Bitcoin price is back above $20,500 currently! A glance at the daily chart reveals the price retreated three out of seven sessions last week – closing higher on the week! The downward momentum failed to reassert itself last week for the top crypto by market capitalization – the price successfully breached above the resistance and continues its march upward! Bulls have the upper hand currently and looks will likely remain in control this week!
Crypto market rebound is noteworthy ahead of the Federal Reserve’s two-day meeting ending this Wednesday. There is no chance the Fed will slow the pace of rate hikes this year as policy makers reassert their resolve to stop inflation and furthermore bring it back below their target rate of 2%! Meanwhile the top global crypto miner warned last week it is considering filing for bankruptcy protection while Morgan Stanley report suggests crypto investors are holding on for higher prices, and Southeast Asia continues to lead the world in crypto adoption.
The world's largest Bitcoin miner Core Scientific said it will not make payments with respect to several of its equipment and other financings that are due this week as its reserves dwindle. The Austin, Texas based company warned that it may have to explore bankruptcy if it fails to improve its financial condition and the capital raise alternatives fail. The warning sent its shares down 77% to as low as 23 US cents.
Morgan Stanley (MS) said in a research report a record 78% of Bitcoin has not been used in transactions in the last six months, and the level is increasing. And in light of the fact Bitcoin has traded in the narrowest range since late 2020 Morgan Stanley suggests investors are holding on for higher prices as they “are buying dips below $18,500 to prevent BTC falling materially below its 2017 prior cycle high.”
Southeast Asian countries top the world in cryptocurrency adoption, according to analytics firm Chainalysis’ latest “Geography of Cryptocurrency” report. And Vietnam topped the ranking for the second consecutive year together with Philippines and Thailand. 21% of Vietnamese reported they owned cryptocurrencies, followed closely by the Philippines at 20% penetration. The report suggests users “rely on cryptocurrency to send remittances, preserve their savings in times of fiat currency volatility and fulfill other financial needs unique to their economies.”
