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News | Crypto Converter | Crypto Calculators |
Ethereum holds strong despite $390M exchange inflows: Will a breakout follow? |
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Key points: |
Ethereum has shown resilience despite a $390 million ETH inflow into exchanges, suggesting that traders are securing short-term gains rather than expecting a prolonged sell-off. With ETH still undervalued according to the MVRV Score, a breakout above the $3,303 resistance could trigger a stronger recovery, though market sentiment will be key.
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News: Ethereum shows strength amid investor caution - Ethereum has held strong despite increased selling pressure, maintaining its recovery momentum even as significant amounts of ETH flowed into exchanges. The market's current dynamics suggest that the cryptocurrency could be setting up for an upward breakout in February. |
Data from exchange net position change indicates that 122,000 ETH, worth approximately $390 million, has moved onto trading platforms. This influx signals that investors may be taking profits after Ethereum's climb past $3,000 earlier this week. However, the absence of a sharp decline in ETH's price suggests that the market is not expecting a prolonged downtrend but rather short-term profit-taking. |
Ethereum's overall momentum remains bullish, supported by the MVRV Score, which currently sits below 1.0. This metric suggests that ETH is undervalued compared to its historical market cycles. While the indicator does not indicate a definitive market bottom, it also shows Ethereum is far from being overbought, leaving room for further gains. |
What's next for ETH? - Ethereum has been trading within a falling wedge pattern throughout January, a formation that typically signals a potential breakout. If ETH can decisively breach the $3,303 resistance level, it could confirm a bullish trend reversal, setting the stage for a move toward $3,530. Sustained buying pressure and market-wide optimism will be crucial for ETH to maintain this momentum. |
On the flip side, if selling pressure increases, Ethereum may struggle to break past $3,303, leading to continued consolidation between $3,303 and $3,131. A drop below $3,131 could see ETH retest $3,028, delaying a stronger recovery and invalidating the bullish outlook. |
Ethereum's trajectory in February will depend on investor sentiment, macroeconomic factors, and broader market conditions. If demand surges, ETH could be poised for another major rally in the coming weeks. |
Bitcoin, Litecoin surge as FOMC rate pause lifts crypto sentiment |
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Key points: |
Bitcoin rebounded 3% post-FOMC meeting, reversing losses from Monday's sharp sell-off. Litecoin surged 14% after the SEC acknowledged Canary Capital's spot Litecoin ETF filing. The broader crypto market saw gains, with Solana (SOL) leading altcoins with a 4% increase.
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News: Crypto markets rally as Fed keeps rates steady - Bitcoin (BTC) climbed back above $105,000 on Thursday, gaining nearly 3% in the past 24 hours as the Federal Open Market Committee (FOMC) opted to keep interest rates steady at 4.25%-4.50%—the initial decision of Trump's presidency after a series of rate cuts in 2024. |
Fed Chair Jerome Powell signaled a cautious approach toward future policy adjustments, stating, "We do not need to be in a hurry to adjust our policy stance." The pause in rate changes reflects the Fed's strategy to ensure inflation remains under control. |
The decision had an immediate effect on both traditional equities and crypto markets, sparking a recovery from Monday's steep correction, which saw BTC plunge 8% in a wave of liquidations. Alongside Bitcoin, major altcoins such as Cardano (ADA), Dogecoin (DOGE), XRP, and Ethereum (ETH) gained up to 3%, while Solana (SOL) outperformed with a 4% rise. |
Litecoin ETF filing fuels 14% rally - Beyond Bitcoin's rebound, Litecoin (LTC) stole the spotlight with a 14% surge after the U.S. Securities and Exchange Commission (SEC) acknowledged Canary Capital's 19b-4 filing for a spot Litecoin ETF. This marks the first ETF filing for an altcoin outside of Bitcoin and Ethereum, signaling potential regulatory momentum for additional crypto-based financial products. |
Bloomberg Intelligence analyst Eric Balchunas highlighted the importance of the filing, stating, "First alt coin 19b-4 to be acknowledged, rest were told to withdraw by Genz SEC." |
A 240-day decision period for the SEC now begins, during which public comments will be gathered before a final ruling on the potential approval of a Litecoin ETF. |
The market's response to these developments underscores the growing institutional demand for crypto ETFs, as investors seek exposure to alternative digital assets beyond Bitcoin and Ethereum. |
What's next? |
BTC bulls eye $110K: If momentum continues, Bitcoin could attempt another break toward $110,000, with key resistance at $108,500. Litecoin's ETF hopes: LTC's price could remain volatile as traders speculate on the SEC's decision timeline, but the acknowledgment alone is a bullish signal for altcoin ETFs. FOMC's impact on crypto: Rate decisions will remain a crucial factor in Bitcoin's long-term trajectory, with investors watching inflation trends and Fed policy shifts in the coming months.
