A two-month-long lull in cryptocurrency optimism has seen online search interest for “crypto” and other common cryptocurrency terms stumble down to late 2020 levels.
According to data from Google Trends, the term “crypto” currently has a score of 17, which is well off its reference point of 100 in May 2021. Bitcoin (BTC) and Ethereum have followed a similar downward trajectory.
However, search interest for these terms has been in a relatively consistent decline since May 2022, about a month after much of the Terra Luna ecosystem collapsed. A small spike in interest came in early November when the crypto exchange FTX collapsed.
Search interest over time for the word “crypto” Source: Google Trends
The fall in interest comes as Bitcoin (BTC) has held steady around $28,000 for 10 weeks now — something which Galaxy Digital CEO Mike Novogratz recently described as “lackadaisical,” due to a lack of “institutional excitement right now.”
Guy Turner, commonly known as “Coin Bureau Guy” suggested in a June 4 Twitter post that the fall in interest also coincides with lower trading volumes on exchanges, which he claims to have reached a 32-month low last month:
“Crypto” search trends are at the lowest point they have been since December 2020.
This also corresponds to exchange volumes which were at 32 month lows this past May.
Alternative’s Crypto Fear & Greed Index tells a similar story too, with market sentiment hovering around its current score of 53 — in the “Neutral” zone — for nearly a month now.
Fear & Greed Index measuring changes in sentiment in the crypto market. Source: Alternative.me
Interest hasn’t dipped in every domain of crypto though.
Search volumes for “decentralized finance” and “defi” have managed to increase in 2023, while searches for “memecoin” reached a peak in early May.
Rumors that the upcoming Grand Theft Auto VI (GTA 6) will incorporate cryptocurrency and non-fungible tokens (NFTs) have once again surfaced, sparking speculation among fans.
Posts shared on Twitter suggest that GTA 6 will be a play-to-earn game and that in-game items such as cars and weapons will be NFTs.
GTA creators Rockstar Games are yet to weigh in on whether there’s any truth to these claims, but there seems to be little solid evidence backing the rumors.
The company cracked down on the use of crypto in GTA in November last year and sent cease and desist letters to companies running public servers with blockchain integrations — a blow to several game makers that had built their games on the platform.
A lambo from GTA 5. (Steam/Rockstar Games)
Given that GTA 5, released in 2015, has sold over 180 million copies and generated a staggering $8 billion in revenue, it seems unlikely that Rockstar would drastically alter the successful formula of the franchise, the latest instalment of which is expected next year or in 2025.
Of course, there could be a crypto element but not necessarily the one crypto bros want. Game Rant suggests that it is more likely for Rockstar Games to use crypto as the butt of its in-game jokes.
Doctor Who, Top Gear join The Sandbox
Sci-fi series Doctor Who and British motoring show Top Gear, both popular BBC franchises, will enter the metaverse via The Sandbox after announcing a collaboration with the virtual world platform.
In partnership with Web3 company Reality+, is set to launch the space later this year.
Nicki Sheard, President Brands & Licensing, BBC Studios believes that while the metaverse is still in its infancy, it may shape how we consume and experience entertainment in the future.
Jodie Whittaker as the Doctor in hit sci-fi series Doctor Who. (BBC)
“I’m looking forward to seeing how fans interact with our brands in this space. This project forms part of BBC Studios broader ambitious plans to grow our brands into new categories, with innovative technology and platforms forming an integral part of this,” she said.
BBC Studios, which is a commercial production company under the BBC umbrella, will join 400 other entertainment brands that The Sandbox has worked with including Warner Music Group, Ubisoft, Gucci, The Walking Dead and Adidas.
Move-to-earn app STEPN is making it easier to buy NFTs for its game by adding an in-app Apple Pay payment option.
Users will be able to buy SPARK credits using fiat, with ten spark credits being equivalent to 1 USDC, which can then be used to purchase the NFTs.
“It eliminates the need to connect a separate crypto wallet and streamlines the payment process, making it easier than ever for our community to access our offerings,” said STEPN on Medium.
STEPN users will be able to pay with Apple Pay. (STEPN)
The catch is that purchasing sneakers with fiat will be more costly, which STEPN attributes to the “taxation” on each in-app purchase.
Onboarding has long been a challenge for wider adoption of Web3 games, and STEPN is not an exception. Its onboarding process is cumbersome and users have to buy the sneaker NFTs — working out which one is best for you is a task and a half itself — from a third-party marketplace and transfer it into the in-wallet app.
But the company could have more in the works when it comes to making onboarding easier.
“Our integration with Apple Pay is just the beginning of our vision to make Web3 technology accessible to all,” it added.
Battle of Titans dev competition back for second season
MatchboxDAO is bringing back its Battle of Titans Web3 racing game back for a second season this week.
Launched on Sunday, dev teams from over 60 Web3 companies including Immutable, Starknet and Fantom will compete in a fully on-chain Mario Kart-Style game.
The Polygon dev team’s car. (MatchboxDAO)
Each car is a smart contract that must be programmed to get to the end of the track while factoring in attacking and defending against other players using bananas, shells and shields.
The first edition of the game in January included teams from Ledger, Polygon, NEAR, Yield Guild Games and more, with a dev team from Uniswap emerging as the winners.
The new season will also add a community component where viewers will be able to vote for their favourite team.
Captain Tsubasa — Rivals, a football game based on the popular manga Captain Tsubasa, has launched a governance token.
Web3 companies Thirdverse Group and BLOCKSMITH&Co debuted the game in January 2023. Players can train characters from the manga and play against each other in matches.
Game producer Shun Fujiyoshi, who currently heads BLOCKSMITH&Co, said that various mechanisms are in place to maintain the value of utility tokens.
“These measures include in-game consumption points and mechanisms to control price fluctuations caused by speculative trading,” he said in a statement.
Created in 1981 by Yoichi Takahashi, 70 million copies of the original Captain Tsubasa manga have been sold in Japan alone. It has been translated into over 20 languages.
Illuvium raises additional $10M in funding
Crypto venture firm Framework Ventures has invested $10 million in gaming studio Illuvium, which will be used to accelerate the development of the Illuvium Universe.
Australia-based Illuvium said that the new funding would give them a comfortable runway through the launch of the open beta and beyond.
It is planning an upcoming open beta featuring its city builder Zero, open-world monster hunter Overworld and autobattler Arena.
The company previously raised $5m in a Framework Ventures-backed seed round in March 2021. It also made $72 million during an NFT land sale in June last year.
Hot take: Collecting NFTs for a tiny bit of Thai chicken
This edition I caught a Web3 project in the wild.
Queueing for tickets to go up the MahaNakhon, Thailand’s tallest skyscraper, a poster off to one side next to a coffee advert and emergency defibrillator caught my attention: Amazing Thailand NFTs season 2. Travel to earn amazing expat NFTs.
NFT advert in Bangkok, Thailand. Source: Callan Quinn
Easily persuaded, I downloaded the app.
In mid-April this year the Tourism Administration of Thailand (TAT) launched the second round of NFTs for an NFT tourism project it’s piloting. Using an app called YAK, tourists can check in at various locations around the country and in return receive a travel NFT.
PokemonGo for backpackers and passport stamp addicts sounds appealing. The reality is a bit more frustrating.
Crypto folk won’t like how much personal info you have to put in to get set up. Not just an email, but also your phone number and a one time passcode.
The app and I disagreed several times as to whether I was within the required radius of the sites I visited. While the MahaNakhon NFT was obtained without fuss, I somehow acquired an NFT for Pattaya City and Phuket, even though I didn’t go to either.
The idea is that you “earn” while travelling by getting discounts depending on how many NFTs you get. In many cases, getting the offer seems to require buying something else such as getting two free pieces of chicken if you spend over 1,000 Thai baht ($29) in a restaurant — a tall order in a country where you can have a nice meal for a fifth of that.
In fact, many of the offers didn’t seem to be exclusive to the NFT app at all and were applicable without the app.
Now, apparently — though it didn’t say so on the poster — the game was only supposed to run until the end of April so maybe all the good offers were gone, I can’t be sure.
But for me the biggest question was how to get the NFTs out of the app. They seem to be on a native chain of Thailand-based cryptocurrency platform Bitkub. As far as I could tell, it required creating Bitkub account to move them, which in turn required a Thai phone number to receive the one time passcode.
Overall it needed a bit of tweaking but I liked the concept of being able to collect POAPs for places I’ve visited as a tourist. The discounts were lousy but not really necessary: if you actually got the NFT corresponding to the place you visited, collecting for the sake of collecting would have been enough.
A revamped, global version would be nice please.
Other stuff
— Gods Unchained unveiled a new roadmap on May 23. Among its plans are some for new game modes, a creator program, a soft launch for mobile and new card sets.
— Blockchain gaming platform Gala Games will launch a Web3 poker platform with PokerGO, with a beta slated for release in June 2023.
— Game retailer GameStop will distribute Telos-based games on its upcoming Web3 gaming launchpad GameStop Playr.
— Gaming metaverse Star Atlas launched the latest version of its showroom on June 1 with new flyable ships, single-player ground racing and an updated dogfighting arena.
— Web3 game publisher Fenix Games is teaming up with platform Immutable to help game studios by “curating, advising and publishing best-in-class live services to Immutable’s ecosystem of games.”
— Nike’s NFTs will start being incorporated into EA Sports games, according to a June 1 statement from the company. No word yet on which titles.
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Callan Quinn
Callan Quinn is a British freelance journalist covering crypto and tech. She has worked as a business journalist in China, the UK, Somaliland and the republic of Georgia. Previously, she was also an NFTs, gaming and metaverse reporter at The Block.
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The United States equities markets welcomed the debt ceiling deal and the May nonfarm payrolls data on June 2 with strong rallies. The S&P 500 rose 1.8% during the week while the tech-heavy Nasdaq was up 2%. This was the sixth successive week of gains for the Nasdaq, the first such occasion since January 2020.
In addition to the above, the expectation of the Federal Reserve remaining in a pause mode during the next meeting may have acted as a catalyst for the rally. CME’s FedWatch Tool is showing a 75% probability of a pause, with the remaining 25% expecting a 25 basis points hike in the June 14 meeting.
Rallies in the equities markets failed to trigger a similar performance in Bitcoin (BTC) and the altcoins. However, a minor positive is that several major cryptocurrencies have stopped falling and are trying to start a recovery.
Could bulls maintain the momentum and surmount the respective overhead resistance levels? If they do, which are the top five cryptocurrencies that may lead the rally?
Bitcoin price analysis
Bitcoin has been trading close to the 20-day exponential moving average ($27,233) for the past three days. This suggests that the bulls are buying the dip near $26,500.
BTC/USDT daily chart. Source: TradingView
The 20-day EMA has flattened out and the relative strength index (RSI) is just below the midpoint, indicating a balance between supply and demand. This balance will tilt in favor of the buyers if they drive the price above the resistance line of the descending channel pattern. That may start a northward march toward $31,000.
If the price turns down from the resistance line, it will suggest that the BTC/USDT pair may spend some more time inside the channel. The critical level to watch on the downside is $25,250. A break and close below this support may intensify selling and tug the price toward $20,000.
