Dear Teroxx Community,
This week we saw a digital asset market that experienced setbacks due to global financial market sentiment.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
Bitcoin’s fundamentals are as strong as ever despite weak prices, which makes investors optimistic.
Bitcoin (BTC) may have slipped to a six-week low by dipping below the key US$20,000 mark, but the fundamentals remain anything but negative.
Accordingly, as the latest on-chain data show, the market-leading cryptocurrency is still far from capitulation, as both hashrate and mining difficulty are increasing nicely.
The difficulty illustrates this impressively, as the metric, which among other things reflects the existing competitive pressure of Bitcoin miners, is expected to increase by 6.8 % next week.Blocksbridge, however, equally emphasises that the current market situation is not easy, as miners with older hardware in particular have come under pressure due to the weak Bitcoin exchange rate, falling transaction fees and block rewards, as well as rising energy costs.
“In short, the bear market is dooming miners with inefficient operating structures,” as the experts summarise.
Around the weekend, the bitcoin price temporarily fell to 19,945 US dollars, mainly due to negative statements from the US Federal Reserve on Friday.
The market-leading cryptocurrency was down a whopping 9% and the US stock market also plummeted noticeably due to the negative outlook from the central bank.
“Restoring price stability will take time, forcing us to use our monetary policy tools vigorously to rebalance supply and demand. Reducing inflation is likely to take a prolonged period of negative growth,” as central bank chief Jerome Powell warned the public at the annual conference in Jackson Hole.
The US stock market fell by a massive $1.25 trillion in just one trading day. US dollars in just one trading day. A money supply larger than the entire crypto market. As the stock market plummeted, the US dollar – which is known to have an inverse correlation with the crypto market – regained strength.
This has allowed the US dollar index (DXY) to bounce back after major losses, bringing the recent twenty-year highs back within reach.
According to a new document obtained by the business news portal Bloomberg, 3AC chief Su Zhu himself gave a statement in Bangkok on 19 August, in which he went on record as saying that the liquidator Teneo had “provided incomplete and inaccurate information on the matter”.
Three Arrows Capital has liabilities of just under US$3 billion. The insolvency of the crypto hedge fund triggered a domino effect in the branch that is still being felt.
Teneo has already responded to Zhu’s statement, replying, “The Receiver strongly disagrees with the positions in Su Zhu’s statement. […] We remain optimistic that the parties will fully disclose all information so that we can fulfil our duty on behalf of 3AC’s creditors.”
Technical term of the week
Consensus change: A change in some blockchains requires a majority decision. Therefore, a common “consensus” is a required default to make changes effective. If a unified consensus does not emerge, then the updates are either not applied or a fork is the result, in which the network often splits.
Digital asset market
Bullish outlook: If a quick support retracement takes place, $22,000 – $23,000 could be a quick price target.
Bearish outlook: If the global markets fail to ease over the week, further selling could be the result.