Things to watch in Bitcoin this week

Despite a hopeful weekend, BTC/USD received warnings of phoney “out of hours” price movements, which proved to be accurate as the weekly closure pushed the pair down over $1,000.

Even so close to $37,900 was insufficient to meet analysts’ demands, and Bitcoin’s all-too-familiar rangebound behaviour from January continues.

For many, the issue is what will cause the status quo to shift.In the face of a lack of meaningful spot market recovery despite excellent on-chain data, an external trigger could be the catalyst for a shake-up. For example, the United States’ executive order on cryptocurrency regulation is expected in February, albeit the specific date is unknown.

Analysts are also watching the Federal Reserve, as any clues on inflation, interest rate hikes, or asset buy tapering might have a big influence on traditional markets, which Bitcoin and altcoins are still heavily associated with.

When determining Bitcoin’s next steps, we’ve identified three factors to examine.

Bears “hammer” down on BTC weekly close 

Even the modest increases into the weekly close were only a temporary source of joy for Bitcoin bulls on Sunday.

At 12 a.m. UTC, a rejection candle appeared, and BTC/USD dropped to $36,650.

Strong volume accompanied the rise, as highlighted by trader, analyst, and podcast presenter Scott Melker, emphasising the unreliability of weekend price action when it comes to constructing a position.

Melker confirmed what several other experts suggested last week: $39,600 must be regained before a more bullish perspective can prevail.

Rekt Capital, a fellow trader and analyst, was equally unimpressed by the weekly candle, writing on Twitter that BTC “continues to battle with $38,500 resistance.”

“To ensure upside beyond $39,000, BTC needs to Weekly candle Close above this range,” he continued.

With a lacklustre performance behind it, Bitcoin has returned to its usual trading range, which some fear could lead to a retest of lower levels.

“I’m looking forward to any opportunities to compound if we trade in 29-40k range for a long time,” said popular trader Pentoshi.

Meanwhile, the rally to $38,600 highs succeeded in boosting previously negative funding rates on derivatives, as expectations quickly shifted from additional downside to a positive continuation.

However, the reversal pushed funding rates back into negative territory, with most staying slightly below neutral as of this writing.

Old hands age well

The more comfortable trend of seasoned Bitcoin hodlers holding to their assets continues to play out behind the scenes.

The amount of currencies that last moved between five and seven years ago has reached an all-time high, according to data released this week by on-chain analytics startup Glassnode.

That group of currencies has grown to 716,727 BTC.

Despite price declines, Bitcoin exchange reserves actually decreased in January. According to Glassnode, big exchanges have lost $243 million this week alone.

GBTC dives to record 30% discount

For the Grayscale Bitcoin Trust, things aren’t going so well (GBTC).

Despite data indicating a resurgence of institutional interest in Bitcoin in January, demand for the industry’s flagship BTC investment product remains low.

Last week, GBTC traded at its greatest ever discount to the Bitcoin spot price, according to data from on-chain analytics firm .

Investors used to pay a premium for exposure to this discount to net asset value (NAV) — the fund’s BTC holdings — but the tables have long turned.

On Jan. 22, new entrants were technically allowed to purchase GBTC shares for roughly 30% less than the day’s spot price.

According to data, GBTC has been in a fast shifting environment in recent months as a result of market movement and the introduction of exchange-traded funds (ETFs). GBTC is set to become a spot-based ETF, but only with the consent of US regulators.

On-chain analyst Jan Wuestenfeld assessed the scenario, saying that despite the discount, GBTC did not necessarily represent a long-term way for institutional investors to profit from “cheap money.”

“Yes, if you believe it will be transformed into a spot ETF at some point,” he commented on Twitter over the weekend, “but there are also the costs to consider and the fact that you don’t truly have the keys.”

Bitcoin (BTC) is off to a strong start this week, but it’s not in the bulls’ favour.

Despite a hopeful weekend, BTC/USD received warnings of phoney “out of hours” price movements, which proved to be accurate as the weekly closure pushed the pair down over $1,000.Even so close to $37,900 was insufficient to meet analysts’ demands, and Bitcoin’s all-too-familiar rangebound behaviour from January continues.

