With bitcoin price hovering around the $20,000 mark, market observers expect its trading to continue between $18,000 and $22,000

With bitcoin price hovering around the $20,000 mark, market observers expect its trading to continue between $18,000 and $22,000

According to market observers and its volatile conditions, cryptocurrency trading has maintained the range between $18000 and $22000 for a month. Additional thoughts were shared.

Bitcoin price has a lot to do with the supply and holders too. If you have looked at Glassnode’s data, over 80% of the total USD-denominated wealth invested in bitcoin has been moved for at least three months. When supply is dormant, the price is dormant, and this means that holders are unwilling to spend at a lower price.

Another possible reason is that SEC chair Gary Gensler said in an interview with Yahoo Finance on 15 July 2022 that they will continue to speak to the crypto industry, saying that they may suggest rules that apply to traditional brokerage to protect investors in the event of crypto failure. This piece of news in a timely manner, and gives more confidence to the investors at large.

The news of South Africa will go all in to regulate crypto as a financial asset is another plus point for this week. With all the news today alone, many people on Twitter turned bullish upon seeing the crypto market cap was traded closer back to the $1 trillion mark. Investors have to look at the following dates:

1) 27 July- Federal Reserve Interest Rates;

2) 28 July- US GDP Figures.

These are important dates to note as they can drive the crypto prices up or down.

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With bitcoin price hovering around the $20,000 mark, market observers expect its trading to continue between $18,000 and $22,000

According to market reports, volatility in cryptocurrency markets is because of factors such as the global pandemic, world governments, and Web3.0’s bullish nature.

After a topsy-turvy ride, it seems bitcoin has stabilised with it being predicted to trade between $18,000 and $22,000, based on its price range for the last couple of months. On July 17, cryptocurrency bitcoin’s price fell below the $21,000 mark. At the time of writing (12.19 pm, Indian Standard Time), the global cryptocurrency market capitalisation reached a $1.01 trillion valuation while bitcoin traded close to the $22,000 value, according to cryptocurrency assets price-tracking website CoinMarketCap. “Bitcoin is hovering close to the $20,000 mark because of the community and investors who still believe in the currency. Due to the cryptocurrency’s nature and limited supply, its price is expected to increase in the future,” Agam Chaudhary, a serial entrepreneur and investor in Web3.0 space, told FE Digital Currency.

Various market reports stated that volatility in cryptocurrency markets is because of factors such as the global pandemic, influence of stock markets, decisions by governments, and the bullish nature of Web3.0 space. According to the Twitter handle of blockchain analytics firm Glassnode, over 80% of the total United States Dollar (USD) denominated wealth has been held on by investors for around 3 months, irrespective of market volatility. “Rules must be suggested for traditional brokerage to protect investors in the event of cryptocurrency failure. Investors need to follow the Federal Reserve Interest rates and US gross domestic product (GDP) figures, as they can drive cryptocurrency prices up or down,” Anndy Lian, chief digital advisor, Mongolian Productivity Organisation, a governmental organisation, stated.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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What does the crypto industry expect from the Fed’s meeting?

What does the crypto industry expect from the Fed’s meeting?

Synopsis

The stock market is likely to indicate the outlook for the crypto market. The stock market is having another rough ride, said Anndy Lian, Chairman, BigONE Exchange.​

New Delhi: The global crypto industry is awaiting the outcome of the Fed’s two-day policy meeting, which will be released on Wednesday. The hawkish stance from the Fed and signals of four rate hikes in 2022 has spooked the global markets lately.

With a sharp correction in global equity markets, particularly in tech stocks, the crypto cart followed the carnage and eroded wealth worth $1 trillion from the global crypto market cap.

However, the crypto traders are showing some signs of recovery, but the volumes have remained muted as the traders are eyeing Fed’s commentary on the issue.

Clearly, the Fed intends to curb and pump out the easy money policy. The hawkish view from the US central banks hammered the crypto cart and the top coins saw a big drop in their pricing.

The stock market is likely to indicate the outlook for the crypto market. The stock market is having another rough ride, said Anndy Lian, Chairman, BigONE Exchange.

Market experts believe that the Fed will try to restrain the rising inflation without dismaying the already fragile markets further, without the complete certainty of the success of their plans.

Bill Hughes, Senior Counsel & Director of Global Regulatory Matters, ConsenSys, said: “We should expect the entire world to hold its collective breath while a room of central bankers make decisions that will have ripple effects in all world markets, which is the hallmark of a financial system that crypto believes it can improve upon.”

He specifically expects the Fed to try to walk the very difficult and uncertain line of curbing inflation while not further panicking already nervous markets, he added. “Whether they are successful or not, it’s not completely in their control.”

Michael Terpin, Founder and CEO, Transform Group, a global blockchain advisory company, said that there had been a general climate of investor fear around the eventual tightening of the unprecedented loose monetary policy of the Fed.

“The stock market should bear the brunt of this, as there are no buybacks in crypto,” he added. “Calling everything risk-on or risk-off oversimplifies the markets.”

