Dear Teroxx Community,
This week we saw a digital asset market that showed little trend movement on a weekly basis and only hovered around the previous week’s zones and prices.
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Digital Asset News
In addition to the tragedy surrounding the Ukraine war, which violates international law, the planned interest rate hike by the U.S. Federal Reserve this week is a possible catalyst for Bitcoin. Yet the weekend was largely quiet for the market-leading cryptocurrency, which is probably primarily due to the fact that there were no significant events outside and inside the market recently.
The focus is therefore now on the coming week, in which, among other things, a decision on the planned interest rate hike by the U.S. Federal Reserve is pending. The increase scheduled for March 16 could provide new short-term volatility and possibly even a real trend reversal, depending on how extensive it turns out.
Sadly, the conflict between Russia and Ukraine also remains a decisive factor, with initial peace negotiations not looking particularly promising so far, but both sides would be willing to compromise, according to media reports. Should this lead to a sustained easing of tensions, this would certainly not be bad for the short-term market development.
Bitcoin (BTC) may have come back into the focus of large investors, as suggested by new data showing large capital outflows from leading crypto exchange Coinbase.
Accordingly, as crypto data information services Whale Alert and CryptoQuant show on March 11, a whopping 30,000 BTC were transferred from the American crypto trading platform to an unknown wallet. Overall, however, the reserves on the major crypto exchanges are currently in free fall, so it went down noticeably this month and last month.
According to CryptoQuant, the total value of Bitcoin reserves on the 21 largest crypto exchanges currently amounts to 2.357 million Bitcoin. This strongly suggests that a majority of investors in the market currently have a long-term intention of holding.
The average gas cost for Ethereum has dropped from 218 Gwei to just 40.82 Gwei since the beginning of the year. Transaction fees on the Ethereum blockchain, known as “gas fees,” have reached their lowest level since August.
As data from Coin Metrics and CryptoRank Platform shows, the average cost over the past seven days for an Ethereum transaction is currently $11.14, marking a similar low to the middle of last year. At that time, however, it still went up to a whopping 55 US dollars by the end of 2021. This is a drop of almost 80% and shows that the first scaling steps for Ethereum are working, a test would be in the next bull-run.
After many other top managers have already switched from Wall Street to the crypto industry, Alex Kriete is now also making this step. Alex Kriete, the vice director of digital currencies at Citi (formerly Citibank), announced his resignation on March 11 after 11 years with the company. Instead, Kriete now wants to build his own crypto company, but the financial expert has not yet leaked exact details in this regard.
Kriete was responsible together with Greg Girasole for the management of the new digital assets department at Citi, which was only founded in June 2021. This suggests that the banks are not pushing adpation at the desired speed and are now creating their own ways to accomplish it. It is becoming clear that banks are currently facing serious competition from digital asset companies and a redeployment of capital and jobs is taking place.
Technical term of the week
Investor focus: Market phases, market situations and market events change almost daily. However, an overriding trend, which many investors use for an investment, changes only slowly and rarely. However, if the market signs change due to political circumstances, the investors’ focus orientations also change. It is all the more important to recognize the intention of the investors in order to calculate suitable own decisions and to execute them if necessary. This helps in the long run to grab an early and thus lucrative market position.
Bullish outlook: $40,000 to establish as support in the long term and with a positive take on the key interest rate policy in the U.S., the digital assets market could make a good bounce.
Bearish outlook: If the rate hike turns out to be higher than expected and the situation in Ukraine does not improve sustainably, the global markets could experience a new damper at any time.