For many, the issue is what will cause the status quo to shift. In the face of a lack of meaningful spot market recovery despite excellent on-chain data, an external trigger could be the catalyst for a shake-up. For example, the United States executive order on cryptocurrency regulation is expected in February, albeit the specific date is unknown.

Analysts are also watching the Federal Reserve, as any clues on inflation, interest rate hikes, or asset buy tapering might have a big influence on traditional markets, which Bitcoin and altcoins are still heavily associated with.

When determining Bitcoin’s next steps, we’ve identified three factors to examine.

Bears “hammer” down on BTC weekly close 

Even the modest increases into the weekly close were only a temporary source of joy for Bitcoin bulls on Sunday.

At 12 a.m. UTC, a rejection candle appeared, and BTC/USD dropped to $36,650.

Strong volume accompanied the rise, as highlighted by the trader, analyst, and podcast presenter Scott Melker, emphasising the unreliability of weekend price action when it comes to constructing a position.

Melker confirmed what several other experts suggested last week: $39,600 must be regained before a more bullish perspective can prevail.

Rekt Capital, a fellow trader and analyst, was equally unimpressed by the weekly candle, writing on Twitter that BTC “continues to battle with $38,500 resistance.”

“To ensure upside beyond $39,000, BTC needs to Weekly candle Close above this range,” he continued.

With a lacklustre performance behind it, Bitcoin has returned to its usual trading range, which some fear could lead to a retest of lower levels.

“I’m looking forward to any opportunities to compound if we trade in 29-40k range for a long time,” said popular trader Pentoshi.

Meanwhile, the rally to $38,600 highs succeeded in boosting previously negative funding rates on derivatives, as expectations quickly shifted from additional downside to a positive continuation.

However, the reversal pushed funding rates back into negative territory, with most staying slightly below neutral as of this writing.

GBTC dives to record 30% discount

For the Grayscale Bitcoin Trust, things aren’t going so well (GBTC).

Despite data indicating a resurgence of institutional interest in Bitcoin in January, demand for the industry’s flagship BTC investment product remains low.

Last week, GBTC traded at its greatest ever discount to the Bitcoin spot price, according to data from an on-chain analytics firm.

Investors used to pay a premium for exposure to this discount to net asset value (NAV) — the fund’s BTC holdings — but the tables have long turned.

On Jan. 22, new entrants were technically allowed to purchase GBTC shares for roughly 30% less than the day’s spot price.

According to data, GBTC has been in a fast-shifting environment in recent months as a result of market movement and the introduction of exchange-traded funds (ETFs). GBTC is set to become a spot-based ETF, but only with the consent of US regulators.

On-chain analyst Jan Wuestenfeld assessed the scenario, saying that despite the discount, GBTC did not necessarily represent a long-term way for institutional investors to profit from “cheap money.”

“Yes, if you believe it will be transformed into a spot ETF at some point,” he commented on Twitter over the weekend, “but there are also the costs to consider and the fact that you don’t truly have the keys.”

Top 4 cryptocurrencies to watch this week: BTC, HNT, FLOW, ONE

On Jan. 29, Bitcoin’s (BTC) relief bounce surpassed $38,500, but the bulls are fighting to maintain the higher levels. Bitcoin’s price has been closely following the stock market in the United States for the previous few days. As a result, economists cautioned traders against reading too much into any potential weekend surges when regular markets are closed, as this might be a trap.

In a recent study, analysts at trading platform Decentrader predicted a “near-term relief bounce.” According to the research, “significant buyers” have entered the market, which might lead to “a probable change in the upper time frame trend from bearish to positive.”

The latest decline in Bitcoin appears to have frightened JPMorgan analysts, who feel that higher volatility may “hinder further institutional adoption.” The strategists’ long-term theoretical Bitcoin price target has been cut from $150,000 to $38,000, according to a note.

Select cryptocurrencies may draw buying from ardent bulls if Bitcoin’s rebound continues. Let’s look at the top-5 cryptocurrencies’ charts to see if they can extend the rebound in the short term.

