On June 7, the team behind the Zksync project Gemholic withdrew 921 previously locked ethereum tokens in a suspected rug-pulling incident. The Gemholic team executed the theft despite reportedly completing the blockchain security firm Solidproof’s Know Your Customer (KYC) process. Zksync’s v24 Upgrade The layer two (L2) Ethereum blockchain scaling protocol, Gemholic, faced allegations of […]
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Thailand Abolishes Value-Added Tax Previously Applicable on Digital Asset Trades
The Thailand Finance Ministry has announced the removal of the previously applicable value-added tax on digital asset trading. This exemption, which took effect on Jan. 1, 2024, extends to regulated brokers, dealers, and authorized cryptocurrency exchanges. VAT Exemption to Bolster Thailand’s Digital Asset Industry To establish Thailand as a hub for digital assets, the Bangkok […]
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Fed Chair Warns of Higher Interest Rates Than Previously Anticipated, Faster Hikes
Federal Reserve Chairman Jerome Powell has warned that “the ultimate level of interest rates is likely to be higher than previously anticipated.” In addition, if faster tightening is warranted, the Fed “would be prepared to increase the pace of rate hikes,” Powell said.
The Fed Anticipates Higher Rates, Faster Hikes
Federal Reserve Chairman Jerome Powell presented the Fed’s semiannual Monetary Policy Report to the Senate Committee on Banking, Housing, and Urban Affairs on Tuesday and the House Committee on Financial Services on Wednesday.
“My colleagues and I are acutely aware that high inflation is causing significant hardship, and we are strongly committed to returning inflation to our 2% goal,” Powell said in his identical remarks to both the Senate and House committees. He detailed:
Over the past year, we have taken forceful actions to tighten the stance of monetary policy. We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt. Even so, we have more work to do.
“The data from January on employment, consumer spending, manufacturing production, and inflation have partly reversed the softening trends that we had seen in the data just a month ago,” Powell continued.
Citing inflation well above the Fed’s 2% goal and an “extremely tight” labor market, he noted the Federal Open Market Committee (FOMC) meeting raised interest rates by 4-1/2 percentage points over the past year. “From a broader perspective, inflation has moderated somewhat since the middle of last year but remains well above the FOMC’s longer-run objective of 2%,” Powell described, emphasizing:
We continue to anticipate that ongoing increases in the target range for the federal funds rate will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time.
While acknowledging that “inflation has been moderating in recent months,” the Federal Reserve chairman stressed that “the process of getting inflation back down to 2% has a long way to go and is likely to be bumpy.”
Cautioning that restoring price stability will likely require the Fed to “maintain a restrictive stance of monetary policy for some time,” Powell concluded:
The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.
What do you think about Fed Chair Powell’s statements? Let us know in the comments section below.
This Previously Bullish Crypto Could Soon Erase Months of Gains in a Violent Selloff
Chainlink (LINK) has by far been one of the most bullish cryptocurrencies throughout both 2019 and 2020, with the crypto rallying to highs of nearly .00 in mid-February, which is around when the aggregated market lost its momentum and began to crater.
This market-wide downtrend has proven to be devastating for virtually all cryptocurrencies’ market structures, but it is important to note that it has been particularly impactful to LINK.
In the near-term, one top analyst is noting that the crypto is currently in a precarious position that could ultimately allow it to see a significant bout of capitulation in the days and weeks ahead.
Chainlink Grinds Lower as Crypto Market Shows Signs of Weakness
Bitcoin has been firmly guiding the cryptocurrency market over the past several days and weeks, which has made all altcoins prone to seeing significant downside.
Chainlink – which set fresh all-time highs last month – has been particularly impacted by this market-wide downturn, plummeting from highs of nearly .00 to lows of under .60 that were set at the bottom of its recent selloff.
At the time of writing, Chainlink is trading down just under 10% at its current price of .25, which marks a massive decline from daily highs of .60, but a notable rally from its recent lows.
Although Bitcoin is currently trading down 40% from its year-to-date highs, LINK is trading down nearly 55% from its highs, meaning that it has underperformed BTC by roughly 15%.
Chainlink is now trading right around where it started the year, with the recent selloff erasing the unprecedented gains incurred throughout January and February.
Analyst: LINK Positioned to See Notable Selloff as Market Structure Degrades
Crypto Michaël, a prominent cryptocurrency analyst on Twitter, explained in a recent tweet that he believes Chainlink is positioned to see some weakness against its Bitcoin trading pair, setting a downside target at roughly 27100 sats, which marks a notable decline from its current price of 36300 sats.
