Newsletter Volume 18
Article 1 — The Market This Week
The cryptocurrency market is always full of surprises, and every week investors and traders brace themselves for potential market upheavals. Despite this, XRP’s price has steadily increased by 1.5% in the past 24 hours to reach $0.393371. This is a significant achievement considering that the news of Silvergate’s voluntary liquidation has hurt the market as a whole. XRP’s value is up by 2.5% weekly and has remained relatively flat in the last 30 days. However, it has risen by 15.5% since the start of 2023, indicating positive expectations concerning Ripple’s case with the SEC. This upward trend has given XRP holders a bullish outlook on the coin’s future.
Recently, a whale moved $10 million in XRP off the Bitso crypto-exchange, hinting at significant returns later in the year. Additionally, XRP’s chart reveals a bullish reversal with a sudden positive shift after a period of negative indicators. The relative strength index has jumped from 40 a few days ago to nearly 60, and given the steepness of this climb, it’s likely to continue. Although XRP currently faces a resistance level of roughly $0.40, breaking through this barrier could bring more positive news for the coin.
Despite some recent large XRP movements in the market, including one whale moving $23 million in the coin to Bitstamp and another transferring 150 million XRP (about $58 million), there isn’t a unanimous sentiment in the market right now. However, most observers of Ripple’s long-running case with the SEC agree that things have taken a positive turn for Ripple in the past week. This is because two recent decisions have underlined the weakness of the SEC’s case against Ripple.
If the case ends in a positive outcome for Ripple, XRP could end up challenging its current all-time high of $3.40. Of course, this could take a more bullish market, but as XRP missed out on 2021’s bull run, it has a chance of rising more steeply than other major coins once the ‘bulls return.’ Moreover, Ripple’s business as a whole remains healthy, as highlighted by the Q4 2022 XRP Markets Report, which detailed how it had processed $226.31 million in net XRP sales in that quarter alone.
Overall, while XRP is set for a short-term rise, it may not see substantial gains until later in the year when the Ripple-SEC case ends. However, traders looking for gains now should be aware that there are a variety of other high-potential coins on the market, from new altcoins to presale tokens. So, whether you’re an XRP holder or not, it’s always a good idea to watch the cryptocurrency market.
KEY METRICS
Total Crypto Market Cap: $1.02 T
Bitcoin Market Cap: $414.23 B
Ethereum Market Cap: $183.80 B
ETH/BTC Ratio: 0.07
Ethereum Gas Price: 50 gwei
DeFi TVL: $72.46 B
Fear and Greed Index: 44 (Fear)
Federal Reserve Balance Sheet: $8.33 T
Article 2 — Weekly Review of IC15
The digital currency market recently experienced a downturn triggered by hawkish comments from the FED chair, Jerome Powell, and uncertainties surrounding Silvergate Bank. As a result, at 4:00 pm on March 8, the benchmark Index IC15 plunged by 411 points to settle at 31,321, with most coins in the Index recording negative performances. Solana, Polkadot, Polygon, and Avalanche were the significant losers, down between 2% to 7%. XRP, Uniswap, and Binance were the only bright spots, with gains ranging from 0% to 4%. The total market capitalization of cryptocurrencies is currently estimated at $1.009 trillion.
On the other hand, the Brazilian Central Bank has launched an experiment with its CBDC to provide financial services in South America. Likewise, the Central Bank of Iran (CBI) has completed a preliminary phase of the digital rial, Iran’s CBDC. Thailand is also taking steps to encourage investment through digital tokens, as the government offers tax breaks for companies raising capital in this manner.
The crypto market hit as fears of U.S. rate hikes to tackle inflation resurfaced. As a result, the IC15 Index dropped to 30,809, dropping 512 points at 4 pm. While Binance and XRP stood out as the only gainers, the likes of Polygon, Solana, Uniswap, and Chainlink experienced a significant decrease in the 4–7% range. Despite this, the market capitalization of cryptocurrencies remains at an impressive $994.00 Billion. In other news, the U.S. government has revealed its plan to revise crypto tax laws to end wash trading, generating $24 billion in revenue as part of Biden’s 2024 budget plan. In the world of NFTs, Binance announced support for the Polygon network, making it possible for users to trade NFTs across multiple blockchains. Meanwhile, Ethereum co-founder Vitalik Buterin donated a staggering 15 million USD Coins to the University of California, San Diego, to create the Meta Institute for Airborne Illness in a Changing Environment.