BTC/USDT

The relief surge in Bitcoin has approached the hard resistance zone of $37,332.70 to $39,600. This zone also contains the 20-day exponential moving average ($39,475), making it crucial for the bears to defend.

Bears have an advantage because the 20-day EMA is downsloping and the relative strength index (RSI) is in the negative zone.

The BTC/USDT pair might progressively decline to $35,507.01 and eventually retest the Jan. 24 intraday low of $32,917.17 if sellers pull the price back below $37,332.70. A break and closing below this support might pave the way for a slide to $30,000 or even lower.

Alternatively, if the price rises from its current level and breaks above $39,600, it could signal a short-term trend change. After that, the pair might rally to $43,505 before retesting the 200-day simple moving average ($48,833).

The 20-EMA has gradually begun to turn up, and the RSI has risen into the positive zone, as shown on the 4-hour chart. This signals that the bulls are attempting a comeback. The pair might reach the 200-SMA, which could function as resistance if buyers push the price beyond $39,600.

On the other side, if the price drops below $37,312.70 from its current level, it indicates that bears haven’t given up yet. The sellers will next attempt to drag the price down to $35,507.01, a key support level for the bulls to defend.

If the price rises above this level, it indicates that traders are looking to purchase on dips. This could enhance the chances of a break above $39,600.

HNT/ USDT

On Jan. 21, Helium (HNT) fell below the 200-day SMA ($26.67), but the bears were unable to maintain the lower levels. On Jan. 26, the bulls aggressively bought the $20 dip and pushed the price back above the 200-day SMA.

The recovery encountered a brick wall at the 20-day EMA ($28.84), but the bulls didn’t let the price go below the 200-day SMA. For the past three days, the price has been fluctuating between the moving averages.

Trading in such a narrow range is unlikely to last for long. The HNT/USDT pair might rally to $36 and subsequently to the downtrend line if bulls drive and sustain the price above the 20-day EMA.

If the price falls below the 200-day SMA, this bullish view will be invalidated. This might bring the price of the pair down to $20.

The price broke out of the downtrend line, indicating that the bears’ hold on the market may be slipping. The bears attempted to lower the price below the 20-EMA, but the bulls are defending the support.

The uptrend may gain traction if bulls push the price over $31, which would indicate a 1-2-3 bottom. The 200-SMA provides little resistance, but once crossed, the pair might resume its march toward $40. On the other hand, if the price falls below $26, the pair might fall below $24.

FLOW/ USDT

For the past few months, Flow (FLOW) has been in a significant downturn. On Jan. 22, the bears dragged the price below a solid support level of $6, but they were unable to extend their lead. This shows that buildup is occurring at a lower level.

Today, the bulls pushed the price above the breakdown level ($6.41) and the 20-day EMA ($6.41). If they can keep the price above the resistance level, it could suggest a trend change.

The 20-day EMA is flattening out, and the RSI has recovered to positive territory, indicating that bulls are on the verge of making a comeback.

If the price declines from its current level and falls below the $6 support, this bullish view will be invalidated. This would indicate that bears are still selling aggressively at greater levels.

The price is meeting resistance at the 200-SMA on the 4-hour chart. Because the previous recovery had stalled at this resistance, this is a vital level to keep an eye on. The FLOW/USDT pair could drop to the 20-EMA if the price drops from its present level.

If the price bounces back strongly from this level, it means bulls are buying on dips. The buyers will then aim to push the pair over the 200-SMA once more. If they succeed, the pair might rally to the $9.27 to $9.70 upper resistance zone.

ONE /USDT

Harmony (ONE) is currently trading in a wide range of $0.16 to $0.36. The bears recently attempted to push the price below the range, but the bulls stood firm.

The bulls will try to push the ONE/USDT pair over the 200-day SMA ($0.19) now that the price has recovered from the support. If they succeed, the pair might rally to the 20-day EMA ($0.23), where the bears may once again put up a strong fight.

A break and closing above the 20-day exponential moving average (EMA) might pave the way for a surge above $0.28. In the event that the price falls below $0.16, the bears will attempt to bring the pair below it. If they succeed, it might indicate the start of a new downward trend.

