BTC finally disappointed the market yesterday by finishing the day off 1.2% lower, lowering the BTC/USDT pair below 23,000 dollars. Losses have insisted on piling up early this morning with one percent down from the pair, indicating that Tuesday’s post-Powell momentum might have been the short-term exemption to the rule.
We can witness investors’ support consolidating at 22,700 dollars, according to the Binance order book, which could generate more losses. For BTC to retain market confidence, BTC’s bullish action should maintain the benchmark virtual digital asset critics above 23,000 dollars. But it is constantly proving to be harder every day.
To some extent, this is because of a relentlessly determined United States Dollar Index, which has recently witnessed some relief after roaring constantly since September last year at astronomical highs.
If momentum fails to materialize, it will put to rest the long-term golden cross theory that studies a bullish market whenever BTC’s fifty-day trading average value shifts above its two-hundred-day trading average.
Since we witnessed a golden cross a few days ago, investors and traders have anticipated this with bated breath. It is yet to be witnessed, but if this is the bears’ last triumph before BTC rises to a new all-time high, don’t suffocate.
Ethereum maintains the rally above Bitcoin, with the BTC/ETH pair currently more than that 5% high month to date. Most of these events are related to ETH post-merge tokenomics, which has made the second-largest virtual digital asset by market capitalization turn deflationary.
Dive Into the Crypto Space
Shiba Inu and MATIC remain the top-performing digital assets in the top-twenty group. However, both coins struggled to maintain week-on-week profits in the double digits. Further dive into the board, OKB protocol token, and oracle protocol chainlink have also outshined the market recently.
DAO improved by 8% overnight in the decentralized finance space, bringing weekly profits to 20%. Staking has been attracting attention recently because of Robinhood’s, a hybrid exchange, report that European and United Kingdom investors will soon be allowed to earn staking profits in the application.
Surprisingly, speculations of regulatory restrictions on staking in the United States are developing. As a result, universal virtual digital asset market investment currently stands at 1.06 trillion dollars and has dropped 2% from last night; meanwhile, total accumulative value locked across all decentralized Finance networks dropped 1.8% to the United States 48.8 billion dollars.
Authorities Ramp Up Investigations on Crypto
Today’s negative market performance by Bitcoin comes with reports from the United States Securities and Exchange Commission investigating Kraken, one of the major digital asset exchanges, for purported Securities and law violations.
In a parallel development of events yesterday, Brian Armstrong, Coinbase’s Chief Executive Officer, through a lengthy thread on Twitter on what he termed speculations that the United States Securities would probably get rid of digital assets staking in the United States for retail consumers.
According to Brian Armstrong, staking is crucial technology in the crypto world as it enables customers to be involved directly in running open virtual digital asset protocol and generates several positive developments to the crypto ecosystem, comprising reduced carbon footprints, improved security, scalability, and accountability.
However, most individuals are convinced that virtual digital assets are here to stay and have cemented their positions. Although, concerns were raised about the need to formulate clear guidelines and rules of engagement.