Bitcoin has bounced back to $30,000 after hitting a 24-hour low of $29,100. In the past 24 hours, the cryptocurrency has risen by 2.5%, with ether and other altcoins also experiencing gains. Ether, for example, has climbed 1.3% to remain above $2,000. According to Matteo Bottacini, a trader at Crypto Finance AG, there is potential for positive momentum in altcoins, and the downside risk is limited. He added that most altcoins are still in limbo, which makes it a BTC take-profit and high-beta trade. In the last 24 hours, Radix, a blockchain designed to deploy the XRD token, has rallied 35%, while Arbitrum’s ARB has gained 10%.
Coinbase CEO Brian Armstrong has suggested that the crypto exchange might consider moving away from the US if the regulatory environment for the industry doesn’t become clearer. Speaking at a conference in London, Armstrong said that anything is possible, including relocating or whatever is necessary. He explained that although the US has the potential to be an important market for crypto, the regulatory clarity needed to make this happen is currently lacking. Armstrong added that if this clarity does not emerge in the next few years, Coinbase may have to consider investing more elsewhere in the world.
According to a research report from brokerage firm Bernstein, FTX’s collapse was the catalyst for a new bullish cycle in cryptocurrency markets. The report states that the crypto exchange’s demise cleared up the final tranche of toxic crypto leverage and taught digital-asset investors the importance of decentralization and self-custody wallets. It added that macro catalysts are aligning for bitcoin, the world’s largest cryptocurrency by market cap, with continued weakness in US regional banks and further deposit outflows towards money-market funds and the big four US banks all reflecting concerns around the centralization of money.
The chart of the day shows daily returns of alternative cryptocurrencies, known as altcoins, in bitcoin terms going back to February 2021. The shaded region represents alt season, a crypto slang for periods when ether and other altcoins like XRP, SOL, DOT, gaming tokens, decentralized-finance coins, and meme coins outperform bitcoin. Altcoins’ daily returns have recently flipped positive, signaling an investor shift toward the wider crypto market. Swissblock Technologies said in an email to subscribers that altcoins’ median return vs. bitcoin is above the altcoin season average. However, we’re still below the full-blown alt-season returns.
In conclusion, the cryptocurrency market is experiencing gains, with bitcoin bouncing back to $30,000 after a 24-hour low of $29,100. Altcoins are also experiencing positive momentum, with Radix and Arbitrum’s ARB gaining 35% and 10%, respectively. Coinbase CEO Brian Armstrong has suggested that the company may consider moving away from the US if regulatory clarity does not emerge. Meanwhile, FTX’s collapse has taught digital-asset investors the importance of decentralization and self-custody wallets. Finally, altcoins’ daily returns have recently flipped positive, signaling an investor shift toward the wider crypto market.