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Daily Market Analysis from NordFX

Stan NordFX

Well-known member
CryptoNews of the Week

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- Nine months before the collapse of the FTX bitcoin exchange, its top management spent $40 million on luxury hotels, flights and food. Business Insider writes about this with reference to court documents. Thus, the founder of the stock exchange, Sam Bankman-Fried, lived in a $30 million penthouse in the prestigious resort of Albany (New Providence, Bahamas) before his arrest. In addition, Bankman-Fried's parents, himself, and FTX executives have owned at least 19 luxury properties worth $121 million.

- The Hong Kong Financial Secretary announced that the jurisdiction is ready to accept cryptocurrency companies from around the world. The official noted that the authorities of this administrative region of China have recently completed work on a licensing regime for the industry. In accordance with the adopted rules, crypto companies are subject to the requirements that apply to the traditional financial sector. Earlier, the Hong Kong Financial Services and Treasury Bureau announced the introduction of regulatory mechanisms to protect investors.
Analysts expect that regulatory pressure on the crypto industry will increase in many countries in the coming year. The long-awaited law MiCA (Markets in Crypto Assets Regulation) will come into force. Most likely, the SEC will also do something important in terms of regulating cryptocurrencies. And it is possible that such steps will help restore investors' interest and confidence in the industry, lost after the turmoil of 2022.

- Despite the recovery of cryptocurrency markets after the collapse of the FTX exchange, the situation with Binance has not yet returned to normal. According to a recent Forbes report, the exchange lost $12 billion in assets due to users continuing to withdraw money from the exchange. Despite statements from Binance CEO Changpeng Zhao that the situation has calmed down, the outflow of funds is now only increasing.
According to a Forbes study, Binance lost about 15% of its assets. According to analytical company Defillama, customers of this largest crypto exchange withdrew approximately $360 million last Friday alone.
The performance of Binance Coin (BNB) and Binance USD (BUSD), the exchange's own tokens, is the best indicator of investor mistrust. According to Forbes, BNB has lost 29% of its value in the last two months and more than 37% compared to last year. In addition, the exchange was losing about $3 billion a year as a result of the cessation of bitcoin spot trading fees.

- Bill Miller, an American investor and fund manager, has confirmed his belief in bitcoin and called it a completely different asset. According to him, the Fed intervened actively in the situation in order to save the markets during the COVID-19 pandemic, and the BTC network, without any support, worked continuously and without interruptions. Miller also noted that the global market has risen by only 70% since the crash in March 2020, while the price of bitcoin has risen by 190% over the same period. Thus, BTC is a more efficient asset.
The expert also believes that it is wrong to link BTC to the bankruptcy of crypto companies such as FTX and Celsius. He emphasized that these are all centralized organizations, which should not be confused with the decentralized bitcoin network. In addition, Miller advised the public not to confuse volatility with value, stating that the price of the main cryptocurrency will rise by the end of the year.

- Cryptocurrency analyst Dave the Wave, known for predicting the collapse of bitcoin in 2021, believes that the coin is now on track to break its “long-term resistance diagonal”. In his opinion, "a technical movement within the next month or two" may be enough to break this resistance. Dave the Wave has previously said that its Logarithmic Growth Curve (LGC) model indicates that bitcoin could rise to $160,000 by January 2025.

- Ukrainian startup Global Ledger has become a partner of the United Nations Department on Drugs and Crime (UNODC) in launching a new educational course on cryptocurrencies. This will be the third such virtual resource program for UNODC.
Participants will be able to conduct real cybercrime investigations during the course, gain experience both on the basis of historical data and on "live" cases. In the context of the ongoing Russian-Ukrainian conflict, the program is designed to train representatives of the Ukrainian Cyber Police and other services to identify and prevent the use of cryptocurrencies in criminal and terrorist activities and circumvent international sanctions.

- The German Federal Financial Supervisory Authority (BaFin) has issued an official warning about the new Godfather malware that collects user data in banking and cryptocurrency apps. Experts discovered the Trojan back in 2021, but the program was underdeveloped then. The improved and finished build of The Godfather was discovered on Android devices in December 2022 for the first time.
BaFin said that the program targets more than 400 apps operating not only in Germany but throughout the world. The principle of operation of The Godfather is simple: the program simulates banking and cryptocurrency application websites, stealing user data at the time of entry. Moreover, the software can send push notifications to receive two-factor authentication codes. BaFin experts are trying to figure out how the malware gets on users' devices.

- Blockchain security company CertiK reported earlier that the level of fraud and hacking in the cryptocurrency industry will increase significantly this year as the industry becomes more popular. Another computer security company, Kaspersky Lab, believes that “a major cyber epidemic of unprecedented proportions may occur in 2023”, as the BlueNoroff cybergroup has again intensified its attacks on organizations working with cryptocurrencies, such as venture funds, banks and startups.
Kaspersky Lab experts discovered new BlueNoroff traps for startup employees in autumn 2022: 70 fake domains masquerading as well-known venture funds and banks from Japan, the USA, Vietnam, and the UAE. In addition, hackers are now experimenting with new file types to inject malware. For example, it can be an email with an allegedly important document in the “doc” format attached. If you open this file, the device will be immediately infected with malware, and attackers can monitor all daily operations and plan to steal funds.

– Galaxy Digital CEO Mike Novogratz said in a recent interview with CNBC that the prospects for cryptocurrencies are not so good, but everything is not so bad either. Bitcoin and Ethereum prices have remained stable lately despite the bad news. Leveraged traders closed out their positions in December 2022, creating what the entrepreneur called a “clean market.” In addition, market participants have significantly reduced their spending and will continue to do so in order to get through the transition period.
Novogratz also stressed that 2023 will be a defining year for the future development of the industry. At the same time, he pointed to the problems that exist between Gemini and Genesis, which could create an unpleasant situation for the entire digital asset market.

- The founder and CEO of BTC.TOP & B.TOP crypto projects, Jiang Zhuoer, studied the historical charts of the bitcoin and ethereum rates. All three previous bear markets took the same amount of time to go from the previous high to the bottom. Thus, the expert concludes that the four-year cycle is still working.
Based on this, Zhiang Zhuoer believes that we are now in the last sideways period of the bear market bottom. Events such as bankruptcies of crypto companies will no longer have a significant impact on prices. The optimistic estimate suggests that if the 2018 scenario repeats, BTC price could stay flat for another two months before the next bullish rally begins.
The analyst emphasized that Ethereum now looks much stronger than bitcoin. Currency freedom and increased opportunities for smart contracts have attracted new users and encouraged the creation of innovative apps. Zhiang Zhuoer noted that the decline in ETH was no more than that of BTC, and the ETH/BTC ratio was kept at a high level. Bitcoin's inflation rate was 1.72%, while after switching to the PoS algorithm, the same rate for ETH was only 0.01%. According to the expert, ETH deflation will have a very positive effect on its future price, and Ethereum will begin to grow in value earlier than bitcoin and will become the leader of the next bullish market. This should happen between March and May 2023.


Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #forex #cryptocurrencies #bitcoin #stock_market

Forex | Forex Trading | NordFX
 

Stan NordFX

Well-known member
Forex and Cryptocurrencies Forecast for January 16 - 20, 2023


EUR/USD: Low Inflation Has Dropped the Dollar

The main event of the past week, which dealt another blow to the dollar, was the publication on Thursday, January 12, of data on consumer inflation in the US. The actual figures were fully in line with market expectations. The consumer price index (CPI) in annual terms fell to its lowest level since October 2021 in December: from 7.1% to 6.5%, and excluding food products and energy, from 6.0% to 5.7%. Thus, the US inflation rate has been slowing down for 6 months in a row, and core inflation has been slowing down for 3 consecutive months, which is a strong catalyst for easing the Fed's current monetary policy.

Market participants are firmly convinced that the interest rate will be increased by no more than 25 basis points (bp) at the February meeting of the FOMC (Federal Open Market Committee). In particular, Michelle Bowman, a member of the Board of Governors, and Mary Deli, Chairman of the Federal Reserve Bank (FRB) of San Francisco, spoke about this. The head of the Philadelphia Fed, Patrick Harker, left the camp of the hawks as well, also saying that the rate should be raised only by 25 bp.

Fed chief Jerome Powell noted a month ago that the regulator would keep rates at their peak until they were sure that the decline in inflation has become a sustainable trend. According to him, the base rate may be increased to 5.1% in 2023 and stay that high until 2024. However, the latest macro statistics, including data on inflation, business activity and the labor market, suggests that the peak value of the rate will be 4.75%. Moreover, it can even be lowered to 4.50% by the end of 2023.

As a result of these forecasts, the US currency depreciated against all G10 currencies. The DXY dollar index updated the June 2022 low, falling to 102.08 (it climbed above 114.00 at the end of September). The 10-year Treasury yield dropped to a monthly low of 3.42%, while EUR/USD jumped to 1.0867, the highest since last April.

The yield spread between 10-year US and German bonds is at its lowest level since April 2020, with smaller European countries narrowing their spreads. This dynamic indicates a decrease in the likelihood of the EU economy falling into a deep recession. Moreover, the winter in Europe turned out to be quite warm and energy prices went down, despite problems with their supply from Russia. And this put pressure on the US currency as well.

China could help the dollar. According to various estimates, China's GDP growth may reach 4.8-5.0%, or even higher in 2023. Such economic activity will add 1.0-1.2% to global inflation, which will give Fed hawks certain advantages in maintaining tight monetary policy. But all this is in the future. The market is currently waiting for the next meeting of the FOMC on February 01 and for the statements that will be made by the US Federal Reserve officials on its results.

EUR/USD closed last week at 1.0833. 20% of analysts expect further strengthening of the euro and the growth of the pair in the coming days, 50% expect that the US currency will be able to win back part of the losses. The remaining 30% of experts do not expect either the first or the second from the pair. The picture among the indicators on D1 is different: all 100% are colored green, but 25% of the oscillators are in the overbought zone. The nearest support for the pair is at 1.0800, then there are levels and zones 1.0740-1.0775, 1.0700, 1.0620-1.0680, 1.0560 and 1.0480-1.0500. The bulls will meet resistance at the levels of 1.0865, 1.0935, 1.0985-1.1010, 1.1130, after which they will try to gain a foothold in the 1.1260-1.1360 echelon.

Next week, traders should take into account that Monday is a holiday in the US, Martin Luther King Day. The calendar can highlight Tuesday, January 17, when the values of the Consumer Price Indices (CPI) and Economic Sentiment (ZEW) in Germany will become known. Data on Eurozone consumer prices and US retail sales will be released on Wednesday, January 18. The December value of the American Producer Price Index (PPI) will also become known the same day.

GBP/USD: Surprise from UK GDP

GBP/USD took advantage of broad pressure on the dollar on Thursday, January 12 to rise to its highest level since December 15, reaching 1.2246. The UK GDP gave the pound bulls a pleasant surprise the next day, on Friday, December 13: it suddenly turned out that the country's economy expanded by 0.1% over the month against expectations of its fall by 0.3%. However, in annual terms, GDP was significantly lower than the previous value: 0.2% against 1.5% a month earlier. As a result, the pair ended the five-day period a little lower than the local high, at the level of 1.2234.

An important day for the pound may be February 02, when the next meeting of the Bank of England (BoE) will take place. And while investors expect the Fed to slow down the rate of interest rate hikes, the Bank of England, on the contrary, will further tighten monetary policy. It is predicted that the rate may rise from the current 3.50% to the level of 4.50% by the summer, which will serve as a certain support for the British currency.

As for the short term, here the median forecast for GBP/USD looks as uncertain as possible: 10% of experts side with the bulls, 25% side with the bears, and the vast majority (65%) have taken a neutral position. Among the oscillators on D1, 90% are colored green, of which a third gives signals that the pair is overbought, the color of the remaining 10% is neutral gray. Trend indicators are 100% on the green side. Support levels and zones for the pair are 1.2200-1.2210, 1.2145, 1.2085-1.2115, 1.2025, 1.1960, 1.1900, 1.1800-1.1840. When the pair moves north, it will face resistance at levels 1.2250-1.2270, 1.2330-1.2345, 1.2425-1.2450 and 1.2575-1.2610, 1.2700 and 1.2750.

As for the developments regarding the UK economy in the coming week, we can highlight Tuesday January 17, when we find out what is happening in the country's labor market. The value of such an important inflation indicator as the Consumer Price Index (CPI) will be published the same day, which will certainly have an impact on the BoE's decision on the interest rate. Data on December retail sales in the UK will also be published at the very end of the working week, on Friday, January 20. It is expected that they will rise by 0.4% compared to the fall of 0.4% in November thanks to the pre-Christmas hype.

USD/JPY: Should We Expect Surprises from the Bank of Japan

The yen turned out to be the favorite of the week, and even on Friday, January 13, it continued to put pressure on the dollar, fixing a local low at 127.45. It put the last chord of the week a little higher, at the level of 127.85.

