Bitcoin rally continues with price above $22,800 today. The bullish momentum is intact as the upside impulse continued following a price consolidation. The price is in consolidation phase again while the RSI remains firmly in the overbought zone. The bulls still have the market control and in medium term perspective bears don’t seem to have momentum on their side to wrestle the control away from bulls short of drastic change in market sentiment.
Markets are advancing as investors gauge Federal Reserve’s resolve to check inflation after several members of Federal Open Market Committee voiced their support for high interest rates to bring down inflation. While part of policy makers said there is still room for further rate hikes the mixed data like bigger than expected declined in US retail sales and industrial production in December showed US economy is cooling. Crypto market however continues its rebounding while the crypto lender Genesis filed for bankruptcy protection last week and crypto long traders suffered over $100 million liquidation after US Justice Department notified about a crypto investigation, and crypto developers continued to grow in numbers despite bearish developments last year.
The holding company of troubled cryptocurrency lender Genesis Global Capital filed for bankruptcy protection last week. The bankruptcy protection filings estimated the number of Genesis Global Capital’s creditors as more than 100,000 while its liabilities amount between $1 billion and $10 billion.
Last Wednesday US Justice Department announcement of crypto related investigation resulted in Bitcoin price drop that caused the $110 million liquidation of Bitcoin and Ethereum long positions, according to Coinglass data. Over 76% of all traders betting on the market’s growth were liquidated before prices retraced up later.
While crypto market prices crashed last year, there was an 8% increase in year-to-year growth in full-time developers that worked on different blockchain ecosystems, according to the venture capital Electric Capital report. 61,000 developers contributed code for the first time in 2022 roughly across all ecosystems, an all time high.
