Bitcoin looks to China to break past $23.5,000
Good morning. Here’s what happens:
Prices: A busy economic week in China with lots of data releases planned could be what it takes to get bitcoin out of the slump.
Insight: On-chain indicators show that bitcoin’s (BTC) current price exceeds the cost basis of 70% of unique addresses.
Bitcoin and Ether (ETH) remain fairly flat as Asia begins its business day, despite concerns over the availability of future access to bank rails in the US
Bitcoin is trading at $23,441, down 0.9% in the last 24 hours, while ether is down 1.2% and trading at $1,646.
Over the past 24 hours, access to banking services for crypto companies in the US has become a bigger concern. Silvergate, which has marketed itself as a crypto-friendly bank, has seen the majority of its customer base flock to rival Signature after it delayed filing its annual report with the US Securities and Exchange Commission. In late December, Signature said it was looking to reduce its crypto-related deposits by $10 billion and is being sued to “substantially facilitate” fundraising for FTX.
All this comes after a joint press release on January 3rd from the Federal Reserve, the Federal Deposit Insurance Corp. (FDIC) and the Office of the Comptroller of the Currency (OCC) who expressed concern over the risk cryptoassets pose to banking organizations.
At the same time, there continues to be optimism from the East.
It’s going to be a busy week in China for data releases.
Data on the trade balance for January and February are set to be released on Tuesday. Analysts expect a big jump from $78 billion for the most recent period to $100 billion.
Most Bitcoin addresses are profitable.
As much as 70% of Bitcoin addresses are profitable, according to data from the analysis firm Glassnode in the chain.
The “Percentage of addresses in profit” indicator illustrates the percentage of unique addresses whose average purchase price is below the current price of bitcoin. Historical readings below 50 have indicated that BTC is oversold, thus representing a potential bottom.
Readings above 95% indicate a potential peak. Bitcoin’s current reading is very much in line with an asset that has been trading in a tight range, as BTC has recently.
Shares of Silvergate Bank plunged after the crypto-friendly bank said it was delaying the filing of its annual report. Wave Financial Head of Protocol and Treasury Management Nauman Sheikh shared his reaction. In addition, former NBA All-Star and franchise founder Baron Davis shared his views on Web3 and the blockchain space. And Matrixport’s head of research and strategy Markus Thielen explained why Ordinals’ non-fungible tokens (NFTs) have the potential to push Stacks Networks STX into a billion-dollar token.