Why did this happen? First, the yen strengthened against the background of a falling dollar and a decrease in US bond yields (the US/Japan spread fell to its lowest level since August 2022). Being the most sensitive to the dynamics of treasuries, it managed to win back 2.5% from the dollar. And second, the press seriously helped it. Japanese newspaper Yomiuri Shimbun, citing confidential sources, reported that Bank of Japan (BoJ) officials plan to discuss the implications of their ultra-dove approach to monetary policy and consider adjusting their bond-buying program to "reduce its negative effects" on January 17-18. Other adjustments in the actions of the regulator are not ruled out.

The Bank of Japan is the latest major central bank to keep interest rates at a negative level of -0.1%. We wrote Earlier that a radical change in monetary policy can be expected only after April 8. It is on this day that Haruhiko Kuroda, the head of the Bank of Japan, will end hs term, and he may be replaced by a new candidate with a tougher position. And now, almost all experts interviewed by Bloomberg believe that the Japanese Central Bank will not change the main parameters of its policy next week but will limit itself to discussing them. At the same time, 38% of respondents expect real changes either in April or June.

Of course, it will be possible to give more accurate forecasts after the January meeting of the Bank of Japan. So far, the opinion of analysts regarding the near future is distributed as follows: 50% of analysts vote for the correction of the pair to the north, and 50% simply decline to comment. The number of votes cast for the continuation of the downtrend turns out to be 0 this time. For indicators on D1, the picture mirrors the readings for GBP/USD. Among the oscillators, 90% are colored red, of which a third gives signals that the pair is oversold, the color of the remaining 10% is neutral gray. Trend indicators have 100% on the red side. The nearest support level is located in the zone 127.00-127.45, followed by the levels and zones 126.35-126.55, 125.00, 121.65-121.85. Levels and resistance zones are 128.00-128.25, 129.60-130.00, 131.25-131.70, 132.85, 133.60, 134.40 and then 137.50.

From the events of the coming week, in addition to the mentioned meeting of the Bank of Japan and its interest rate decision, the market's attention will be drawn to the subsequent press conferences and comments from the regulator's officials regarding its monetary policy.

CRYPTOCURRENCIES: Thaw or Crypto Spring?

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BTC/USD has once again returned to the $18,500-20,000 area. This zone acted as support since last June, and it turned into resistance in November. The pair traded there in December 2017 as well, after which a protracted crypto winter followed. Bitcoin was able to return to these values only three years later, at the end of November-December 2020. This rise marked the beginning of a powerful bullish rally then: the coin rose in price by 3.5 times in less than six months, reaching $64,750 in April 2021. This was followed by another collapse.

How will bitcoin behave this time: will it collapse like in 2017, or will it take off like in 2020? Is this the onset of crypto spring or just a small thaw? There is no consensus on this matter. It is possible that the pair's current rise is due not to the growing strength of digital gold, but to the dollar, which has been weakening for 16 consecutive weeks. Bitcoin received a powerful boost after the publication of the US CPI. Against this background, the voices of bitcoin optimists sound more confident and louder. Moreover, the liquidators of the FTX exchange found liquid assets worth $5 billion, which will be used to pay off part of the debts to creditors. According to some analysts, along with the decline in CPI, this makes it possible for crypto markets not to worry too much about the macroeconomic picture, which is still bearish.

Dante Disparte, Head of Strategic Development at Circle, believes that despite the 2022 Ice Age, digital assets and blockchain will continue to be integral tools of the economy. Major banks and financial institutions will continue to introduce cryptocurrencies into their product lines. As for the bankruptcy of several crypto-lenders and the collapse of the FTX exchange, these events, according to Dispart, can be a boon for the industry, as they lay the foundation for more responsible and affordable investments.

Increasing regulatory pressure can help restore investor interest and confidence in the industry. The long-awaited MiCA (Markets in Crypto Assets Regulation) is expected to come into force this year. The SEC is highly likely to take a number of important steps in this direction as well.

Another expert with a positive outlook is University of Sussex finance professor Carol Alexander. She had been prone to BTC falling to $10,000 in 2022 in her previous forecast. This did not happen, although the forecast almost came true. However, the financier predicts now that the first cryptocurrency can reach $50,000 in 2023. The professor believes that the catalyst will be the influx of more “dominoes” that fell apart after the collapse of the FTX exchange. “2023 will be a managed bull market, not a bubble,” she writes. - We will not see a jump in the rate, as before. But we will see a month or two of stable trending prices interspersed with periods of limited range, and perhaps a couple of short-term crashes.”

Bill Miller, an American investor, and fund manager, also defended bitcoin. He believes it is wrong to link BTC to the bankruptcy of crypto companies such as FTX and Celsius, since these are centralized entities that should not be confused with the decentralized bitcoin network. Miller has once again confirmed his belief in the main cryptocurrency and said that its price will definitely increase by the end of the year.

According to Alistair Milne, Chief Information Officer of the Altana Digital Currency Fund, “we should see bitcoin at least at $45,000 by the end of 2023.” However, the specialist warns that “if central banks decide to allow a higher inflation target […] to avoid a recession, hard assets could become fashionable again.” As for the longer-term outlook, Milne believes that BTC should reach $150,000-300,000 by the end of 2024, “and this is probably the peak of opportunities for the bulls.”

Tim Draper, a third-generation venture capitalist and co-founder of Draper Fisher Jurvetson, is also hoping for 2024. He believes that the halving planned for this year will have a big impact on the price of the main cryptocurrency, which will eventually reach $250,000.

Another expert who joined the bull train was analyst Dave the Wave, known for predicting the 2021 bitcoin crash. He believes that the coin is now on its way to breaking through its “long-term resistance diagonal.” In his opinion, "a technical movement over the next month or two may be enough to break this resistance." Dave the Wave has previously said that its Logarithmic Growth Curve (LGC) model indicates that bitcoin could rise to $160,000 by January 2025.

Eric Wall, Chief Investment Officer at crypto-currency hedge fund Arcane Assets, gives a much more modest forecast: the expert believes that the price of bitcoin may exceed $30,000 in the coming year. Eric Wall often bases his comments on the BTC Rainbow Price Chart, an analytical tool created by BlockchainCenter. And this time he said that the $15,400 exchange rate was the bottom for bitcoin.

Jiang Zhuoer, founder and CEO of a number of crypto projects, agrees with Eric Wall. By his calculations, all three previous bear markets took the same amount of time to go from the previous high to the bottom. Based on this, Jiang Zhuoer concludes that we are now in the last sideways period of the bear market bottom. His optimistic estimate suggests that if the 2018 scenario repeats, BTC price could be flat for another two months before the next bull run begins. At the same time, events such as bankruptcies of crypto companies will no longer have a significant impact on the prices of major digital assets.

