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BlockFi-FTX's secret settlement
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Bitcoin's correction sparks altcoin rally speculation: What's next for ETH, SOL, and XRP?
Key points:
Bitcoin's massive price correction triggered bearish sentiment but with the possibility of an upcoming altcoin rally.
ETH, SOL, and XRP’s bullish sentiment heightened the probability of an upcoming altcoin rally.
News - Bitcoin's recent price correction following its all-time high has triggered a market downturn leading to bearish sentiment and a corresponding decline in most altcoins' prices.
What’s the full story? Bitcoin initially surged past the $69,000 mark, but its value swiftly declined thereafter. Despite the bearish turn in the market, a significant metric hinted at a potential recovery for altcoins.
Notably, Moustache, a well-regarded crypto analyst, in his recent tweet highlighted the occurrence of the Golden Cross of the Gooner EMA on the monthly chart of altcoins. This event, previously observed in 2016 and 2020, historically preceded altcoin rallies.
How are the altcoins performing? Ethereum (ETH) surged by 3% in the past 24 hours, reaching $3,810.42 with a market cap surpassing $457 billion. Glassnode data revealed a drop in ETH's Network Value to Transactions (NVT) ratio, hinting at potential undervaluation and a possible price uptick.
Solana (SOL) showed bullish signs, rising to $130.58, with a market cap exceeding $57 billion. Its RSI and CMF indicated growing bullish momentum, suggesting an altcoin rally. Additionally, XRP also displayed positive trends, with upward movements in both RSI and CMF, along with a bullish MACD.
With these metrics and indicators in mind, whether ETH, SOL, and XRP will catalyze an altcoin rally remains to be seen. Nevertheless, the market's response to these developments will undoubtedly be intriguing to observe in the coming days.
CFTC Chair pushes for legislative action on cryptocurrency regulation
Key points:
Behnam urged Congressional action to define regulatory boundaries in the cryptocurrency sector.
He called for legislation, particularly for cryptocurrencies like Bitcoin and Ether.
News - In a recent session with the House Agriculture Committee, Rostin Behnam, Chair of the Commodity Futures Trading Commission (CFTC), urged Congress to establish clear regulatory guidelines within the cryptocurrency sector.
He highlighted the need to address regulatory gaps, especially given Bitcoin's volatile price movements. His remarks underscored the need for legislative action to address regulatory uncertainties and ensure appropriate regulation of digital assets under the CFTC's oversight.
What’s his agenda? Behnam's advocacy comes within the context of discussions on the Financial Innovation and Technology Act (FIT Act), aimed at clarifying regulatory frameworks. He underscored the necessity for clarity in the CFTC's budget to support regulatory activities surrounding cryptocurrencies.
Addressing inquiries about cryptocurrency classification, Behnam explained the distinction between commodities and securities crucial for regulatory jurisdiction. He also expressed confidence that the approval of the FIT Act would enable the CFTC to establish a regulatory framework within a year.
What to expect? In conclusion, by defining a clearer regulatory framework, there could be potential for enhanced oversight and stability within the crypto market.
This ensured that digital assets like Bitcoin and Ether will be appropriately regulated under the CFTC’s purview, fostering a more secure environment for investors and market participants alike.
PEPE surges past DOGE, SHIB amid market volatility: Could it be the next big meme coin?
Key points:
PEPE displayed resilience, with its price decreasing only by 0.14% compared to the 6.14% and 8.23% drops observed in DOGE and SHIB, respectively.
Santiment's data revealed increased bullish sentiment for both PEPE and DOGE.
News - Amid market volatility, Pepe (PEPE) a frog-themed memecoin, appears to be surpassing the performance of Dogecoin (DOGE), and Shiba Inu (SHIB). This difference has led to speculation about PEPE's potential to outperform its dog-themed counterparts in the current market cycle.
In the last month, Dogecoin experienced a 116.15% increase, Shiba Inu surged by 321%, and PEPE saw a remarkable 759% surge, outperforming both DOGE and SHIB, according to CoinMarketCap data.
What was the reason behind this? On 5th March as Bitcoin (BTC) crossed its previous all-time high, the cryptocurrency market experienced a sudden collapse. This downturn affected PEPE, DOGE, and SHIB causing them to lose their previous bullish momentum.
Additionally, Santiment’s data further highlighted a decrease in the number of Shiba Inu holders from 1.38 million to 1.37 million. This indicated that some holders may have sold off their holdings, likely due to the token’s recent gains.
In conclusion - However, while Shiba Inu experienced a slight decrease in holders, Dogecoin witnessed an increase, signaling optimism among investors about DOGE's future performance. Despite having a lower holder count, PEPE exhibited a faster growth rate, indicating increasing interest and potential for further gains.
