• The crypto space was recently rocked by the collapse of FTX, causing the downfall of some crypto firms and a crash in prices.
• Bitrue’s Chief Strategy Officer Robert Quartly-Janeiro shared his thoughts on how crypto exchanges have been faring in the wake of the FTX decline, and how Bitrue is working to regain user trust after this.
• Going forward, exchanges are being more cautious as consolidation continues due to economies of scale, trust, and market moves.
FTX Collapse Triggers Price Crash
The collapse of FTX sent shockwaves throughout the crypto space, triggering the downfall of some crypto firms and prices crashed along with it.
Bitcoinist caught up with Bitrue’s Chief Strategy Officer, Robert Quartly-Janeiro and he shared his thoughts on how crypto exchanges have been faring in the wake of the FTX decline, and how Bitrue is working to regain user trust after this.
Robert Quartly-Janeiro commented that FTX was operating way outside of its remit and if they had not done that in the first place then their demise could have avoided. He also shared his sympathy for both users who lost money as well as staff who were unaware what was happening behind closed doors.
Exchanges Faring After FTX
Since FTX went bankrupt, other exchanges have seen a decline in trading volumes which has caused negative media coverage as people speculated ‘who’ll be next?’. However Binance’s deal for SEBC (Sakura Exchange Bitcoin) calmed things down again as it showed major deals are still possible even after events like this.
Going forward many exchanges are operating cautiously by de-risking and being more frugal with resources as consolidation continues due to economies of scale, trust, and market moves. Users are still wary but confidence is slowly returning to the market again
• The article discusses the “realized price” of Bitcoin, which is a capitalization model that takes into account the cost basis of the average investor in the Bitcoin market.
• This metric can be used to assess whether average investors are currently in a state of gain or loss, and it has recently been approaching its peak level again.
• If BTC can maintain this level, then it could form a strong support level for the asset’s rally.
What Is The Realized Price Of Bitcoin?
The realized price of Bitcoin is derived from a capitalization model called the “realized cap.” Unlike the normal market cap, which puts the value of all coins in circulation as equal to the latest BTC price, this model says each coin’s “true” value is the price at which it was last moved. By dividing this realized cap by total number of coins in circulation, one can obtain the “realized price,” which signifies the cost basis of an average investor in the Bitcoin market.
How Can The Realized Price Help Assess Market Conditions?
The realized price helps mitigate issues such as when coins become permanently inaccessible due to lost wallet seed phrases but still have their value attributed by traditional market cap measures. It also allows analysts to assess whether average investors are currently in a state of gain or loss — if BTC is trading under its realized price then holders are generally considered to be at a loss on their investments.
What Has Been The Trend In The Realized Price Over Time?
In recent months, there has been an apparent trend that shows BTC breaking through its realized price with start of its latest rally in January 2021 (see graph below). Whenever prices are below this level, holders tend to be at a net-loss on their investments:
Looks like the price has been approaching this metric | Source: CryptoQuant
Can This Push Up Asset Value And Restart Rally?
If BTC can maintain current levels near its realized peak then it could form a strong support level for future rallies and restart current uptrends. As noted by an analyst from CryptoQuant, maintaining this level would be necessary for any bullish outlooks for bitcoin moving forward.
In conclusion, tracking metrics such as bitcoin’s realized price can help gauge overall sentiment and whether investors are generally making profits or losses on their investments — if prices remain close to this peak then there could be potential for continued growth in bitcoin’s value over time.
•Litecoin recently released a network upgrade to improve its network security and fix critical issues.
•The Litecoin price spiked following the upgrade, encouraging miners to join the network.
•However, the recent price drop of 7% in 24 hours has caused miners to lose interest in LTC.
The Litecoin Foundation announced an update named Litecoin Core 0.21.2.2 on March 2 and shared the information on Twitter. This upgrade is designed to improve its network security and fix critical issues affecting nodes, making it more efficient and accommodating users’ needs.
LTC ended 2022 at $68 but recorded an intraday high of $70 and an intraday low of $67.79 on the same day. On January 1, LTC kicked off with positive price movements, pushing its price to $74 by day’s end until it hit $90 on January 14 and then finally reached $101 on February 2. From February 3 up till March 3, LTC traded between $80-$100 on some days before dropping again down to $89 at press time due to a 48.42% drop in trading volume indicating slow activity with the coin.
Coinwarz data show that following this upgrade, there was a slight uptick indicating new miners had joined the network as a result of this encouraging news – however this was not enough for investors given the 7% drop in 24 hours shortly after which scared them away from investing further into LTC causing miners to rapidly lose interest in it once again as well as resulting in its current state at press time trading below $90 again after reaching highs of near about triple digits just weeks before that .
Indicators Showing Bearish Trend
Other indicators showing bearish trend include relative strength index (RSI) headed below neutral mark, downtick on chaikin money flow (CMF), lower part of bollinger bands touched indicated higher volatility area ,and MACD shows bearish move which suggests more bear runs coming soon .
In conclusion, although Litecoin’s recent update increased miner interest initially due to positives changes made by developers ,the sudden drop of 7% within 24 hours caused miners to lose interest once again suggesting that additional improvement might be needed for investors’ confidence returning back into this crypto coin .