The strategists of the British international financial conglomerate Standard Chartered strongly disagree with this statement. According to them, “more and more crypto companies and exchanges are facing insufficient liquidity, leading to further bankruptcies and the collapse of investor confidence,” which could lead to BTC falling to $5,000 this year.

It is said that the truth lies in the middle. This is exactly the “optimistic-pessimistic” position taken by Galaxy Digital CEO Mike Novogratz. He said in a recent interview with CNBC that the prospects for cryptocurrencies are not so good, but everything is not so bad either. Leveraged traders closed out their positions in December 2022, creating what the entrepreneur called a “clean market.” In addition, market participants have significantly reduced their spending and will continue to do so in order to get through the transition period. Novogratz also stressed that 2023 will be a defining year for the future development of the industry. At the same time, he pointed to the problems that exist between Gemini and Genesis, which could create an unpleasant situation for the entire digital asset market.

Another source of nervousness is the Binance situation. According to a recent Forbes report, the exchange lost $12 billion in assets due to users continuing to withdraw money from the exchange. And despite statements from Binance CEO Changpeng Zhao that the situation has calmed down, the outflow of funds is now only increasing.

The new year 2023 has just come. There are still eleven and a half months ahead, which will show which of the forecasts will turn out to be closer to reality. In the meantime, at the time of writing the review (Saturday January 13), BTC/USD has broken through the $20,000 horizon and is trading in the $20,500 zone. The total crypto market capitalization is $0.968 trillion ($0.790 trillion at the low of December 30). The Crypto Fear & Greed Index rose from 25 to 46 points in a week, but still remains in the Fear zone, although it is already close to the Neutral state.


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

Forex | Forex Trading | NordFX
 

Stan NordFX

Well-known member
NordFX Efforts in the Middle East Are Recognized by Forexing Award

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10 years ago, back in 2013, NordFX won the Best Forex Arabic Platform award at the MENA 12th Forex Show. In 2020, the Forex Awards Ratings Expert Committee also recognized the company's efforts in this region. And now, following a vote by traders and visitors to Forexing site, NordFX has been named “Best Broker Middle East 2022”.

Forexing is a popular global financial news portal delivering up-to-date Forex & Other Financial market news and analysis to Newbie and Professional Traders. In addition, the portal pages contain educational and other useful materials, the purpose of which is to help visitors improve the efficiency of their trading.

Forexing presents Forex Awards to Brokers across the Globe for their best approach to clients for the particular year. The portal team reviews, evaluates and nominates the best companies in the industry. Throughout the voting time, all the retail traders are welcome to vote for their favorite company for a particular service. The awards are given to the retail international and regional Forex brokers that receive the most votes. One of the winners in 2022 was NordFX, which confidently outperformed its competitors in the Best Broker Middle East nomination.


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

Forex | Forex Trading | NordFX
 

Stan NordFX

Well-known member
CryptoNews of the Week

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- Texas A&M University (USA) will launch an educational program dedicated to bitcoin in spring 2023. The Bitcoin Protocol course will be included in the educational program of students at such university schools as as May Business School and College Engineering. The initiative is based on the book Programming Bitcoin by Bitcoin Core developer Jimmy Song.

- Shaktikanta Das, Governor of the Reserve Bank of India (RBI), said during a speech at the BT Banking & Economy summit that digital assets should be completely banned in the country. “The position of the RBI is extremely clear: all cryptocurrencies should be banned. However, blockchain technology needs to be supported as it has many other uses,” he explained.
Das emphasized the unreliability of cryptocurrency due to constant price changes and the “ambiguity” of the definition. According to him, some consider it an asset, others consider it a financial product. However, according to the manager, “disguising a cryptocurrency as a financial product or asset” is inappropriate. As for changing the price of coins, this is 100% speculation and gambling, which, by the way, are prohibited in India.

- Unlike India, the US has a more loyal attitude towards cryptocurrencies and other digital assets. Thus, the country's Congress has created a new subcommittee that will deal with new rules for regulators regarding digital currencies, as well as develop policies to further promote digital financial technologies.
The new organization will be led by Republican Congressman French Hill, who previously led the Fintech and Artificial Intelligence Task Forces. Hill noted in his statement that at a time of significant technological advancement and change in the financial sector, the subcommittee's job is to promote responsible innovation by encouraging the development of FinTech in the country.

- Bank of America (BAC) researchers believe that digital currencies, CBDCs and stablecoins are a natural evolution of money and payments. Central bank digital currencies can “revolutionize global financial systems and may become the most significant technological achievement in the history of money.”
BAC researchers believe that monetary regulators in developed and developing countries will focus on the efficiency of payments and their availability. However, some countries will not issue such means of payment even in the next ten years. But their central banks will have to “either innovate technologically or become irrelevant in the long term.”

- Kevin O'Leary, head of O'Leary Ventures and host of the TV show Shark Tank, expects even more crypto exchanges to crash in the industry. The reason for this, in his opinion, is people's ignorance. “If you ask me if there's going to be another crash to zero, 100% that's going to happen. And this is going to happen again and again... I don't think it's about regulation. It will not change the scale of fraud,” the investor said. Legislators are likely to put in place a solid regulatory framework soon, O'Leary said, but that won't do the industry any good.

- The value of bitcoin could increase to $50,000-100,000 over the next two to three years. This opinion was expressed in an interview with CNBC by the founder of the hedge fund SkyBridge Capital Anthony Scaramucci. The businessman called 2023 a “recovery year” for the main cryptocurrency.
Of course, the decisions of the US Federal Reserve will influence the digital gold rate. And if the financial regulator takes measures to stimulate the economy in the middle of the year, this will be a good impetus for the rise in the bitcoin price. This is evidenced by the January price jump caused by US inflation data for December. The market decided based on this data that the Fed could significantly ease its monetary policy, as a result, BTC quotes went up sharply.

- Positive sentiment dominates the cryptocurrency market, and its total capitalization reached $1 trillion on January 16, for the first time in a long time. In turn, bitcoin is firmly held above $20,000. Analyst Craig Erlam noted that digital assets have become the main beneficiary during the current increase in risk appetite.
In his opinion, it is also possible to say that the industry has recovered from the recent FTX collapse. On the other hand, there are no specific fundamental grounds for the development of a bullish trend at the moment. In the current conditions, it is necessary to monitor the macroeconomic situation, as it will have a strong impact on the dynamics of digital assets. At the moment, the consensus forecast of market participants is based on the fact that following the results of the February meeting, the Fed will raise the refinancing rate by only 0.25%. In this case, the bullish mood in the cryptocurrency market is likely to receive serious support.

