August 2023

- August 20, 2023 0

 


Ethereum Proof-of-Work (ETHW), the cryptocurrency using the former Ethereum proof-of-work network, posted a solid rise yesterday from a low of $10.38 in daytime throughput to a high of $12.94 around noon. An increase of 24.6% in a few hours.

At $11.82, ETHW has corrected slightly but retains most of the gains seen yesterday, which does not rule out further improvements over the next few days.

Binance launches ETHW mining pools.

Note that yesterday's ETHW rally was a direct response to the announcement by the Binance cryptocurrency exchange, the largest in the world, of launching an Ethereum Proof-of-Work mining pool service ( ETHW) for its users. This launch comes with fee waivers until October 29.

Remember that mining pools designate independent crypto miners sharing resources to allow other miners to work with them and have a better chance of validating a transaction and reaping a mining reward.

Note that the Binance service that allows its users to join pools is called Binance Pool.

Ethereum Proof of Work, the crypto of those who took a dim view of the merger

Recall that ETHW is a cryptocurrency "born" in the month's debit after Ethereum, the second-largest cryptocurrency by capitalization, moved to proof-of-stake in a long-prepared event. Date, known as The Merge.

According to experts, this has reduced the energy consumption of the ETH network by more than 99%, eliminating the need for mining and introducing Ethereum staking. However, although widely supported by the Ethereum community, this decision was not unanimous.

Indeed, a prominent Chinese ETH miner known as Chandler Guo launched a campaign before the merger to oppose this evolution of the network, which gave birth to ETHW, resulting from a hard fork of the ETH network, and which maintains a proof-of-work system.

ETHW explosion in sight in case of listing on a central platform

Note that the major mining pools have announced their support for this asset, which was already a source of upward pressure earlier this month.

On the other hand, what could really make ETHW's price explode is that it is listed on major exchanges. In fact, several of them, including Coinbase, have stated that they are studying this possibility.

This is also the case for Binance, which, however, clarified yesterday that "in order to protect Binance users, ETHW will go through the same strict listing review process that Binance does for any other coin/token." and adding that "supporting ETHW on Binance pool does not guarantee ETHW listing. »

There is, , a potential opportunity here for easy and quick gains for those who remain on the lookout for possible ETHW listing announcements by Binance, Coinbase, Kraken, or any other major exchange.

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- August 20, 2023 0

 



Readers essentially sanctioned Bitcoin following last night's hawkish Fed meeting, with BTC/USD bottoming to $18,157, the lowest since June 19, accentuating a downward move that began there. Now over a week old.

The Fed proceeded with a new rate hike of 0.75%, a decision that had been widely anticipated but accompanied by other hawkish elements.

The Fed sends Bitcoin down.

In particular, the dot-plot chart, which describes Fed members' rate forecasts, showed a rise in rate expectations for the end of the year.

The members of the FOMC indeed anticipate a Fed Funds rate of 4.4% at the end of the year, which implies that the Fed will raise its rates by 1.25% during the next two meetings combined, a detail which has not eluded Bitcoin traders. Moreover, the dot plot also shows a consensus that the Fed will continue to raise rates in 2023.

It should also be noted that Fed chief Jerome Powell made remarks at least as hawkish as before during the press conference following the rate announcement, guaranteeing in the eyes of the market that the central bank will continue to tighten. Aggressive monetary policy over the next few months.

Why are rising rates penalizing BTC?

However, the tightening of monetary policy, such as the increase in rates, has a solid downward impact on Bitcoin and the cryptocurrency market in general. Indeed, rising rates increase the appeal of risk-free investments indexed to central bank key rates, effectively reducing the comparative appeal of risky assets such as Bitcoin.

Rising rates also mean that it is less profitable and ultimately more risky for investors to borrow funds at fixed rates to invest in cryptocurrencies like Bitcoin or other financial assets.

Finally, rising rates threaten to plunge the world into a recession, which generally encourages investors to be more cautious and stay away from highly speculative assets such as Bitcoin.

This is why the rate increase of the Fed and other central banks and market expectations in this regard, have been one of the most influential factors in recent months on the price of Bitcoin and other cryptocurrencies.

What does the technical analysis say about the BTC/USD trend?

From a graphical point of view, yesterday's further fall in Bitcoin obviously darkens the picture even further for the cryptocurrency, as seen in the daily chart below:

Bitcoin - H4 Chart

The next support in sight is the June 18 low, near $17,600. Then, no more credible support can be spotted before the crucial psychological threshold of $15,000. On the upside, the critical psychological point of $20,000 is the first significant hurdle for Bitcoin.

However, the daily chart tells us that it will take more for BTC's currently negative underlying trend to be challenged. Indeed, one can spot a bearish trend line extending from Bitcoin's all-time high in November 2021.

This trendline, currently located around $23,500, must therefore be crossed for Bitcoin's bottom profile to improve. Until this is the case, the decline will remain the most likely scenario for BTC/USD.

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- August 20, 2023 0

 


After the Fed's monetary policy decision, the cryptocurrency market recorded a first upward spiral. Bitcoin has seen an upside ratio of 1.21% in the past 24 hours. The queen of cryptocurrencies is already trading at $19.176. As a result, the volume of transactions increased in several countries, particularly in the United Arab Emirates. Since 2020, there has been a BTC trading volume of more than 1,500%, or nearly $26 billion.