BTC/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bears are guarding the immediate resistance of $27,350. On the downside, the pair has been forming higher lows in the near term, indicating demand at lower levels. This enhances the prospects of a rally above the overhead resistance. If that happens, the pair may soar to the resistance line of the descending channel.
If bears want to gain the upper hand, they will have to quickly sink the price below the nearest support at $26,505. The next stop on the downside could be $26,360 and then $25,800.
Cardano price analysis
Cardano (ADA) has been repeatedly finding support at the uptrend line but the bulls have failed to kick the price above the 50-day simple moving average ($0.38).
ADA/USDT daily chart. Source: TradingView
A breakout from this tight range trading is likely to happen within the next few days. If bulls shove and sustain the price above the 50-day SMA, it will clear the path for a possible rally to $0.42 and then to $0.44.
Alternatively, if the price turns down from the 50-day SMA and dips below the uptrend line, it will suggest the start of a deeper correction. The ADA/USDT pair could then plunge to the strong support at $0.30.
ADA/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the $0.38 level is behaving as a strong obstacle. However, the rising moving averages and the RSI in the positive zone indicate that the bulls have the upper hand. If buyers thrust the price above $0.38, the pair could climb to $0.40 and thereafter to $0.42.
If the price turns down sharply from the current level and breaks below the 50-SMA, it will suggest that bears have seized control in the near term. The pair may then collapse to $0.36 and later to $0.35.
Quant price analysis
After staying below the downtrend line for several days, Quant (QNT) turned around and started a recovery on May 26. The bulls continued their purchase and pushed the price above the moving averages on May 29, indicating a potential trend change.
QNT/USDT daily chart. Source: TradingView
The moving averages have completed a bullish crossover and the RSI is in the positive territory, indicating that the path of least resistance is to the upside. There is a barrier at $120 but if bulls overcome it, the QNT/USDT pair could rise to $128 and subsequently to $135.
Contrary to this assumption, if the price turns down sharply from $120, the bears will try to yank the price to the 20-day EMA ($110). This remains the key level to keep an eye on because a break below it will indicate that bears are back in control.
QNT/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the price is stuck inside a trading range between $114.50 and $120. The 20-EMA is flattish but the RSI is in the positive territory, indicating that the momentum remains bullish. If bulls clear the hurdle at $120, the pair is likely to start the next leg of the up-move.
Conversely, if the price turns down and plummets below $114.50, it will suggest that bears have a slight edge. The pair may then slump to $110 and later to $102. The deeper the fall, the greater the time needed for the recovery to resume.
While most major cryptocurrencies are struggling to start a recovery in a downtrend, Render Token (RNDR) has started a new upward move.
RNDR/USDT daily chart. Source: TradingView
The RNDR/USDT pair dipped to the 20-day EMA ($2.48) on May 31 but the bulls successfully defended the level. This shows a positive sentiment where traders are buying the dips to strong support levels. The pair could retest the 52-week high of $2.95. If this resistance is overcome, the pair may soar to $3.75.
The first sign of weakness will be a break and close below the 20-day EMA. Such a move will indicate aggressive profit-booking by the short-term bulls. That may open the doors for a possible drop to the 50-day SMA ($2.20).
RNDR/USDT 4-hour chart. Source: TradingView
The moving averages have completed a bullish crossover and the RSI is in positive territory, indicating that bulls have the upper hand. Buyers will try to push the price above the overhead resistance zone between $2.90 and $2.95. If they succeed, the pair may start a new uptrend.
On the contrary, if the price turns down from the current level or the overhead resistance and breaks below the moving averages, it will suggest that the bears are on a comeback. A break and close below $2.42 will indicate the start of a downward move toward $2.25.
Rocket Pool price analysis
Rocket Pool (RPL) has been trading inside an ascending channel pattern for the past several days. A positive sign in the short term is that the bulls have kept the price above the moving averages. This indicates a change in sentiment from selling on rallies to buying on dips.
RPL/USDT daily chart. Source: TradingView
The RPL/USDT pair has been trading inside a tight range for the past few days. This suggests that a range expansion could be around the corner. If the price breaks and closes above $50.50, it will suggest the start of an up-move to the resistance line of the channel. The bears are expected to defend this level with all their might.
This positive view will invalidate in the near term if the price turns down from the current level and breaks below the moving averages. The pair could then plummet to the support line of the channel.
RPL/USDT 4-hour chart. Source: TradingView
The 4-hour chart shows that the bulls are sustaining the price above the moving averages but they have failed to clear the overhead hurdle at $50.37. This suggests that bears continue to sell on minor rallies.
If the price turns down and breaks below the 50-SMA, it will indicate that the bulls have given up. The pair may then plummet to the support line near $46.
Contrarily, if buyers propel and sustain the price above $50.50, the bullish momentum may pick up and the pair could rally to $53.50.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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The United States equities markets rallied sharply on June 2 even though the nonfarm payrolls in May rose 339,000, blowing past economists’ expectations of a 190,000 increase. A few analysts pointed out that the market was possibly encouraged by the slower growth rate of hourly earnings which was slightly below estimates and an uptick in the unemployment rate.
The rally in the equities markets failed to act as a tailwind to the cryptocurrency markets, which remain stuck in a range. Galaxy Digital CEO Mike Novogratz said in an interview with CNBC that the lack of enthusiasm in the crypto markets was due to absence of institutional buying.
Bitcoin’s (BTC) historical performance in June does not give a clear advantage either to the bulls or the bears. According to CoinGlass data, between 2013 and 2022, there have been an equal number of positive and negative monthly closes in June.
Will buyers defend the respective support levels and start a strong recovery in Bitcoin and select altcoins? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin has been trading inside a descending channel pattern for the past few days. The price closed below the 20-day exponential moving average ($27,239) on May 31 but the bears are struggling to maintain the lower levels.
BTC/USDT daily chart. Source: TradingView
The bulls will try to push the price back above the 20-day EMA. If they do that, the BTC/USDT pair could reach the resistance line where the bears are expected to mount a strong defense.
If the price turns down from the resistance line, it will signal that the pair may extend its stay inside the channel for some more time. The crucial support to watch on the downside is $25,250 because a break below it will indicate that bears are in control.
The first sign of strength on the upside will be a break and close above the channel. The pair could then start its journey toward $31,000.
Ether price analysis
The bulls have successfully thwarted attempts by the bears to pull Ether (ETH) back into the falling wedge pattern. This suggests that the bulls are trying to flip the resistance line into support.
ETH/USDT daily chart. Source: TradingView
The ETH/USDT pair has rebounded off the 20-day EMA ($1,855), indicating a change in sentiment from selling on rallies to buying on dips. The bulls will next try to propel the price above $1,927 and retest the stiff overhead resistance at $2,000.
This positive view will invalidate in the near term if the price turns down and re-enters the wedge. That could trap the aggressive bulls resulting in a long liquidation. The pair may then slump toward the support line of the wedge.
BNB price analysis
BNB (BNB) has been consolidating in a tight range between $300 and $317 for the past few days. This shows indecision among the bulls and the bears about the next directional move.
BNB/USDT daily chart. Source: TradingView
The gradually downsloping 20-day EMA ($310) and the relative strength index (RSI) below the midpoint give a slight advantage to the bears. If the price turns down from the 20-day EMA, it will enhance the prospects of a break below $300. If that happens, the BNB/USDT pair could collapse to the next support at $280.
If bulls push the price above the 20-day EMA, the pair may reach the overhead resistance at $317. A break and close above this level will indicate the start of an up-move to $334 and then $350.
XRP price analysis
Buyers are trying to arrest XRP’s (XRP) pullback above the 38.2% Fibonacci retracement level of $0.49. A shallow correction is a positive sign as it shows that traders are keen to buy on minor dips.
XRP/USDT daily chart. Source: TradingView
The bulls will try to drive the price above the immediate resistance at $0.53 If they manage to do that, the XRP/USDT pair could attempt a rally to $0.56. This level is expected to act as a major hurdle but if bulls overcome it, the pair may start a new uptrend toward $0.80.
Alternatively, if the price turns down from the current level and slips below $0.49, it will suggest that the bulls are booking profits. The pair could drop to the 20-day EMA ($0.48) and then to the 50-day simple moving average ($0.47).
Cardano price analysis
Sellers tried to sink Cardano (ADA) below the uptrend line of the ascending triangle pattern on June 1 but the bulls held their ground.
ADA/USDT daily chart. Source: TradingView
The ADA/USDT pair has risen above the 20-day EMA ($0.37) and the bulls will try to thrust the price above the 50-day SMA ($0.38). If they succeed, the pair could gradually climb to $0.42 and thereafter to the overhead resistance at $0.44.
Contrarily, if the price turns down from the current level or the 50-day SMA, it will indicate that bears are selling on rallies. That will increase the likelihood of a break below the uptrend line. The pair may then start its descent to the next support at $0.30.
Dogecoin price analysis
The bulls again managed to sustain Dogecoin (DOGE) above the horizontal support at $0.07 but they are finding it difficult to push the price above the 20-day EMA ($0.07).
DOGE/USDT daily chart. Source: TradingView
This tight range trading is ripe for a breakout. If buyers kick and sustain the price above the 20-day EMA, the DOGE/USDT pair could rally to $0.08. This level may again act as a strong barrier. If the price turns down from it, the pair may trade inside the range between $0.07 and $0.08 for some time.
If the price turns down from the 20-day EMA, it will suggest that bears are selling on every minor rally. The bears will then try to yank the price below $0.07 and extend the correction to $0.06.
Polygon price analysis
Polygon (MATIC) fell below the 20-day EMA ($0.90) on May 30 but the bears could not sustain the lower levels. This suggests buying on dips.
MATIC/USDT daily chart. Source: TradingView
The flattish 20-day EMA and the RSI near the midpoint signal a balance between supply and demand. If bulls push the price above the 20-day EMA, the MATIC/USDT pair will once again try to surmount the resistance at $0.94. If that happens, the pair could start its northward march toward the downtrend line.
On the contrary, if the price turns down from $0.94 and dips back below the 20-day EMA, it will suggest that bears are trying to flip the level into resistance. That could keep the pair stuck inside the $0.82 to $0.94 range for a few more days.
Solana (SOL) has been trading between the moving averages for the past few days. The bears tried to tug the price below the 20-day EMA ($20.58) on May 31 and June 01 but the bulls did not budge.
SOL/USDT daily chart. Source: TradingView
The tight range trading is unlikely to continue for long. Buyers will try to thrust the price above the 50-day SMA ($21.50). If they can pull it off, the SOL/USDT pair may rally to $24 and subsequently to $27.12.
Instead, if the price turns down from the 50-day SMA and plummets below the 20-day EMA, it will suggest that supply exceeds demand. The pair could then drop to the vital support at $18.70. The bulls are likely to defend this level fiercely.
Polkadot price analysis
Polkadot (DOT) has been consolidating in a tight range between $5.15 and $5.56 for the past several days.
DOT/USDT daily chart. Source: TradingView
The price rebounded off the $5.15 support on June 2 but the bulls are facing selling at the 20-day EMA ($5.37). This suggests that every relief rally is being sold into. If the price continues lower and plunges below $5.15, the DOT/USDT pair could start the next leg of the downtrend toward $4.22.
