• Bitcoin slipped below $28,000 ahead of a highly anticipated FOMC meeting scheduled for tomorrow.
• Altcoins have suffered even more, with DOT, MATIC, SOL, and others dropping by up to 7-8% in the past day.
• The asset started to retrace after it briefly touched a 9-month high of $28,500 yesterday.

Bitcoin Slips Below $28K Ahead of FOMC Meeting

Bitcoin failed to maintain its upward trajectory after touching a nine-month high of $28,500 yesterday and has now slipped below $28,000 ahead of this week’s Federal Open Market Committee (FOMC) meeting. As a result of this development, the total cryptocurrency market cap has seen over $30 billion wiped off in just one day.

Altcoins Suffer Even More

The altcoin market has been hit even harder than bitcoin due to the recent price movements in BTC – some coins such as DOT, MATIC, and SOL have all dropped by up to 7-8% in the last 24 hours.

Retracement Before FOMC Meeting

The banking crisis that is currently taking place across the US and Europe appears to have triggered a surge in bitcoin’s price performance since it rose from around $20k to nearly touch its nine-month high at above $28k within just seven days. As investors await tomorrow’s highly anticipated FOMC meeting chaired by Jerome Powell which could potentially mean no further hikes on interest rates due to current banking issues; bitcoin has begun to retrace before said event takes place – dipping as low as $27.5k earlier today before recovering slightly back above the 28k mark.

BTC Fear & Greed Index Skyrockets

The BTC Fear & Greed Index also skyrocketed during this period and reached new peaks as investors anticipate what could be an important decision made by the FOMC chairman tomorrow regarding any potential changes or adjustments they may make on existing interest rates due to these banking issues that are currently facing both US and European markets alike.

Next Steps For BTC Price Performance?

With many investors having their eyes fixed on what happens at the next big event for this week; it remains uncertain how far bitcoin will continue its retracement following an impressive run over the past few days or if we will see new highs being reached depending on any future decisions made by Jerome Powell at tomorrow’s FOMC meeting.

• Ethereum’s price has found substantial support amid the $1450 price range.
• If ETH sustains this level, traders can expect another bullish leg toward the crucial resistance level of $1700K.
• ETH is likely to break out of the range in the coming days between the lower threshold at roughly $1410 and the static resistance region at $1500.

Ethereum Price Analysis

Despite the ongoing bearish sentiment among market participants following the recent turmoil of SVB bank and its effect on USDC, Ethereum’s price has found substantial support amid the $1450 price range. The upcoming days will be crucial to see whether ETH can hold the critical level or continue its negative sentiment.

Technical Analysis

By Shayan: After breaking above the upper trend-line of a symmetrical triangle and consolidating for an extended period, Ethereum’s price has declined and is now retesting a previous breakout level at $1450. If ETH sustains this level, traders can expect another bullish leg towards a critical resistance level of $1700K. However, if it drops below that trend line, a plunge towards a support level at around$1.200 may be imminent.

4-Hour Chart

The price of ETH has been following an ascending channel (as shown below). However, it recently dropped below its middle equilibrium line resulting in a cascade. Nevertheless, it has now reached its lower boundary finding some temporary support. The price is ‘stuck’ in a tight range between a lower threshold at roughly $1410 and static resistance region at around$1500.

Outlook

ETH is likely to break out of this range in the coming days which may determine if it continues on to reach higher resistances or falls back into previous lows.

Conclusion

• Arthur Hayes, co-founder of BitMEX, published an essay outlining scenarios that could make oil prices rise and Bitcoin’s price skyrocket.
• He suggests that this could be caused by conflicts in the Middle East, reducing oil production from large producers or sabotaging key oil infrastructure.
• Hayes believes that a potential closure of the Strait of Hormuz by Iran would be most likely to happen and would cause a major decrease in global oil supply.

Arthur Hayes: Bitcoin Price Could Skyrocket During Potential Oil Crisis

Arthur Hayes, co-founder of BitMEX, published an essay on Thursday outlining “realistic potential situations” that could make oil prices boom and make Bitcoin’s price skyrocket as a result. In his blog post titled “Curve Ball,” he described three possible futures that could lead to an oil supply shortage across the globe given the current state of geopolitical tensions.

Potential Conflicts in Middle East

Hayes suggested that Iran could escalate its conflict with Israel/Saudi Arabia by closing the Strait of Hormuz – one of the world’s largest oil chokepoints between the Persian Gulf and the Gulf of Oman. Alternatively, large oil producers (Russia, Saudi Arabia etc.) could materially reduce their oil production or critical oil/gas infrastructure could be taken offline due to “deliberate sabotage.”

