Market update

Bitcoin rebounded, rising slightly to around $ 48,000. Even with BTC, the market is predominantly bullish. Some coins with higher intraday growth rates are AVAX, Dogecoin with information from Tesla that accept payments in this coin.

The Bitcoin price was adjusted and the amount of BTC withdrawn from the exchange was still higher than the amount deposited. As for the ETH, the amount deposited on the floor within the last 1 week is higher than the amount withdrawn from the exchange. However, the difference is not great.

The profitable Bitcoin volume has fallen from the high of over 85% to 76% since the beginning of December.

Willy Woo also shared a chart of the 7-day average of BTC in wallets with amounts under 1 BTC. He noted that the number of BTC in wallets with less than 1 BTC has increased this time, similar to what it did in March during the outbreak. This is a sign that retail investors are accumulating, not just long-term investors.

He added that the real bear market doesn’t happen from the sellers, it happens when the buyers are exhausted. For this reason, macro peaks are very volatile; the buyer’s liquidity decreases.

Given the current market situation, many people on Bitfinex think that the situation will not be bad if the Fed announces this. Hence, there are a large number of futures orders on this exchange with prices between $ 47,000 and $ 51,000.

The Fed’s rate hike plan is still affecting the market

US stocks continued to decline across all three Dow Jones, S&P 500 and Nasdaq indices on concerns about interest rate hikes. The outcome of the Fed meeting is also expected. The slump in the stock market in recent sessions also shows that investors are prepared for the event that the Fed announces a rate hike. If so, the market is likely to develop for the better.

The US debt ceiling hike is expected to be approved. The Democratic Senate and House of Representatives voted with just one Republican vote to raise the debt ceiling. The Senate passed the measure on Tuesday afternoon in a party with 50 to 49 votes. If signed by President Biden, the resolution would raise the debt ceiling by $ 2.5 trillion. Senate Chairman Chuck Schumer said the measure would raise the borrowing limit to a support level by 2023.

The Fed has to make a difficult choice between hike rates and rising inflation. If interest rates rise, the market will react negatively in the short term; if it stays the same, inflation will continue to rise and the consequences are foreseeable.

The poll of 31 respondents, including economists, strategists and asset managers, predicted that the Fed would make a series of rate hikes every two years, with about three projections for the future. The first rate hike is now forecast in June, a clear recalculation from the September survey when the first rate hike was not expected until late 2022. Increase to just under 1.50% by the end of 2023.

Currently, the Fed is using $ 120 billion a month to pour into the market by buying bonds to help real estate companies and companies in trouble. This is what the Fed needs to address in this session. According to a CNBC poll, the Fed is likely to accelerate reducing the amount of money put into the market to buy bonds. The Fed is forecast to accelerate and end this $ 120 billion support round by the end of March 2022.

Florida Mayor suggests mining BTC

The Mayor of Florida’s Miami Mayor is a big proponent of Bitcoin. He recently suggested having electricity in his state to mine BTC. He stated that the Bitcoin mining industry can bring jobs to rural America.

Lately, many other lawmakers have also spoken out in favor of crypto. However, because the states in the US have previously shared the opportunities, the bitcoin and crypto space could present an opportunity for these states to take advantage of it. As a natural extension of this, various US states are vying for a larger share of the pie that will accept Bitcoin. From there, they can mine bitcoin or bring employment opportunities and income to their state.

Some other information:

• Weather data provider AccuWeather announced that it has connected to Chainlink to broadcast weather data. They transfer data over blockchains, sign it cryptographically and let the user know that it came from them. Data nodes join the growing list of organizations using Chainlink’s Oracle network.
• Tesla will try to accept Doge for some vehicle by-products (such as Tesla-branded clothing). Often times, fans buy by-products to support the brand, so the price is much higher than the market. Accepting payments with Doge is also a way for Tesla to generate more revenue from Doge fans.
• At 14:00 UTC, the largest decentralized exchange on the Solana network, Raydium was hacked and the number of transactions on the Solana network dropped significantly. In the meantime, the exchange has fixed the problem, the network has recovered from the severe congestion and is now using the previously set up bandwidth for transaction processing.
• Solana Ventures, the investment arm of Solana Labs, announced a new $ 150 million fund on Tuesday to support Gamefi startups on blockchain. The fund was created in partnership with Forte, a blockchain gaming startup that recently raised $ 725 million in fresh capital, and Griffin Gaming Partners, a gaming-focused VC firm and top home investment in Forte , hung up.
• The polygon network and the MATIC token are expected to start a pilot burn mechanism similar to the Ethereum update EIP-1559. MATIC’s token supply is currently set at 10 billion, which means that a decline in supply will inevitably have a deflationary effect on supply.