• Bitcoin surged to a fresh nine-month high on Friday, as prices moved above the $27,000 level.
• Ethereum also rose in today’s session, with prices moving back above $1,700.
• The surge comes following the U.S. Federal Reserve’s decision to backstop embattled banks to a record tune of $152.9 billion.
Bitcoin Technical Analysis
Bitcoin (BTC) rose back above $27,000 in today’s session, as markets reacted to the Federal Reserve’s decision to pump liquidity into the U.S. economy. Following a low of $24,624.74 on Thursday, BTC/USD raced to an intraday peak of $27,002.39 earlier in the day. As a result of the move, bitcoin climbed to its strongest point since June 2022, when price was above $28,500. The 10-day (red) moving average is now on the verge of an upwards crossover with its 25-day (blue) counterpart and the 14-day relative strength index (RSI) has broken out of a resistance level at 67.00 and is currently tracking at 70.09 which is the strongest reading for the index since early February.
Ethereum Technical Analysis
Ethereum (ETH) also surged higher in today’s session, with prices moving back above $1,700 and hitting a high of $1,766.55 earlier in today’s session which comes less than 24 hours after hitting a bottom at $1,644.54; thus breaking past its recent price ceiling at $1,720.. An upwards cross between the 10-day (red) and 25-day (blue) moving averages appears likely and should it move beyond 65 on RSI then ETH is highly likely that ETH will be trading above 1$800 soon .
Federal Reserve Decision
The rise in Bitcoin and Ethereum came following U.S Federal Reserves decision to backstop embattled banks by providing them liquidity up until a record tune of 152$9 billion . This news provided clarity that US central bank would continue supporting markets amid pandemic uncertainties .
Implications for Crypto Markets
The surge seen across both Bitcoin & Ethereum markets were positive signs for investors who were uncertain about future market volatility due to pandemic uncertainties . This rally also signals that investor are diversifying their portfolios away from traditional assets such as stocks , bonds & commodities towards digital currencies like Bitcoin & Ethereum which have proven track records over long term periods .
The rally seen across both Bitcoin & Ethereum markets come off hopes that US Central Bank will continue their support even during pandemic times . Investors are increasingly looking towards digital currencies as means to diversify their portfolios away from traditional assets .
• Bitcoin (BTC) fell below $20,000 for the first time since January amidst a liquidation of Silvergate Bank.
• Ethereum (ETH) moved under $1,400 in today’s session, reaching its weakest point since mid-January.
• The upcoming U.S. nonfarm payrolls report could decide how aggressive the Federal Reserve acts in its meeting and affect crypto prices.
Bitcoin Falls Under $20,000
Bitcoin (BTC) dropped below the $20,000 level for the first time since January this week due to a liquidation of Silvergate Bank. This news resulted in a fifth straight session drop with BTC/USD falling to an intraday low of $19,669.92 earlier today. The 14-day relative strength index (RSI) also fell below 32.00 as a result of this sell-off and is currently tracking at 26.11 – its lowest reading in price strength since November 9th.
Ethereum Sinks Below $1,400
Ethereum (ETH) was also significantly lower in Friday’s session and moved under $1,400 after trading at a peak of $1,543.69 just one day prior. ETH/USD fell to an intraday low of $1,378.53 which is its weakest point since mid-January and is now down by nearly 10% in the last week alone causing the RSI to track at 28.30 – its lowest point since June 2020..
Pivotal U.S Nonfarm Payrolls Report
The upcoming U.S nonfarm payrolls report could decide how aggressive the Federal Reserve acts in its meeting which could potentially influence crypto prices significantly depending on the result . 205,000 jobs are expected to have been added to the U.S economy last month – down from January’s 517,000 total – which could act as an overall positive for cryptos if it comes out that way when announced later today .
Opinions From Senator Elizabeth Warren
Senator Elizabeth Warren openly blamed crypto as whole as a result of Silvergate banks winding down operations following their liquidation leading to further speculation surrounding futures markets and potential future regulations relating to cryptocurrency trading . It remains unclear what impact these opinions may have on market sentiment going forward but many industry commentators remain cautiously optimistic despite these recent events .
