Here’s why crypto prices are down

Cointelegraph2023-05-11 tarihinde yayınlandı2023-05-11 tarihinde güncellendi

Özet

In the last part of The Market Report, Pechman explains what caused Bitcoin network fees to surge above $10, causing Binance to halt withdrawals. Are Ordinals and Inscriptions an attack on Bitcoin? What does it mean for the Lightning Network and Bitcoin’s use case in general? Don’t miss it! The show is available exclusively on the Cointelegraph Markets & Research YouTube channel.

In today’s The Market Report episode, analyst and writer Marcel Pechman discusses why crypto prices are going down after Bitcoin failed to break above $29,000, plus whether or not Jerome Powell is lying about keeping interest rates above 5%, and lastly, what Warren Buffett meant by the “incredible period” coming to an end. The show airs every Tuesday on the Cointelegraph Markets & Research YouTube channel.

The first news article explains why Bitcoin has been trading in a narrow range near $28,000. The culprit? The standoff between markets and policymakers as United States Federal Reserve Chair Jerome Powell publicly stated that interest rates are unlikely to come down this year. Meanwhile, the markets for risk-on assets have firmly priced in rates to decrease in the coming months.

Pechman explains why the Fed raised interest rates above 5% and the apparent disconnection between the 3.4% unemployment rate and the 42 million North Americans who are SNAP recipients (on food stamps). Furthermore, the analyst dives into the $31.5 trillion in government debt and the discussion to further raise this limit.

But, more importantly, Pechman explains that Bitcoin could revisit sub-$20,000 levels if the government is not bluffing by keeping interest rates above 5% throughout 2023. As for the memecoin invasion, Pechman thinks that the PEPE rally (and subsequent correction) is merely a sector rotation, not an altcoin season by any means. Moreover, the analyst explains why futures markets are needed to create balanced and more effective market pricing for PEPE.

On to the show’s next topic: Pechman discusses Warren Buffett’s bear play after increasing his investment holding company Berkshire Hathaway’s cash position to its highest level in 18 months. An incoming recession or merely weaker earnings in the next couple of quarters? Check out today’s Market Report to find out.

İlgili Okumalar

Grayscale Highly Rates an Altcoin Whose Value Has Increased 19 Times in the Past Year!

Analysts at Grayscale Research argue that the current valuation of privacy-focused cryptocurrency Zcash (ZEC) does not fully reflect its potential. They believe Zcash possesses characteristics that could challenge Bitcoin's market share in the long term. While similar to Bitcoin as a decentralized digital currency, Zcash offers enhanced financial privacy for users, a feature Grayscale sees growing in importance amid increasing AI-driven surveillance. Key advantages highlighted include Zcash's privacy technology, its adaptability to future technological progress—such as preparing for quantum computing risks—and its work on cross-chain interoperability via "intents." These features are seen as crucial for competing with Bitcoin's network effect. Despite Zcash's price surging approximately 19x over the past year, its total market capitalization remains below 1% of Bitcoin's. Grayscale views this large valuation gap as indicative of significant competitive potential in the sector, suggesting Zcash could grow its market share by expanding its technological advantages and use cases. However, the firm emphasizes that investing in Zcash carries high risk, and even if it gains market share relative to Bitcoin, continuous or linear price growth for ZEC should not be expected. This is not investment advice.

cryptonews.ru53 dk önce

Grayscale Highly Rates an Altcoin Whose Value Has Increased 19 Times in the Past Year!

cryptonews.ru53 dk önce

Bitcoin eyes $81K as Nvidia earnings beat boosts risk assets

Bitcoin rebounded towards $81,000, boosted by a positive reaction in risk assets following Nvidia's strong Q2 earnings beat of $96.2 billion. The move helped BTC reclaim the $80,000 level as market attention turned to an upcoming keynote speech by Federal Reserve Chair Kevin Warsh at the Jackson Hole symposium. Analysts noted that sell-side pressure above $82,000 appears to be weakening ahead of a major $6.58 billion Bitcoin options expiry event on Friday, which could pave the way for a cleaner path toward $85,000 if resistance is broken.