Most Likely Scenario

Hayes determined that a closure of the Strait by Iran would be most likely since its Uranium enrichment program has motivated Israel and Saudi Arabi to take military action against it. By closing down this chokepoint, Iran would remove a whopping 17.3 million barrels per day from global markets which would consequently make marginal cost per barrel extremely expensive.

Central Banks Forced To Loosen Monetary Policy

In this case scenario, Arthur Hayes argued that central banks across the world – including The Federal Reserve – will have no other option than returning to market friendly loose monetary policy in order to avoid economic recession or depression due to high energy prices from low global supply. This move is expected to benefit Bitcoin significantly as investors will seek alternative assets such as digital currencies during times where traditional financial instruments are not performing well due to inflation caused by central banks’ loose policies.

Conclusion

Given current geopolitical tensions in Middle East and potential scenarios outlined by Arthur Hayes in his article “Curve Ball”, it is very possible for us to witness an increase in global energy prices which might force central banks into loosening monetary policy thus creating an environment beneficial for bitcoin investment while being detrimental for traditional financial instruments due inflation driven by loose policies followed by central banks

• The Coinbase-Optimism news has pushed the price of Optimism (OP) above $3.
• Bitcoin is trading choppily at around $24,000, unable to break through this level.
• Most altcoins are posting small losses today, with notable losses from Avalanche, VeChain, MATIC and Polkadot.

Coinbase-Optimism News Boosts Optimism Price

The recent news regarding Coinbase and Optimism have seen the price of OP soar past $3. This makes it one of the best performing cryptocurrencies on the day.

Bitcoin Struggles at $24K Level

Bitcoin is still struggling to break through an important milestone at around $24,000. After surging from $21,500 to above $25,000 in a single day last week and then retracing by over $1,500 in hours, BTC failed two more attempts to go past the $25K mark before dipping to around $23,500 once again. It eventually managed to recover back up to above the $24K line yesterday but then started trending downwards again due to some concerning news regarding certain accounts on Binance’s Australian branch.

Altcoin Performance

Most altcoins are also slightly in the red today with losses mainly attributed to Avalanche (-7%), VeChain (-5%), MATIC (-4%) and Polkadot (-3%).

Market Outlook

It remains unclear how bitcoin will perform in the near future as its indecisive price movement continues. However other cryptos such as OP have shown promising gains which could indicate an overall bullish trend for digital assets in general over the next few days or weeks.

Conclusion

Despite some short-term volatility across most major cryptocurrencies today, optimism amongst traders appear strong as evidenced by OP’s sharp rise post Coinbase-Optimism announcement coupled with bitcoin’s resilience at the key resistance level of around 24k USD.

• The Singapore bank DBS Group Holdings witnessed an 80% increase in Bitcoin trading volume on its crypto trading subsidiary, DDEx.
• The company recorded a 65% increase in Ethereum transaction volume and saw the number of BTC in its custody double by the end of 2022.
• DDEx also doubled its user base with 1,200 new customers registered on the platform.

DBS Records 80% Increase in Bitcoin Trading Despite Bear Market: Report

Recorded Growth in Bitcoin and Ethereum Trading Volumes

The Singapore bank DBS Group Holdings saw a significant growth in BTC and ETH trading volumes on its crypto trading subsidiary, DDEx, despite the crypto winter that wiped out billions of dollars from the market. The exchange recorded an 80% increase in Bitcoin trade volume compared to the previous year, doubling the number of BTCs in DDEx’s custody by December 31st 2022. Additionally, there was a 65% rise in Ethereum transaction volume seen during this period.

Increase In Customer Base

Aside from these increases, DDEx experienced an expansion of its customer base with 1,200 new clients registering on the platform by the end of 2022.

Shift Towards Trust And Stability

Commenting on these developments, it is believed that “the market has decisively shifted its focus towards trust and stability” following multiple scandals that have rocked the industry over recent years. As a regulated digital exchange backed by one of Asia’s largest banks – DBS Group – investors are finding increasing comfort levels when using their services.

Conclusion

In conclusion, despite negative sentiments within the global cryptocurrency industry at present, DBS Digital Exchange has been able to record growth across both their user base and transactions involving BTC & ETH throughout last year.

• Ethereum’s uptrend has been halted after reaching the major resistance at $1.7K.
• There is a substantial bearish divergence between the price and the RSI indicator on the daily timeframe.
• The $1.3K minor support level is likely to be Ethereum’s next stop in case of rejection from $1.7K.