Crypto Price Analysis
Overall , this weeks events have had significant impacts on both Bitcoin and Ethereum prices over recent days but there is still much uncertainty surrounding what may happen next given such volatile conditions . Registering your email address with various providers can help you stay up-to-date with weekly technical analysis reports so that you don’t miss any important news or changes affecting your chosen asset classes .
• HSBC and Nationwide have imposed new restrictions on cryptocurrency purchases in the U.K.
• Nationwide’s Crypto Purchase Restrictions has a daily card limit of 100 British pounds for Flexone accounts and 5,000 pounds for other current account types.
• HSBC Disallows Crypto Purchases Using Its Credit Cards
HSBC and Nationwide Impose New Restrictions on Cryptocurrency Purchases in UK
HSBC and Nationwide have imposed new restrictions on cryptocurrency purchases in the U.K. The two financial institutions cited a warning from the Financial Conduct Authority (FCA), the British regulator overseeing the financial services industry, regarding the risks involved in purchasing cryptocurrencies.
Nationwide’s Crypto Purchase Restrictions
British financial institution Nationwide Building Society allegedly sent an email to its customers on Thursday to inform them of restrictions on cryptocurrency purchases. According to the email shared by several people on Twitter, Nationwide wrote that it will be introducing limits on card payments made to crypto exchanges from a current account with a daily card limit of 100 British pounds for Flexone accounts and 5,000 pounds for other current account types. Additionally, no payments to crypto exchanges are allowed using a Nationwide credit card.
HSBC Disallows Crypto Purchases Using Its Credit Cards
Last week, several people on Twitter also shared an email they claimed to have received from banking giant HSBC regarding crypto purchases. The emailed stated that effective February 23rd 2023, HSNC will no longer allow cryptocurrency purchases using its credit cards due to possible risk to customers as warned by FCA against investing in crypto assets being considered very high risk speculative investments with no protection if something goes wrong.
Growing Number of Banks Placing Restrictions
A growing number of banks in the U.K are placing restrictions on cryptocurrency purchase which is reflective of similar moves across Europe such as France where lawmakers introduced more stringent regulations last year aimed at preventing money laundering via digital currencies like Bitcoin or Ethereum while promoting innovation among blockchain companies operating within their jurisdiction .
HSBC’s Relationship With Cryptocurrencies
In contrast to recent actions taken by HSBC against cryptocurrencies ,the bank recently filed trademark applications for a wide range of digital currency and metaverse products which suggests its interest in exploring this field further . It has also joined forces with Microsoft Corporation to launch its own metaverse platform .
• Arbitrum’s daily transaction count has surpassed Ethereum’s for the first time ever this week.
• Layer two (L2) scaling networks have become popular as secondary chains allow users to transact faster and pay fewer fees.
• Statistics show that on Thursday, the average fee to transact on Ethereum is 0.0041 ETH, or $6.87 per transaction, while the average fee to transact on Arbitrum is $0.307 per transfer.
Arbitrum Surpasses Ethereum’s Transaction Count
Arbitrum, a layer two scaling project, has achieved a major milestone by surpassing Ethereum’s daily transaction count for the first time ever this week according to statistics recorded on Tuesday and Wednesday. On Wednesday, Arbitrum processed 1,090,510 transactions compared to Ethereum’s 1,080,839 transfers.
Popularity of L2 Scaling Networks
Layer two (L2) scaling networks have become increasingly popular over the last two years as they offer users a way to transact faster and pay fewer fees than using traditional blockchain networks like Ethereum’s mainnet. Thirty-nine days ago in mid-January 2023 combined daily transaction counts from L2 networks Optimism and Arbitrum surpassed Ethereum’s daily transaction count but since then it had subsided until now when Arbitrum’s daily transaction count surged past Ethereum’s for the first time ever this week on Tuesday and Wednesday.
Average Fees Compared
Statistics also show that while transactions on Ethereum continue to increase so too do their associated fees with an average fee of 0.0041 ETH ($6.87) per transfer whereas transactions on Arbitrum cost much less at an average fee of just $0.307 per transfer with Optimism costing $0.3601 per transfer compared to Ethereum’s median fee of 0.0017 ETH ($2.84).