An asymmetrical triangular pattern can be seen on the 4-hour chart. The 20-EMA has flattened down, and the RSI is just below the midway, indicating that supply and demand have reached a point of equilibrium.

If the price rises and holds above the triangle, this indecision could tip in favor of the bulls. This might indicate a trend reversal, with the pair rising to $0.22 and then $0.26.

If the price falls below the support line, this bullish view will be invalidated. This indicates that the triangle was used as a continuation motif.

Internet Computer plans to roll out BTC and ETH integrations by year-end

The Internet Computer has published a roadmap for 2022 and beyond, stating that Bitcoin and Ethereum integrations will be available by the end of the year.

The Internet Computer is a public blockchain and protocol that enables developers to easily deploy smart contracts and decentralized applications (DApps) on the blockchain. Dfinity, a Zurich-based organization, incubated and launched it in May 2021 after years of development.

Dfinity’s “Chromium Satoshi Release,” which is scheduled for Q1 2022, will include a direct Bitcoin integration. It will use “Chain Key cryptography” to bring smart contracts to the Bitcoin blockchain, eliminating the need for a bridge that may expose the network to bad actors.

Chain Key cryptography, according to Dfinity community member Berto Parga Pena, is “one of the basic breakthroughs enabling the Internet Computer to expand to millions of nodes.”

“It’s a collection of cryptographic protocols that orchestrate the nodes that make up the Internet Computer, as well as the engine that powers it and allows it to function.”

In a Jan. 29 roadmap article, Dfinity’s Director of Product, Diego Prats, stated, “Smart contracts on the Internet Computer will be able to retain, send, and receive Bitcoin without the need for private keys.”

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Meanwhile, the “Vanadium Vitalik Release” is scheduled for Q3 2022, which will include Ethereum integration. Dfinity has yet to release any additional information about the integration, however, Michael Less, Vice President of Communications at Dfinity, told Cointelegraph:

“So, when you perform a Bitcoin transaction on a computer over the internet, it actually affects the Bitcoin ledger against what you see now, with a bridge.” It’s similar to a wrapped Bitcoin or Ether.”

Dfinity has prioritized these connections, according to Less, in order to assist realize its vision of a “multi-chain future.” “How can we actually offer if Bitcoin is going to be there forever?” he said. Combining all of these networks directly provides the optimum user experience.”

Dfinity enabled smart contracts (dubbed “Canisters” in its ecosystem) to keep their own ICP token balances in December. The ICP now handles 250,000 requests per second, with a transaction completion time of 1-2 seconds.

The ICP token soared 56 percent in the first five days of the new year amid a burst of positive news, but it was one of the worst-performing crypto assets in 2021, with a drop of 97 percent from its all-time high in May. Binance stated on January 4 that it would publish a financial instrument that would allow traders to immediately exchange ICP for Ethereum’s native token, Ether (ETH).

Dominic Williams, the Founder and Chief Scientist at Dfinity was motivated by Ethereum technologist Dominic Williams to create a perpetual world computer.

Bitcoin, Ethereum Technical Analysis: BTC Prices Shaken as Fed Keeps Rates Unchanged

On Thursday, cryptocurrency markets were choppy as traders reacted to the Federal Reserve’s decision to keep interest rates unchanged. Both bitcoin and ethereum saw price volatility, with markets now anticipating an increase in March.

Bitcoin

BTC/USD plummeted to a low of $35,690.05 earlier today after making a run towards the $40,000 resistance on Wednesday, trading beyond $38,000 in the process.

Thursday’s move comes as market uncertainty in the cryptocurrency space has grown, culminating in today’s candlestick creating a Doji, which signifies prices are neither bullish nor negative.

As a result of the uncertainty, market strength is presently hovering around the 30 RSI level, indicating that we are still in oversold territory.

This RSI level appears to represent a point of resistance, which could be the reason for today’s price inaction, with traders waiting to see if a breakout is possible.

The current ascending triangle, which is keeping prospects of a $40,000 resistance target alive, shows that short-term momentum is still pointing upward.

Ethereum

ETH was over 5% lower than yesterday’s high, but prices appeared to be stabilizing rather than selling down.

