Bitcoin reversed the rebound last week and renewed the downtrend again! Bitcoin price is below $24000, considerably under the $28850-$30700 support range. A glance at daily chart reveals Bitcoin market is oversold – the RSI indicator is in the oversold zone. A short rebound may occur followed by further decline in price.
Against the backdrop of rising US inflation supporting views of further steep Fed tightening, global stock markets are in selloff mode as the Federal Reserve, Bank of Japan, Bank of England, Swiss central bank are expected to hike rates this week. As crypto market capitalization fell below $1 Trillion for first time since early 2021 overnight pointing to imminent Bitcoin market capitulation, Citi reported last week heightened volatility has affected user adoption, while New York’s crypto regulator published formal stablecoin guidance.
The number of anonymous Bitcoin addresses in the money - those that acquired their holdings at prices below today's, last week reached lows not seen since March of 2020, reported Bequant, a digital-asset firm. The level, currently hovering around 51%, "points to capitulation," though bear markets in 2015 and 2018 saw even lower lows, according to the report.
Mounting concerns about stablecoins following the collapse of terraUSD (UST) has led to outflows from the largest stablecoin tether (USDT), Citibank reported. Trading volumes and active addresses spiked around the time of the luna (LUNC) collapse, which indicates user adoption, but these increases have since reverted to previous levels, or even lower, according to Citi.
New York’s crypto regulator published strict reserve and attestation requirements for stablecoin issuers. The New York Department of Financial Services (NYDFS) rules stipulate stablecoins traded in the U.S. state of New York should be fully backed by certain assets, with these assets segregated from the issuers’ operational funds and attested to by an auditor regularly. Stablecoins, the value of which is intended to be pegged to the U.S. dollar or other assets, must be backed by a reserve composed of U.S. Treasury bills with no more than three months to maturity, U.S. Treasury notes, some types of U.S. Treasury bonds or reverse repurchase agreements that are collateralized by Treasury bills.