Benefits Of Using L2 Networks
Using L2 networks like Arbitrum can provide several advantages such as reducing computational workload offchain resulting in lower output costs and faster processing times as well as improved privacy through zero knowledge rollups (ZKsnarks/rollups). Other benefits include increased scalability which can help support higher volume throughputs or more complex smart contracts with greater security due to virtual machine verification systems being incorporated into them too making them more desirable than using Onchain models alone which would require higher energy consumption rates etc..
Overall these developments demonstrate how layer two scaling solutions are becoming more accessible and prevalent within blockchain ecosystems allowing users a cheaper way to conduct transactions without sacrificing speed or security features found in other layers such as Polygon or Dune Analytics toolsets which may be necessary when dealing with large volumes of data within larger enterprises looking at moving assets across multiple blockchains quickly yet securely without high overhead costs associated with running separate nodes etc…
• Crypto lender Celsius has chosen the digital asset investment firm Novawulf Digital Management to sponsor its reorganization plan.
• The proposed agreement would enable Celsius to exit the Chapter 11 bankruptcy process and could begin distributing funds as early as June.
• Customers with higher account balances (more than $5,000) will receive funds from the company’s remaining stash of crypto assets while customers with low account balances (less than $5,000) will receive a specifically chosen crypto asset in a “Convenience Class” distribution.
Celsius Files for Bankruptcy
Crypto lender Celsius filed for bankruptcy in July 2022. The company had received more than 130 bids from potential buyers, and has now announced that it will be acquired by Novawulf Digital Management.
Reorganization Plan Details
The reorganization plan will distribute liquid crypto to all account holders, create a litigation trust, and provide creditors with common equity in a new company called “Newco” that will hold illiquid assets such as mining. Customers with higher account balances (more than $5,000) will receive funds from the company’s remaining stash of crypto assets while customers with low account balances (less than $5,000) will receive a specifically chosen crypto asset in a “Convenience Class” distribution.
The acquisition by Novawulf Digital Management is expected to enable Celsius to exit the Chapter 11 bankruptcy process and could begin distributing funds as early as June. Additionally, Newco will be a regulatory-compliant, publicly reporting company that is 100% owned by Celsius Earn claimants and its equity will be provided in a tokenized form that trades on the Provenance Blockchain through an SEC-registered broker-dealer and alternative trading system.
Twitter Spaces Event
Celsius plans on holding an upcoming Twitter Spaces event soon to provide updates on the acquisition details and definitive documents are being finalized regarding customer loan portfolio settlement terms.
The proposed agreement between Celsius and Novawulf Digital Management would enable Celsius to exit Chapter 11 bankruptcy process while providing creditors with liquid crypto assets or common equity of Newco depending on their account balance size. An upcoming Twitter Spaces event is expected to provide further information about this acquisition soon.
Bitzlato Co-Founder Arrested
• Anton Shkurenko, co-founder of seized cryptocurrency exchange Bitzlato, has been arrested in Moscow.
• He was detained at the request of Interpol and may face extradition to France.
• French authorities suspect him of extortion, data theft, and money laundering.
Background on Bitzlato Exchange
Bitzlato is a digital asset exchange that was established in 2017 by two Russian entrepreneurs: Anton Shkurenko and Anatoly Legkodymov. The platform provided peer-to-peer transactions via its trading bot called BTC Banker. Unfortunately, in January 2021, Bitzlato was taken down due to an international law enforcement operation. It is believed that the exchange processed over $700 million in illicit funds from criminal entities such as Hydra and Finiko. Following the shutdown of Bitzlato, three other executives (the company’s CEO, financial director, and marketing director) were arrested by EU authorities while a system administrator was detained in Spain and Cyprus. The FBI also accused the platform of facilitating ransomware attacks and scams through cryptocurrency payments.
Shkurenko’s Recent Promises
Last week, Shkurenko stated in an interview with a crypto YouTube channel that he intended to move Bitzlato operations to Russia from Hong Kong and resume withdrawals for users under his leadership. These plans were abruptly halted when he was arrested by Russian authorities at the request of Interpol on Tuesday morning.