After reaching a high of $2,705.78 on Wednesday, when ETH/USD momentarily broke through the 0.236 Fibonacci barrier level, prices plummeted to a low of $2,366.13 today.

Markets fell below what appeared to be a short-term support level of $2.390, which is where ETH has been largely trading this week.

Similarities may be drawn between its current RSI trend and that of BTC, with both tracking at or below 30.

White House reportedly preparing executive order on crypto

In the next weeks, Joe Biden’s White House is anticipated to publish an executive order outlining the US government’s plans for digital assets.

The executive order would be released in a national security memorandum, according to a source “familiar with the White House’s strategy.” With the purpose of building a workable regulatory framework, Biden’s memorandum would designate some government institutions to research crypto, stablecoins, and nonfungible tokens (NFT).

The following is what the source was cited as saying:

“This is intended to take a comprehensive approach to digital assets and produce a set of regulations that bring the government’s efforts in this area together.”

In recent days, there have been rumors about a possible presidential order on cryptocurrency. Forbes reported earlier this week that those federal agencies will likely release reports on their findings by mid-2022, focusing on “the systemic hazards of cryptocurrencies and their criminal uses.”

A cryptocurrency is a cross-border tool for moving money, so the executive order falls under national security. The administration may seek synchronized international legislation with other countries due to the capacity of decentralized blockchain technology to avoid geo-specific surveillance or rules.

The Biden Administration’s perception of crypto as a national security danger may possibly be behind the continuous rejections of Bitcoin (BTC) spot ETFs, according to senior ETF analyst Eric Balchunas of Bloomberg.

In a tweet on Jan. 28, he called the new developments a “broader crypto crackdown.”

Broader crackdown

The America COMPETES Act, a piece of legislation that concerns the crypto business, was sponsored by House Democrats on Jan. 25. One section in the draught bill, according to Jerry Brito, Executive Director of Washington, D.C.-based think tank Coin Center, would allow the Treasury Secretary to prohibit crypto exchanges from operating without prior notice.

Meanwhile, proponents in Congress are working to smooth out the rough edges of legislation that has already been passed. A bipartisan group of House Representatives has asked Biden-nominated Treasury Secretary Janet Yellen to clarify aspects of the Infrastructure Bill that pertain to digital assets, echoing the pleas of crypto industry experts. The Infrastructure Bill was signed into law in November amid some controversy because it includes miners, software developers, transaction validators, and node operators in its definition of a ‘broker.’

Some brokers, as defined in the bill, do not have the ability to verify information about senders and receivers of crypto as required by law, according to a group of bipartisan lawmakers who proposed narrowing the scope of what information a broker can obtain on Jan. 26 to avoid creating an “un-level playing field for transactions in digital assets and those required to provide them.” This inquiry has yet to receive a response from Yellen.

Flushing it: $8B New York commercial bank to offer Bitcoin services

Flushing Financial Corporation, the parent company of Flushing Bank in New York, has teamed up with crypto startup New York Digital Investment Group (NYDIG) to provide Bitcoin (BTC) services to its customers.

The bank was founded in 1929 and had more than $8 billion in assets by the end of 2021, according to its Q4 report, with a net income of roughly $200 million.

According to the release, the agreement with NYDIG will allow the bank to provide “safe and secure” BTC buying, trading, and holding services to its customers.

Flushing Bank claimed that it plans to start its BTC-related services later this quarter and that it would share more information about its strategy soon.

CEO and president of Flushing Financial Corporation, John R. Buran, linked the company’s BTC adoption to a desire to keep up with changing financial market trends:

“We realise the necessity of staying current with evolving market trends and client demand for alternative financial services as part of our continuing digital transformation.”

NYDIG is a crypto heavyweight that specialises in Bitcoin-related services and goods. In December, the company raised $1 billion in capital at a valuation of over $7 billion.

NYDIG claims to have more than 35 banking and credit union partnerships, including agreements with Five Star Bank, Idaho Central Credit Union, STAR Bank, U.S. Bank, and NYMBUS, to name a few.

NYDIG Chief Innovation Officer Patrick Sells declared on Jan. 25 that the company is “ready to show the world that banking is better with Bitcoin” and that the company is “ready to show the world that banking is better with Bitcoin.”