Buyers have a difficult task ahead of them. If they want to prevent a decline, they will have to shove the price above the 50-day SMA ($5.69). The pair could then attempt a recovery to $6 and eventually to the downtrend line.
Litecoin price analysis
Litecoin (LTC) dipped below the moving averages on May 31 but the bulls purchased at lower levels as seen from the long tail on the day’s candlestick.
LTC/USDT daily chart. Source: TradingView
Buyers propelled the price above the overhead obstacle at $95 on June 1 but they haven’t achieved a close above it yet. If they do that, the LTC/USDT pair could rise to the resistance line of the symmetrical triangle pattern.
If the price turns down sharply from the resistance line, it will suggest that the pair may continue to oscillate inside the triangle for some more time.
On the other hand, a break and close above the triangle will indicate the start of a new uptrend. The pair could first reach $115 and then start its march toward the pattern target of $142.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Bitcoin (BTC) “consolidation” could end by July, new research predicts as optimism over a BTC price breakout returns.
In its latest market update on June 2, trading firm QCP Capital revealed a bullish bias on both Bitcoin and largest altcoin Ether (ETH).
QCP Capital: Bitcoin consolidation “played out perfectly”
Bitcoin price has been ranging between $26,000 and $31,000 since mid-March, but analysts are increasingly calling time on the sideways action.
QCP Capital is among them, predicting a change of course as soon as the end of the month.
This, it argues, is thanks to the United States debt ceiling “sideshow” vanishing, leaving Bitcoin closely mimicking its consolidation and breakout phase from 2020.
“With the passage of the Debt ceiling bill through the House and Senate that extends the ceiling until Jan 2025, we can now all move on and not have to worry about any political sideshow again until next year’s US Presidential elections,” it wrote.
“This means we now return to our regular programming of proper macro and crypto narratives.”
For QCP, the price levels may be different, but underlying behavior is the same in 2023 as at the start of the Coronavirus pandemic.
Then, the Federal Reserve unleashed a giant $4 trillion of liquidity, buoying risk assets and ultimately sending Bitcoin to new all-time highs.
“In March 2020 we were on the verge of a massive price breakdown below 5k when the Fed unleashed the liquidity tap, resulting in an exponential price increase as we approached the halving cycle the following year,” it wrote, quoting a previous edition of its “Just Crypto” newsletter series.
“Similarly in March 2023, we were about to break below 20k on BTC as a result of the banking crisis risk-off, when the Fed again unleashed the liquidity tap to drive us back above 30k, as we head into the next halving cycle next year.”
Should the relationship continue to play out, the next phase is obvious — a dramatic exit of the trading range, with QCP positioning long options plays.
“This consolidation has played out perfectly so far, but we expect that we are soon coming close to the end sometime this month. As a result, we recommend positioning for an upcoming big move through long 3m and 6m strangles here, with a bias to the long call side,” it added.
An accompanying chart showed the month of June as a hotspot for both BTC and ETH volatility from 2019 onward.
3-month “at-the-money” volatility chart for BTC, ETH (screenshot). Source: QCP Capital
Betting on a BTC price breakout
As Cointelegraph reported, other signals coming from within Bitcoin point to a new paradigm taking over shortly.
These include a on-chain metric tracking hodler behavior, which late last month put BTC/USD in a “transition” phase away from “capitulation” and on the way to “euphoria.”
Multiple market participants, meanwhile, argue that BTC price action is at a critical stage with a decision on trajectory now due.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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The European crypto scene has gained significant traction over the past few years, with a surge in the interest in and adoption of cryptocurrencies and blockchain technology. While the crypto industry is often associated with decentralization, innovation and financial freedom, it is not immune to various political ideologies and influences, and right-wing movements are no exception.
The attraction of cryptocurrencies for right-wing politicians in Europe can stem from several factors. Right-wing ideologies often prioritize individual freedoms and limited government intervention. Cryptocurrencies, with their decentralized nature, offer the potential for financial sovereignty by allowing individuals to have control over their money without relying on traditional financial systems or government regulations.
Right-wing politicians also may perceive cryptocurrencies as a way to challenge the existing financial establishment and its perceived biases or control. Bitcoin (BTC), in particular, emerged after the 2008 financial crisis, a crisis that led many to lose trust in traditional financial institutions and governmental monetary policies.
In addition, many became concerned about central banks and their influence on monetary policy, and Bitcoin’s decentralized nature appealed to those who advocate alternative monetary systems outside of central bank control.
Bitcoin as an “alternative for Germany”
For example, a German exit from the euro and a return to the Deutschmark (the country’s former currency) is a well-known demand of the right-wing populist political party Alternative for Germany (AfD). Although there is no official or clear strategy within the anti-euro party regarding cryptocurrencies, some members have clearly expressed their positive attitude toward Bitcoin.
For instance, AfD leader Alice Weidel has attended several Bitcoin conferences, called herself a “Bitcoin entrepreneur” and wanted to launch a Bitcoin startup. Even Aaron Koenig, a German entrepreneur and the founder of the brick-and-mortar crypto exchange Bitcoin Exchange Berlin, was on the stage with Weidel, and both presented their view of “money without a state.”
The AfD’s prioritization of crypto is also evident in its behavior in the Bundestag, Germany’s parliament. On several occasions, the AfD has submitted “Kleine Anfragen” (literally, “small requests”) to the government. This instrument of parliamentary procedure requires an official response from the Bundestag and is often a way for opposition parties to demand accountability for specific actions or inquire as to why other measures were not taken.
For instance, the party asked a “small question” about crypto donations for Ukraine, how a cryptocurrency could replace the previous currency, what effects this would have on the banking system, and how much Bitcoin German federal authorities own. AfD also opposed a proposed Bitcoin ban during discussions among European lawmakers last year.
The concept of cryptocurrency is, in some places, being linked to the right-wing — and, in part, radical — positions of the AfD.
For years, some experts, such as David Golumbia — a digital studies professor at Virginia Commonwealth University who researches the politics of cryptocurrency — have warned that blockchain could be hijacked by right-wing and libertarian groups.
In Golumbia’s view, blockchain technology and cryptocurrencies could be the realization of their vision of a world without government control. As a former member of the Hayek Society, Weidel belongs to the radical economic liberal wing of her party. The Hayek Society is named after Austrian economist Friedrich August von Hayek, who was an advocate of an unfettered market with as little government intervention as possible.
Support for crypto among Europe’s right-wing parties
It’s not only German right-wing politicians who have voiced interest in Bitcoin and blockchain technology as potential disruptors of traditional financial systems, with the leaders of the Dutch right-wing parties Party for Freedom (PVV) and Forum for Democracy (FvD) — Geert Wilders and Thierry Baudet, respectively — also speaking positively on the subject.
Baudet even wants to make the Netherlands a Bitcoin hub and released two NFT series on the theme of his fight against World Economic Forum founder and CEO Klaus Schwab. Baudet is a fierce critic of the WEF, which he believes is leading the world in the wrong direction and causing serious threats to individual freedom.
Polish politician Jaroslaw Gowin and his center-right party, Agreement — formerly known as Poland Together — were part of the ruling United Right coalition from 2015 to 2021. For most of that period, Gowin served as deputy prime minister, as well as being a member of parliament.
When Gowin was the leader of the Agreement party, he expressed a positive attitude toward cryptocurrencies, acknowledging their potential to promote financial innovation. The politician also consulted with many people from the industry about cryptocurrencies and blockchain. For example, the party held a meeting where Prime Minister Gowin listened to the recommendations of industry experts, including economist Krzysztof Piech and Filip Pawczynski, president of the Polish Bitcoin Association.
Nigel Farage, a prominent figure in British politics and former leader of the right-wing pro-Brexit UK Independence Party, has also shown interest in cryptocurrencies.
In a 2022 interview with Cointelegraph, Farage — also a former member of the European Parliament — said he first became aware of Bitcoin 10 years ago and shared his perspective on the potential future of Bitcoin adoption in Europe: “What happens in America first happens here [in Europe], too. There’s going to be a very, very big change here over the next two or three years, and it [Bitcoin] will become a trusted means of exchange.”
Farage also believes that Bitcoin has gained appeal as an alternative to the existing financial infrastructure, noting the latter’s inefficiency, high costs and slow speeds.
Other right-wing politicians haven’t made specific statements about cryptocurrencies but are still taking steps to embrace digital currencies. Viktor Orbán, the prime minister of Hungary and leader of the right-wing Fidesz party, and his government are currently considering the potential benefits of launching a central bank digital currency. Hungary also appears to be warming up to crypto across the board, with the government revealing plans in 2021 to cut taxes on crypto trading from 30.5% to 15% as part of an economic recovery program.
Right-wing extremists rely on crypto payments
Not only have right-wing politicians discovered cryptocurrencies, but right-wing extremist movements have also been utilizing crypto. In 2022, the Middle East Media Research Institute (MEMRI) published a report on the massive increase in the use of crypto payments by right-wing extremist groups in recent years.
Crypto payments are not a new tool for ultranationalists and European extremist groups proclaiming the superiority of the “white race” and advocating for a “white” Europe and North America. In fact, they are among the early adopters of the technology, accepting BTC donations as early as 2012, according to the MEMRI.
The United States-based Southern Poverty Law Center has further compiled a list of extremist groups accepting crypto donations.
Ultranationalist and extremist groups are actively using cryptocurrencies not only for reasons of convenience and ideology — and because they are being shut out of traditional and mainstream online banking systems — but also because funds held in crypto cannot be accessed or seized by anyone.
So, is crypto a right-wing movement, then?
Does this all mean that crypto in Europe is a right-wing thing? Not really.
While crypto itself is not inherently Right or Left, it is not without ideology, nor is it completely free of political positions — even if its political relations are indirect. Politicians can like it or hate it, regardless of their political persuasion, and support for cryptocurrencies among politicians is not limited to those leaning toward the Right. For example, the German liberal, pro-free market Free Democratic Party also advocates for a friendly policy toward cryptocurrencies.
While the European crypto scene is not inherently right-wing, there are notable instances of right-wing influence within the community, according to the MEMRI report, which also states that it is crucial to address these concerns by fostering education, implementing regulations and ensuring that the crypto space remains inclusive, transparent and aligned with democratic principles.
MEMRI further stated that social media platforms and online communities need to take proactive steps to curb hate speech, misinformation and extremist content, while also promoting healthy, constructive dialogue.
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The pair showed little signs of trend change as a stalemate between bulls and bears continued to produce little volatility.
The collection of moving averages (MAs), as well as the short-term holder (STH) realized price, near $26,000 thus stayed untested on intraday timeframes.
Analyzing the current setup, popular trader Crypto Ed considered the potential for upside topping out at $27,500.
“I do think we go down, but as long as we do not break that $26,000, there is a chance for a bullish surprise,” he said in a YouTube update on the day.
To break the current impasse, Crypto Ed continued, Bitcoin would nonetheless need to tackle the area above $27,600.
“Now I think we bounce back toward $27,500 — resistance of the previous range high — and from there I will be looking for, possibly, shorts toward $25,000,” he confirmed.
Fellow trader Crypto Tony likewise urged caution until $27,500 returned. His focus was on largest altcoin Ether (ETH), which rebounded from lows of $1,840 at the May monthly close to hit $1,897 on the day.