Extradition to France Possible
Russian authorities are currently considering whether or not they should extradite Shkurenko to France where he could face charges related to extortion, data theft, and money laundering activities associated with Bitzlato. The news comes after blockchain analytics firm Chainalysis revealed that one of the world’s largest crypto exchanges – Binance – had transferred cryptocurrency worth nearly $346 million for use on this platform prior to its shutdown earlier this year.
The arrest of Anton Shkurenko marks yet another chapter in the story surrounding seized cryptocurrency exchange Bitzlato which recently came under investigation by multiple international law enforcement agencies for allegedly processing illicit funds from criminals around the world. Whether or not he will be extradited to France remains unknown but it is clear that his plans for relaunching operations from Russia have now been put on hold indefinitely
• The U.S. Federal Reserve raised its benchmark federal funds rate by 0.25% on Wednesday in an effort to bring inflation down to the target range of 2%.
• The FOMC statement further detailed that ongoing rate increases are anticipated to achieve maximum employment and inflation at the rate of 2 percent over the longer run.
• Jerome Powell said that monetary tightening will continue “until the job is done” and added that the “disinflationary process that is now underway is really in its early stages.”
U.S. Federal Reserve Raises Benchmark Interest Rate
The U.S. Federal Reserve raised its benchmark federal funds rate by 0.25% on Wednesday, increasing it to a range of 4.5% to 4.75%. This marks the eighth consecutive increase and is now at its highest level in about 15 years, with anticipation for future increases in order to attain a stance of monetary policy that will return inflation to 2 percent over time.
FOMC Outlines Expectations for Future Rate Hikes
The FOMC statement detailed indicators show there has been “modest growth in spending and production” and job gains have been “robust in recent months,” but noted that while inflation has dropped, it “remains elevated.” It also highlighted potential conflict in Ukraine as causing economic hardship and emphasized their goal of achieving maximum employment and inflation at the rate of 2 percent over the longer run as justification for their decision to raise rates.
Crypto Economy Appears Unfazed
The crypto economy appeared unfazed by the Fed’s decision on Wednesday, with prices jumping 0.9% higher after Powell’s comments – Bitcoin (BTC) rose 1.4%, ethereum (ETH) jumped more than 2% higher, and other digital currencies followed suit after hearing Powell’s remarks about continuing monetary tightening until their objectives were met with respect to disinflationary processes which he indicated were still only beginning stages at this point..
Market Analysts & Investors Show Conflicting Signals
Market analysts and investors have shown conflicting signals over the Fed rate hikes, with some expecting the central bank to soften its stance, and others anticipating continued increases from Chairman Jerome Powell despite his latest comments indicating otherwise during Wednesday’s meeting where he stated they will continue “until the job is done” when it comes returning inflation up or down depending on current circumstances at any given time according to pre-set goals set forth by Federal Open Market Committee members themselves..
In conclusion, The U.S Federal Reserve continues raising interest rates gradually as expected towards their goal of attaining a stance of monetary policy that will return inflation into a targeted range even though market analysts & investors are conflicted about what direction future rate hikes will take under Chairman Jerome Powell’s leadership going forward as well as how various digital currencies may react as result thereof so time shall tell what next steps taken ultimately proves most beneficial all parties concerned long-term eventuality speaking accordingly speaking thusly indeed!
• Bitcoin (BTC) dropped below the $23,000 level on Wednesday, as a red wave swept through cryptocurrency markets.
• Ethereum (ETH) prices fell below a recent support point at $1,600 as bears reentered the market due to prices being overbought.
• Both Bitcoin and Ethereum’s 14-day relative strength index (RSI) fell to its lowest levels since last Thursday and January 8 respectively.
Cryptocurrency markets experienced a red wave on Wednesday, with Bitcoin (BTC) and Ethereum (ETH) both dropping below key support levels. Bitcoin, the world’s largest cryptocurrency, dropped to its weakest point since Sunday, breaking out of a floor at $22,500 in the process. This came as the 14-day relative strength index (RSI) fell to its lowest level since last Thursday, tracking at a level of 79.93. At the time of writing, BTC/USD is currently trading at $22,614.62.