“Chainlink: Doesn’t look great here. Bounced on support, but first resistance at 37500 couldn’t break. Losing 34000 and I’ll target 31200 and 27100 satoshis as next levels. Breaking 37500 and we can rally to 42000-43000 satoshis.”
$LINK #CHAINLINK
Doesn't look great here.
Bounced on support, but first resistance at 37500 couldn't break.
Losing 34000 and I'll target 31200 and 27100 satoshis as next levels.
Breaking 37500 and we can rally to 42000-43000 satoshis. pic.twitter.com/I1Lr4rUbEd
— Crypto Michaël (@CryptoMichNL) March 21, 2020
If Bitcoin fails to extend its current momentum, it is highly probable that altcoins like Chainlink could continue to underperform the benchmark crypto, potentially leading it to see significantly further downside.
Featured image from Shutterstock.
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Don’t Panic: This Previously Impervious Support Could Save Bitcoin
Extreme panic over the coronavirus officially reaching pandemic status and the impact it may have on the economy caused Bitcoin to collapse this morning, falling from lows in the ,500 range to as low as ,800 at the time of this writing.
Crypto investors are feeling more fear than they ever have before, but now is the time to be logical according to one crypto analyst, who claims that a remaining line of defense that’s held up in the past could be the support that saves Bitcoin from total failure.
Only This Moving Average Can Save Bitcoin From The Coronavirus Chaos
Bitcoin’s long-term logarithmic growth curve has been violated and a trend line dating back seven years of a secular bull market has now been breached.
Bitcoin is back below ,000 in a shocking move fresh on the heels of the latest developments surrounding the deadly coronavirus outbreak, including the virus hitting Hollywood, the world of sports, and causing a complete shutdown of International travel.
Related Reading | How Fear and Greed in the Crypto Market Can Lead To Incredible Profit
The stock market responded by collapsing overnight, and Bitcoin followed the crowd sentiment in a panic-induced selloff.
After support at ,500 failed, 30 minutes later Bitcoin was below ,000.
And although the breakdown occurred at crypto analyst Jacob Canfield’s first level of support, a previously impervious support still remains.
Don't panic. Think logically. Make your plan.
There are two support levels to watch for on #Bitcoin
The weekly 100MA (00-00) and the weekly 200MA (00-00) (where we bounced at 00)
Wait for a reaction. Be patient.
No need to rush in front of a moving train. pic.twitter.com/U93T4k8Ksw
— Jacob Canfield (@JacobCanfield) March 11, 2020
The analyst says that investors shouldn’t panic and instead should think logically and build a plan to act on.
That plan should include considering taking a position in Bitcoin if and when it reaches the 200-week moving average.
The long-term moving average acted as Bitcoin’s final bottom in early 2019, just before it bounced all the way to ,000.
Another touch of the moving average could have a similar effect, causing Bitcoin to rocket once again to new local highs.
What Happens if the Cryptocurrency Loses This Final Support?
The situation may look grave at the moment, with Bitcoin plummeting to the lowest price it’s been in nearly a year, but given how strong this moving average is, it very well could save Bitcoin from falling to its doom.
Related Reading | The Fate of Bitcoin Rests On This Seven-Year Secular Bull Market Support
A fall below the line, however, would be telling. The longest term moving averages are a critical indicator for long term investors, who would view the health and longevity of the asset as being in danger if it falls below such an important level.
Such a move could spell the end for Bitcoin, and cause many to chalk the cryptocurrency up to being little more than a failed experiment that had potential – potential that proved to be not enough for the coronavirus and another recession.
Featured image from Shutterstock
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New Research Bitcoins Carbon Footprint Lower Than Previously Thought
n A new analysis of Bitcoin mining has pointed to the importance of accounting for renewable energy sources, as opposed to earlier blanket assumptionsn
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New Research Claims Satoshi Mined Far Fewer Bitcoins Than Previously Thought
n nn nn Based on five-year-old research, Bitcoin enthusiasts and critics alike have often held that Satoshi Nakamoto originally mined some 1,000,000 bitcoin in the early days of the network. New numbers from BitMEX Research, however, demonstrates this number could be off by 300,000-400,000 total bitcoin.Breaking Down Lerners ResearchThe oft-cited 1,000,000 coins estimation comes from research conducted by Bitcoin developer and RSK founder Sergio Demian Lerner and
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