“Now i have gone over the structure and we really are not bullish unless we flip $2,000 into support,” part of Twitter commentary nonetheless warned.
An accompanying chart presented a target of $1,700 or lower should the $2,000 mark fail to flip.
Elsewhere, others argued that time was ticking for Bitcoin price to break out, with financial commentator Tedtalksmacro flagging favorable macro conditions.
5 months later and everything is going according to plan (see next tweet).
-Breakout from a >1-Year Descending BW -Successful retest✅ -Inverse Head & Shoulder -First (W)-Candle is about to close ABOVE the SMA 100 pic.twitter.com/p36vZZgCoE
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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The Bitcoin network is home to a variety of data that can offer investors, academics and fans useful insights. However, those without significant IT abilities might find it difficult to obtain this data. The good news is that anyone may explore Bitcoin network data without having substantial technical knowledge thanks to the user-friendly tools, platforms and techniques that are readily available. This article will walk you through how to access Bitcoin network data through various mediums.
The original software client for Bitcoin, known as Bitcoin Core, keeps a public record of the complete Bitcoin blockchain. Everyone can download and use the database for free because the program is open-source. A variety of data is available from Bitcoin Core, including transaction history, blocks, addresses and more.
Blockstream Explorer
The popular public database Blockstream Explorer provides free access to Bitcoin data. Blockstream Explorer, created by Blockstream — a pioneer in blockchain technology — offers a simple interface for exploring the blockchain of the Bitcoin network.
Users can use Blockstream Explorer to look for particular transactions, read comprehensive details about blocks, addresses and transactions, and monitor the status of Bitcoin confirmations. A number of features are available, such as transaction history, inputs and outputs, block information and address balances.
Additional features offered by Blockstream Explorer include access to the testnet for development and testing as well as the ability to examine the mempool, which displays the pending transactions awaiting confirmation.
The platform provides a straightforward user interface and extensive data for examining Bitcoin transactions and network activity, and it is made to be usable by both novice and experienced users. Individuals, programmers and researchers frequently utilize it to investigate and research the Bitcoin blockchain.
Cardiff University Bitcoin Database (CUBiD)
Cardiff University Bitcoin Database is a groundbreaking platform that allows users to access structured Bitcoin network data without requiring advanced IT skills. CUBiD was developed in 2020 by Hossein Jahanshahloo, a lecturer in finance at Cardiff Business School, to make it easier for users to access the massive amount of data that makes up the Bitcoin network.
The complexity of formatting raw data into a useful format is one of the key issues with publicly available Bitcoin network data. This problem is addressed by CUBiD, which streamlines the data collection, cleaning, checking and validation processes.
Catering to academics, policymakers and industry professionals, CUBiD is a useful tool for research and training. Moreover, two data layers make up the platform. The first layer contains fundamental information about the Bitcoin network, such as the tables for block headers, transactions and transaction details.
CUBiD offers a second layer that enables in-depth insights into blocks, transactions, addresses and wallet activity with just the press of a button in order to improve data analysis and shorten calculation time.
In addition to providing data services, CUBiD also provides users with individualized counseling and specially designed solutions. CUBiD’s user-friendly interface and extensive data layers give people the freedom to study and use the data from the Bitcoin network for a variety of purposes and academic projects.
Blockchain.com
A well-known Bitcoin wallet provider, Blockchain.com also provides a public blockchain explorer. Users can freely search and study the Bitcoin blockchain using its explorer, which offers details on transactions, blocks and wallet addresses.
API services
Use Bitcoin API services like Blockcypher that provide straightforward endpoints that let you retrieve particular data from the Bitcoin network. You can retrieve information like transaction details or up-to-date network statistics if you have a basic understanding of how to make HTTP queries.
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Global search interest for the term “AI” has reached a new all-time high on Google, though it’s yet to hold a candle to Bitcoin (BTC) peak mania in 2017, data has revealed.
Artificial intelligence has dominated headlines over the past few months, with some suggesting that it’s the latest “tech fad” after crypto and the Metaverse.
Most recently, OpenAI executives warned in a May 23 blog post that within the next ten years, AI will exceed expert skill level in “most domains” and be as productive as “one of today’s largest corporations.”
However while global and United States search interest for AI has reached a fever pitch — clocking in at 89 on Google Trends, it is still shy of Bitcoin’s peak search interest of 100 in December 2017 when Bitcoin was nearing its then-high of $20,000.
Comparing search trends for buzz words, “AI, “metaverse,” and “Bitcoin” over a ten-year-period in the United States. Source: Google Trends
Mark Schilsky, an Alliance Bernstein technology specialist noted on May 31 that AI was “still far below the absolute hype of Bitcoin,” according to a report from Business Insider. His analysis was specifically focused on U.S. search trends.
Schilisky compared the three “buzziest segments of the tech industry” over the past ten years, “AI”, “metaverse”, and Bitcoin,” to reveal that the peak of search volume for “Bitcoin” is higher than the peak of search volume for AI so far.
China says Bitcoin who?
The results, however, vastly differ in China, where cryptocurrency is banned and Google search is restricted. The country favors Baidu as its search engine.
According to Google Trends, China’s Google users have consistently had more search interest for AI compared to Bitcoin on a monthly basis since May 2013.
Comparing search trends for buzz words “AI,” “metaverse,” and “Bitcoin” in China. Source: Google Trends
Throughout the last decade, there were only three instances in which Bitcoin surpassed AI searches in China, which line up with significant Bitcoin-related events.
In November 2013, Bitcoin surpassed AI as a search time in China for the first time, coinciding with it reaching its highest-ever level of $300 on the now-defunct cryptocurrency exchange Mt. Gox.
In December 2017, Bitcoin once again took the lead in search interest, which was when Bitcoin hit all-time highs of $17,249.92 at the time.
The third and most recent occurrence took place in February 2021, as Bitcoin soared above $43,000 following the news that Tesla had bought $1.5 billion worth of Bitcoin, and its decision to start accepting Bitcoin payments.
The country banned cryptocurrencies in 2021, and shortly after it was reported by Cointelegraph’s staff in China that online searches for several major cryptocurrency exchanges were returning zero results.
Meanwhile, China has seen searches for “AI” hit their all-time high of 100 in April 2023. Today, the search score is around 94.
In May, Flytek, a state-sponsored Chinese AI company, announced it is launching “Spark Model” an AI system designed to compete directly with OpenAI’s ChatGPT.
Chinese officials recently discussed the need for “dedicated efforts to safeguard political security and improve the security governance of internet data and artificial intelligence,” during a meeting on May 30. According to a local media outlet it was stated:
“We must be prepared for worst-case and extreme scenarios and be ready to withstand the major test of high winds, choppy waters and even dangerous storms.”
Georgia, a major cryptocurrency-friendly country among Post-Soviet states, is preparing to start monitoring crypto firms to prevent money laundering and comply with sanctions.
The National Bank of Georgia plans to launch mandatory supervision of virtual asset service providers (VASP) starting Sept. 1, 2023.
NBG’s acting governor Archil Mestvirishvili said that the new regulatory measures will help the country combat money laundering, the local news agency InterPressNews reported on May 31.
Mestvirishvili noted that NBG is among the main authorities that supervise compliance with those sanctions. The supervision was especially active last year when global jurisdictions like the United States and the European Union imposed sanctions against Russia, he added, stating:
“We have created an additional department for monitoring sanctions. The enforcement of the sanctions is very important and the financial sector takes it very seriously.”
In addition to the VASP supervision, the NBG is also preparing to enforce a set of major restrictions for foreign bank account holders. Starting from Sept. 1, Russian citizens will not be allowed to withdraw more than 20% from their savings accounts immediately.
According to the central bank, such measures aim to support Georgia’s economic stability amid the increasing foreign currency deposits by Russians. “Since this capital inflow may be of a temporary nature, it’s better to keep it in liquid funds,” the regulator reportedly said.
The news comes amid the Georgian government preparing to approve cryptocurrency-related legislation in the autumn session. As previously reported, a local draft bill on crypto regulation aims to coordinate local laws with major European Union directives and provide legal status to entities involved in digital asset trading.
The upcoming crypto rules are also designed to prevent the use of crypto for money laundering and terrorist financing and help Georgia become a major global crypto hub.
Most crypto investors probably aren’t thinking about divorce or what will happen to their digital assets in the event of separation, but lawyers say it’s becoming a very common scenario as more people hold crypto assets.
Last year, market research firm GWI suggested that as much as 10.2% of global internet users aged 16 to 64 own crypto, with most ownership skewed toward nations experiencing high inflation or fluctuation in the value of their national currency.
Independent data and statistics tracker World Population Review suggests the divorce rate worldwide varies between lows of 0.15 divorces per 1,000 residents in Sri Lanka to highs of 5.52 per 1,000 people in the Maldives.
Divorce rates by country. Source: World Population Review
Speaking to Cointelegraph, Claire Walczak, a senior associate from independent law firm Lander & Rogers, who works in the firm’s family and relationship law practice, says family lawyers are seeing an increasing number of divorce settlements featuring digital assets.
She says it’s a “rapidly changing and evolving area of law,” so it’s important to have specialist family law advice if you have a matter involving digital assets.
According to Walczak, once divorce proceedings start, the court follows a process to determine how property and financial matters will be settled.
This can include determining what assets are available for division, assessing the parties’ respective contributions, considering whether it is just and equitable to make any adjustments, and evaluating each party’s future needs.
The same process applies when dealing with digital assets. Both parties in the divorce are obligated to disclose all documents concerning their assets, digital or otherwise.
Walczak says both parties to a property settlement are entitled to retain the crypto as part of their overall property settlement entitlements, regardless of whose name it is held.
If both parties seek to retain the crypto and fail to reach an agreement, courts may consider factors such as, who paid for the crypto, and who owns the wallet, when deciding who retains the asset.
“As part of this process, the court identifies and values the existing assets of the parties, which includes all digital assets,” Walczak said.
“In the case of cryptocurrency, the value of the asset type is determined by the open market and can be assessed via an exchange,” she added.
Bitcoin (BTC) — the largest cryptocurrency by market capitalization — achieved an all-time high of over $68,000 on Nov.10, 2021, but has since lost a considerable portion of its value and sits at roughly $28,000 at the time of writing.
“This can pose a risk to clients seeking to retain a large proportion of their property settlement entitlements in the form of cryptocurrency. This may need to be factored into the property settlement,” Walczak said.
“Once the value is determined, the parties can negotiate as to who will retain the cryptocurrency or, if neither party wishes to retain the cryptocurrency, whether it will be sold,” she added.
She noted that another consideration for family lawyers is that people who have acquired crypto as an investment asset must pay capital gains tax on any disposal, exchange or swap.
According to Walczak, if both parties in a divorce agree that the crypto should be sold as part of the property settlement, then the capital gains tax liability will be realized and form part of the asset pool.
“If, however, a party elects to retain cryptocurrency as an investment, then the capital gains tax liability will not be triggered, and the party retaining that asset may hold substantial unrealized capital gains,” Walczak said.
“Once it is determined who will retain the cryptocurrency or whether it will be sold, this can be documented in court orders,” she added.