- Bloomberg Intelligence senior strategist Mike McGlone believes that the bottom in the cryptocurrency market has already been passed. But his opinion on the Fed's monetary policy differs from that of other analysts.
McGlone has noted that the charts are reminiscent of the 2018 dynamics, when the price of the first cryptocurrency rebounded from $5,000. However, the macroeconomic situation is now completely different, which is why the bitcoin growth may stop at current values. Thus, the NASDAQ index may continue to fall, and the correlation between bitcoin and the stock market has been quite significant in recent years. “We are still pulling liquidity from global markets, and there are reasons for this. And even if equities and other risky assets rise, liquidity will remain limited by central banks. The big difference from 2018 is that the Fed had already begun to ease its policy then, and we do not see any easing today,” the Bloomberg strategist explained.
“Look at the NASDAQ, the chart is breaking through the 200-week SMA. This has only happened 3 times in history, and the Fed has always eased its monetary policy. But the US Central Bank is aggressively tightening it now. The overall picture is optimistic for bitcoin, but the situation is unprecedented now, so anything can happen,” McGlone said.

- Legendary stock trader and analyst Peter Brandt, who, among other things, predicted the 2018 BTC correction accurately, gave a fresh forecast for the bitcoin movement in the short and long term.
According to the specialist, BTC will be able to realize growth to levels near $25,000 in the near future. After that, a correction is not ruled out by the end of spring, that will give the cryptocurrency strength for a new rally. As a result, the coin will reach its previous highs near $68,000 in the second half of 2023. After that, another correction and a subsequent update of the absolute high are possible.
Peter Brandt does not rule out bitcoin rising to $150,000 by early 2025. However, he warns that this is nothing more than his guess. Nobody knows how the main cryptocurrency will actually behave, according to the eminent trader.

- Peter Brandt was supported in this opinion by artificial intelligence (AI) of the ChatGPT test platform. This platform has become popular due to its ability to solve a wide range of tasks with high accuracy, including asset trading.
Experts from Finbold asked the artificial intelligence what the bitcoin price will be in 2030. Finbold suggested that ChatGPT would be able to provide a fairly accurate forecast based on historical BTC price data, market data, technical and fundamental analysis, and other indicators. But the AI didn't live up to expectations. It was never able to predict the exact rate and admitted that it is hard to name the price of the coin in the long term. The AI cited high market volatility and unclear regulatory rules as the reasons. However, the AI, like Peter Brandt, believes that the flagship cryptocurrency has potential for growth in the coming years. This will be possible due to the development of technology, the maturation of the cryptocurrency market and their massive
distribution.

- Ben Armstrong, a popular cryptocurrency YouTuber, believes that the price of the flagship cryptocurrency will jump to $30,000 by the end of February 2023. However, analyst and investor Ali Martinez disagrees. According to him, miners have recently been actively selling their assets to lock in profits. In addition, according to the expert, traders trading on the world's largest crypto exchange, Binance, massively opened short positions on BTC. According to analytical resources, as of the morning of January 17, 51% of the users of the trading platform had bitcoin shorts. This number then increased to 57%.


Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #forex #cryptocurrencies #bitcoin #stock_market

Forex | Forex Trading | NordFX
 

Stan NordFX

Well-known member
Forex and Cryptocurrencies Forecast for January 23 - 27, 2023


EUR/USD: The Calm Before the Storm

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The DXY Dollar Index (the ratio of the USD to a basket of six other major foreign currencies) has been moving in a fairly narrow sideways channel since January 12. A small surge in volatility was caused by the publication of data on retail sales in the US on Wednesday, January 18. However, everything returned to normal quickly, and DXY continued its eastward journey, sandwiched in the 102.00-102.50 range. EUR/USD behaved similarly, which, having started on Monday at 1.0833, completed the five-day period at 1.0855.

This behavior suggests that the market has already taken into account everything that is possible in quotes. This includes a slowdown in inflation, a possible recession, and prospects for changes in the US Federal Reserve's monetary policy. A trigger is needed In order for a jump to occur, which, most likely, will be the FOMC (Federal Open Market Committee) meeting on February 01 and the comments of the Fed management following it. Only US GDP data will be released until then as for important macro statistics. This indicator will be announced on February 26, and it is very likely to show a slowdown in the country's economic growth (the forecast is 2.6-2.8% against 3.2% a quarter earlier).

Market participants continue to wonder how much the interest rate will be raised at the February FOMC meeting. There are two options: either by 25 or 50 basis points (bp). Michelle Bowman, member of the Board of Governors, Mary Dehli, Chairman of the Federal Reserve Bank (FRB) of San Francisco, and Patrick Harker, Chairman of the Federal Reserve Bank of Philadelphia, spoke about 25 bp. Fed Vice Chair Lael Brainard did not express a clear preference for either of these options on Thursday, January 19. She did not say what peak rate she expects to see in 2023 either. However, she said the regulator's policy should remain restrictive to ensure a return to the 2.0% inflation target.

Her words coincide with the opinion of Fed Chairman Jerome Powell, who said a month ago that the regulator will keep rates at their peak until they are sure that the decline in inflation has become a sustainable trend. In his opinion, the base rate can be increased in 2023 to 5.1% and stay that high until 2024.

The market consensus forecast in December indicated the same value, 5.10%. However, the market has now stopped trusting the Federal Reserve, and expectations have fallen to 4.90%. And some analysts believe that the peak value of the rate will not rise above 4.75% at all. Moreover, it can even be lowered to 4.50% by the end of 2023. Given that the rate has already reached 4.50% at the moment, such a slight increase will clearly not benefit the dollar, but it will push up the competing currencies from the DXY basket and risky assets.

As for the common European currency, the swap market believes at the moment that with a probability close to 100%, the ECB rate will be increased by 50 bp on February 02, and the probability of the same rise in March is estimated at 70%.

Christine Lagarde, the head of the European regulator, speaking on Thursday, January 19 at the World Economic Forum in Davos (Switzerland), stressed that inflation remains too high, so the ECB will not relax its efforts to bring inflation under control. Ms Lagarde's colleague, ECB Governing Board member and Dutch Central Bank Governor Klaas Knot said on Thursday that the inflation situation remains unsatisfactory and that the market is wrong to expect only one 50bp rate hike in the future. There will be several such increases, according to Klaas Knot.

Such statements give euro bulls some hope. However, there are also those among European officials who take a more cautious position. Thus, Francois Villeroy, the head of the Bank of France, said in Davos that it is too early to talk about raising rates in March. And his words fell into rumors that the ECB is ready to move to 25 bps.

