Experts Scared: This Altcoin Is The Next Risk After FTX!

Experts Scared: This Altcoin Is The Next Risk After FTX!

BTC price fell 1% at the Wall Street opening as bitcoin miners worried analysts. The flavor of BTC price volatility is returning as US stocks begin to see process as they approach their annual close. The attention of experts is on an altcoin.

Eyes on this altcoin as Bitcoin falls!

TradingView data followed Bitcoin (BTC), which fell nearly 1% on the opening bell. Even though it only contained a $150 move, the event could still be noticed on the lower timeframes. In the midst of this, Bitcoin has avoided any kind of volatility for several days. The move corresponded to the 0.6% drop in the S&P 500 at the opening. Additionally, the Nasdaq Composite Index fell 1.4%. The US Dollar Index (DXY) responded one-on-one, compensating for an earlier lost base to return to its December 25 position.

Experts Scared: This Altcoin Is The Next Risk After FTX!US Dollar Index (DXY) 1-hour candlestick chart / Source: TradingView

While BTC movements are still relatively quiet, analysts’ attention is focused on potential catalysts on an altcoin. Because BNB is still a source of worry amid the ongoing ‘FUD’ on Binance, the largest global crypto exchange, which is its issuer. “BNB is the biggest risk to the crypto market,” Matthew Hyland said on Dec. In this context, Hyland made the following statement:

It currently has a market capitalization of $38.4 billion. If it doesn’t hold up, it could potentially see $20+ billion wiped. How much is it used as user collateral to support other cryptocurrencies? A BNB dump would move elsewhere.

The altcoin is still trading above the $240 level during the day. This stands out as a valuable line for the bulls to defend.

altcoinBNB 1-hour candlestick chart (Binance) / Source: TradingView

News that China will end the Covid-19 quarantine for international flights from January 8 failed to have a valuable impact on risk asset performance.

Click here to join the Popular Token Telegram channel for free!

Opinions differ on Bitcoin miner contamination

Elsewhere, concerns still lie with Bitcoin miners. There are different views on the impact of the current price movement on the activities of miners. Charles Edwards, CEO of portfolio manager Capriole, analyzes the well-known Hash Ribbons metric. Based on the result of this analysis, he makes a stern warning:

This is the most brutal Bitcoin miner capitulation since 2016 and possibly ever. The Hash Ribbons capitulation has captured the lowest Bitcoin hash rate data of 2022 as miners worldwide went bankrupt and defaulted under massive pressure from shrinking margins.

Experts Scared: This Altcoin Is The Next Risk After FTX!Bitcoin Hash Ribbons explanatory chart / Source: Charles Edwards/Twitter

In the middle, former BitMEX CEO Arthur Hayes previously talked about miner woes. However, he denied that this is a valuable potential source of contamination for BTC price action. In early December, he argued that even if they sell their reserves wholesale on the open market, there will be a drop in the ocean in terms of supply versus demand.

Click to rate this post!
[Total: 0 Average: 0]

Join Our Newsletter

Sign up for free now and be the first to know about new updates.

Write a Comment