Meanwhile, sentiment in Ethereum also shifted on Wednesday, with prices falling below a recent support point at $1,600. ETH/USD slipped to a bottom of $1,530.80 on Wednesday, following a peak of $1,630.47 during Tuesday’s session. Since breaking out of its $1,600 floor, ethereum appears to be heading towards a lower level of support at $1,500. Ethereum’s 14-day RSI is currently sitting at 61.07, which is its lowest point since January 8, and this comes a day after breaking out of a floor at 74.00.
The drop in both Bitcoin and Ethereum prices comes as bears have finally opted to reenter the market, as a result of prices being overbought. This is a stark contrast to the optimism seen in crypto markets in the days leading up to Wednesday’s red wave, with Bitcoin hitting all-time highs of $23,048.18 on Tuesday and Ethereum hitting a peak of $1,630.47.
It remains to be seen whether this red wave will continue in the coming days, or if bulls will reclaim the market and push prices back up to their recent highs. With both Bitcoin and Ethereum hovering around their respective support levels, it could be a matter of time before either cryptocurrency breaks out of its current range.
• Ethereum developers have begun finalizing the Shanghai upgrade “shadow fork” to serve as a testing environment for the upgrade.
• The fork is anticipated to occur in March 2023 and will focus on allowing staked withdrawals.
• There are currently 504,765 validators and 16,167,527 ETH stored within the validator contract that is currently locked.
Ethereum developers have kicked off the final stages of preparation for the upcoming Shanghai hard fork with the launch of a “shadow fork” testing environment. This Shanghai upgrade is scheduled for March 2023 and will focus on allowing staked withdrawals from the Beacon Chain. The Merge, which transitioned Ethereum from a proof-of-work consensus to a proof-of-stake consensus, took place approximately 130 days ago.
The “shadow fork” will serve as a testing environment for the Shanghai upgrade, allowing developers to identify any bugs or potential issues. Software engineer Marius van der Wijden reported that when the chain began finalizing, there were a few issues as the config wasn’t correctly applied on Geth. Despite the initial issues, the chain is now finalizing correctly.
The cryptocurrency community is particularly concerned about the Beacon chain withdrawals, as there are 16,167,527 ETH stored within the validator contract that is currently locked. The Shanghai upgrade is meant to pave the way towards unlocking these funds, and the “shadow fork” will help developers ensure the upgrade functions as intended. Statistics from Beaconscan.com show that the validator count has crossed the 500,000 zone this year, with 504,765 validators currently active.
The “shadow fork” is a crucial step in the preparations for the upcoming Shanghai upgrade, and the Ethereum Foundation is optimistic that it will help ensure a smooth transition. The successful implementation of the upgrade has the potential to unlock billions of dollars worth of staked ETH, which would be a major boon for the Ethereum network.
• Neon Link, a new blockchain and ecosystem, is launching on mainnet in Q1 2023
• Neon Link offers an onboarding process for gamers to web3, true ownership of game-related assets, and authentic gaming experiences
• Game developers will be able to build games with Neon Link’s comprehensive software development kit and incentive structure
Neon Link, a new blockchain and ecosystem, is set to launch on mainnet in Q1 2023. Founded after a year of development, Neon Link is introducing numerous features to its network including the NEON multi-chain Wallet, Decentralised Exchange, Marketplace, Bridge, Block Explorer, NEON Gaming ID (Naming Service), and the $NEON token that powers the entire ecosystem.
Neon Link is also launching a triple-A game, Ascend The End. This 3rd person shooter offers a unique experience from its integration with Neon Link’s fast and fee-free network. This includes a variety of game modes and an in-game economy where players can gather resources to craft weapons, ammo, and armour! Players also have the opportunity to earn exclusive in-game assets and crypto asset rewards for consistently ranking well in competitive gameplay.
Neon Link caters to both gamers and developers alike. Gamers can easily onboard to web3 through the NEON Wallet and enjoy true ownership of game-related assets and authentic gaming experiences. For developers, they are able to build fantastic and unique games with Neon Link’s comprehensive software development kit (SDK) and incentive structure. The first 20 projects will even receive additional support.
With its launch, Neon Link is offering a revolutionary blockchain network and game development ecosystem that will allow developers and gamers alike to take part in a truly unique and innovative gaming experience.