It is clear that the future of EUR/USD will be decided on February 01-02. In the meantime, 40% of analysts are counting on further strengthening of the euro, and the growth of the pair in the coming days. 50% expect that the US currency will be able to win back part of the losses. The remaining 10% of experts take a break in anticipation of the meetings of the Fed and the ECB. Among the indicators on D1, the picture is different: all 100% of the trend indicators are colored green. Among the oscillators, those are 65% of them, 20% signal that the pair is overbought, and the remaining 15% are painted in neutral gray. The nearest support for the pair is at 1.0800, then there are levels and zones 1.0740-1.0775, 1.0700, 1.0620-1.0680, 1.0560 and 1.0480-1.0500. The bulls will meet resistance at the levels of 1.0865, 1.0935, 1.0985-1.1010, 1.1130, after which they will try to gain a foothold in the 1.1260-1.1360 echelon.

China is celebrating the New Year next week, so we are happy to congratulate Chinese traders. As for the US and the Eurozone, the following events can be noted on the calendar. The ECB President Christine Lagarde will deliver a speech on Monday, January 23. Business activity indices (PMI and S&P Global) in the manufacturing sectors of Germany and the Eurozone as a whole will be published the next day. We will find out the value of the Business Climate Index (IFO) in Germany on Wednesday, January 25. As already mentioned, the value of the US GDP will become known on Thursday, in addition, a number of data from the consumer market and the labor market of this country will also come the same day. And the value of the Basic index of US household spending on personal consumption will be published at the very end of the working week, on Friday, January 27.

GBP/USD: Pound Counts on the Best

As in the US, retail sales in the UK also went down. They fell -1.0% (mom) in December, which is significantly lower than the forecast +0.5%. Analysts note that real spending in the country was significantly ahead of GDP in 2020-2022, but the rise in inflation led to a sharp halt in this process. And it is predicted that 2023 will be a period of retribution for this waste.

However, according to economists at HSBC, one of the world's largest financial conglomerates, things are not so bad. “With UK inflation likely to have peaked and could potentially slow more than the consensus forecast,” they write, “a less aggressive tone of tightening from the BoE now could mean a less dramatic reversal later in the year. And this may eventually become a minor positive factor for the British pound in the coming months. The shift towards better-than-expected domestic data should also be positive for the British pound." Economic performance is improving rapidly, experts say, thanks to a combination of a cheaper currency and higher interest rates. Suffice it to say that the UK trade balance for Q3 of last year showed the lowest deficit since December 2021. HSBC also believes that the growth of global market risk appetite will benefit the British currency as well.

In contrast to the EUR/USD flat trend, the British currency showed growth last week: GBP/USD approached the local December highs on January 18, reaching a height of 1.2435. Pound bulls are inspired by expectations that the Bank of England (BoE), in contrast to the fading activity of the Fed, on the contrary, will continue to vigorously tighten its monetary policy. It is predicted that from the current 3.50%, the rate may rise to 4.50 by summer. And an important day on this path may be February 02, when the next meeting of the BoE will take place.

The last chord of the week sounded at 1.2395. The median forecast for GBP/USD in the near future looks like this: 50% of experts believe that it is time for the pound to slow down its growth and are waiting for a correction to the south. Only 15% of experts side with the bulls, and 35% have taken a neutral position. Among the oscillators on D1, 85% are colored green, 15% signal that the pair is overbought. Trend indicators have 100% on the green side. Support levels and zones for the pair are 1.2330, 1.2250-1.2270, 1.2200-1.2210, 1.2145, 1.2085-1.2115, 1.2025, 1.1960, 1.1900, 1.1800-1.1840. When the pair moves north, it will face resistance at levels 1.2435-1.2450, 1.2510, 1.2575-1.2610, 1.2700, 1.2750 and 1.2940.

Highlights for the UK economy in the coming week include Tuesday January 24, when a pool of UK business activity (PMI) data will be released.

USD/JPY: Yen Outlook Is Positive as Well

Despite the fact that the Bank of Japan left its key rate unchanged at a negative level of -0.1% at its meeting on January 18, the yen is still among the favorites among the DXY currencies. USD/JPY fixed a low at 127.21 on Monday. It hasn't dropped this low since last May. Recall that this happened against the backdrop of a fall in the dollar and a decrease in the yield of US bonds (the US/Japan spread is at the lows of August-September 2022).

However, the pair corrected to the north and finished at 129.57 at the end of the week. However, according to many experts, data on the acceleration of inflation in the country will still force the Bank of Japan (BoJ) to tighten its monetary policy.

In general, inflation in the country in December amounted to 4.0% (y/y), accelerating from 3.8% in November. These rates are the highest since January 1991. Consumer prices in Japan excluding fresh food (a key indicator monitored by the country's central bank) rose 4.0% last month compared to the same month of the previous year. And this is the highest rate since December 1981. The indicator has remained above the BoJ's 2% target for 9 consecutive months.

Markets expect serious changes in monetary policy after April 08. It is on this day that Haruhiko Kuroda, the head of the Bank of Japan, will end his term, and he may be replaced by a new candidate with a tougher position. Prime Minister Fumio Kishida is likely to nominate this candidate in February. Kuroda will hold his last meeting on March 10, and the next BoJ meeting on April 28 will be held by the new head of the Central Bank.

Factors that could lead to further appreciation of the yen, in addition to a change in the BoJ, include improving Japan's balance of payments due to the devaluation of the yen and the resumption of tourism, as well as the revival of the safe-haven status of the yen and currency hedging by resident investors of their foreign investments. Economists at Danske Bank expect USD/JPY to fall towards 125.00 in the coming months. And according to the strategists of the international financial group Nordea, it may fall below 120.00 by the end of 2023.

Analysts' median forecast is also in line with Danske Bank and Nordea's forecasts. Their opinion on the near future of USD/JPY is distributed as follows: 75% of them vote for the pair to fall further. The remaining 25% have taken a neutral position. Not a single vote was given for the pair's growth this time. Among the oscillators on D1, 10% point north, 75% look south, and 15% point east. For trend indicators, 15% look north, 85% look in the opposite direction. The nearest support level is located at 129.30 zone, followed by levels and zones 128.90, 127.75-128.00, 127.00-127.25, 126.35-126.55, 125.00, 121.65-121.85. Levels and resistance zones are 130.45, 131.25, 132.00, 132.80, 133.60, 134.40 and then 137.50.

Among the events of the coming week, the report on the Meeting of the Monetary Policy Committee of the Bank of Japan, which will be published on Monday, January 23, is of interest.

CRYPTOCURRENCIES: Bitcoin Victory Over Artificial Intelligence

If you look at last week's chart, you can clearly see that the explosive growth of bullish optimism has almost come to naught. Recall that bitcoin received a powerful boost from January 09 to January 14 amid the publication of data on lower US inflation (CPI). Another contribution to the bulls' piggy bank was the news that FTX liquidators found liquid assets worth $5 billion. According to a number of bitcoin enthusiasts, this should allow crypto markets not to worry too much about the macroeconomic picture, which is still bearish.