Ethereum Price Analysis

Ethereum’s uptrend has been halted after reaching the major resistance at $1.7K, leading to a short-term correction that many expect.

Technical Analysis

On the daily chart, Ethereum has surpassed the 200-day moving average and the multi-month channel’s upper trendline due to recent bullish market movement. However, there is a substantial bearish divergence between the price and RSI indicator which could lead to volatility in upcoming days.

Static Levels

There are three critical static levels for Ethereum on the daily chart; $1.7K major resistance level, $1.3K minor support level, and $1K major support level.

4-Hour Chart

The price action appears bearish on 4-hour timeframe as an ascending Head and Shoulder pattern has formed after reaching a vital resistance region. If cryptocurrency cascades below neckline around $1.5K, it will suggest reversal.

• DemaTrading.ai conducted a survey of the leading cryptocurrency exchanges and found that poor customer service is leading to customer inactivity.
• The survey identified that too many options and lack of research were the primary reasons for customer inactivity.
• The survey also revealed that 60%+ of the digital assets on exchanges are not traded.

DemaTrading.ai, an index solution provider, recently conducted a survey of the leading cryptocurrency exchanges in an effort to uncover the reasons why exchange customers stay inactive. The survey drew from conversations with over 30 exchanges and 50 investors, revealing some of the most common causes of customer inactivity.

The survey identified that too many options was a primary reason for customer inactivity, with the average exchange having hundreds of assets listed. This presents a challenge for customers, who often don’t want to research all of these assets and end up not choosing anything at all. Furthermore, the survey revealed that 60%+ of the digital assets on exchanges are not traded, meaning that customers are not necessarily presented with the best options.

Poor customer service was another common reason for customer inactivity identified by the survey. It discovered that many exchanges are unable to provide the level of customer service that customers are looking for, whether it’s in terms of response times, customer support, or overall usability of the platform. The survey concluded that this lack of customer service is a key factor in why customers become inactive.

Finally, DemaTrading.ai’s survey highlighted that many exchanges are failing to properly educate their customers about the risks involved in investing in digital assets. This lack of education can lead customers to making poor decisions which can result in losses. As such, the survey concluded that exchanges should do more to ensure that customers are aware of the risks they are taking when investing in digital assets.

In conclusion, DemaTrading.ai’s survey of the leading cryptocurrency exchanges has found that poor customer service and lack of research options are the primary reasons why customers remain inactive. Furthermore, it highlighted that many exchanges are failing to properly educate their customers about the risks involved in investing in digital assets. As such, it is important for exchanges to take a proactive approach in addressing these issues in order to ensure that customers are provided with the best options and are aware of the risks they are taking.

• Bitcoin and most altcoins saw a second consecutive Saturday of huge gains, with Bitcoin hitting an 18-week high of $21,500.
• This surge has resulted in over $300 million dollars of short positions being liquidated.
• The new year has been a good one for BTC bulls, with the asset adding over $5,000 in the first few weeks of the year.

The crypto market saw a huge surge this past Saturday, with Bitcoin and most altcoins seeing their prices soar to levels not seen in several weeks. After a few days of trading sideways and even slipping below $21,000, the bitcoin bulls returned on Saturday morning to push the asset to its highest price tag since September 13. This surge was felt across the crypto market, with most altcoins performing well as well.

This surge has resulted in over $300 million dollars of short positions being liquidated. This is due to traders who had bet on the price of Bitcoin and other cryptos going down being forced to close out their positions at a loss. This sudden influx of buy orders for cryptos had a huge effect on the market, pushing prices up significantly.

The new year has been a good one for BTC bulls, with the asset adding over $5,000 in the first few weeks of the year. This surge has been fueled by increasing institutional interest in the asset, with several large companies and investment funds investing in Bitcoin. This institutional interest has been accompanied by increasing retail interest, with more and more individuals investing in Bitcoin.

The recent surge in Bitcoin and other cryptos has been a welcome development for many in the crypto community. After the painful losses of 2022, many had lost faith in the asset and had given up on it ever returning to its previous highs. However, this surge has given them hope that the asset will not only regain its previous highs, but could even exceed them.

All in all, this past Saturday’s surge has been a welcome development for the crypto community. With Bitcoin and other cryptos reaching levels not seen in months, and with over $300 million dollars of short positions being liquidated, it appears that the bull market is back and here to stay. Only time will tell how far this surge will go, but many are hopeful that it will lead to a new all-time high for Bitcoin.