According to the legal research platform Lexology, the case law on issues relating to cryptocurrency and its value is limited. However, there have been several high-profile cases in recent years where the value of crypto assets has taken center stage.
Lexology cites the 2020 Australian case of Powell vs. Christensen, where one party in divorce proceedings had purchased crypto, and the other sought the digital asset to be valued at its original purchase value rather than the market price.
The party who purchased the crypto argued that its value had decreased significantly since the purchase but did not disclose any documentation to support the case.
Ultimately, the Family Court of Australia determined the purchase value should be used for the divorce settlement rather than the reduced market value.
Staking and divorce
Walczak says crypto staking rewards can also form part of either spouse’s income and are recorded on their individual tax returns — similar to how dividends are dealt with.
Crypto staking involves locking up crypto holdings to earn interest or rewards. Staking is also how specific blockchain networks verify transactions.
“This will have the effect of increasing that spouse’s taxable income, which may impact upon their final property settlement entitlements,” she said.
She also noted that if a spouse elects to retain the “crypto staking rewards,” they will be retaining a potential income-generating asset, which may impact upon that party’s property settlement entitlements.
A party may also request to be paid in a particular currency, which could include crypto; however, Walczak says a party can’t elect to pay another party in a currency where it is seen to disadvantage the recipient of that payment.
Laws in place to keep everybody honest
In a recent case, the divorce proceedings of a New York couple took a turn after a forensic accountant helped track down the husband’s stash of BTC, which he was trying to hide from his wife.
Australian digital assets lawyer Joni Pirovich told Cointelegraph that broadly, crypto tokens are included in the pool of assets for division in a divorce.
Pirovich, the principal at Blockchain & Digital Assets, also noted specific laws requiring each spouse to be truthful about the assets and other forms of property owned.
During her career, she has already had experience with crypto divorce cases and revealed there are options available to help track down any hidden crypto.
According to Pirovich, one of the parties often knows the other has purchased crypto, but the other is not being truthful or doesn’t know how to aggregate the information.
“In some cases, a ‘legal request’ is made of the other party to produce the information,” she said.
“In other cases, I have provided contacts such as crypto tax specialists or crypto forensic specialists to assist with identification of crypto tokens held, and profits/losses made from crypto token activities to assets with the fair and equitable division of property in a divorce,” she added.
Prenuptial agreements and crypto
A prenuptial agreement, or pre-nup, is a common legal agreement a couple makes before they marry concerning the ownership of their respective assets should the marriage fail.
According to Pirovich, crypto can be included in a binding financial agreement, including a prenuptial style agreement.
She says if a binding financial agreement exists, then specific entitlements to specific assets, such as crypto tokens, must be honored according to that agreement.
However, if there is no pre-nup, then factors such as the length of the marriage, financial and non-financial contributions throughout the marriage, and whether one party will become the primary or substantial carer of any children are relevant factors in splitting the asset pool.
“Often, the party not involved in crypto tokens does not wish to receive any share of crypto tokens but rather the fiat currency amount invested, or their share of profits on the sale of the crypto tokens paid to them in fiat currency,” Pirovich said.
Ultimately, to avoid any issues down the track, she advises honest and open discussions with a partner about finances on a regular basis.
“There can be emotional reasons why a person seeks to maintain a level of financial independence from the marriage and assets treated as jointly owned by the couple. This tends to come up for people reentering marriage after a first divorce,” Pirovich said.
“At least annual discussions should be had about crypto and the couple’s financial position as part of annual tax return filing obligations, and at least every three years when the couple considers their wills and estate planning documents and revisions required,” she added.
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BitCulture explores arts, culture, music and media in blockchain and Web3.
Fine art on the blockchain
Exchange.art head curator Haley Karren came to Web3 from some of the world’s leading art institutions and says that working with 14,000 artists on Solana’s fine art marketplace has broadened her tastes.
Exchange.art head curator Haley Karren (Supplied)
“I have a new appreciation for pixel art, voxels and things that really are very much native to this space. It’s been fascinating to see the difference between what I was more interested in two years ago and what I’m interested in now.”
Formerly a curator at New York’s Museum of Modern Art and the Peggy Guggenheim Collection in Venice, Karren says her role has always been as a “conduit” between contemporary artists and the rest of the world. Even more so now that she’s connecting traditional artists to a space that utilizes blockchain, NFTs and artificial intelligence.
“Digital art and traditional art spaces are moving together more and more. That’s a big push for us at Exchange.art, but there is still a little bit of a divide,” she says.
“There’s just a little bit of a bias against the blockchain in a sense, and I think it’s a little bit of not understanding it.”
She says often, collectors are unaware that the blockchain can be used for provenance, and artists don’t realize that NFTs can be programmed to collect royalties each time a piece is sold.
“It’s shifting some established norms in the art world that didn’t give artists enough ownership over their work,” she says.
“I try to help onboard people as well as artists or traditional art collectors. It is a process, you know, understanding what crypto is, understanding what a wallet is.”
In the traditional art world, galleries are the gatekeepers. For artists to sell works, galleries need to display them for buyers, taking commissions of up to 50% for doing so.
NFTs help replace these gatekeepers, giving control back to artists.
“It’s a huge shift in terms of sovereignty and shifting it back toward artists. It places much more responsibility on them to also market their work, to talk about their work and to present it coherently.”
Incorporating aspects of physical art (Lisanne Hack, Aspire, 2022)
Karren sees her current role as a “sounding board” for artists to think through how a series should be presented, and put out in the world, how many, how often, in which order?
One such artist Karren highlighted is Lisanne Haack and her “Synergy” series (pictured left). Haack is a digital painter who creates in a style that resembles oil painting, as well as charcoal and pastels.
“In a fascinating departure from physical art, she varies the texture of the support between canvas and paper,” Karren explains, adding that digital tools enable Haack to cut, paste, rework and repeat sections to create digital pieces of fine art.
Emerging trends in the space include artists “working with different AI programs and incorporating it into their creative process to then push themselves in a way that they wouldn’t have been challenged previously.”
She also points to conceptual art being put on the blockchain directly, as well as the emergence of illustration as a fine art.
“Finally, in this space, it has been given its due. It’s been fascinating to watch and learn more about this art form that has a long history and has not been considered a fine art form in the traditional art world.”
Musicians vs AI
AI has been causing a stir across the world with its ability to remix and create “new” works based on existing artists. Musicians and major record labels have taken wildly varying stances on this.
Dance/electronica musician Grimes was a trailblazer, offering to split 50% of the royalties with any “successful” AI-generated song that uses her voice. She said she finds it “cool to be fused with a machine” and is in favor of “open sourcing all art and killing copyright.”
I’ll split 50% royalties on any successful AI generated song that uses my voice. Same deal as I would with any artist i collab with. Feel free to use my voice without penalty. I have no label and no legal bindings. pic.twitter.com/KIY60B5uqt
But rapper Ice Cube, who rose to fame in the late 80s with N.W.A., said in a recent interview he would sue anyone producing AI tracks mimicking his voice and any platform that offers the track.
“It’s like a sample. Somebody can’t take your original voice and manipulate it without having to pay. I think AI is demonic, I think AI is going to get a backlash from organic people.”
Universal Music Group famously ordered streaming services like Spotify to ban AI from being able to train on the label’s content. However, last week the label signaled it’s not opposed to the technology if used in the right way, announcing a partnership with the “wellness sound app” Endel to create “ethical” AI music that “respects artists’ rights.”
UMG artists will use Endel’s AI technology to create “science-backed soundscapes, designed to enhance listeners’ wellness, including both new music and new versions of catalog music.”
Michael Nash, the label’s chief digital officer, said, “At UMG, we believe in the incredible potential of ethical AI as a tool to support and enhance the creativity of our artists, labels and songwriters, something that Endel has harnessed with impressive ingenuity and scientific innovation.”
Is this a cautious green light for AI creators from one of the music industry’s most powerful players?
Stay up to date:
`The Web3 Foundation partners with legacy music festival
On May 31, the Web3 Foundation, which is behind the Polkadot blockchain, announced a new partnership with Primavera Pro to create the inaugural Web3 Music Summit in Madrid this June. Primavera Pro is known for throwing some of Spain’s largest festivals, with hundreds of thousands in attendance. The conference focuses on blockchain technology, experiential events, and discussions on the future of music in the digital age.
DJ Agoria gives NFT owners 100% of recording royalties
The French DJ Agoria announced his entrance to the NFT scene via the NFT music platform Bolero. Agoria revealed that his fans who collect his music as NFTs would see 100% of the royalties redistributed to them. He said it’s “about time” to give back to fans and also sees it “as a sincere and legitimate opportunity for my traditional partners to step into our ecosystem.”
Elon’s cryptic meme about AI
Tesla CEO Elon Musk has a love-hate relationship with AI. While he helped found OpenAI, creates robot armies and is buying up GPUs to create his own generative AI tool, he has also warned about its destructive capabilities. Last week the billionaire tweeted a cryptic meme about people entering the AI space, going from everyday-looking people to corpse-like zombies.
The Edge of NFT podcast explores the intersection of emerging technologies and culture, exploring everything from art to gaming and animation.
Edge of NFT podcast logo.
Hosted by Eathan Janney, Jeff Kelley, and Josh Kriger — three industry insiders and founders of Web3 advisory MainChain Venture — the show racked up more than 100,000 listeners in the last year.
This podcast goes beyond technology and looks at the human element of how NFTs change the way we interact with communities and industries. Ranging from 30-60 minutes, each show features a guest interview and explores topics like building better Web3 games, the importance of culture and royalties to Web3, and even tax loss harvesting of NFTs.
Big-name guests they’ve had on the show include Dim Mak founder and DJ Steve Aoki, The Sandbox founder Sebastien Borget, VeeFriends creator Gary Vaynerchuk and Filecoin Foundation President Marta Belcher. The presenters also regularly travel to high-profile events like Consensus and ETHDenver to conduct interviewees and help give listeners a sense of the flavor of the event.
In last week’s episode, they covered an event in New York at Christie’s art gallery featuring a 152-piece generative art collection of physical hand-drawn monoprints paired with NFTs.
Subtitled “How trillions were made and billions lost in the cryptocurrency markets,” this 405-page book is out now. Crypto Titans recounts the last 15 years of the cryptocurrency industry — starting from the publishing of Satoshi Nakamoto’s Bitcoin white paper in 2008 to the ongoing banking crisis and the U.S. crypto crackdown of 2023.
More than just a history, Crypto Titans reveals the interconnectedness of everyone and everything in crypto. How regulatory action in one country led to a massive crypto boom in another. Where some crypto empires were built, and others turned to rubble in a few days.
If you’re looking for a gripping edge-of-your-seat read, though, you may want to stick to fiction. This book focuses on being objective and fact-based — with plenty of references to boot: 631, in fact.
This means that unless you’re a history buff, it can get a little dry just talking about fact after fact. The book overcomes this with plenty of chapters and sections — meaning you can easily dip in and out, picking it back up with a fresh mind.
There’s even a handy little index at the back, in case you want to get a quick refresher on a specific company or person. Sam Bankman-Fried gets 68 mentions; the Securities and Exchange Commission, 41.
The book is great for anyone with an interest in the history of crypto. Readers need not be familiar with crypto or financial lingo to enjoy it, though a basic understanding will certainly help.