Sells pointed out that there is a growing need for crypto exposure through well-known companies:

“Consumers want Bitcoin, and they want it through the banks and credit unions they currently trust,” says the study.

The company has also been slowly expanding its mainstream profile through partnerships with top sporting organisations like the NBA’s Houston Rockets and luxury car dealer Post Oak Motor Cars.

The Sandbox announces $50M fund for its startup accelerator program

Project for a virtual world The Sandbox announced its metaverse accelerator program, which would invest $50 million in entrepreneurs to accelerate the development of the open metaverse. The Animoca Brands subsidiary is teaming up with Brinc, a venture accelerator, to choose 30 to 40 blockchain startups for the program each year.

Each possible idea will get up to $250,000 in funding from the Sandbox Metaverse Accelerator Program, with top-performing initiatives receiving extra incentives. The Sandbox (SAND) digital asset and LAND, digital real estate within The Sandbox’s metaverse, are among the benefits. Aside from that, the most successful firms will have access to additional funding and high-profile mentors.

According to Sebastien Borget, co-founder of The Sandbox, the initiative is an extension of the organization’s mission of assisting a new generation of metaverse entrepreneurs. Startups all across the world can use this to bring their ideas to life. “We’re particularly excited to support underrepresented founders as they explore the endless possibilities given by The Sandbox ecosystem,” he stated.

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Applications are now being accepted, with the first round of investments expected to begin in the second quarter of 2022. The initiative is part of Launchpad Luna, a joint venture between Animoca Brands and Brinc that aims to help entrepreneurs grow.

The initiative encourages the creation of an open metaverse, one that is not controlled by a single entity. The open metaverse “presents a tremendous chance to establish a participatory and collaborative nonzero-sum environment built on openness, equitability, user governance, and digital property rights,” according to Yat Siu, co-founder and executive chairman of Animoca Brands.

Apart from assisting businesses, the metaverse’s growth may also benefit the environment in the long run. “As digital experiences grow, we will find ourselves having fewer reasons to generate carbon to travel for business or enjoyment,” says Manav Gupta, the founder and CEO of Brinc. According to Gupta, this could reduce demand for physical things such as art and merch using unsustainable production processes.

Altcoins book 40% gains after Bitcoin and the crypto market enter a relief rally

On Jan. 26, cryptocurrency investors are starting to feel hopeful again, with the larger cryptocurrency market turning green and Bitcoin (BTC) selling near $38,000. Traders are advocating caution despite the breakout ahead of the Federal Open Market Committee meeting, where the Federal Reserve is anticipated to reveal its plans for raising interest rates.

As optimistic mood returns, the prices of some cryptocurrency projects have risen by more than 41% as dip buyers try to lock in a profit ahead of a likely market comeback.

Frontier (FRONT), Decentral Games (DG), and Quantstamp were the top gainers in the last 24 hours, according to data (QSP).

Frontier listing

Frontier is a decentralized finance aggregator that allows users to save, earn, swap, and invest in crypto assets across many blockchain networks via a single interface.

Before the latest price spike, VORTECSTM statistics began to detect a favorable prognosis for FRONT on Jan. 24.

The VORTECSTM Score is an algorithmic assessment of past and present market circumstances produced from a variety of data points including market sentiment, trading volume, recent price changes, and Twitter activity.

The VORTECSTM Score for FRONT entered the green zone on January 23 and reached a high of 86 on January 24, around 33 hours before the price soared 100 percent the following day.

Decentral Games rolls out ICE pok

Decentral Games is a game-to-earn protocol that allows users to earn money through incentivized games, self-custody, and the delegation of yield-bearing Metaverse assets.

The price of DG has risen 55 percent from a low of $0.236 on January 25 to a daily high of $0.366 on January 26 according to data.

The price rise for DG comes as the protocol’s ICE poker game’s beta edition is now live, letting users to create avatars and earn money in a virtual reality skyline ICE poker room.

Quantstamp services are in high demand

Quantstamp, blockchain security, and code auditing company, saw its token price climb 66 percent to $0.357 on Jan. 26.

