Welcome to Latam Insights, a compendium of Latin America’s most relevant crypto and economic news during the last week. In this issue: Argentina reached zero inflation in food and beverages in June, the Central Bank of Bolivia unbans bitcoin, and several employees of the Paraguayan power company were allegedly involved in illegal bitcoin mining operations. […]
Bitcoin News
Milei Reveals New Economic Phase for Argentina: Zero Monetary Issuance
Javier Milei, the libertarian President of Argentina, has revealed the new policies that will be applied to cement the economic victories he has achieved in Argentina. In an interview, he stated that now, with the recent approval of the omnibus law, the country has reached phase two of its economic plan, which entails having zero […]
Bitcoin News
Argentina Records First Week of Zero Inflation in 30 Years; Milei Claims He’s Redefining Economic Theory
Argentina is reaping its first rewards in the fight against inflation, as a private consulting firm found that the inflation in food and beverages reached 0% during June’s third week. President Javier Milei celebrated this achievement, stating that his administration was rewriting economic theory and that he might receive the Nobel prize if successful. Javier […]
Bitcoin News
Dogecoin Under Pressure And ‘Going To Zero’, Analyst Says – Here’s Why
The beloved Dogecoin, the Shiba Inu-faced cryptocurrency that started as a joke, is facing a ruff time. A recent million sell-off by a large holder, likely a “whale” investor, has sent shockwaves through the DOGE community, raising questions about the meme coin’s long-term viability.
Mags Charts A Worrying Course
Crypto analyst Mags has emerged as the harbinger of doom for DOGE. Using a self-developed charting method, Mags identifies distinct phases in Dogecoin’s historical price movements. Phase 3, according to Mags, paints a particularly bleak picture, suggesting a potential plummet to zero.
Bluntly, the analyst says the meme coin is “bearish” and is about to become worthless.
$DOGE is bearish and is going to zero.
don’t belive me? see for yourself
pic.twitter.com/p4jYYDlbLZ
— Mags (@thescalpingpro) June 12, 2024
This prediction hinges on the cyclical nature of DOGE, where brief price surges are followed by extended periods of decline. While a temporary spike to .70 is possible in Phase 3, Mags warns investors to be wary of such fleeting optimism.
Technical Indicators Flash Red
Despite a recent 4% price increase, technical indicators paint a concerning picture. The Relative Strength Index (RSI) sits squarely in neutral territory, neither overbought nor oversold, reflecting investor indecision. More importantly, DOGE is currently trading below its key moving averages, with the 200-day EMA acting as the last line of defense at .123. A breach of this support level could trigger a domino effect, sending DOGE tumbling further towards the .07 mark.
Can Dogecoin Defy The Odds?
While Mags’ analysis and technical indicators cast a long shadow, there’s still a glimmer of hope for the meme coin. The recent uptick in trading volume suggests heightened activity, potentially indicating a buying spree by loyal DOGE holders. Additionally, overcoming the first resistance level of .14 could signal a potential turnaround. However, this optimistic scenario hinges on defying historical trends and requires a significant shift in market sentiment.
The future of Dogecoin remains shrouded in uncertainty. Elon Musk, the self-proclaimed “Dogefather” and a major influencer of the meme coin’s price, has been relatively quiet recently. Without his usual bullish tweets, DOGE lacks a strong catalyst for a sustained push upwards.
Related Reading: Ethereum Longs Crushed! Who Got Burned In The Million Fire Sale?
Dogecoin Price Forecast
Meanwhile, based on technical analysis by CoinCodex, the price of Dogecoin is predicted to decrease by 13%, reaching .12by July 13, 2024. The current sentiment is Bearish, suggesting a prevailing expectation of downward price movement. Despite this, the Fear & Greed Index stands at 70, indicating a high level of Greed among investors.
Over the past 30 days, Dogecoin has experienced 14 out of 30 green days, equating to a 47% success rate in positive price movements. The observed price volatility during this period is 5.10%, indicating significant fluctuations in its market price.
This heightened volatility, combined with the bearish sentiment, suggests that Dogecoin may encounter further price declines, although investor optimism as indicated by the Fear & Greed Index could introduce short-term price rallies.
Featured image from CSF Hungary, chart from TradingView
XRP To Hit Zero Against BTC? Veteran Trader Cites ‘Pure Classical Charting’
In a recent analysis shared via X, Peter Brandt, regarded as one of the leading experts globally in applying classical charting techniques to trading futures, foreign exchange, and crypto markets, suggested that the XRP to Bitcoin (XRP/BTC) exchange rate could potentially hit zero. Brandt’s analysis applies traditional techniques inspired by pioneers such as Schabacker, Edwards, and Magee to forecast this drastic trend.
Brandt stated, “From a pure classical charting point of view (that is, Schabacker, Edwards, Magee) this chart looks like it is headed toward Zero. XRPBTC”
Why Brandt Thinks XRP Is Going To Zero Vs. BTC
The chart indicates a troubling trajectory for XRP when priced in Bitcoin, with key support levels being consistently tested over time. The weekly chart showcases a series of peaks and troughs with notable highs in 2017 and a sharp decline from 2018 onwards.
