“Crypto News: Bitcoin and Altcoins Market Update, Bittrex Bankruptcy Proceedings, Binance Payment Shutdown, and More”

2023-05-12 17:34:31

The cryptocurrency market took a sharp turn in recent days following the price of bitcoin fell to the lowest level not seen in almost two months.

Altcoins aren’t in any better shape either, with ETH, MATIC, SHIB, DOT, LDO and many others getting dumped hard in the last 48 hours.

The week’s most important cryptocurrency news in one place

Initiates bankruptcy proceedings crypto exchange Bittrex following being sued by the SEC. Back in March, Bittrex announced that it would permanently cease operations by the end of April. Despite all this, the US securities market watchdog, the SEC, in April sued him, alleging that the company and its executives promoted and sold unregistered securities. Bittrex has denied all this, saying that the instruments it offers are not securities. Bittrex Global CEO Oliver Lynch has stated that they will fight the charges in court, but the bankruptcy proceedings may make it more difficult. It is important to mention that these moves did not affect Bittrex Global, the non-US crypto exchange.

The world’s largest crypto exchange, the Binance had to temporarily shut down bitcoin payments, as the Bitcoin network experienced significant congestion. The crypto exchange suspended payments several times within a short period of time, the first suspension lasting more than an hour and a half. At that time Bitcoin in mempool approximately 400,000 transactions were waiting to be processed. As a result of the events, the price of bitcoin also began to decrease, causing a small panic among investors. Indeed, many people saw Binance’s liquidity problems behind the delay in transfers, rather than the backlog of transactions.

A Paxful announced, that the peer-to-peer crypto marketplace is back online following the company suspended operations in April. In an update posted on its website, Paxful said its team has restarted the marketplace following more than 30 days. Although the platform said its wallet “remained fully functional” during the suspended service, it is unclear how Paxful plans to move forward.

Once once more, bitcoin reacted to inflation data

After a few days of sideways movement, Bitcoin still calmly and confidently reached $27,500 on Tuesday. The shift preceded the announcement of the US consumer price index scheduled for Wednesday. After the data came out and revealed that the rise in inflation was slightly lower than expected, the cryptocurrency also gained strength, rising $800 to $28,400.

However, this proved to be short-lived and BTC suddenly fell below $27,000 in the following hours. Even though at first it seemed that the price of the asset would recover over time, it started to lose its value once more in the last 24 hours.

Thus, at the beginning of today, Bitcoin was already at $26,100, which is the lowest price level since mid-March. Despite recovering a few hundred dollars since then, BTC is still down more than 4% on the day.

The encouraging macro environment is not helping cryptocurrencies right now either

Despite favorable macroeconomic conditions for risk assets, Bitcoin has been unable to capitalize on potential momentum as liquidity has decreased in the market.

Regarding the daily trading, the concerns of the market participants focused on whether, following three local peaks, the exchange rate will really start to go down in the longer term. The head-shoulders pattern is now clearly visible on the chart.

Meanwhile, one analyst highlighted that the time has come for the key 200-week moving average (WMA) to receive another retest. This line was previously the lowest point in 2015, 2019 and 2020. In addition, in parallel, BTC is also testing the middle line of the Gaussian channel. These two can thus prove to be a very strong support in the near future.

The values ​​of the relative strength index (RSI) have not been brilliant lately either. “The RSI is unable to push up to the extremes, suggesting that sellers are starting to run out. But there is still room for a last stab at the 25,000 range, as the next significant interest appears at this exchange rate level in the case of BTC.

Analysts at Decentrader stated that they are not convinced that a major correction is coming following Bitcoin’s downward trend. In the short term, however, it is interesting to note that the long/short ratio rose in parallel with the drop in the exchange rate.

Bitcoin exchange rate and real value of BTC

The current price of Bitcoin refers to the market value of the cryptocurrency. Its exchange rate is highly volatile and has seen large fluctuations in recent years.

The price of Bitcoin is determined by market supply and demand. When there is a lot of demand for Bitcoin but little supply, the price goes up. On the other hand, if there is a lot of supply of Bitcoin but little demand, then its price will fall. In addition, the perception of Bitcoin can also affect its price. If people believe that Bitcoin is a profitable investment, then its price will rise. However, if people believe that Bitcoin is not a profitable investment, then its price will decrease.

Of course, the next question comes, is the price of Bitcoin an indicator of the real value of the cryptocurrency?

The short answer: not necessarily. The value of Bitcoin can fluctuate due to many factors, including supply and demand in the market and the perception of the cryptocurrency. However, its real value is not determined solely by its price.

The real value of Bitcoin refers to the utility and potential of the cryptocurrency. Bitcoin is a useful form of online payment because transactions can be made quickly and securely without intermediaries. Also, Bitcoin is a global currency, which means it can be used all over the world without currency exchange restrictions. Bitcoin is also useful as a store of value, since its supply is limited and you cannot create more of it at will (cf. money printing and inflation).

Potential is the true value of bitcoin

Bitcoin’s potential suggests that it can change the financial and economic world by reducing dependence on centralized financial systems and banks. Transaction costs are reduced when there is no need for intermediaries. Additionally, Bitcoin has the potential to empower people by allowing them to truly control their own financial assets.

If Bitcoin continues to be a useful form of payment and store of value, and if it continues to change the financial and economic world, its real value will only increase. And if demand for Bitcoin remains high and supply remains limited, its price will rise.

However, it is important to note that the actual value of Bitcoin is subjective and may vary from person to person. Some value its ability to reduce transaction costs more, while others value its ability to hedge once morest inflation. Ultimately, the true value of Bitcoin depends on how people use it and perceive it.

Therefore, remember that the price of Bitcoin is only a current indicator of supply and demand in the market, but not necessarily the actual value of the cryptocurrency.

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