Thus, PEPE's performance may draw more buyers, but it doesn't mean DOGE and SHIB will be sidelined. However, if PEPE's price keeps soaring, its market cap could rival Dogecoin and Shiba Inu.
BlockFi and FTX reach a $874.5 million settlement, what’s behind the deal?
Key points:
BlockFi and FTX have tentatively agreed to settle their disputes.
BlockFi suffered losses on an FTX-backed loan post-collapse.
News - Bankrupt crypto firms BlockFi and FTX have reached a tentative settlement, with FTX agreeing to pay up to $874.5 million to BlockFi. Under the agreement, a significant portion of the sum will be treated as a secured claim, prioritizing payment to BlockFi after FTX emerges from bankruptcy.
How did it start? In November 2022, BlockFi filed for Chapter 11 bankruptcy protection due to exposure to the collapse of FTX. The dispute escalated in 2023 when BlockFi sued FTX for over $1 billion, arising from a $400 million line of credit and nearly $900 million lent to Alameda Research.
BlockFi claimed that the loan, secured by FTX's token, FTT, plummeted by nearly 99% after FTX's collapse. Additionally, BlockFi sought to recover 56 million in Robinhood shares allegedly pledged as collateral for loans to Alameda Research.
More details - Despite these challenges, BlockFi has taken steps towards resolution, with plans for asset withdrawals by BlockFi Wallet customers and users of interest-bearing accounts expected in 2024. However, the exact payout remains uncertain.
Emerging from bankruptcy in October 2023, BlockFi's recent agreement with FTX represents a significant milestone in its journey to navigate the complexities of its financial obligations and address the concerns of its creditors.
More stories from the crypto ecosystem
Interesting facts
Initially, Bitcoin and Gold had their prices moved independently, but after the market crash in 2020, triggered by the COVID-19 crisis, their correlation stands at an impressive 0.87, signaling a strong positive relationship.
According to CoinMarketCap, over the past decade, the cryptocurrency market has seen explosive growth, with the number of cryptocurrencies soaring to over 23,000 from just seven in 2013.
Mt. Gox, a Tokyo-based Bitcoin exchange, controlling over 70% of global transactions by early 2014, abruptly shut down. It was hacked and thousands of Bitcoins were stolen; the company filed for bankruptcy shortly thereafter.
Top 3 coins of the day
XRP
Key points:
XRP has experienced a clear uptrend from February until now.
It was up by 4.78% over the last seven days with buyers dominating the market.
What you should know - Following a trend similar to Bitcoin's, XRP experienced a bullish sentiment. However, it did encounter a sudden fall on 5th March but soon surged to notable highs around $0.62. At press time, the token's price saw a 1.61% increase over the past 24 hours, trading at $0.61. Notably, green candlesticks on the daily chart and the MACD line above the signal line hinted that the bullish trend might continue for a few more days. The arrival of selling pressure can’t be ruled out in the near term.
Solana (SOL)
Key points:
SOL has witnessed a 6.47% surge in the last 24 hours.
The CMF indicated an upcoming selling pressure.
What you should know - With Bitcoin reaching the $69,000 milestone, various altcoins followed a bullish trajectory and SOL was no exception. After a prolonged period of bearish moves, it resumed its upward trajectory in late December. Since then, it has had quite a few healthy corrections along the way. It experienced a notable 8% surge over the past week. At press time though, it was trading at $139.54 with a market capitalization exceeding $60 billion. However, cautionary signals emerge from predictions hinting at a potential price correction, notably indicated by technical metrics like the Chaikin Money Flow (CMF) residing in the overbought territory. Nonetheless, should SOL surpass the resistance zone between $139 and $144, it could invite substantial buy pressure.
Shiba Inu (SHIB)
Key points:
While SHIB experienced a decline in value over the past 24 hours, the weekly charts continued to reflect a bullish momentum.
Despite RSI signaling an overbought condition for the past few days, SHIB has continued its upward trajectory.
What you should know - Shiba Inu (SHIB) witnessed a remarkable surge in price in recent weeks, capitalizing on the prevailing bullish sentiment across the crypto market. However, as of the latest report, the token's price declined by over 14% in the past 24 hours. Technical indicators like the Relative Strength Index (RSI), which recently entered the overbought zone, continue to signal a potential pullback. This could result in heightened selling pressure, potentially driving SHIB towards a support zone of around $0.0000088. Conversely, to reignite its bullish momentum, SHIB would need to surpass the resistance level at $0.0000040.
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