But most likely, the last statement is wrong, and we should still worry. The growth of digital assets has been the result of an increase in the general global appetite of investors for risky assets. This can be seen if we compare the quotes of BTC/USD and stock indices S&P500, Dow Jones and Nasdaq. And while bitcoin has become the main beneficiary in this case, it was due of its increased volatility. And as we have repeatedly noted, the main factor determining the dynamics of both the stock and crypto markets in this situation is the monetary policy of the US Federal Reserve, including the change in the dollar interest rate.

Bitcoin has risen in price by more than 37% from January 01 to 18 2023, reaching a high of $22,715. The total market capitalization has exceeded $1 trillion for the first time in a long time. The enthusiasm of market participants has led to an increase in BTC trading volume twice in a week: the figure rose to $11 billion in the spot market. But, according to analyst Craig Erlam, there are no specific fundamental reasons for the further development of the bullish trend now.

Market growth in the first half of January came as a surprise to the bears. According to the statistics, they have lost about $1.2 billion in the last week alone. And this is only in BTC. The volume of liquidated short positions exceeded long positions by six times at some points. But all this happened at the expense of small and medium-sized investors. The number of bitcoin addresses that hold up to 1,000 BTC has increased dramatically. But institutional whales (more than 1000 BTC) practically did not react to what was happening and watched the bustle of shrimp with their characteristic grandeur and calmness. Suffice it to say that the inflow into bitcoin funds has been only about $10 million since January 10, and the number of wallets owned by whales continues to fall.

We have already written that many institutional investors are deterred from the crypto market by the lack of sufficient regulation. And now the US Congress has even created a new special subcommittee to solve this problem. However, Kevin O'Leary, CEO of venture capital firm O'Leary and host of the Shark Tank TV show, believes that adopting a strong regulatory framework will not solve the industry's problems or change the scale of fraud. The expert believes that even more crypto companies and exchanges will collapse this year. The reason for this, in his opinion, is people's ignorance.

Now let's talk about forecasts expressed in numbers. Ben Armstrong, a popular cryptocurrency YouTuber, believes that the price of the flagship cryptocurrency will jump to $30,000 by the end of February. And this will happen despite the fact that miners have been actively selling their assets lately in order to fix profits.

Legendary stock trader and analyst Peter Brandt, who, among other things, predicted the 2018 BTC correction accurately, also gave a fresh forecast for bitcoin’s movement. According to the specialist, BTC will be able to realize growth to levels near $25,000 in the near future. After that, a correction is not ruled out by the end of spring, that will give the cryptocurrency strength for a new rally. As a result, the coin will reach its previous highs near $68,000 in the second half of 2023. After that, another correction and a subsequent update of the absolute high are possible. In the longer term, Peter Brandt does not rule out bitcoin rising to $150,000 by early 2025. However, he warns that this is nothing more than his guess. Nobody knows how the main cryptocurrency will actually behave, according to the eminent trader.

The value of bitcoin could increase to $50,000-100,000 over the next two to three years. This opinion was expressed in an interview with CNBC by the founder of the hedge fund SkyBridge Capital Anthony Scaramucci. The businessman called 2023 a “recovery year” for the main cryptocurrency. Of course, the decisions of the US Federal Reserve will influence the digital gold rate. And if the financial regulator takes measures to stimulate the economy in the middle of the year, this will be a good impetus for the rise in the bitcoin price. Will it take the measures?

Bloomberg Intelligence senior strategist Mike McGlone agrees that the bottom in the cryptocurrency market has already been passed. But his opinion on the Fed's monetary policy is very different. McGlone has noted that the charts are reminiscent of the 2018 dynamics, when the price of the first cryptocurrency rebounded from $5,000. However, the macroeconomic situation is now completely different, which is why the bitcoin growth may stop at current values. Thus, the NASDAQ index may continue to fall, and the correlation between bitcoin and the stock market has been quite significant in recent years. “We are still pulling liquidity from global markets, and there are reasons for this. And even if equities and other risky assets rise, liquidity will remain limited by central banks. The big difference from 2018 is that the Fed had already begun to ease its policy then, and we do not see any easing today,” the Bloomberg strategist explained.

“Look at the NASDAQ, the chart breaks through the 200-week SMA. This has only happened 3 times in history, and the Fed has always eased its monetary policy. But the US Central Bank is tightening it now. The overall picture is optimistic for bitcoin, but the situation is unprecedented now, so anything can happen,” McGlone said.

Peter Brand admitted Above that it is almost impossible to accurately predict the behavior of bitcoin. The artificial intelligence (AI) of the ChatGPT test platform supported him in this opinion. This platform has become popular due to its ability to solve a wide range of tasks with high accuracy, including asset trading.

Experts from Finbold asked the artificial intelligence what the bitcoin price will be in 2030. Finbold suggested that ChatGPT would be able to provide a fairly accurate forecast based on historical BTC price data, market data, technical and fundamental analysis, and other indicators. But the AI didn't live up to expectations. It was never able to predict the exact rate and admitted that it is hard to name the price of the coin in the long term. The AI cited high market volatility and unclear regulatory rules as the reasons. However, the AI, like Peter Brandt, believes that the flagship cryptocurrency has potential for growth in the coming years. This will be possible due to the development of technology, the maturation of the cryptocurrency market and their mass distribution.

The future of the digital market is indeed vague. However, we can tell exactly what is happening in the present. So, at the time of writing the review (Friday evening, January 20), BTC/USD is trading in the $22,700 zone. The total capitalization of the crypto market is $1.038 trillion ($0.968 trillion a week ago). The Crypto Fear & Greed Index has left the Fear Zone and is now in a Neutral state at 51 points (46 a week ago).


NordFX Analytical Group


Notice: These materials should not be deemed a recommendation for investment or guidance for working on financial markets: they are for informative purposes only. Trading on financial markets is risky and can lead to a loss of money deposited.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #cryptocurrencies #bitcoin #stock_market

Forex | Forex Trading | NordFX
 

Stan NordFX

Well-known member
CryptoNews of the Week

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- Jamie Dimon, the head of JPMorgan said on CNBC that he was not sure that the bitcoin issuance is really limited to 21 million coins. "How do you know? Maybe it will go up to 21 million, and Satoshi's photo will pop up and laugh at all of you,” he suggested. The top manager already publicly expressed skepticism in October 2022 regarding the code embedded in the algorithm of the first cryptocurrency. “Have you all read the algorithms? Guys, do you believe in all this?” Damon grinned at the time.
Given the programmed halvings, reaching the bar of 21 million should occur by 2141. At the same time, experts say that the limit on bitcoin emissions is provided by only five lines of the code. It is open for study, and anyone can verify this.

