Bitcoin has retreated to below $25,000 after reaching a nine- month high on Tuesday at about $26,500. The rise for the world’s largest cryptocurrency by market value came minutes after the U.S. Consumer Price Index was released. The index showed that the rate of inflation is slowing down. Meanwhile, altcoins continue to rally, with stacks (STX) taking the lead up 36% over the past 24 hours. Immutable X, a layer 2 scaling tool for non-fungible tokens on the Ethereum blockchain, surged 30%.
Bitcoin’s 24-hour price chart
Binance.US’ deal to buy the assets of bankrupt crypto lender Voyager Digital for $1 billion should be put on hold while key legal objections are ironed out, the U.S. government said in a filing on Tuesday. The move follows an appeal by the U.S. Trustee, a branch of the Department of Justice responsible for bankruptcy cases, which is concerned that the deal would effectively absolve Voyager and its staff from breaches of tax or securities law.
Anchorage Digital is laying off roughly 20% of its staff, or 75 people, because of the slide in the prices of digital assets, according to a report from Bloomberg. The institutional crypto platform and parent company of Anchorage Digital Bank, the first federally chartered crypto bank in the U.S., told Bloomberg that regulatory uncertainty in the U.S. played a role in its decision to cut staff.
Market Insight: Ether May Be Value Play
An on-chain indicator suggests leading smart-contract blockchain Ethereum’s native cryptocurrency, ether, may be trading at compelling valuations.
The seven-day average of Ethereum’s network-to-value, or NVT, ratio, which measures the cryptocurrency’s market capitalization (numerator) in relation to the value of on-chain transactions processed on the underlying blockchain (denominator), slipped to 59.3.
That’s the lowest since Nov. 19, according to data tracked by blockchain analytics firm Glassnode.
A rising ratio, implying a slower growth rate of on-chain transactions relative to the cryptocurrency’s price, suggests the network is overvalued. A declining ratio indicates otherwise.
Bitcoin’s weekly chart shows the cryptocurrency is again struggling to establish a foothold above $25,000, which capped gains last month and in August 2022.
According to chartered market technician Aksel Kibar, a breakout above $25,000 would shift focus to the next hurdle at $28,600.
“The challenge for BTCUSD is the immediate strong resistance at $28,600 after $25,000. The ideal condition is to break $25,000 with momentum so that it clears $28,600 in one shot,” Kibar noted.
– Omkar Godbole
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Disclaimer: The information presented in this message is intended as a news item that provides a brief summary of various events and developments that affect, or that might in the future affect, the value of one or more of the cryptocurrencies described above. The information contained in this message, and any information liked through the items contained herein, is not intended to provide sufficient information to form the basis for an investment decision. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.