Prior to the latest price spike, VORTECSTM data began to detect an optimistic prognosis for QSP on Jan. 23.

The VORTECSTM Score for QSP reached a high of 73 on Jan. 23, about 10 hours before the price rallied 69 percent in the next two days.

The price of QSP has risen as a result of a series of audits undertaken by the Quantstamp team on a number of projects, including the code for the CasperSwap decentralized exchange and the MakersPlace non-fungible token market.

The total cryptocurrency market capitalization is currently $1.734 trillion, with Bitcoin commanding 41.8 percent of the market.

Reddit is testing out NFT profile pics but ‘no decisions have been made’

Reddit is experimenting with NFT profile images on its site, only a week after Twitter introduced a similar option.

In 2021, the famous social networking platform had approximately 430 million monthly users, and it’s rumored that it’s working on an NFT profile picture implementation, which will let users set their profile picture to any non-fungible token with an attached image.

Reddit representative Tim Rathschmidt said in an interview with Techcrunch on January 27 that:

“We’re continuously looking for new ways to add value to Reddit’s users and communities.” We’re now experimenting with the possibility to use NFTs as avatars and verify ownership.”

“It’s a limited, internal test,” he noted, adding that “no decisions have been made regarding expanding or spreading out the capabilities.”

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An app developer earlier this week shared a Reddit poster promoting the functionality, implying that the tests are already well underway.

Last week, Twitter released NFT profile pictures for Twitter Blue subscribers on iOS. NFTs, on the other hand, has recently received a lot of flak from gamers and Web2 developers. A GitHub contributor shared a browser extension a day after the introduction that automatically disables Twitter accounts with NFT profile images.

For quite some time, Reddit has been experimenting with numerous NFT-related efforts. At nft.reddit.com, it even has a dedicated page for NFT-related activities.

The company will launch cryptocurrency tokens for its /r/cryptocurrency and /r/Fortnite communities in May 2020. MOONs and BRICKs were the names of the tokens, which are based on Ethereum specifications.

Bitcoin hits $37.5K, stocks recoup losses ahead of Wednesday’s FOMC statement

On Jan. 25, the crypto market’s overwhelming doom and gloom vibe switched to hope when the price of Bitcoin (BTC) temporarily surged to $37,500 as stock markets mounted a noon recovery that regained most of the losses from Jan. 24.

Despite the recovery on January 25, global markets continue in a state of flux, owing to uncertainty about the US Federal Reserve’s plan to raise interest rates in the following months, with the most recent indication indicating that the first-rate hike will occur in March.

Bitcoin bulls recovered the $36,000 level early on Jan. 25 and managed to fight their way beyond $37,500 before a closing-bell reversal in equities markets impacted on BTC PRICE, according to data 

Here’s what a few analysts have to say about Bitcoin’s current move and whether it’s the start of a long-term uptrend or a bull trap that will drop the price back into the low $30,000s.

$34,000 is a crucial level to hold

On-chain analytics business Whalemap addressed the significance of the recent price recovery off of $34,000, posting the following chart illustrating the bounce off of the “whale” trendline.

According to Whalemap, “Perfect daily bounce for Bitcoin.” It’s now critical to keep $34,000.”If $34,000 fails to hold, the next significant support level is near $25,000, according to the chart supplied by Whalemap.

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Volatility ahead of the FOMC meeting

Market analyst Michal van de Poppe addressed the issue of concern ahead of the Federal Open Market Committee (FOMC) meeting, posting the following chart highlighting the “nice flip of $36,000” and suggesting that the market is now “looking for a continuation to $38,000.”

According to van Poppel,” However, with the FOMC meeting coming up tomorrow, everything remains quite delicate, since volatility on Bitcoin and the markets is likely to remain strong.”

An old CME gap was filled

Independent market researcher Scott Melker made one more note on the recent market movement, posting the following Bitcoin CME futures chart and pointing out that the recent decline in BTC filled a gap that dates back to July 2021.

Melker said, “I’m not a big fan of the CME gap theory, but this was a fantastic fill. “It’s almost a dollar.”

PlanC, a crypto trader and pseudonymous Twitter user, presented a somewhat different perspective on the bull market narrative, claiming that the bear market began in February 2021 and is only now coming to a finish.