The crypto sector appears to have dodged another bullet. At the time of publication, the United States has reached a political agreement to raise its debt ceiling, avoiding a calamitous default on its obligations, and this resolution probably won’t include any new taxes on cryptocurrencies.
But that doesn’t mean the question of U.S. crypto taxation is settled. The debate is likely to continue and may be transformed into something more partisan than previously assumed.
To recap: On May 21, at the Group of Seven (G7) Summit in Hiroshima, Japan, U.S. President Joseph Biden spoke out against a debt-ceiling deal with Republican lawmakers that would protect crypto traders. The protection the president referenced was tax-loss harvesting, a tax minimization strategy legal in the U.S., but viewed by many as a loophole.
However, it was the phrasing of the president’s remarks as much as their content that drew attention. Biden said:
“And I’m not going to agree to a deal that protects wealthy tax cheats and crypto traders while putting food assistance at risk for nearly a hundred — excuse me — nearly 1 million Americans.”
It’s not every day that a U.S. president speaks out about cryptocurrencies — let alone from a high-level international conclave — so Biden’s choice of words may be worth examining. He seemed to equate “crypto traders” with “wealthy tax cheats.” If so, it might suggest that crypto support may now be breaking more along Democrat/Republican lines than was earlier presumed.
This also raises some questions: Is tax-loss harvesting with cryptocurrencies a loophole in the U.S. tax system that should be closed? Would investors or traders even miss it if it were eliminated?
On a more political level, was it surprising to hear a U.S. president grouping “crypto traders” with “wealthy tax cheats” in a single phrase? One has heard many claims recently that crypto and blockchain have no party affiliation in the U.S., with lawmakers on both sides of the aisle favoring crypto reform legislation.
Is tax-loss harvesting widely used by U.S. crypto investors?
“Tax-loss harvesting is an important tool for cryptocurrency investors for two key reasons,” Nathan Goldman, associate professor at North Carolina State University’s Poole College of Management, told Cointelegraph.
First, cryptocurrencies’ prices are more volatile than traditional securities, like equities. For example, General Electric’s stock traded at $74 at the end of 2021 and $66 at the end of 2022. During the same period, Bitcoin (BTC) tumbled from around $47,000 to nearly $16,000. Goldman noted:
“Given the dramatic ups and downs, there is ample opportunity for investors to sell during the down periods, creating a tax loss that can be used to offset another gain — also known as tax-loss harvesting.”
The second reason for the strategy’s popularity with crypto investors is that it isn’t subject to wash sale rules. With most securities, “tax-loss harvesting carries the penalty that the taxpayer cannot repurchase the security for 30 days — often referred to as ‘wash sale rules,’” explained Goldman. During that time, the stock might increase in value, which the investor would not recognize. “However, cryptocurrency does not have those rules.”
“This rule — or lack thereof — has a lot of important tax considerations, and, thus, many investors are likely making use of it,” said Goldman.
“It is definitely an issue, as there is some empirical evidence that crypto investors engage in this strategy,” Omri Marian, professor at the University of California Irvine School of Law, told Cointelegraph. “The President’s 2024 budget proposal estimates that closing this loophole will bring in about $24 billion over 10 years, which is not insignificant.”
According to a March 2023 White House statement explaining the Administration’s 2024 budget proposal:
“The Budget saves $24 billion by eliminating a special tax subsidy for crypto currency and certain other transactions. Right now, crypto investors aren’t subject to the same rules of the road that investors in stocks or other securities have to follow, allowing them to report excessive losses. […] The Budget eliminates this tax subsidy for crypto currencies by modernizing the tax code’s anti-abuse rules to apply to crypto assets just like they apply to stocks and other securities.”
However, not everyone agrees that tax loss harvesting is rampant or will add much to government coffers if the “loophole” is closed. “Crypto not being subject to the wash sale rule is a loophole in the system,” Shehan Chandrasekera, head of tax strategy at CoinTracker, told Cointelegraph. “That said, I don’t think the government is losing billions of dollars from that. This is because crypto is still a small segment of the economy.”
“From a pure volume perspective, I wouldn’t think it’s massive,” Markus Veith, digital asset practice leader at Grant Thornton, told Cointelegraph, referencing that amount being lost in foregone taxes. Crypto is not yet that impactful to the domestic and global financial services industry. Meanwhile, crypto prices are recovering, “which also begs the question of how many losses are still out there,” said Veith.
Traders and cheaters
Wasn’t it surprising that the U.S. president publicly linked “crypto traders” with “wealthy tax cheats” in a single sentence — and at a meeting of G7 leaders, no less?
“Personally, I would not call someone who engages in legal tax planning a ‘tax cheat,’ even if I do not like their behavior,” said Marian.
Then, too, maybe Biden’s remarks were taken out of context. He may have been talking about two “loopholes” being closed. One was the wash sale rule for crypto, “and the other is like-kind exchanges for real estate investors,” said Goldman, though both align with wealthy investors.
President Biden mentioned crypto in a press conference in Hiroshima. Source: The White House
“Those comments [i.e., Biden’s] appear to be more related to the real estate investors. If anything, I am more taken aback by him calling them ‘tax cheats,’” he added.
An accounting firm executive who preferred to remain anonymous told Cointelegraph that he would have thought the U.S. president had more important issues on his plate than crypto wash rules. This was a G7 meeting, though, and on May 16, the European Council had just adopted the world’s first comprehensive set of rules for crypto assets, known as the Markets in Crypto-assets regulations or MiCA. Maybe “that came up in conversation,” and then the discussion shifted to the debt ceiling with crypto still on the president’s mind, the source speculated.
Maybe the U.S. president has a point, however. Perhaps tax-loss harvesting with crypto is an abuse of the U.S. tax system and should be banned.
“It is indeed a problem, in my opinion,” said University of California’s Marian, even if wash trading is currently legal in the U.S. “I don’t see why crypto should have a favorable tax treatment over other investment assets.”
On the other hand, tax loss harvesting and the like didn’t begin with crypto. “Tax planning strategies are much older than the crypto industry, and triggering tax losses to offset income is absolutely something that has been there for a long time,” JJ Schneider, tax reporting and advisory partner at Grant Thornton, told Cointelegraph.
The whole issue could remain problematic until the U.S. determines the actual nature of cryptocurrencies, suggested Goldman:
“The U.S. government struggles with defining what cryptocurrency is. The IRS [Internal Revenue Service] treats it like a capital asset. Other entities treat it like a currency, while others treat it like it’s a security.”
If all entities were to treat cryptocurrency like a currency, “then it may make more sense to follow currency’s rules for wash-sales,” continued Goldman. “However, if it were to go by way of the IRS, then wash sales become potentially problematic.”
The bottom line: One must first define the nature of cryptocurrencies before gauging if their holders are profiting from tax loopholes.
Transparent regulations
So is more regulatory clarity needed in the U.S., especially if the country hopes to attract institutional investors whose participation might make cryptocurrencies less volatile?
“There’s a big hope that institutional adoption is moving forward,” said Grant Thornton’s Veith. “But with what the industry perceives as lack of clarity, I don’t see that necessarily going up.”
“More guidance is needed,” added Goldman, and cryptocurrencies need to be defined and treated similarly across all financial sectors like taxes, financial reporting, etc.
Marian agreed, but only up to a point. “I do believe there are important areas in which guidance on crypto taxation is needed.” But the claims of uncertainty and lack of guidance are exaggerated, in his view. Marian added:
“For most transactions that most taxpayers engage in, there are relatively clear answers in the law. People simply do not like these answers.”
Nor is the U.S. necessarily the only country that continues to struggle with crypto and taxes. “I think all countries are in the process of figuring out the right tax framework for digital assets,” CoinTracker’s Chandrasekera stated.
The final debt ceiling legislation resulting from weeks of negotiations published on May 28 as the ‘‘Fiscal Responsibility Act of 2023’’ still needs to pass both houses of Congress. But there is no mention at all in the nearly 100-page document of “cryptocurrencies,” “wash rules,” Bitcoin mining or anything remotely crypto-related.
“Yes, one of the victories is blocking proposed taxes,” tweeted Republican Representative Warren Davidson of Ohio. Crypto lives to fight another day.
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While many beginners base their trades on the negativity brought about by devastating events happening within the crypto space, experienced traders base their decisions on different factors and are able to come out on top of others, even in a bear market.
Speaking with Cointelegraph, Dan Tapiero, the founder of growth equity funds 10T Holdings and 1RoundTable Partners, shared some of the most important things that he employs as he navigates the market. This includes having a broader perspective in the space and not being influenced by feelings and people’s fears. Tapiero explained:
“It’s important to understand that the space has really grown. It’s not just about the price of Bitcoin, or the price of Ethereum. We have five or six companies that actually made more money last year than in the previous year. So, even during the time of a massive drop in the price of Bitcoin and Ethereum. We’ve had companies do better.”
The executive also gave examples of sectors within the broad digital asset ecosystem that, according to Tapiero, are not correlated. He explained that last year, $8 trillion in stablecoins were settled, one trillion nonfungible tokens (NFTs) that have been minted and blockchain gaming becoming big. Tapiero pointed out that three years ago, these were all zero.
10T Holdings founder Dan Tapiero with Cointelegraph reporter Ezra Reguerra in Dubai, UAE. Source: Cointelegraph
Apart from these, the veteran trader also pointed to developments in the decentralized finance (DeFi) space and also highlighted that while the space’s locked value went from $200 billion to $50 billion, it also started with zero a couple of years ago.
“I found like, you know, young guys in the space don’t have the perspective. Five, six years ago, which is not that long ago, nothing exists. You barely even had Ethereum. It was just Bitcoin (BTC). So, as the space broadens out, the value also increases with it,” he explained.
When asked about what he thinks about community sentiments and their impact on his strategies, Tapiero said that they are able to “see it and sense it,” but he’s not interested in these feelings. He believes that similar to other currencies, bonds or stocks, crypto is a market. He explained:
“Markets display certain behaviors. I spent my entire life managing a portfolio of financial assets that move around and honestly, the most important thing is to be able to set your emotion aside and make rational judgments that aren’t impacted by what the news is or what people’s fears are.”
In addition to these insights, the executive also shared his thoughts on the next bull phase. “The bear phase is finished,” he said. While Bitcoin and Ether (ETH) went down last year, Tapiero said that the market has “had a very nice recovery” and will have an “explosive” and broad bull market.
“I think we’ll see new highs probably in the second half of 2024, 2025. And I think in that bull phase, we’ll probably hit up to 6 to 8 trillion,” he added.
Blackrock CEO Laurence Fink believes the recent “drama” around the United States debt ceiling has deteriorated global trust in the U.S. dollar, something that other analysts predict could provide some tailwinds for Bitcoin (BTC).
Fink’s comments come as U.S. lawmakers passed a highly-anticipated bill to lift the $31.4 trillion debt ceiling on June 1. The U.S. Treasury indicated that the deadline for raising the debt ceiling was June 5. Any later, the country could begin defaulting on its debts.
314-117: The House passes the Biden-McCarthy debt ceiling agreement, raising the debt limit until 2025 and instituting discretionary spending caps for two years.
