BTC breached the psychological $25,000 level for the first time in nearly two months.

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Bitcoin and Crypto Market Watch Tuesday, August 16, 2022 - 18:19

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Last week, Blackrock, an investment manager, announced the launch of a private trust offering US-based institutional clients exposure to spot Bitcoin (BTC). This move by Blackrock, which manages around $9 trillion in assets under management (AUM), in the midst of economic downturn has signaled to investors that BTC will continue to remain bullish in the long term. And accordingly, BTC made an aggressive move breaking the $25,000 level briefly before slipping down to $24,000.

The US Federal Reserve has published a guidance for crypto banks to access the central banking system. Although no specific reference was made to cryptocurrencies or Bitcoin, industry observers took the new guidelines to mean that. In another surprise move, China’s central bank has cut interest rates to stimulate its weakening economy post COVID-19. 

In today’s article, we are going to briefly understand the price actions of major crypto assets. 

BTC teases $25,000

BTC briefly breached the psychological $25,000 level for the first time in over two months. Compared to the lows of mid-June, market sentiment has drastically improved from extreme bearishness to neutral. Last week, BTC managed to close above the 200-week moving average (WMA) signaling renewed optimism among investors. The 200 WMA is currently near $23,000 and a must-hold level by the bulls if there’s any hope for establishing a clear uptrend. The next major resistance is forming at $25,840 and subsequently at $27,800. Major support is expected to form at $22,400 and $20,700. 

Bullish Ethereum

At a time when BTC is  considered the safest option to tread these rough macro conditions, Ethereum (ETH) has surprised many. From just below $1,000 in June, ETH has surged by nearly 100% to trade near $1,890. ETH had also tested the crucial $2,000 level two days ago. ETH’s price increase is attributed to one of the most important upgrades (Merge) in Ethereum’s history. ETH is transitioning from a proof of work (PoW) to proof of stake (PoS) consensus mechanism in hopes of efficient energy expenditure to secure the network. The Merge upgrade also paves way to scalability (through sharding) and deflationary environment making it an attractive asset for the long term. 

Investors, though, are advised to be on the lookout for a 'sell the news' possibility that may bring ETH down below $1,500 post the Merge. 

Altcoins having a breather

Among the top 20 crypto assets by market capitalization, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB) are holding up strong with more than 20% weekly gains. Cardano (ADA) and Solana (SOL) are also up by a decent 6% over the past week as various blockchains are trying to mitigate the issues caused by the Ethereum network. Ethereum classic (ETC) has already doubled (~210%) in value in one month as it is considered a strong alternative to ETH PoW chain. 

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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.

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