Impact on the mood of the market
In the short term, if the Fed decides to tighten credit markets, then the tide of investment dollars into crypto might ebb to some degree, which may affect the crypto start-ups that have a harder time fundraising without ubiquitous cheap money.

But in the medium and long term, and with respect to the more attractive investment opportunities in the space, these monetary policy moves will have little to no meaningful effect.

Blockchain technology is here to stay and growing at leaps and bounds, said Hughes from ConsenSys. “This will drive the investments flowing into the space as people and institutions place bets on the industry, building the future of finance and global online culture.”

What should investors do?
The news about the executive order emerged a day after the Federal Reserve Board (FRB) released a discussion paper that explores the pros and cons of creating a central bank digital currency (CBDC) for the US, which seeks public comment through May 20.

“Looking at the timeline, I think investors have to reposition their investment strategies for crypto. This could also mean the rise of the altcoin markets,” said Lian from BigONE.

Crypto investors need to have a long-term outlook and patience, said the market experts. In the short term, crypto markets are poised to show wild volatile swings.

There has never been a period where prices were not higher for Bitcoin four years later, said Terpin. “Stock market investors generally have at least ten-year horizons, and crypto investors need to adopt the same philosophy,” he added.

Controlling and taxing income is every governments’ responsibility and prerogative, and that should have been priced into the market already, said the experts.

We could look at it as something bad — where growth and free-market are being restricted by the Fed or as crypto investing has a big impact on investing and has enough mainstream money invested that it has begun to matter to policymakers, said Pratik Gauri, CEO and Founder, 5ire.

“Both the crypto investing and associated innovation are becoming mainstream. Investing in crypto as a value proposition or a value building vehicle is not going to be affected anytime soon,” he added.

 

 

Original Source: https://economictimes.indiatimes.com/markets/cryptocurrency/what-does-the-crypto-industry-expect-from-the-feds-meeting/articleshow/89136991.cms

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Ethereum 2.0: What to expect from the long-awaited upgrade?

Ethereum 2.0: What to expect from the long-awaited upgrade?

Additional comments on top of what is quoted in the article: 

Well, back in 2020 everybody is talking about Ethereum 2.0 but now people no longer really care about it, the reason for that is based on my own observations are:

1) It is been delayed numerous times.  Till now we don’t have a trustworthy date for that,

2) A big portion of the Ethereum community is against it, especially the miners,
3) It doesn’t do much actually. If it includes sharding, many would look forward to 2.0, but since it does not matter,
4) Neither the speed nor the cost will go down a lot. This makes no difference in most instances.

As to the price prediction, when the 2.0 launches, we would most likely see a price increase, maybe a new time high. However, its just speculation, not aligned with its real value. Hence it will drop back to where it should be. This will also depend on the bigger economic and financial environment, 2022 could be a difficult year.

My final word to everyone. Crypto is very volatile. Invest with caution.

– Anndy Lian

Ethereum 2.0: What to expect from the long-awaited upgrade?

Ethereum’s native cryptocurrency, ether (ETH), saw a fruitful 2021 as the world’s second-largest coin surged by 404.21% in the last 12 months from $730.37 on 1 January 2021 to $3,682.63 on 31 December 2021.

With over 119 million ETH in circulation and a market capitalisation of $384bn, at the time of writing (14 January 2022), countless ETH investors are waiting impatiently for the cryptocurrency to release its series of updates known as Ethereum 2.0 or ETH2, aimed at making the decentralised blockchain faster, safer and more sustainable.

The ETH2 process kickstarted on 1 December 2020, pushing the coin to a 5.2% daily gain from its $602.87 opening price, by launching the Beacon Chain, that introduced proof-of-stake (PoS) to the blockchain, a new means to keep Ethereum more secure and help investors earn more ETH tokens in the process.

Initially known as Phase 0 on technical roadmaps, the ETH2 process consists of three phases in total, with Beacon Chain being the first.

Miners are currently anticipating the launch of Phase 1, which is planned for June 2022.

A final date for the Ethereum 2.0 release is yet to be announced, but the final phase of the blockchain’s launch is anticipated in 2023. What should investors expect from ETH2 and what are analysts saying?

What is Ethereum 2.0?

Initially known as ‘Serenity’,  the Ethereum 2.0 set of interconnected upgrades has been an active area of research and development since 2014. ETH miners, however, were first introduced to the concept during CEO Vitalik Buterin’s speech at the Devcon conference in Prague on 31 October 2018.

“Ethereum 2.0 is this kind of combination of a bunch of different features that we have been talking about for several years, researching for several years, actively building for several years, that are finally going to come together into this one coherent whole,” Buterin said, describing what Ethereum 2.0 entails.

The vision of ETH2 is to “bring Ethereum into the mainstream and serve all of humanity” by making it more “scalable, secure, and sustainable” as the blockchain aims to target three large-scale problems; clogged networks, lack of disk space and using too much energy (which is not eco-friendly).