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With Bitcoin rebounding, altcoins rallying, and institutional interest growing in crypto ETFs, the stage is set for an exciting Q1 2025 in the digital asset market. |
El Salvador scales back Bitcoin Law amid IMF agreement, ends mandatory BTC use |
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Key points: |
Bitcoin is no longer legal tender in El Salvador, and businesses are no longer required to accept it as payment. IMF-backed reforms reduced state involvement in Bitcoin infrastructure while maintaining the country's pro-crypto stance. Despite policy changes, Bitcoin investments continue, with El Salvador increasing its BTC reserves and attracting crypto firms like Tether.
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News: El Salvador revises Bitcoin Law to limit government role - El Salvador's Legislative Assembly has approved significant amendments to its Bitcoin Law, effectively scaling back state involvement in the digital asset while still recognizing its use. This move aligns with an agreement with the International Monetary Fund (IMF) for a $1.4 billion loan, aimed at strengthening the country's fiscal sustainability. |
The reforms, which passed with 55 votes in favor, eliminate Bitcoin's status as mandatory legal tender. Businesses are no longer required to accept BTC, and the state has withdrawn its role in facilitating Bitcoin transactions through infrastructure like the Chivo Wallet. The new framework makes Bitcoin acceptance a voluntary choice for private entities. |
This shift comes as public adoption of Bitcoin in everyday transactions remains low. Reports indicate that 92% of Salvadorans did not use Bitcoin for payments in 2024, making it clear that enthusiasm for BTC adoption has not translated into widespread usage. |
IMF agreement and economic adjustments - The changes also impact how the government handles Bitcoin in financial matters. Under the revised law, tax payments in BTC are no longer permitted, and government debt obligations must be settled in the currency in which they were originally contracted. This adjustment further reduces Bitcoin's role in national economic policies, reinforcing El Salvador's commitment to fiscal stability under its IMF agreement. |
However, El Salvador has continued accumulating Bitcoin despite these policy revisions. The administration of President Nayib Bukele has strategically leveraged BTC price surges, even using Bitcoin gains to repurchase national debt. |
El Salvador's crypto future: Policy vs. adoption - While the government's role in Bitcoin adoption has diminished, El Salvador continues to position itself as a crypto-friendly nation. The country remains a hub for blockchain businesses, with stablecoin issuer Tether recently relocating to El Salvador after securing a major regulatory license. Additionally, video-sharing platform Rumble is reportedly considering moving operations to the country. |
These developments suggest that while state-led Bitcoin adoption may be slowing, El Salvador's engagement with BTC and the broader crypto ecosystem is far from over. |
Tether warns of 'disorderly' market as MiCA drives stablecoin delistings in EU |
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Key points: |
Tether criticized "rushed actions" following Crypto.com's and Coinbase's delisting of USDT and other stablecoins due to MiCA regulations. The company warned that MiCA compliance issues could create a "disorderly" market, posing risks for EU crypto consumers.
