Quick Facts
Hodler’s Digest: March 9 – 15
ETH: Will $1,600 Be the Magic Number?
The cryptocurrency market has been experiencing significant ups and downs in recent weeks, with analysts and investors taking a closer look at the potential future trajectory of various digital assets.
This notion has sparked debate among analysts, with some arguing that $1,600 represents a natural support level for ETH. Others, however, are more skeptical, pointing out that the cryptocurrency has consistently failed to hold above this level in the past.
One primary argument supporting the $1,600 floor theory is that ETH’s price has exhibited a series of ascending triangles on its chart, with the top of the triangle converging on the $1,600 mark. This trend, some say, may indicate that the cryptocurrency is due for a significant bounce, potentially fueled by a new wave of institutional investment.
However, others are more cautious, citing the fact that ETH’s price has repeatedly failed to break above $1,600 in the past. This, they argue, suggests that the cryptocurrency may not have the fundamental strength to sustain a significant rally above this level.
From a technical standpoint, ETH’s 200-day moving average (MA) currently sits around $1,400, with the 100-day MA hovering around $1,100. If the cryptocurrency can find support at or above the $1,600 level, it may be able to trigger a significant rally, potentially fueled by a recovery in the global macroeconomic environment.
SEC Delays Multiple Crypto ETFs
In a move that has sent shockwaves through the crypto community, the Securities and Exchange Commission (SEC) has announced a delay in its decision regarding multiple crypto exchange-traded funds (ETFs).
The SEC has granted an extension to several would-be ETF operators, including ProShares, Invesco, and VanEck, allowing them to resubmit their proposals and await further review.
This news has sparked concerns among investors, who had been holding out hope that the SEC would grant approval for one or more of these ETFs. The delay has fueled fears that the regulatory body may be taking a more cautious approach to crypto ETFs, potentially holding up the broader adoption of these instruments.
However, others see the delay as a positive development, arguing that the additional time will allow the SEC to further scrutinize the proposals and ensure the highest standards of investor protection.
Market Recap
In this week’s Hodler’s Digest, we also take a look at the latest market trends, highlighting the top performers and laggards in the crypto space.
Bitcoin (BTC) has seen significant price fluctuations in recent weeks, with the cryptocurrency currently trading around $50,000. Despite these fluctuations, many analysts remain bullish on BTC, citing its potential to continue leading the charge in the crypto market.
Ethereum (ETH) has also seen significant volatility, with the cryptocurrency currently trading around $1,500. As we discussed earlier, some analysts argue that ETH may find a floor at $1,600, while others are more bearish, citing the cryptocurrency’s consistent failure to break above this level in the past.
Other top performers this week include Chainlink (LINK), which has seen its price surge to over $30, and Binance Coin (BNB), which has rallied to over $200.
Regulatory Updates
In regulatory news, the European Union’s (EU) member states have approved a new directive aimed at combating money laundering and terrorist financing in the crypto space.
The directive, known as the Fifth Anti-Money Laundering (AML) Directive, requires crypto exchanges and other platforms to implement stricter know-your-customer (KYC) checks and report suspicious transactions to the relevant authorities.
This move is seen as a major step forward for the EU, which has long sought to bring crypto transactions in line with traditional financial regulations.
Industry Insights
In this week’s Hodler’s Digest, we also explore some key industry insights, highlighting the latest trends and developments in the crypto space.
One key trend is the growing adoption of decentralized finance (DeFi) protocols, which allow users to lend, borrow, and trade digital assets without the need for intermediaries.
DeFi has seen significant growth in recent months, with the total value locked (TVL) in DeFi protocols currently hovering around $20 billion.
Another key trend is the increasing importance of non-fungible tokens (NFTs), which have seen significant growth in recent months.
NFTs, which allow artists and creators to sell unique digital assets, have become increasingly popular among collectors and investors alike.