Recently, the XRP/BTC ratio has been hovering around a crucial support line, illustrated by a dashed horizontal line on the chart. Notably, the chart shows XRP/BTC experiencing significant volatility over the years. After reaching highs in 2017 at 0.00025 BTC, it has been on a general downtrend, especially notable after September 2018. “XRPPBTC has lost 70% of its value since the Nov 2017 post,” Brandt commented.
A critical historical support level for the digital asset is highlighted by Brandt at around 0.000007 BTC (black line), which the market is currently testing. The continuation of the bearish trend might break this support.
Moreover, two moving averages are depicted on the chart. The 8-week SMA (Simple Moving Average) is currently at 0.00000838 BTC, while the 18-week SMA stands at 0.00000990 BTC, indicating bearish momentum as the price is below both averages.
The Relative Strength Index (RSI) on the chart, with a 14-week period, is at 28.80, which is near the oversold territory. This might usually suggest a potential for price recovery, yet the persistent bearish sentiment depicted suggests caution.
Peter Brandt’s assertion that the XRP/BTC ratio could be “headed toward Zero” comes from observing the continued failure of the price to rebound from key support levels and the downtrend remaining intact without signs of reversal. His commentary reflects a stark outlook for XRP when compared against Bitcoin, emphasizing the importance of these technical levels in predicting future movements.
In a follow-up post on X, Brandt doubled down on this claim, stating, “It is actually fun poking a stick at XRP_aholics. My comparison is to BTC, not USD, so here is what I don’t understand. How can XRP bulls be so insistent in that XRP is near ATLs vs BTC, and, in fact, has only closed higher than present levels in 6 of the last 126 months?”
At press time, XRP traded at .49845.
Renowned Investor Jim Rogers Expects All Cryptocurrencies to ‘Disappear’ — Says Bitcoin Will ‘Go to Zero Someday’
Veteran investor Jim Rogers, who co-founded the Quantum Fund with billionaire investor George Soros, expects all cryptocurrencies, including bitcoin, to disappear someday. Anticipating bitcoin going to “zero,” he stressed: “I’m very skeptical of crypto. I don’t expect it to last … I do not see any long-term value in cryptocurrency.” Jim Rogers Remains Skeptical of […]
Bitcoin News
Coinbase Faces Repeat Zero Balance Glitch Amid Crypto Trading Fervor
While bitcoin reached a 2024 high on Monday, rising above the ,000 per unit range, Coinbase suffered an issue again where customers were seeing zero balances. The news follows the issues Coinbase suffered on Feb. 28, 2024, when customers saw zero balances that day as well. Coinbase Users Encounter Zero Balance Bug Again Coinbase’s trading […]
Bitcoin News
ECB Economists: Bitcoin Fails to Become Global Decentralized Digital Currency, BTC’s Fair Value Is Still Zero
The European Central Bank (ECB) has published a blog post claiming that “bitcoin has failed to fulfill its original promise to become a global decentralized digital currency.” The ECB economists who authored the post added that bitcoin’s fair value is still zero and bitcoin transactions are “still inconvenient, slow, and costly.” Moreover, they asserted that […]
Bitcoin News
GBTC Discount Narrows to Zero; Experts Say Return of Premium to NAV Is a Possibility
The recently disappeared GBTC discount may be “a sign of industry maturing and the improved enterprise acceptance of bitcoin.” While some see the disappearance of the discount as pointing to the re-emergence of the premium to the net asset value (NAV), one expert said he sees “the continued parity or even a resurgence of the discount” as real possibilities.
The Impact of Spot Bitcoin ETF Approvals
On or around January 26, the discount to the net asset value (NAV) of the Grayscale Bitcoin Trust (GBTC) narrowed to zero for the first time in nearly three years. Since descending to 44% in June 2023, the discount has gradually shrunk and by Dec. 20, 2023, it had reached the single-digit figure of 7%.
According to Ycharts data, the last time the discount to the NAV was around zero was sometime around February 21, 2021. The gradual disappearance of the GBTC’s discount to NAV has been attributed to many factors including the spot bitcoin exchange-traded funds (ETF) approval speculation that gripped the crypto market for much of the second half of 2023.
Meanwhile, the disappearance of the discount has prompted some to predict the imminent return of the premium to the NAV. Others, however, have warned that this return to a premium is not a given because crypto assets like bitcoin are still volatile. They argue that the approval of spot bitcoin exchange-traded funds (ETF) alone will not change that.
Nevertheless, some experts, such as Mant Hawkins, the Core Contributor at Andromeda, see the disappearance of the discount as a sign of how far the crypto industry has matured. He cites the U.S. Securities and Exchange Commission (SEC)’s recent approval of spot bitcoin ETFs as proof of the extent to which cryptocurrencies like Bitcoin (BTC) are being adopted.
“I see the narrowing of the discount as a sign of the industry maturing and the improved enterprise acceptance of BTC. The BTC ETF approval decision, as welcome as it was, seems to be just one more slow turn of the adoption wheel,” Hawkins said.