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News: Tether slams MiCA-driven delistings - Tether has voiced strong concerns over recent developments in Europe as major exchanges begin delisting its USDT stablecoin due to the European Union's Markets in Crypto-Assets (MiCA) framework. The firm criticized what it called "rushed actions" by platforms such as Crypto.com and Coinbase, which have begun removing USDT and other stablecoins from their European markets. |
On January 29, Crypto.com confirmed that it would begin delisting USDT and nine other tokens by January 31, following compliance requirements outlined by MiCA. Similarly, Coinbase had already removed USDT from its European offerings in December 2024, citing regulatory concerns. |
Market turbulence and consumer risks - Tether warned that MiCA-triggered stablecoin delistings could have unintended consequences, particularly for EU consumers who rely on stablecoins for transactions and liquidity. The company stated that regulatory uncertainties may lead to a "disorderly" market environment, creating risks for investors and traders. |
MiCA's restrictions require crypto exchanges in the EU to delist non-compliant stablecoins by March 31, 2025, allowing only a short transition period for platforms to comply. Tether has repeatedly highlighted that certain aspects of MiCA make stablecoin operations more complex and could lead to reduced adoption across European markets. |
The company also noted that the USD stablecoin market is significantly smaller in Europe compared to emerging markets, where USDT is widely used for payments and remittances. Despite these challenges, Tether stated that it is finalizing its European strategy and remains committed to compliance with evolving regulations. |
What's next? - While the regulatory landscape in Europe remains uncertain, Tether is working to align its operations with MiCA while continuing to expand globally. Meanwhile, the European Securities and Markets Authority (ESMA) has urged crypto asset service providers to restrict access to non-compliant stablecoins by the end of Q1 2025. |
Despite the challenges, Tether's CEO Paolo Ardoino hinted at upcoming initiatives, including new MiCA-compliant stablecoin solutions and technological investments that could help the firm maintain its foothold in European markets. |
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More stories from the crypto ecosystem |
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Interesting facts |
The world's first blockchain-based domain name system (DNS) was created by Namecoin in 2011, allowing decentralized registration of domain names. This innovation aimed to make the web more resistant to censorship and protect domain names from being taken down or manipulated by authorities. Ethereum's "Genesis Block", which is the first block mined on the Ethereum blockchain, contained a hidden message that read, "By the time you read this, Ethereum will have officially launched." This was a nod to the successful completion of the Ethereum network's development and its official launch in 2015. In 2020, Bitcoin mining became more environmentally conscious, with some mining operations switching to renewable energy sources like solar and hydroelectric power. This shift aimed to address the growing concern over the environmental impact of Bitcoin mining, which had been criticized for its high energy consumption.
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Top 3 coins of the day |
Onycoin (XCN) |
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Key points: |
At press time, XCN was trading at $0.0374, reflecting a 30.04% increase over the last 24 hours. It emerged as the biggest gainer of the day, according to CoinMarketCap.
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What you should know: |
XCN demonstrated a significant upward trajectory, with its price surging by 30.04% in the past 24 hours. The token was trading above the 9-day Exponential Moving Average (EMA), indicating strong bullish momentum. The Relative Strength Index (RSI) entered overbought territory, suggesting that the asset may be overvalued in the short term. Trading volume also increased, reflecting heightened market interest. Immediate resistance is identified near $0.0400, a psychological level that could pose a challenge for further gains. On the downside, support is observed around $0.0300, aligning with previous consolidation zones. Traders should monitor the RSI for potential signs of a reversal and watch the EMA for indications of sustained bullish momentum. A break above the resistance level could pave the way for further gains, while a decline below the support level may signal a potential correction. |
Litecoin (LTC) |
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Key points: |
At press time, LTC was trading at $130, reflecting a 12.80% increase over the last 24 hours. It was one of the top trending cryptocurrencies, according to CoinMarketCap.
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What you should know: |
LTC experienced a notable price surge over the past 24 hours, climbing 12.80% to reach $130. The Bollinger Bands on the daily chart indicated an expansion, signaling increased market volatility. The price was trading near the upper band, reflecting a strong bullish momentum. Moreover, the MACD indicator showed a widening gap between the MACD line and the signal line, further supporting the bullish narrative. A sharp rise in trading volume corroborated the price action, suggesting robust market participation in this rally. Immediate resistance is seen around the $135 level, coinciding with the upper Bollinger Band. Conversely, support lies near the $116 mark, aligned with the middle Bollinger Band. Traders should monitor for a potential pullback if LTC fails to breach the resistance convincingly. |
Bittensor (TAO) |
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Key points: |
At press time, TAO was trading at $472, reflecting a 5.10% decrease over the last 24 hours. It was among the biggest losers, according to CoinMarketCap, signaling heightened bearish sentiment.
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What you should know: |
TAO was seen to be in a corrective phase, shedding 5.10% over the past 24 hours to trade at $472. The Bollinger Bands on the daily chart exhibited signs of contraction, suggesting reduced volatility. The price was oscillating around the middle band, indicating consolidation after prior downward momentum. Moreover, the RSI stood at 44.82, hinting at neutral-to-bearish market sentiment, with limited buying pressure observed at this level. This aligned with moderate trading volume, reflecting a lack of strong participation from either bulls or bears. Immediate support can be identified near the $450 level, which coincides with the lower Bollinger Band and a prior key demand zone. Resistance, on the other hand, is placed around $488, in line with the upper Bollinger Band. Traders may look for potential reversals near the $450 support or assess the possibility of further declines should it fail. Conversely, a breach above $488 may open the path for recovery toward higher levels. |
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