In general, what ETH2 will do is switch up Ethereum’s algorithm from its current proof-of-work (PoW) consensus protocol, also used by Bitcoin, towards proof-of-stake. What this means for the blockchain is that mining ETH will come with less energy consumption, less hardware requirements, stronger immunity to centralisation and stronger support for shard chains, a key upgrade in scaling the Ethereum network.

Following Ethereum 2.0 updates, the blockchain itself will become more accessible as its move towards a proof-of-stake consensus protocol also plans to drop its expensive use price triggered by its popular demand and ability to only process between 15 to 45 transactions per second.

According to crypto investor Lark Davis  on Twitter, who shared a photo from CoinMarketCap, ETH transactions fees are the highest in comparison to all other blockchains, reaching $46.22 as of 13 January 2022.

The ETH2 roadmap consists of three phases, with Phase 0, the launch of Beacon Chain, already live. Possibly one of the most vital changes to the Ethereum blockchain, the Beacon Chain, does not alter anything about the way Ethereum is mined today, but introduces the proof-of-stake algorithm.

The Beacon Chain, currently, exists separately from the Mainnet (short for main network) Ethereum chain used. However, following Phase 1, coined by the blockchain’s creators as ‘the merge’, the two will become one. Currently, more than 8 million ETH coins are eligible for the Beacon Chain.

It is estimated that ‘the merge’ will launch in June 2022, with the possibility it could be delayed further if not ready. ‘The merge’s’ launch will mark the end of proof-of-work algorithms within the Ethereum blockchain and the full and final transaction into proof-of-stake.

Phase 2, the final of the ETH2 launch, Shard chains, was originally planned to launch before ‘the merge’ was complete.However, this plan was later changed because Shard chains can only enter the Ethereum ecosystem with an operating proof-of-stake consensus mechanism.

Because ETH2 upgrades are “somewhat interrelated”, one cannot fully operate without the other being complete, so Ethereum 2.0 will entirely launch into action once Phase 2 is released.

What will ETH2 do to the Ethereum price?

Firstly, Ethereum’s update will allow the cryptocurrency to catch up with its competitors, which are already much more advanced in terms of scalability and security. NEO , for example, can already master over 10,000 transactions per second, something Ethereum is unable to achieve due to its current proof-of-work consensus protocol.

In addition, the current cost of ETH transactions via the Ethereum Network is very high, therefore preventing a number of people from using it. The introduction of Shard chain aims to increase the transaction speed of the ETH token, potentially scaling it up to 100,000 transactions per second, thus having the possibility to lower Ethereum fees amid faster transactions.

“Technical updates usually have worked well for Ethereum’s price in the past, and the same could be expected for the 2.0 update,” said Yuya Hasegawa, market analyst at Bitbank.

News concerning ETH2 updates had also positively affected the performance of the token’s price so far.

On 20 January 2021, Ethereum Foundation Researcher Danny Ryan published a report stating that the launch of the Beacon Chain was a “resounding success”. Between the launch of Beacon Chain on 1 December 2020 and the end of January 2021, the token’s price skyrocketed by 123% from $587.32 to $1,314.

Yet BigOne Exchange chairman in Asia Anndy Lian notes that the Ethereum 2.0 price outlook could not be as bullish as it seems.

“As to the price prediction, when the 2.0 launches, we would most likely see a price increase, maybe a new time high. However, it’s just speculation, not aligned with its real value. Hence it will drop back to where it should be. This will also depend on the bigger economic and financial environment; 2022 could be a difficult year,” Lian told capital.com.

Please note that price predictions can be wrong. Forecasts shouldn’t be used as a substitute for your own research. Always conduct your own due diligence before investing. And never invest or trade money you cannot afford to lose.

Risks ahead for Ethereum 2.0 release

Lian notes that back in 2020 people were much more invested in the Ethereum 2.0 release than they are now for a number of reasons.

Firstly, Lian said it has been delayed “numerous times” and until now “we don’t have a trustworthy date”. Secondly, he added, “a big portion of the Ethereum community is against it, especially the miners”.

Lian said that it is likely ETH’s cost will not decrease by much, following the final launch of Ethereum 2.0, making no difference in most instances.

On the other hand, Bitbank’s Hasegawa disagreed and stressed that the two-year delay of the Ethereum 2.0 release date is “proof that the developers have been working hard to make sure no significant network failure would happen”. She said “technical risks are expected to be unlikely” once Ethereum 2.0 launches.

“An overall outlook for Ethereum is positive, with the upcoming update to 2.0, and the growing anticipation for the NFT and metaverse industries’ expansion,” Hasegawa concluded.

In a 2020 Macro Report, Crypto.com senior research analyst Kendrick Lau said that sharding, which is planned to be introduced alongside Ethereum 2.0, is “one of the most promising methods to add scalability to a blockchain network and in tandem with layer 2 scaling solutions, which can increase scalability by a factor of hundreds, if not thousands”.

Please note that analyst predictions can be wrong. Analyst comments shouldn’t be used as a substitute for your own research. Always conduct your own research before investing. And never invest or trade money you cannot afford to lose.

 

Original Source: https://capital.com/what-is-ethereum-20

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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