Crypto market situation

Both the crypto market and the stock market have been falling day by day. Bitcoin price has fallen to around $ 42,000. A number of altcoins also fell. The decline started in the Asian stock markets.

The news that China’s second largest real estate company Evergrande is threatened with bankruptcy is making investors nervous. At the same time, there are sources that say the Chinese government will not save Evergrande and the risk of failure is higher. Investor worries led to a sharp sell-off. Investors want to convert assets into cash and wait for the next situation. The Hong Kong stock index Hang Seng also fell by more than 4% at the beginning.

Asia is one of the markets that host many cryptocurrencies that will be directly affected if the Evergrande company collapses. Investors selling assets including crypto also dropped the market. This is similar to March 2020 when the epidemic broke out. But as the situation stabilized, most stocks, cryptocurrencies, and some other assets rebounded.

Like the US stock market, it continues to grow year after year even though the market has grown. And the last deep 5% correction was in October last year, so it is normal for the market to adjust when there is a correction. The stock market, or Bitcoin, has grown in importance so it is important for investors to take profits and take profits to offset risks.

While Evergrande is the second largest company in China when compared to the Lehman Brothers event, the scale is exaggerated than it actually is.

If Evergrande goes bankrupt, companies and banks in other countries like the US, Australia, etc. will be affected too. US stocks will also be affected, and the indices will all fall. The decline in the US market was also due to concerns about the Fed’s adjustments.

Investors fear that with inflation and employment rising, the Fed is showing signs that monetary stimulus is slowly running out. Currently, the Fed is still using $ 120 billion a month to buy back home bonds and some other bonds. So if the Fed cuts bond purchases or raises rates, investors will worry and the market will fall.

The on-chain situation shows that Bitcoin is moving losses in the recent decline. BTC’s profitability has dropped to 77%. When the BTC win rate goes down, the demand for profit-taking declines.

The Short Term Hodler Index for the past day is below the threshold of 1 for most of the time. It can be seen that the BTC moving losses are from short term investors. But long-term investors are the opposite, the BTC they move is the profitable BTC.

Yesterday, the amount of Bitcoin deposited on exchanges was higher than the amount withdrawn. This is useful when short-term investors are taking profits. At the same time, the stable copper signal, which was burdened on the stock exchanges, also rose.

Some other information:

• Coinbase announced that it is canceling its intention to launch a USDC loan product. Perhaps Coinbase didn’t want to confront the SEC, so they focused on other product developments.

• Those who know SEC Chairman Gary Gensler said the chances of the SEC making concessions or cooperating with the crypto market were nil unless Congress or the courts intervened. This means the chances of a deal between the SEC and Ripple are unlikely. The SEC wants to use Ripple as an example for other companies. But Ripple is also pushing against SEC power. The outcome of this lawsuit will form the basis for future SEC crypto legislation. Although Ripple was affected in the US, the event also helped increase the popularity of XRP in the international market.

• The consumer division of banking giant Citigroup has released a report that offers guidance to institutions looking to get into the crypto industry and aspects of how the company should watch out for how much they got paid.

• Brazil’s largest investment bank, BTG Pactual, offers BTC and ETH buy / sell services directly through the Mynt platform. The bank recommends clients invest a small portion of their portfolio, up to 2% of the portfolio, in Crypto.

• Todos Medical, a comprehensive medical diagnostics and solutions company, announced today that it now has Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), Bitcoin Cash (BCH) and Litecoin (LTC) as payment for the Healthcare accepts products.

• The Thai Securities and Exchange Commission and Exchange have a license for an asset-backed token offering service based on the Ethereum blockchain. The license was issued through the SEC Thailand’s official Coin Offerings portal, which was originally founded in 2018. The license lays the foundation for Fraction’s upcoming digitization and asset segmentation service, known as Initial Fractional Supply (IFO).