According to a May 31 report from Reuters, Fink told the attendees of a Deutsche Bank financial services conference that he expects at least two more interest rate hikes from the Federal Reserve in the coming months, claiming that he’d seen “no evidence” of overall inflation being reduced.
“I believe we’ll have a resolution, … but let’s be clear, the United States is jeopardizing its reserve currency status.”
Many Bitcoin advocates and cryptocurrency investors see BTC as a hedge against inflation and debt fears brought on by central banks increasing overall monetary supply.
Josh Gilbert, a markets analyst from eToro told Cointelegraph that the debt ceiling drama brings Bitcoin into the spotlight once again, as investors may seek finite-supply safe haven assets outside the constraints of the current financial system.
“The debt ceiling deal once again highlights Bitcoin’s utility because it’s essentially a break away from the traditional financial system. Given its finite supply, it’s free from the issues that the US Government is facing right now,” he said.
Still, Gilbert notes that while the U.S. banking crisis and the debt-ceiling debacle highlights the inherent utility of an asset like Bitcoin, any investors hoping for current events to provide a massive surge in the value of Bitcoin should tone down their expectations.
“There’s more fear than optimism in the short term due to the uncertainty of these issues and the liquidity problems they will cause,” Gilbert said. “When the banking crisis happened, it dialed down inflation and rate hike expectations, which is why we saw Bitcoin rally.”
These sentiments were echoed by Matteo Greco, a research analyst at investment firm Fineqia International, who told CNBC that the current downward pressure on Bitcoin’s price is due primarily to investor fears of the U.S. reaching the debt ceiling.
Typically when central banks raise interest rates, investors choose to take their money out of risky assets like cryptocurrencies and growth stocks.
“Given Bitcoin was so depressed in 2022, the expectations of this high-interest rate environment changing saw investors take an opportunity to buy Bitcoin at heavy drawdowns. Rate hike expectations have changed significantly so far this year and in the last few weeks,” Gilbert added.
On Gilbert’s assessment, if Fink’s fears of further rate hikes come true, this could see the price of Bitcoin fall further from its current price. If the inverse happens, and the Federal Reserve pauses its rate hiking cycle in June, Gilbert says that investors can expect to see some positive price action for Bitcoin.
The price of Bitcoin over the last year. Source: Cointelegraph Price Index.
Bitcoin is currently changings hands for $27,161, down 2% in the last 24 hours and 6.4% over the last month, according to data from Cointelegraph Price Index.
Satoshi Nakamoto may have effectively disappeared over 12 years ago, but two artificial Intelligence dabblers are seeking to revive the ability to chat with the famed Bitcoin (BTC) creator.
On May 31, Bitcoin FilmFest co-organizer Pierre Corbin and the chatbot’s co-developer Hugo Ferrer — released “Talk2Satoshi” — an AI chatbot that aims to answer questions about Bitcoin and economics as if they came from Nakamoto.
Announcing my newest project!
Together with @HugoFerrer_, we’ve spent the last few weeks working on something that has been missing in #bitcoin: the Bitcoin GPT. We call it @talk2satoshi .
The model, essentially, is OpenAI’s ChatGPT trained on a limited dataset including Nakamoto’s public emails and forum posts. It also draws from other sources including Saifedean Ammous’ book The Bitcoin Standard, Jeff Booth’s book The Price of Tomorrow and Corbin’s filmThe Great Reset and the Rise of Bitcoin with the addition of more sources on the way.
In testing, the chatbot generates responses that are typically uncertain of the future of fiat currencies and hopeful about Bitcoin, although it can provide conflicting answers depending on how it’s prompted.
Check out an example: Here’s the answer to “Is our debt sustainable in an inflationary world?”:
For example, when asked a variation of the question “What is the future of Bitcoin?” it generated separate responses saying it was both “promising” and “uncertain.”
The model isn’t trained on the more recent Bitcoin developments such as the Ordinals protocol or BRC-20 tokens and often generates a response saying it can’t provide an opinion on such topics. Depending on the question, however, it can generate contradicting responses on Ordinals and BRC-20 tokens.
The chatbot seems to be critical of Bitcoin Cash (BCH) and other Bitcoin forks in general saying its been “difficult for alternative chains to gain momentum.” Source: Talk2Satoshi
When asked questions regarding Ordinals, one response said Bitcoin “is not meant to be a platform for storing or transmitting images or other types of data” while another called it “a fascinating and creative application of cryptography.”
According to Corbin, the goal of the bot is to show that AI tools could potentially be used in education.
The model can generate competent responses when asked questions about Bitcoin such as how it works and how its mined, and can explain aspects of the network such as satoshis.
Similar to the real person, the Nakamoto-emulating bot is still shy about revealing its real identity and typically responds:
“My real name is not important. What is important is the decentralization of power that Bitcoin represents and the potential it has to revolutionize financial systems.”
After rising for four successive months, Bitcoin (BTC) is on track to end May with losses of about 7%. Another noteworthy thing in May is that Bitcoin’s 30-day volatility dropped to 1.52%, which is far below the yearly average 4% and higher. Glassnode data shows that Bitcoin’s low volatile periods have only lasted for 19.3% of its total price history. Hence, there is an expectation for volatility to pick up in June.
In an exclusive interview with Cointelegraph, Glassnode lead on-chain analyst James Check said that Bitcoin could rally to $32,000, which is its “true cost basis.” Analysts at Glassnode arrived at this level after focusing on active Bitcoin investors and removing coins that are lost forever.
In the near term, the outcome of the vote on the debt ceiling in the United States House of Representatives could provide direction. If the vote succeeds, as is widely accepted, it could lead to a knee-jerk reaction to the upside. But if the vote fails, then Bitcoin is likely to break below $25,000.
The short-term charts of Bitcoin and select major altcoins suggest that the bulls may be losing their grip. What are the important support levels that the bulls need to hold to avoid a collapse? Let’s study the charts of the top-10 cryptocurrencies to find out.
Bitcoin price analysis
Bitcoin reversed direction from the downtrend line on May 29, indicating that the bears continue to sell near crucial resistance levels.
BTC/USDT daily chart. Source: TradingView
The flattish 20-day exponential moving average ($27,273) and the relative strength index just below the midpoint do not give a clear advantage either to the bulls or the bears. If the price sustains below the 20-day EMA, the BTC/USDT pair could drop to the $25,250 support.
Buyers are expected to defend the zone between $24,000 and $25,250 with all their might because if it cracks, the pair may nosedive to $20,000.
On the upside, the bulls will have to surmount the downtrend line to signal the start of a new up-move. The pair may first rise to $30,000 and later to $31,000.
Ether price analysis
The bulls are struggling to maintain Ether (ETH) above the 50-day SMA ($1,883). This suggests a lack of demand at higher levels.
ETH/USDT daily chart. Source: TradingView
The bears are trying to sink the price back into the falling wedge pattern and trap the aggressive bulls. If that happens, the ETH/USDT pair may fall to $1,762 and then to the support line of the wedge.
Conversely, if the price rebounds off the resistance line of the wedge, it will suggest that the bears have flipped the level into support. The pair may then rise to the psychological resistance at $2,000 and subsequently to $2,142.
BNB price analysis
BNB (BNB) climbed and closed above the 20-day EMA ($311) on May 28 but the bulls could not continue the momentum and challenge the 50-day SMA ($319).
BNB/USDT daily chart. Source: TradingView
The bears used the opportunity and pulled the price back below the 20-day EMA on May 31. Sellers will try to retest the psychological support at $300. If this level gives way, the BNB/USDT pair may descend to the support line.
Contrarily, if the price rebounds off $300, it will suggest that lower levels are attracting buyers. That may keep the pair inside the upper half of the channel for a few more days. A new up-move could begin after bulls kick the price above the channel.
XRP price analysis
XRP’s (XRP) rally is facing profit-booking near the overhead resistance of $0.54. The first support is at the 38.2% Fibonacci retracement level of $0.49 and then at the 50% retracement level at $0.48.
XRP/USDT daily chart. Source: TradingView
If the price rebounds off this support zone, it will suggest that the sentiment has changed from selling on rallies to buying on dips. That will enhance the prospects of a rally above $0.54. The XRP/USDT pair may then rise to $0.58.
Contrarily, if the price breaks below $0.48, it will suggest that the bullish momentum has weakened. That could tug the price to the moving averages and keep the price stuck inside the range for a few more days.
Cardano price analysis
Cardano (ADA) turned down from the 50-day SMA ($0.38) on May 29, indicating that the bears are protecting this level aggressively.
ADA/USDT daily chart. Source: TradingView
The sellers will try to pull the price below the uptrend line. This is an important level for the buyers to defend because a break below it will invalidate the bullish ascending triangle pattern. That could then start a downswing to $0.30.
Alternatively, if the price turns up from the current level or the uptrend line, it will suggest that bulls are buying on dips. The bulls will then make one more attempt to thrust the price above the 50-day SMA. If they can pull it off, the ADA/USDT pair may surge toward the $0.42 to $0.44 resistance zone.
Dogecoin price analysis
Dogecoin’s (DOGE) recovery stalled at the 20-day EMA ($0.07), indicating that the sentiment remains negative and relief rallies are being sold into.
DOGE/USDT daily chart. Source: TradingView
The bears will try to strengthen their position by yanking the price below the immediate support at $0.07. If they manage to do that, the DOGE/USDT pair may start its journey toward the next support at $0.06.
Time is running out for the bulls. If they want to start a recovery, they will have to quickly drive the price above the 20-day EMA. The pair could then rally to the overhead resistance of $0.08. A break above this level will suggest that the bulls are on a comeback.
Polygon price analysis
Polygon’s (MATIC) recovery fizzled out near the overhead resistance at $0.94, indicating that the bears are not willing to let go of their advantage.
MATIC/USDT daily chart. Source: TradingView
The bears are trying to sustain the price below the 20-day EMA ($0.90). If they do that, the MATIC/USDT pair could drop to the vital support at $0.82. This remains the key level to watch out for on the downside because if it cracks, the selling may intensify and the pair is likely to plunge to $0.69.
The first sign of strength will be a break and close above the 50-day SMA ($0.96). Such a move will open the doors for a possible rally to the downtrend line.
Solana (SOL) has been stuck between the moving averages for the past four days. This suggests that the bulls are buying the dips to the 20-day EMA ($20.50) but the bears remain active at higher levels.
SOL/USDT daily chart. Source: TradingView
The 20-day EMA is flattish and the RSI is near the midpoint, indicating a range-bound action in the near term. If the price dips below the 20-day EMA, the SOL/USDT pair could slide to the solid support at $18.70. A bounce off this level will suggest a consolidation between $18.70 and the 50-day SMA.
If the price bounces off the 20-day EMA, the bulls will again try to overcome the obstacle at the 50-day SMA. If they succeed, the pair could start a rally to $24 and then to $27.12.
Polkadot price analysis
The bulls pushed Polkadot (DOT) above the 20-day EMA ($5.40) on May 28 but they could not build upon this breakout. This shows that demand dries up at higher levels.
DOT/USDT daily chart. Source: TradingView
The bears have pulled the price back below the 20-day EMA. Sellers will next try to yank the price below the critical support at $5.15. If they manage to do that, the DOT/USDT pair could start a downward move toward $4.22.