Article 3 — Battle of Bull and Bear
Bitcoin is a well-known and popular asset in the world of cryptocurrency. Still, with the recent hawkish comments made by the Chairman of the U.S. Federal Reserve, Jerome Powell, investors are starting to worry about the potential impact on crypto prices. In this update, we will delve deeper into the current state of the cryptocurrency market and analyze recent trends in Bitcoin prices. Unfortunately, Bitcoin has been unable to gain positive traction and remains in the red, hovering around $22,000. Furthermore, the uncertainty surrounding Silvergate Bank has only added to the tension, leading to a decline in cryptocurrency prices. This has caused concern for traders and investors alike as they try to predict the future of Bitcoin and other popular cryptocurrencies like Ethereum, Dogecoin, Ripple, and Solana. Despite the current market conditions, we will provide a fundamental outlook for Bitcoin’s future price prediction.
The world of finance is constantly changing, and the recent statements from Federal Reserve Chairman Jerome Powell have made waves in both the stock market and the world of cryptocurrency. On the second day of his Congressional testimony, Powell faced the House Financial Services Committee and spoke about the possibility of higher interest rate hikes to combat persistent inflation. While this caused stocks to plummet on Tuesday, Powell tried to reassure investors on Wednesday by stating that no decisions had been made yet regarding steeper rate hikes. Nevertheless, the markets remained unstable, making the economy’s future uncertain.
This uncertainty has also impacted the cryptocurrency market, where Bitcoin (BTC) is currently at risk of falling below the $20,000 mark for the first time in two months. Powell’s hawkish stance and his statement that recent economic indicators have come in better than predicted have created a sense of apprehension among investors. In addition, the value of the U.S. dollar has subsequently risen, contributing to the decrease in BTC prices. This volatility highlights the importance of staying aware of geopolitical developments and economic data that may significantly impact the market.
Furthermore, the uncertainty surrounding Silvergate Bank has also contributed to the downturn in the cryptocurrency market. The bank, known for its strong support of cryptocurrency companies, has faced regulatory issues recently, causing traders and investors to worry about its future support for Bitcoin companies. This adds to the overall instability in the market, and investors must remain vigilant to navigate this uncertain landscape.
In conclusion, the recent statements from Jerome Powell and the uncertainty surrounding Silvergate Bank have led to a downturn in the cryptocurrency market. While the future remains uncertain, staying informed and watching for any developments impacting the market is essential.
Article 4 — Weekly Spotlight
This week’s attention has been brought to the Celsius Network, a bankrupt cryptocurrency lender exploring new buyers and multiple bids despite having an offer on the table. The lender is still open to better offers and is discussing with a potential buyer, as Celsius attorney Chris Koenig reported during a bankruptcy court hearing in Manhattan. In addition, the company’s official unsecured creditors committee (UCC) reviewed an alternate proposal with the buyer only days ago.
Furthermore, Celsius requested Judge Martin Glenn, overseeing the bankruptcy proceedings, to extend the time limit for submitting a bankruptcy restructuring plan built around the NovaWulf deal. Fortunately, the judge granted Celsius an additional three weeks. In mid-February, NovaWulf Digital Management agreed to buy Celsius’s lending operations, helping to end its bankruptcy case. Debtors of Celsius Network presented the sale plan to the U.S. Bankruptcy Court of the Southern District of New York. This plan supports the firm’s creditors committee and is part of the overall reorganization plan for the company’s retail platform and mining business.
The sale plan proposed a deal with NovaWulf that would enable the crypto lender to begin returning crypto assets to customers in June. As part of the plan, creditors with claims of less than $5,000 related to Celsius Earn Accounts will receive a 70% recovery of their funds as a one-time payment in Bitcoin, Ethereum, or the stablecoin USDC. However, Celsius customers owed more than $5,000 will be allowed to reduce their claim to that amount to join the class. In addition, creditors owed at least $1,000 can opt out of the class and receive a portion of yet-to-be-determined funds recovered for general Earn participants.
Celsius is prepared to offer NovaWulf up to $20 million in breakup fees if they choose an alternate bidder. Celsius filed for Chapter 11 bankruptcy in July last year to restructure and stabilize its business, maximizing stakeholder value. With so much happening in cryptocurrency, investors and traders alike are eager to see how the situation unfolds.
In the latest update regarding Celsius bankruptcy operations, the crypto lender has allocated $25 million of digital assets for its custodial account holders to withdraw. The funds comprise $10.39 million USDC, $8.8 million of ETH, and $6 million of other digital assets. Celsius interim Chief Executive Chris Ferraro reported that custody account holders had withdrawn $17.7 million of these cryptocurrencies by Wednesday, with another $3.5 million in the withdrawal process. This represents 60% of eligible custody users and 80% by crypto value.
Recently, Celsius announced that it had opened withdrawals for select custodial account holders with certain limitations after obtaining approval from the U.S. bankruptcy court. The court document authorized Celsius to distribute 94% of eligible users’ custody assets. It’s a positive development for the users as the crypto lender is taking steps to ensure they can access their funds. With the market constantly fluctuating, investors need to have access to their assets in a timely and secure manner.
