups. Regulation is coming in strong. Returns are no longer through the roof.

    This is why I disagree with the optimistic tone that Wood set later in the interview:

    “And once (institutions) actually do the homework and see what has happened here”, Wood said, “I think they will be more comfortable moving into Bitcoin and perhaps Ether as a first stop, because they will understand it more”.

    For me, understanding Bitcoin more also comes with the comprehension that it continues to trade as an extremely high-risk asset, in what is now no longer a zero-rate environment. While the long-term vision may be for Bitcoin to be a reputable inflation hedge, that is not where it is right now – something asset managers will realise.

    Crypto has also put a sour taste in the mouth of anyone who has touched it this year. FTX is just the latest embarrassment for the industry, as the world watches on with a mixture of smugness, pity and disgust. Against this backdrop, the reputation of the entire space has taken a hammering.

    And as interest rates rise, a cost of living crisis surges and data continues to point towards a struggling economy, the crypto party will take a little longer to resume than Cathie thinks.  

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  • Shiba Inu Price Predicted to Crash 50% While This New Crypto’s Price Could 10x Before 2023

    Shiba Inu Price Predicted to Crash 50% While This New Crypto’s Price Could 10x Before 2023

    Shiba Inu is one of the most famous meme coins in the crypto space but while it has struggled to make any gains in 2022, crypto analytics platform Dash 2 Trade is expected to make significant gains – and secured almost $2 million in just three days after its presale went live.

    Amid an ongoing bear market and SHIB unable to maintain any momentum, smart investors are turning to new crypto presale projects to maximize their returns.

    SHIB Price Prediction: More Pain Ahead

    Shiba Inu enjoyed exponential growth in 2021 but has struggled throughout 2022, where it is currently trading 70% down from January and a massive 87% down from its all-time high.

    While the project has added utility, including gaming projects and a layer 2 solution, the announcements have done little to affect price.

    With unfavorable macroeconomic conditions and Bitcoin forecast to drop even further, SHIB is predicted to bleed even more.

    Just like early SHIB investors saw the most gains, investors in presale projects have continued to make strong returns in 2022.

    Dash 2 Trade Presale Secures Nearly $2 Million in Three Days

    The Dash 2 Trade presale went live on October 20 with 35 million tokens available for $0.0467 each.

    Investors rushed to buy into the project with the phase 1 cap of $1.7 million reached in just three days given its low entry point and high returns potential as one of the best ICOs of 2022.

    The crypto signals project, which will send out trading alerts and track various metrics to help users maximize their earning potential, has nine stages of presale.

    By the final stage, the native D2T token will be on sale for $0.0662 – an increase of 39% over phase 1.

    Dash 2 Trade 10x Potential

    Dash 2 Trade has the potential to 10x by the end of the year given its low starting price and small max supply and is one of the best cryptos to buy now.

    For D2T to 10x it would only need to trade at $0.472 – with a market cap of under $500 million.

    With just a 1 billion max supply – and 700 million tokens available in the presale – it will also only take a $1 billion market cap to reach $1 each.

    That would represent a massive 21x from the first phase and, given the potential of its protocol, is very achievable.

    For SHIB to do 10x from its current price it would need a market cap of $50 billion – currently bigger than every coin except Bitcoin, Ethereum, and USDT.

    Visit Dash 2 Trade Presale

    What is Dash 2 Trade?

    Dash 2 Trade is a new crypto intelligence platform that aims to help users make better-informed decisions on their holdings and maximize returns.

    It will do that in a number of ways, tracking various metrics to send out trading signals when good buy or sell opportunities appear, and spotting trends by analyzing on-chain data and social sentiment.

    Users can also access a variety of trading and social trading tools, back-testing them in real-time and discussing strategies to optimize approaches without risking capital.

    The dashboard will also include a new and bespoke tracker for crypto presales, using a variety of insights to ensure confidence.

    Who is Behind Dash 2 Trade?

    Crypto presales can come with risk attached but Dash 2 Trade is extremely low-risk.

    The team is doxxed and KYC-verified by CoinSniper – they are the same group behind Learn2Trade, a beginners’ trading platform with more than 70,000 global users.

    The token’s contract is rug-proof having been audited by SolidProof.

    How Does Dash 2 Trade Work?

    Dash 2 Trade works with a monthly subscription, with users picking one of three price tiers to access different features.

    The tiers are Free (zero fees), Starter (400 D2T per month), and Premium (1,000 D2T per month).

    While the Free tier has access to limited insights and intelligence, Premium level users are granted use of all metrics, and tools, as well as bonus features such as trading competitions.

     

     

     

     

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  • Why did Shiba Inu miss out on this Cryptos’ list?

    Why did Shiba Inu miss out on this Cryptos’ list?

    Prices of top assets from the crypto market hardly fluctuated this week. Bitcoin remained stagnated around the $19k threshold, while Ethereum horizontally oscillated between $1.2k to $1.3k.

    Nevertheless, the community kept discussing the odds of a possible recovery against the odds of a prolonged downtrend. In fact, today’s options expiry was also a point of contention. Resultantly, the top-two cryptos, Bitcoin and Ethereum, managed to garner the highest social engagement this week.

    Of late, the largest meme-coin—DOGE—had become irrelevant. Over the past few days, however, it did manage to garner social traction, thanks to Musk. On 12 October, the self-proclaimed DogeFather announced that customers could buy his ”Burnt Hair” perfume using Dogecoin. And perhaps that contributed to the refined social sentiment rollover this week too.

    Aptos featured fourth on the list. This coin had been trending on social platforms even before its official launch itself. As highlighted in a recent article, the project received a lot of backlash pertaining to its slow TPS processing on social platforms. Alongside, the listings of FUD and the tokenomics controversy were also widely spoken about.

    Read More: Is Aptos’ TPS slower than Bitcoin?

    Three other cryptos from the top 10—Solana, XRP, and Cardano—managed to feature on the list. While the community was more interested in the investment aspect of Cardano and Solana, the case was a bit different for XRP. NFTs on the XRP Ledger and the developments in the ongoing lawsuit against the SEC were talking points about the sixth-largest crypto.

    With fairly high social engagements, Axie Infinity, Velas and Tezos also found a place for themselves in the list.

    Shiba Inu misses out

    Shiba Inu, surprisingly, did not make the cut. The SHIB Army has always been quite enthusiastic and engaging on social platforms like Twitter. Right from sharing and endorsing updates and releases to discussing burn rates and potential price actions, they’ve mostly been on their feet.

    Of late, however, it seems like the community has started feeling things are becoming redundant within the ecosystem. There have, undoubtedly, been regular updates and releases—like the ShibaEternity game—that have been taking place. But, they’ve not essentially aided the asset’s price recovery.

    On the other hand, all the main releases—like Shibarium—that the community believed can scale Shiba Inu’s price up sustainably, are being postponed. Perhaps that’s why they losing interest in it.

    Alongside the 6% weekly price decline, Shiba Inu-related social mentions and engagements have dropped by 7.7% and 2.8% respectively.

    Source: LunarCrush

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