A probable introduction of Bitcoin in the United Arab Emirates

Indeed, the United Arab Emirates is in a very closed circle of countries likely to adopt Bitcoin (BTC). Moreover, the government pays particular attention to BTC, a better alternative to traditional payment systems. As a result, a partnership will soon be signed between the Seed Group and CoinCorner to legalize Bitcoin in this region.

Bitcoin in UAE

A fortiori, this project should succeed if it benefits from the support of Sheikh Saeed Ahmed AI Maktoum, the owner of Private Office. Regarding this probability of the legal tender of Bitcoin in the United Arab Emirates, the CEO of Seed Group, Hisham AI Gurg, said this:

Besides individuals, many businesses are ready to use Bitcoin and other digital currencies as legal payment means for future transactions. The UAE wants to provide fintech companies an environment conducive to growth by creating an ecosystem for digital currencies. Businesses that accept cryptocurrencies have great potential in the digital economy of the Emirates.

In addition, one observation emerges: Bitcoin could become the primary means of payment in many countries. El Salvador has shown the way to other Latin American countries that do not hide their ambition to adopt or invest in cryptocurrencies, including BTC. In addition, Russia wants to use crypto-assets for its exports to thwart the European Union's economic sanctions.

Has Bitcoin started its recovery phase?

After crossing $18,190 over the past week, Bitcoin has increased to $19,250. At the same time, the Fibo retracement is 78.5%. This resistance could consolidate the price of BTC at 20,500 throughout this new week. However, a trend toward the down cycle should be expected if the Fibo retracement dips below 78%.

In any case, Bitcoin, the leading cryptocurrency, has not been spared by the bear market observed since the beginning of the year. On observation, bear markets persist, causing uncertainty within the crypto investment community. However, crypto-traders remain confident in the face of a possible rise in the price of cryptocurrencies. But we should be wary of the multiple crises in this sector.

Finally, Bitcoin (BTC) is likely to take off at the end of this year. Could he then close the year above the $26,000 single? Be that as it may, the price of the king of cryptos is still very far from its November 2021 ATH.

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- August 20, 2023 0

 


David Rubenstein Takes a Positive Look at the Entire Crypto Ecosystem

To fully understand why this announcement is necessary, we must go back in detail to the career of David Rubenstein. Son of an American postal service agent and a stay-at-home mother, the latter was born on August 11, 1949, in Baltimore in the United States and had a brilliant academic career that led him in 1973 to graduate from the University of Chicago Law School.

And a little less than 15 years later, David Rubenstein decides to found the Carlyle Group in the company of William Conway Jr. and Daniel D'Aniello; the firm will quickly become a juggernaut in the investment world with management of more than 293 billion dollars in assets and 1,800 employees in 31 offices around the world.

Thus, although it is synonymous with great success, it is easy to see that the billionaire's profile is highly conventional and echoes personalities such as Warren Buffett. But unlike the latter, who has always displayed a certain lack of interest or even contempt for the crypto ecosystem, and this is because he does not invest in a sector he does not fully understand, David Rubenstein is more open, and this testifies to a growing interest on the part of institutional fortunes for the universe of cryptocurrencies.

Admittedly, David Rubenstein had also expressed doubts about the entire sector a few years ago. However, he vocalized his change of opinion as early as last April when the market was in the middle of its downward trend. This trend is still ongoing despite a temporary stabilization in recent weeks.

It is precisely on this subject that the American billionaire expresses his opinion. Thus he declares the following words:

"I'm optimistic in the sense that I think the greatest fortunes are made when people go against conventional wisdom."

David Rubenstein thus recognizes the poor results of the crypto market, without the slightest doubt linked to a more global context which is also impacted by a downward trend. Nevertheless, he thinks that it is precisely in this particular context that the average investor can make the most profit. By this, he specifies and adds:

"Right now, the crypto market has been beaten dramatically. But the industry is here to stay and won't go away over time.

In addition, the American billionaire has also declared that he is an integral part of the sector, both as an investor in specific cryptocurrencies and as an actor in certain companies that revolve around the ecosystem. Rubenstein thus asserts: "I have 

personally invested in companies that surround the industry, not just cryptocurrencies themselves, but companies that serve the industry. Unfortunately, these companies haven't been doing very well lately".

Coinbase (NASDAQ: COIN) is one such company that Rubenstein mentions. Today as of Monday, September 5, the share price is currently $ 65.26, representing a drop of nearly 80% from its all-time high of $342.48 on November 12, 2021.

Despite this, David Rubenstein says he is optimistic about the sector's future and regulations from American regulators. He noted that Congressmen will push to regulate the entire industry slowly. In addition to this, he continues: "The crypto 

constituency is powerful in Congress. They tend to be on the Republican or Libertarian side, plus they're quite willing to spend money on lobbying."

The United States Congress, which exercises power over the United States federal budget and the country's trade and defense, is currently showing an open position on the issue of crypto-assets and seems ready to dialogue. A few months ago, representatives from FTX, Coinbase, Bitfury, Paxos, Circle, and the Stellar Development Foundation were heard to discuss the ecosystem's future.

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