- According to Cathy Wood, CEO of Ark Invest, the cryptocurrency market will enter a new phase in 2023. The growth of bitcoin and other virtual currencies will be the result of the US Federal Reserve's easing of monetary policy in the second half of this year. It is this move that will become a trigger for investors testing stock markets and digital currencies. Earlier, Bloomberg strategist Mike McGlone expressed a similar point of view, pointing to the possibility of BTC rising to $30,000.

- Adam Farthing, Chief Risk Officer at crypto company B2C2, noted that the first cryptocurrency needs to overcome the key level at around $25,000 in order to continue the rally. “It will be a tough nut to crack,” the expert shared his opinion. According to him, after passing the designated milestone, interest will resume from outsiders who want to return to the market.
Analysts at the brokerage company Bernstein are convinced that such a rally is unlikely to continue at the moment, as there are no signs of “any new injections” into the industry. However, in their opinion, institutional capital will still begin to show more interest in cryptocurrency this year, as it becomes an increasingly regulated asset class.

- Brian Armstrong, head of crypto exchange Coinbase, called bitcoin “the right long-term bet” for Brazil and Argentina. According to the Financial Times, the two countries intend to create a single currency to reduce dependence on the US dollar and stimulate regional trade. The Argentine Minister of Economy spoke about plans to offer participation in the bloc to other Latin American countries. The FT estimates that the new union will cover approximately 5% of global GDP and will be the second largest in the world after the EU (14%). “I wonder if they would consider switching to bitcoin. That would probably be the right long-term bet,” Armstrong said.
Former Goldman Sachs executive and macro investor Raoul Pal criticized Armstrong's idea because of the volatility of the first cryptocurrency. “No one can currently afford a national currency with 100% volatility, which falls by 65% and rises tenfold. Businesses are fighting to plan and hedge this,” he wrote.

- The Binance exchange press service said that an unknown artist under the nickname Sabunir tried to sell his digital image for bitcoins for the first time in the world. This happened 13 years ago, on January 24, 2010. The picture was a desktop wallpaper for a personal computer and was designed in a resolution of 1280x960 pixels. Sabunir tweeted at the time that he wanted to try to earn some bitcoins. He priced his picture at $1 and stressed that he plans to get 500 BTC for it. It is not known whether this deal took place, but if it did, Sabunir would now be a wealthy man, as these coins are worth more than $11 million.

- Carley Garner, senior commodity strategist & broker at DeCarley Trading, recommended staying away from virtual currencies and choosing gold instead as a hedge against rising inflation and economic chaos. Garner studied the daily chart of BTC and Nasdaq 100 futures since March 2021 carefully, and noted that the picture was almost identical, and the price movements were in sync. According to her, this indicated that bitcoin is more of a risky asset than a means of saving capital.
Garner's opinion was referred to by Jim Cramer of CNBC. “Mad Money” TV presenter also highlighted the risks associated with the flagship cryptocurrency in light of the collapse of the FTX marketplace. He noted that a similar situation could happen at any time with any other large crypto company. In his opinion, no one knows what the big players in the industry are really hiding. And there are no guarantees that they are actually honest with their customers. Any new scandal will cause a sharp drop in bitcoin quotes, which means that investors' assets are at risk.

- The first nuclear-powered bitcoin mining center will open in Pennsylvania (USA). Cumulus Data has completed construction of the country's first zero-carbon data center. The new data center will have a capacity of more than 40 MW, achieved through a direct connection to the Susquehanna nuclear power plant in northeast Pennsylvania. In addition to server equipment for cloud computing, the data center will house equipment for mining the main cryptocurrency.
Cumulus Susquehanna is the first in Cumulus Data's future network of 18 combined data centers with a combined capacity of more than 470 MW. They will be used to deploy the first Nautilus Cryptomine mining complex in the United States, which operates exclusively on nuclear energy and produces “carbon-free crypto assets”.

- “Buying bitcoin at the end of the first day of the Chinese New Year and selling it ten trading days later guarantees an average profit of more than 9%,” Markus Thielen, director of research and strategy at Matrixport, found out. The scheme has been profitable in 100% of cases for the last eight years, from 2015 to 2022. Such an operation would bring the greatest profit in 2017: 15%. Even in 2018, against the backdrop of the previous crypto winter, the investor received income, although only 1%.
To implement the scheme In 2023, it was necessary to buy digital gold on January 22, and sell the assets 10 days later, on February 1. Bitcoin was trading near the $22,900 mark on the day of the proposed purchase, January 22. Thielen believes its price should approach $25,000 by the beginning of February.
We will soon find out whether the phenomenon will be justified this time. And if anyone decides to follow Thielen's recommendations in the future, we would like to inform you that the next Chinese New Year begins on Saturday, February 10, 2024.

- Nicholas Merten, a cryptocurrency analyst and creator of the DataDash channel, noted that cryptocurrencies have a bright future, but many people underestimate the global situation. The damage done by FTX, Celsius, Three Arrows Capital and Terraform Labs has left an indelible mark on the industry. In addition, the macroeconomic component should also be taken into account, since many countries are struggling with rapid inflation, and supply chains have not fully recovered after the coronavirus pandemic. According to the expert, investors need to understand that the long-term bullish trend is over. Unfortunately, the digital asset industry needs to prepare for new challenges, and the current bullish trend in the market is only a local correction within the overall bearish trend.

- Thanks to the recent bullish rally, the capitalization of the flagship cryptocurrency has exceeded $443 billion, and has surpassed all key traditional financial institutions, including global world banks, in this indicator. For example, the capitalization of the American banking giant JPMorgan Chase is $406.42 billion, while Bank of America has a capitalization of $277.56 billion. In addition, BTC is ahead of companies such as Alibaba ($317.01 billion), Samsung ($335.37 billion), Mastercard ($365.09 billion) and Walmart ($385.15 billion). However, it has slightly lost to Tesla ($454.72 billion).
According to CompaniesMarketCap, bitcoin is the 16th most valuable asset in the world. The leaders of the rating are gold ($12.77 trillion), Apple ($2.25 trillion) and Saudi Aramco ($1.94 trillion).


Notice: These materials are not investment recommendations or guidelines for working in financial markets and are intended for informational purposes only. Trading in financial markets is risky and can result in a complete loss of deposited funds.

#eurusd #gbpusd #usdjpy #btcusd #ethusd #ltcusd #xrpusd #forex #forex_example #signals #forex #cryptocurrencies #bitcoin #stock_market

Forex | Forex Trading | NordFX
 
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