cointelegraph1 saat önce

Bitcoin eyes $81K as Nvidia earnings beat boosts risk assets

cointelegraph1 saat önce

Huge Surprise for Altcoin: They Bought Back All Tokens Sold by Major Investors Over the Past 9 Months

The Ethena Foundation has announced four key updates to significantly alter the $ENA token's economics and governance structure. First, the Foundation has repurchased all locked tokens from major early investors who sold any amount of $ENA over the past nine months, aiming to reduce future sell-side pressure. Second, a General Framework Agreement transfers all intellectual property rights and economic value generated by the Ethena protocol to the Foundation, to be governed by $ENA token holders, not company shareholders. Third, a "fee switch" mechanism proposal is up for vote; if approved, all net protocol revenue will be used for automatic $ENA buybacks, directly channeling earnings back into the token economy. Finally, new agreements with major investors aim to mitigate potential sell pressure from upcoming monthly venture capital token unlocks. These measures collectively seek to align protocol value with token holders and stabilize the token's supply dynamics.

cryptonews.ru1 saat önce

Huge Surprise for Altcoin: They Bought Back All Tokens Sold by Major Investors Over the Past 9 Months

cryptonews.ru1 saat önce

Solana Proposals Could Lead to Reduction in Staking Yields to 2.25% and Cut Emissions by $1.5 Billion

Solana is moving towards a stricter monetary model that could lead to a SOL deficit and significantly reduce staking rewards for holders. Two governance proposals drive these changes. SIMD-550, currently under vote, would double Solana's annual disinflation rate from 15% to 30%, accelerating the timeline to reach a final inflation rate of ~1.5% to the first half of 2029. The second, SIMD-553 (already approved), introduces additional token burning tied to computational units used on the network. Together, these measures could reduce SOL emission by an estimated $1.4-$1.5 billion over six years. The immediate impact would be lower staking yields, potentially falling from the current ~5.25% to approximately 4.34% in year one, 3% in year two, and 2.25% by year three. Analyst Matt Mena from 21Shares suggests inflation should be tied to economic metrics to help offset this decline. The changes also raise concerns for validator economics, with some potentially becoming unprofitable as inflation rewards decrease and voting costs may rise. However, the lower passive yield might push a significant portion of the 67.9% staked SOL into Solana's DeFi ecosystem for activities like lending and trading. This shift could boost network fee revenue to compensate for lower inflation rewards. The proposals aim to trade lower yield today for less dilution tomorrow, betting that network growth and usage will make this a worthwhile trade-off for SOL holders.

cryptonews.ru2 saat önce

Solana Proposals Could Lead to Reduction in Staking Yields to 2.25% and Cut Emissions by $1.5 Billion

cryptonews.ru2 saat önce

Chairman of Olympic Committee detained in Poland over crypto scandal

The Chairman of the Polish Olympic Committee, Radosław Piesiewicz, was detained in Warsaw in connection with a case involving the cryptocurrency exchange Zondacrypto. The detention was carried out on the order of the Katowice National Prosecutor's Office and the Central Bureau for Combating Cybercrime. Piesiewicz denies the allegations, claiming he never had accounts on the exchange or dealt in cryptocurrency, and links the detention to political persecution. He has led the Olympic Committee since 2023 and is also a parliamentarian for the Law and Justice party. The prosecutor's office initiated the case in April 2026 on grounds of fraud and money laundering amounting to approximately 350 million PLN (around €80 million). The investigation found the exchange was used to transfer funds abroad and cash out criminal proceeds, with clients unable to withdraw their assets. A total of 13 people are implicated, including the exchange's founder. Zondacrypto became the general sponsor of the Polish Olympic Committee and team in October 2025, with a contract lasting until 2028. In April 2026, Piesiewicz stated the committee could not terminate the agreement without incurring unaffordable penalties. The investigation revealed Piesiewicz received expensive gifts from exchange representatives, including a €40,000 watch, as well as paid trips to Monaco and Bergamo.

cryptonews.ru2 saat önce

Chairman of Olympic Committee detained in Poland over crypto scandal

cryptonews.ru2 saat önce

İşlemler

Spot