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Why are Bitcoin prices still plunging? Market Update

Why are Bitcoin prices still plunging? Market Update

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Regulators in China taking a tougher stance on cryptocurrencies could partially explain the most recent rout in bitcoin prices. But some Wall Street watchers think the U.S. Federal Reserve’s new hawkish stance on interest rate policy and bond buying is also playing a key role.

“It is our belief that part of the momentous rally (an important part) has been helped by the Fed’s largess. Bitcoin and other cryptos should rally further on their own over the years, but we believe that they have been pulled forward by the Fed’s stimulus. In other words, we do not think that the stock market is the only asset class that has gotten ahead of itself due to the massive stimulus programs of the past year plus,” said Miller Tabak chief markets strategist Matt Maley in a new research note.

Bitcoin prices have nosedived by 16% to $32,000 since the Fed surprised investors on June 16 by signaling two potential interest rate increases by the end of 2023. Many market watchers surmised the Fed was trying to talk down red-hot asset prices (which have in part been fueled by the ability to borrow money cheaply), and bitcoin is no exception.

Bitcoin prices fell below the key $30,000 level on Tuesday, touching $29,458 at the lows as traders continued to digest Fed day and hawkish comments since from St. Louis Fed President James Bullard.

From the record highs of more than $63,000 hit in mid-April, bitcoin has shed nearly 50% as regulators in China crack down on mining in the country. Negative tweets on the environmental impact of bitcoin mining from Tesla CEO Elon Musk haven’t helped bitcoin prices, either.

Now that bitcoin prices have breached the important support point of $30,000, traders are bracing for an additional selling wave in the near-term.

Warns Maley, “Bitcoin has touched that $30,000 level (or at least come very close to it) several times over the last month. Therefore, if it drops below that level in any meaningful way, it’s going to be very bearish on a technical basis. Thus the $20,000 level that many pundits have been pointing to recently is not out of the question at all. This will not mean that the bull market is cryptos is over, but a break below $30,000 will be something that will be quite negative on a short-term basis.”

Source Credits: Yahoo Finance

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Bybit Ether reserves near 50% pre-hack levels after $295M ETH buy

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Bybit has recovered 50% of its Ether reserves after a $1.4 billion hack in February, one of the largest crypto thefts in history. The exchange, which saw its ETH holdings drop from 439,000 to just 61,000 ETH, has since rebounded to over 201,600 ETH through spot buying and emergency industry support.

To aid recovery, Bybit secured $390 million in loans and transfers from firms like Binance, Bitget, and HTX Group. Additionally, the exchange purchased 106,498 ETH worth $295 million via OTC trades, helping to rebuild its reserves quickly.

Despite losing over $5.3 billion in total assets post-hack, Bybit’s reserves remain higher than its liabilities, as confirmed by an independent proof-of-reserve audit by Hacken. This has reassured users, with Bybit processing 350,000 withdrawals within 10 hours of the attack.

The attack was reportedly linked to North Korea’s Lazarus Group, which exploited Bybit’s Ethereum multisig cold wallet. Analysts suggest the breach involved a deceptive transaction that tricked signers into approving a malicious smart contract.

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Markets

Tezos launches world’s first Uranium marketplace on blockchain

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Tezos blockchain has become the foundation for the world’s first uranium trading marketplace, marking a significant milestone in the integration of blockchain technology with critical commodities. Announced on Nov. 21, the platform aims to bring transparency and efficiency to the global uranium market, which has traditionally operated with limited visibility and complex supply chains. The initiative is spearheaded by major industry players seeking to modernize uranium trading.

The blockchain-based marketplace will enable buyers and sellers to transact securely while providing an immutable ledger of all transactions. This innovation is expected to address long-standing challenges in the uranium sector, including traceability, regulatory compliance, and pricing opacity. By leveraging Tezos’ smart contract capabilities, the platform offers automated processes for contract execution and ensures a transparent record of ownership and origin.

Industry leaders have praised the project as a game-changer for the nuclear energy supply chain, which relies heavily on uranium. The marketplace is designed to support global efforts to enhance sustainability and safety, aligning with the increasing focus on responsible sourcing of critical materials. The move could also attract new participants to the market by lowering barriers to entry and fostering trust through blockchain’s verifiable data.

This development underscores the expanding role of blockchain in transforming traditional industries beyond finance. By addressing inefficiencies in one of the world’s most regulated markets, Tezos demonstrates how decentralized technologies can drive innovation and transparency. As the uranium marketplace gains traction, it could serve as a blueprint for blockchain adoption in other critical resource sectors.

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Business

LimeWire adds decentralized file sharing feature with BNB Greenfield

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LimeWire, the iconic file-sharing platform from the early 2000s, has made a comeback, reimagined for the Web3 era. Announced on Nov. 21, the platform now operates as a decentralized file-sharing network, leveraging blockchain technology to enable secure and transparent peer-to-peer sharing of digital assets. The relaunch aims to blend nostalgia with innovation, introducing LimeWire to a new generation of users while embracing the principles of decentralization.

The updated LimeWire platform integrates blockchain to provide content creators with greater control over their work, including tools for licensing and monetization. Users can share files, such as music, videos, and other media, while ensuring ownership and royalties are preserved through smart contracts. LimeWire also features its own native token to facilitate transactions within the ecosystem, including tipping creators and accessing premium content.

LimeWire’s revival reflects a broader trend of Web2 platforms transitioning into the Web3 space. The platform’s focus on decentralization aligns with the growing demand for alternatives to centralized file-sharing services, which have faced criticism over censorship and lack of user privacy. By adopting blockchain, LimeWire seeks to address these issues while empowering both creators and consumers with greater transparency and fairness.

As LimeWire re-enters the digital landscape, its success will depend on user adoption and the platform’s ability to compete with established Web3 content-sharing solutions. With its nostalgic branding and commitment to innovation, LimeWire’s evolution into a decentralized platform positions it as a potential leader in reshaping how digital content is shared and monetized in the blockchain era.

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