Kamran Asghar

Amid the country’s fragile economic standing, US citizens’ debt has surpassed the $17 trillion mark for the first time ever. Moreover, household debt set a record of $17.05 for Q1, growing by 0.9%, or $148 billion, from Q4 of last year.

The Federal Reserve Bank of New York reported the concerning figures on Monday. Additionally, it is noteworthy that the debt has surged by $2.9 trillion since the closing months of 2019. Conversely, the debt number arrives as the US government debates a potential increase to its debt ceiling. Confronted by the potential of a worrisome debt default. 

#Bitcoin    has the potential to replace fiat currency because it is decentralized and operates on a peer-to-peer network, meaning that it doesn't require intermediaries such as banks to function.

The supply of #Bitcoin    is also limited to 21 million coins, which means that it can't be inflated like fiat currencies. This makes Bitcoin a more stable and reliable store of value over the long term.

#Bitcoin   's security is also a significant advantage. The technology behind Bitcoin, known as blockchain, uses cryptography to secure transactions and prevent fraud. This makes Bitcoin a more secure and trustworthy currency than fiat.

#Bitcoin     also provides users with more financial privacy. Because Bitcoin transactions are pseudonymous and not tied to a user's identity, users have more control over their financial data and can make transactions without worrying about their personal information being compromised.

Finally, #Bitcoin    is borderless and can be used anywhere in the world. This makes it a convenient and accessible currency for people who live in countries with unstable fiat currencies or limited access to banking services.

While #Bitcoin    is still relatively new and has a long way to go before it can fully replace fiat currency, its advantages make it a promising alternative that could potentially revolutionize the way we think about money.

Of course, there are still challenges that need to be addressed before #Bitcoin    can become a mainstream currency, such as scalability, usability, and regulation. However, with continued development and innovation, #Bitcoin    could become the currency of the future.

#crypto2023

The Ethereum network experienced technical issues, causing the network to stop finalizing blocks for over an hour on Friday.

This was the second such incident within 24 hours, raising concerns for users of the second-largest blockchain by market capitalization.

However, the network has resumed finalizing blocks, and clients are releasing updates to address the issue, according to Terence.eth, a pseudonymous Ethereum developer.

Finalized blocks play a crucial role in providing proof-of-work validation, making networks like Ethereum easy to trust and reliable to use.

While Ethereum’s performance issues within the past week could potentially affect its credibility in the eyes of builders, the network has historically been viewed as one of the most stable networks in the market.

However, some services built atop Ethereum, such as leading crypto exchange platform DYdX, had to pause deposits temporarily due to Ethereum’s lack of finality.

Despite the hiccup, Ethereum has become an integral part of the blockchain ecosystem, hosting multi-billion-dollar networks of financial infrastructure and other applications.

There is currently over $27 billion in Total Value Locked (TVL) across the Ethereum network, according to data by DefiLlama.

The network’s native token, ETH, is trading at around $1,800, up by 2.0% over the past day but down by almost 7% over the past week.

Superphiz.eth, an Ethereum Beacon Chain community health consultant, advised validators to increase their hardware specs if possible, switch to a minority client, and apply patches when available. He also added that the chain keeps going and eventually finalizes, encouraging users not to worry too much.

#Binance #crypto2023 #BNB

One key factor to consider in the current market structure of Bitcoin is the role of liquidity. As mentioned previously, there is significant liquidity between $31,000 – $35,000, which could lead to a quick move up if short liquidations occur. However, this liquidity could also be used by whales to fill large asks with minimal slippage, which could cause price to stagnate or even drop. It is important for investors to monitor the order book and watch for any significant buy or sell walls that may indicate large traders positioning themselves in the market.

Another important factor to consider is the role of long-term holders in the market. These holders, often referred to as "whales," have a significant impact on the supply and demand dynamics of Bitcoin. As mentioned earlier, long-term holders may begin to move their coins out of the market as we move out of the bear market lows. This could result in increased selling pressure and a potential downward price movement.

However, it is important to note that Bitcoin has proven to be a highly resilient asset with a history of bouncing back from market downturns. The market has seen several bull and bear cycles over the years, with each cycle bringing new challenges and opportunities for investors. As such, it is important to take a long-term view of the market and not panic in response to short-term price movements.

The current state of Bitcoin's price action remains uncertain as it continues to consolidate within a range-bound structure. While there are potential bullish catalysts such as a break of the $30,000 resistance level and the presence of liquidity, investors should also be mindful of potential profit-taking and resistance at higher levels. It is important to closely monitor the market and remain vigilant in response to any significant shifts in sentiment or price action. With careful analysis and a long-term perspective, investors can navigate the market with confidence and make informed decisions about their Bitcoin holdings.

#crypto2023 #Binance #dyor #BNB

Bitcoin may need to spend some time in this range for the coming months, in part due to the market structure mentioned above, but also due to the fundamentals of where we are in Bitcoin’s market cycle. At this stage of the cycle, it is common to see some older coins moving on-chain as long-term holders, who can act as a proxy for ‘smart money,’ start to move their coins. The psychology around this is that they have weathered the storm of the bear market lows and now want to take some funds out of the market following the initial price recovery. When that happens, the Value Days Destroyed (VDD) indicator increases. Those increases are shown by the orange spikes on the chart, following a period of green which represents relatively fewer older coins moving on-chain during the bear market lows.

This indicates that some profit taking is happening with older coins as we move out of the bear market. In prior cycles, as this process unfolds over the course of a few months, Bitcoin price remains range-bound. Increased demand is met with this supply from market participants who have held during the bear market. It is possible we will need to see something similar play out again over the next few months.

Bitcoin’s current market structure suggests that it may need more time to broadly range before any potential aggressive moves towards previous all-time-highs are attempted. Though with strong support levels down towards $20,000, it is likely that pullbacks will be relatively limited and 2022 Q4’s lows will hold.