If the price rebounds off $5.15, it will suggest that bulls continue to defend this level aggressively. The pair could then consolidate between $5.15 and $5.56 for a few more days. The bulls will gain the upper hand in the short term if they clear the 50-day SMA ($5.74).
Litecoin price analysis
The price action of the past few weeks has formed a symmetrical triangle pattern in Litecoin (LTC). This indicates indecision among the bulls and the bears about the next directional move.
LTC/USDT daily chart. Source: TradingView
The price action inside a triangle is generally random and volatile. If the price sustains below the moving averages, the LTC/USDT pair could drop to the uptrend line. This line is likely to attract buying from the bulls.
Another possibility is that the price turns up from the moving averages. In that case, the pair will attempt to rise to the resistance line. A break and close above this level will indicate the start of a new up-move. The pattern target of this setup is $142.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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The cryptocurrency market experienced a dull month with Bitcoin (BTC) dropping 7.37%, its worst performance since November 2022 and Ethereum (ETH) losing 0.22% in May.
The average loss across the market stands at 5.62% on the last day before the monthly close.
However, some outliers posted impressive gains thanks to popular investment narratives and the growth of the Ethereum staking sector.
In the first half of May, memecoins grabbed headlines with Pepecoin (PEPE) leading the narrative. The memecoin cycle guzzled up a lot of gas on Ethereum in the first half of May.
PEPE’s market capitalization surged to a peak of $1.54 billion in the first week of May, according to CoinGecko. It has witnessed a sell-off since then as token holders booked profit. However, the token still ended the month with over 300% gains.
Top 5 performers among the top 100 cryptocurrencies by market cap. Source: CoinMarketCap
Kava price analysis
The positive catalyst that propelled KAVA price came from a mainnet upgrade on May 17. KAVA price started surging a week before the update, which enhanced the blockchain’s throughput and security.
KAVA also got a boost from token holder’s suggestions to terminate the project’s grants and rewards programs by the end of 2023.
Technically, the KAVA/USD pair faces resistance from the long-term support and resistance level at $1.14. A successful breakout above this level will motivate buyers to push KAVA toward $1.50. Support for buyers to the downside lies at $0.96 and $0.80.
KAVA/USD daily price chart. Source: TradingView
XRP price analysis
XRP posted a 7.29% gain over the month with most of its price surge coming in the last few days.
The token recorded a spike in its daily transfer activity, which usually precedes a positive rally. Traders piled in with buy orders after on-chain analytics, Santiment, reported the activity on Twitter.
According to popular opinion, Ripple, the fintech company behind the XRP token, is close to winning its securities case against the Securities and Exchange Commission (SEC). The verdict could come as early as June.
Technically, XRP faces resistance from the October 2022 and 2023 yearly peak levels around $0.54. A successful breakout above this level can propel the price to the 2022 breakdown levels around $0.79.
XRP/USD daily price chart. Source: TradingView
Tron price analysis
Tron, a Layer-1 blockchain platform, has gained popularity in the last few weeks as reports around its usage in market making on centralized exchanges and the network’s revenue made headlines.
While Tron’s DeFi usage is limited, it is the leading blockchain platform for USDT issuance. The amount of USDT on Tron at $40 billion surpasses the stablecoin’s supply on Ethereum by $10 billion, according to CoinMetrics’ supply data.
Kaiko, a crypto research firm, cited that the reason for Tron’s dominance could be low fees which makes transactions cheaper for market makers on centralized exchanges.
The stablecoin transfers led to a spike in Tron fees to make it the second highest revenue generating blockchain after Ethereum, per Token Terminal data.
The TRX/USD pair has a bullish breakout from an ascending triangle pattern with a target of $0.112. Before the pattern’s bullish target is reached, buyers will face resistance at the 2022 high levels of around $0.093.
TRX/USD daily price chart. Source: TradingView
Rocket Pool price analysis
Rocket Pool is the second most popular decentralized Liquid Staking Derivative (LSD) platform after Lido. It commands 3% market share of the total Ethereum staking pool and has grown two-fold in the last six months, according to Dune data from Hildobby.
Top Ethereum liquid staking platforms. Source: Dune
The daily chart of the RPL/USD pair looks bullish with RPL forming a trend of higher lows restricted by the horizontal resistance at $52. If buyers conquer this resistance level, RPL can witness a 60% upside based target of the on the ascending triangle pattern.
The all-time high for the token is $61.90, per CoinGecko data. A price breakout above this level would technically put the token into price discovery mode without any resistances to the upside.
On the other hand, sellers will target local lows of $45.57 and $37.95 in case of correction.
Render Token benefited from the recent AI hype that has culminated in an uptick of companies requiring graphics cards for training AI models.
RNDR is an ERC-20 utility token that powers Render Network, a protocol that provides a decentralized marketplace for graphics processing unit (GPU) power. Using RNDR as the medium of exchange, Render Network connects users looking to rent the processing power with those who have idle GPUs.
RNDR has added 5.5% gains in May, rallying strongly in the second half of the month. Data from Nansen shows that the smart token holding for RNDR token has reduced since the start of this year. Nevertheless, the number of unique smart wallets holding RNDR has increased linearly during the same period.
The number of smart money wallets holding RNDR and the total balances. Source: Nansen
The RNDR/USD pair has exhibited significant volatility around the resistance and support level of $2.13. If buyers build support above it, the token could enter a crucial pivotal parallel range between $3.19 and $2.13.
There is minimal resistance above $3.19 with the potential to touch 2022 highs of $5.29. To the downside, buyers may find support around local lows at $1.62 and $0.90.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Since January, there have been over 10 million inscriptions on the largest blockchain in the world, and this number continues to grow exponentially.
To provide some context, the Ordinals Protocol allows for the ordered identification of satoshis, the smallest subdivision of a Bitcoin (BTC), enabling each of them to have an individual identity. From that people can inscribe sats with arbitrary content, creating Bitcoin-native digital artifacts, more commonly known as nonfungible tokens (NFTs).
Among the various narratives resulting from this technique, the existence of an extremely underground group of individuals who identify, track and trade high-value historical satoshis has come to light. They are known as “sat hunters.”
There is no denying that the Bitcoin ecosystem is undergoing a period of tremendous innovation since the advent of the Ordinals Protocol in early 2023.
Their main activity involves transacting millions of BTC in search of satoshis that were present in historical moments of the crypto world.
This practice is known as “sat hunting” and can be compared to continuously withdrawing money from a bank in search of rare coins: You withdraw $10,000, keep $1 of rare coins, deposit the remaining $9,999, and repeat the process of withdrawing another $10,000 in a continuous cycle.
The group that holds the largest amount of rare satoshis is the Rare Satoshi Society, which has already traded more than $1 billion in Bitcoin volume in pursuit of these historical sats.
They are becoming well-known for providing rare satoshis for the majority of Ordinals experiments and even sold a single satoshi for 0.5 BTC.
And it’s fascinating to observe how some Ordinals projects are adopting this narrative. One example is the Nakamoto Whales project, which minted a portion of its collection into rare satoshis from the first thousand mined blocks, including one mined by Satoshi Nakamoto.
Alongside the deployment of NFTs in rare satoshis, there is also an emerging trend of historically inscribed fungible tokens (BRC-20). DAnTer, a member of the Rare Satoshi Society, recently inscribed a collection, FHAL, onto a satoshi that was mined by the legendary Hal Finney on block 78 with the purpose of democratizing access to such a historical asset for more individuals.
Now, according to DAnTer, we have entered an era where one Bitcoin is no longer equal to one Bitcoin — and a satoshi becomes equal to infinity.
And although the narrative of historical satoshis still remains underground, fungible tokens on the Bitcoin network are hotter than ever. OKX, one of the largest exchanges in the world, just announced the listing of ORDI, the largest BRC-20 token in terms of market capitalization, while OXBT, one of the most popular BRC-20 tokens, has surpassed Bored Ape Yacht Club in the seven-day volume chart — just after its launch.
In February, people were trading Ordinals using Excel spreadsheets due to the lack of infrastructure. Today, just a few months later, major exchanges are joining this movement. Big brands like Bugatti have shown interest in the rare sats narrative, and there is even discussion about smart contracts on the Bitcoin network.
Could this be the phase of the greatest innovation and onboarding in the history of Bitcoin?
Lugui Tillier is the chief commercial officer of Lumx Studios, a leading Web3 studio that counts BTG Pactual Bank, the largest investment bank in Latin America, among its investors. Lumx Studios has previous Web3 cases with Coca-Cola, AB InBev, Nestlé and Meta.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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Bitcoin (BTC) is in a “transition,” which should pave the way to the next bull market top, new research has concluded.
In the latest edition of its weekly newsletter, “The Week On-Chain,” analytics firm Glassnode unveiled its latest tool for tracking Bitcoin’s resurgence.
Bitcoin hodlers in “transition”
After the 2022 bear market and signs of recovery in Q1 this year, on-chain metrics have undergone a broad transformation, many suggesting that a long-term BTC price bottom is already in.
With price action stagnating since mid-March, however, doubts have returned — along with downside targets which stretch toward $20,000.
For Glassnode analysts, however, Bitcoin’s long-term investor base is already preparing for better times ahead.
Using existing on-chain tools, analysts unveiled a new way of tracking sentiment among these long-term holders (LTHs) — those hodling BTC for at least 155 days.
The tool, “Long Term Holder Spending & Profitability,” splits LTH behavior patterns into four phases.
After a period of “capitulation” at the end of 2022, LTHs have begun a “transition” toward a state of “equilibrium” before full “euphoria” — the next BTC price cycle top — hits.
Capitulation is defined as a situation in which “Spot price is lower than the LTH cost basis,” Glassnode explains, with significant LTH spending thus “likely due to financial pressure and capitulation.”
Transition, meanwhile, is when the “Market is trading slightly above the long-term holders cost basis, and occasional light spending is part of day-to-day trade.”
The LTH cost basis, as of May 30, lies at around $20,800, separate data shows.
“Our current market has recently reached the Transition phase, flagging a local uptick in LTH spending this week,” “The Week On-Chain” commented.
“Depending on what direction volatility erupts next, we can employ this tool to locate local periods of overheated conditions, as observed from the lens of Long-Term Holders.”
Bitcoin Long Term Holder Spending & Profitability chart (screenshot). Source: Glassnode
“Seeking equilibrium” — but for how long?
Complementing LTHs, Bitcoin’s short-term holder (STH) cohort, which corresponds to more speculative investors, is already on the radar.
Speculative activity has increased in 2023, Glassnode previously stated, making their cost basis — at around $26,000 — an increasingly important level.
Overall, however, BTC/USD remains in a narrow range, having acted within a $5,000 corridor for almost three months, data from Cointelegraph Markets Pro and TradingView shows.
BTC/USD 1-day candle chart on Bitstamp. Source: TradingView
“The digital asset market continues to outperform major commodities in 2023, however all are currently experiencing a meaningful correction. Having recovered from the depths of the 2022 bear market, Bitcoin investors find themselves in a form of equilibrium, with little gravity in either direction,” the newsletter summarized.
“Given the extremely low volatility, and narrow trading ranges of late, it seems this equilibrium is soon to be disturbed.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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