Bitcoin continues to threaten a correction after reaching the best price since August; Analyst says Ethereum may fall further

After reaching the $23,000 mark over the weekend for the first time since August last year and retreating on Monday, Bitcoin (BTC) is attempting to resume this level on Tuesday (24). At 7 am today, the cryptocurrency was trading at $22,871, up slightly by 0.5% over the past 24 hours. Ethereum (ETH) fell slightly by 0.8%, to $1,622.

However, BTC maintains gains of close to 40% at the start of the year, outperforming any risky asset so far in 2023. According to experts, the rally is related to the depletion of the stock of miners, and companies that use heavy machinery to help validate transactions on the network. And they are rewarded in cryptocurrency.

Some miners filed for bankruptcy last year and liquidated bitcoin positions, which contributed to selling pressure in the market. According to data tracked by cryptocurrency exchange Bitfinex, the amount of Bitcoin transferred from miner addresses to exchange wallets has fallen to its lowest level in three years.

For brokerage analysts, this is a sign that these players are in better shape and, therefore, should have less of a need to sell BTC in the market to maintain operations.

“It is a possible indication that miners are already or are in the process of moving to a source of buying pressure. Miners are guarding their bitcoins as they anticipate further upsides,” the analysts added.

Meanwhile, smaller cryptocurrencies known as altcoins (alternatives to Bitcoin) are benefiting from a moment of greater optimism and continue to post double-digit gains. In the past seven days, the leading edge was Aptos (APT), which posted an increase of nearly 60%, followed by Axie Infinity (AXS), up 34%. Today, they both have a slight correction of 4%, while Rocket Pool (RPL) is up 10%.

Ethereum (ETH) is rising with less breathing space than Bitcoin, up 3% over the course of the week while BTC has gained more than 8% in the period. Since January 11, the price of ETH measured in BTC has fallen by 8%, reflecting a decline in the relative strength index (RSI), a metric used to understand the strength of an asset. Currently, the RSI for Ethereum is at minus 40, a level last seen in December.

However, for charting analyst Glenn Williams, if ETH continues to weaken against Bitcoin (more specifically, if the RSI falls below 30), this could present an attractive opportunity for investors to increase positions targeting the medium to long term. .

On the other hand, many analysts are not convinced that the rise of cryptocurrencies in general (including Bitcoin) will last much longer after nearly 14 months of market declines and a series of crashes for companies in this sector.

Jeff Dorman, Director Origin From Arca Digital Assets, he highlights Bitcoin’s recovery and the “strong rebirth” of tokens “applications and protocols that were on the brink of death,” but also highlights the difficulty of predicting whether the current surge is just a temporary jump or if the movement will continue for much longer. .

“At the micro level, most individual applications and protocols are still near minimum user and activity levels, although many have risen more than 100% in recent weeks,” Dorman wrote in a note. “The market is trying to find a balance – somewhere between the dead zone of last year and the euphoria of 2021,” he added.

Check out the performance of the major cryptocurrencies at 7 am:

Cryptocurrencies with the biggest increase in the last 24 hours:

Cryptocurrencies with the biggest losses over the past 24 hours:

Check out how the cryptocurrency ETFs closed in the last trading session:

Genesis expects a consensual solution with creditors

Attorneys for Genesis Global told a federal bankruptcy court in New York City on Monday that they have been working with creditor representatives and authorities in the Department of Justice “around the clock” for the past two months to reach a “consensual resolution” with the broker. creditors.

Earlier this month, Genesis Global Holdco — the holding company for Genesis Global Capital — and two of its subsidiaries, Genesis Asia Pacific (GAP) and Genesis Global Capital (GGC), filed for bankruptcy protection (similar to that of Bankruptcy in Brazil) after the crisis caused by the bankruptcy of FTX.

Arca’s risk committee chairman, Michael Dershowitz, believes the filing marks the end point of “a long-running, publicly known bankruptcy”.

“[A proteção contra falência] It’s a useful process for suspending responsibilities and negotiating court-approved restructuring.” “We can’t add much to predict how these talks will play out, but we’re watching closely.”

Ethereum is turning deflation again

Ethereum is deflationary again amid the market recovery in early 2023.

According to data from the ultrassom.money website, the net issuance of ETH (annual inflation rate) has fallen to -0.07%, which means that the amount of ETH burned by the protocol exceeds the amount issued over time.

Marcos Sotiero, a market analyst at digital asset exchange GlobalBlock, attributed the latest move to an increase in non-fungible token (NFT) sales, driven by positive sentiment in the broader crypto market.

More than 14,700 ETH worth about $24 million have been burned in the past seven days, according to Ultrasound. About 3,400 of this ETH was burned in NFT trades – the majority in OpenSea.

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