The Return of the GBTC Premium
Another expert, Denis Petrovcic, co-founder and CEO of Blocksquare, said he does not rule out the market reacting to the disappearance of the discount by “pushing it to a premium we have not seen since 2020.” However, Petrovcic also concurred that crypto assets like BTC remain volatile, and not even the ETF hype can change this.
If indeed the GBTC’s premium is to return, Petrovcic said he foresees this ultimately gravitating to back NAV “to compensate for the ETF’s convenience and accessibility.”
Meanwhile, Zak Taher, the CEO of Multibank.io, indicated that he agrees with many of his peers’ views on what the disappearance of the discount likely means. However, Taher also told Bitcoin.com News that while a premium is a possibility, the “continued parity or even a resurgence of the discount are also potential scenarios.”
Andrey Stoychev, head of Prime Brokerage at Nexo explained that from an economic standpoint, one might suggest that the market has achieved a balance between the supply of and demand for GBTC shares. Hypothetically speaking, Stoychev said if inflows and outflows are equal, the present bitcoin price offers the most significant chance for profit realization in the past two years.
“With spot bitcoin ETFs approved, Grayscale investors have now been simply freed to realize gains,” Stoychev told Bitcoin.com News. “Fortunately, that selling pressure has been absorbed by newer market participants and investors, as evident from the disappearance of the GBTC discount. Predicting a meaningful premium is tricky; it depends on Bitcoin demand and industry-wide events, like the upcoming block rewards halving, that could shift supply dynamics and impact the GBTC discount.”
Stoychev added:
Arguably, right now, investors are spoiled for choice on how to gain exposure to Bitcoin. That field, dominated by the world’s leading asset managers, will possibly be characterized by miniscule margins and fierce price competition. Should this be the case, serious deviations toward a premium or discount for GBTC shares are unlikely without a significant, industry-wide event to disturb the markets and force investors into fear or greed.
Before dropping to zero in late February 2021, the digital asset investment product’s premium to NAV ratio had largely stayed above 10%. After the premium turned negative, the price of the GBTC stock also began to drop.
As shown by the data, the price of GBTC fell from one of its 2021 highs of just over to less than in December 2022. However, since then, the price has rallied. At the time of writing, one GBTC share was trading at just above . As of Jan. 30, 2023, GBTC’s BTC reserves are now under 500,000 at 496,573.81 BTC.
What are your thoughts on this story? Let us know what you think in the comments section below.
Shiba Inu Burn Rate Skyrockets Over 300% As Price Sheds A Zero
The Shiba Inu burn initiative has been one of the most notable developments this week that has gained the interest of the crypto community, witnessing massive surges in its token burn rate in the past few days.
Shiba Inu Burn Rate On The Rise
Data from Shiba Inu burn tracker Shibburn shows that the SHIB burn rate has increased significantly in the past 24 hours. According to the tracking platform, the burn rate has witnessed a 395.43% uptick today, January 12.
The tracker reveals that over 18 million SHIB tokens have been destroyed in the past 24 hours. The rise in burn rate came in light of Shiba Inu experiencing a price rally which has led to the token erasing another zero.
It is noteworthy that three burn transactions were responsible for the rise in burn rate today. Shibburn revealed that the three transactions incinerated a total of 16.56 million SHIB tokens in less than 8 hours.
The first transaction carried out by the wallet address 0x618ffd1cdabee36…3f21272bd7 saw about 7.77 million SHIB tokens being burned. Additionally, another wallet address 0xab782bc7d4a2b30…f8f63ee1bc sent over 3.33 million SHIB to the burn wallet five hours later.
Meanwhile, the third transaction initiated by the wallet address 0xa9d1e08c7793af6…7fb81d3e43 incinerated about 5.46 million SHIB tokens.
Over the past few days, the Shiba Inu burn rate has been recording major spikes. The development seems to have caused quite a speculative frenzy within the crypto space.
On Tuesday, January 9, the tracking platform recorded an increase in burn rate of over 28,000%. The surge was caused by a burn transaction carried out by the Shiba Inu team.
The team sent a whopping 9.35 billion SHIB tokens valued at ,553 to the burn address. This marks the highest burn the team has initiated since it started burning SHIB.
SHIB Erases Another Zero Post ETF Approval
The majority of crypto assets are flashing green, signaling a general upturn in the cryptocurrency market. The recent approval of the Bitcoin Spot Exchange-Traded Funds (ETFs) by the SEC is largely considered to be responsible for the upward trend.
Prior to the approval of Bitcoin ETFs, Shiba Inu was trading at a comparatively low value of .0000095. However, after the approval, SHIB has witnessed a price increase, allowing the token to shed another zero.
The increase in SHIB price post-ETF has garnered interest from investors and generated speculations over the coin’s potential for long-term growth.
Currently, SHIB is trading at .000010, indicating a 0.60% decrease in the past 24 hours. However, the token’s trading volumes appear to be down in the past day by over 12%, according to CoinMarketCap.