The total cryptocurrency market capitalization is currently $1.667 trillion, with Bitcoin holding a 42 percent market share.

Etherescan adds new messaging feature for anons: ‘Blockscan Chat’

The company behind Etherscan, a famous blockchain explorer and analytics platform has created “Blockscan Chat,” an Ethereum-based wallet-to-wallet instant messaging service.

Blockscan is now in beta testing mode, and it allows users to engage in instant wallet-to-wallet talks, access chats from numerous devices, block spammy or undesired addresses and be notified when a message is received on the block explorer.

While the new feature is a great way to communicate with other anonymous people — for example, to negotiate an anonymous purchase — it could be especially useful in dealing with whitehat hackers, who have frequently left messages embedded in Ethereum transactions to communicate with individuals and exploited crypto platforms.

The $610 million PolyNetwork hack from last year and last week’s Multichain hack, which saw a supposed whitehat hacker return 322 Ether (but keep a hefty finder’s fee), both involved anon conversation via Ethereum transactions as part of talks between the perpetrator and victims.

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Etherescan teased the new function with a tweet on Jan. 26 that stated, “Wonder what this is for…?” “, along with an image of the platform’s messaging notifications.

Apart from pleading with hackers to return funds in exchange for a bounty, a service like this could be useful in the NFT market.

The functionality, according to the Twitter user “bdmartino,” could be used to negotiate NFT purchases between buyers and sellers, and if the transaction was performed through a decentralized exchange, both parties would save money on costs connected with NFT platforms like OpenSea..

Blockscan claims that their information is stored by “global hosting providers” with servers in several areas, with inactive data being removed after 24 months.

It also adds that the data will not be sold to other parties, but rather would be shared or transmitted to partners such as data warehouses, IT service providers, and data analytics firms.

Any user who violates its acceptable use regulations, such as supplying false, inaccurate, or misleading information, may be prevented from using some or all of Blockscan and Etherscan’s connected services, according to its terms of service.

Bitcoin holds onto 10% gains ahead of crucial Fed rate hike comments

After a rebounding stock market propelled the largest cryptocurrency above $37,500 on Tuesday, Bitcoin (BTC) held on to new highs.

Fed may spark fresh volatility

On Tuesday, data showed BTC/USD trading above $36,000, with maximum 24-hour gains of 14% over Monday’s low.

The relationship between Bitcoin and equities remained a hot topic ahead of a new Wall Street open and significant interest rate data from the US Federal Reserve.

The Federal Open Market Committee (FOMC) of the Federal Reserve is scheduled to convene on Wednesday, and any announcement on interest rates could have immediate ramifications for both traditional and crypto markets.

“The Federal Reserve’s FOMC meeting tomorrow could cause a lot of volatility this week,” Cointelegraph contributor Michal van de Poppe predicts.

The Fed’s asset purchase tapering will be followed by rate hikes, and Bitcoin sentiment has already taken a knock as the end of “cheap” liquidity approaches.

However, asset purchases should be completed by March, and the Fed has stated that rate hikes should not occur before then.

“After becoming a poster child of speculative inflationary excess in 2021, price reversion in cryptos is likely to spread in 2022, but Bitcoin stands to come out top,” Mike McGlone, chief commodity analyst at Bloomberg Intelligence, summed in a positive prognosis for BTC.

“Correlations are approaching one-to-one.”

McGlone previously stated that once markets experience a long-overdue fall of up to 20%, Bitcoin might return better than stocks. Now, he adds that altcoins are unlikely to make a strong comeback.

Major altcoins wipe out earlier fall

Altcoins, on the other hand, had a strong day, with Ether (ETH) matching Bitcoin’s gains.At the time of writing, ETH/USD was trading at $2,420, up 7.3 percent from its lows of $2,160, its lowest level since mid-July.

Other large-cap cryptocurrencies, including as Binance Coin (BNB) and Solana, have had a V-shaped recovery as well (SOL).

“The good news is that we’re coming closer to the next altcoin impulse rise, since most of them have been fully retracing,” van de Poppe argued before to the surge.