Decentral Block Post

Ethereum's native token, Ether (ETH), eyes a strong bullish reversal after losing 25% from its November high of $1,675, according to a bottom fractal spotted by independent market analyst Wolf.

Can Ethereum price co its March 2020 fractal?  

Wolf compares Ethereum's multi-month downtrend between May 2018 and March 2020 with a similar but relatively shorter correction after July 2022. If the move repeats, that means the price of Ether has bottomed in November 2022, according to the analyst, as shown below.

Wolf draws cues from March 2020's Ethereum price crash triggered by the Covid-19 pandemic — a black swan event. Similarly, ETH price was pushed down in November 2022 due to another black swan — the collapse of cryptocurrency exchange FTX.

But ETH/USD rebounded aggressively after the March 2020 crash, boosted by the Federal Reserve's rate cuts that injected more money into the economy, part of which flowed into the crypto market.

Similarly, in November 2022, Ether's modest recovery post-FTX "black swan" coincides with growing expectations of the Fed slowing its rate hikes. Thus, Ether has a good chance at repeating the March 2020 fractal to new monthly highs.

Bitcoin (BTC) and decentralized blockchains are “as strong as ever” in the wake of the FTX meltdown, ARK Invest says.

In the latest edition of its monthly newsletter, “The Bitcoin Monthly,” the investment giant came out firmly bullish on BTC.

ARK: FTX scandal may be "most damaging event" ever

With BTC price volatility ebbing into December, the industry is still reeling from ongoing FTX contagion.

As lawmakers only begin to get to grips with the events, when it comes to Bitcoin, ARK is doubling down on its conviction — and setting it firmly apart from centralized alternatives.

“The fall of FTX could be the most damaging event in crypto history,” one of the latest report’s “key takeaways” states.

For over 14 years, central banks worldwide have seen blockchain technology deliver highly secure, immutable, verifiable and transparent financial ecosystems, starting with the Bitcoin network. Central bank digital currencies (CBDCs) stood out as one of the ways for fiat currency to harness a part of what cryptocurrencies achieve today.

To not only keep up with rising inflation and cut down on operational costs but also to counter money laundering and related concerns, 98 of 195 countries — representing over 95% of global GDP — have either launched or are researching and developing their own versions of CBDC.

With CBDCs joining the race to dominate the future of finance, the relevance of the stablecoin ecosystem — cryptocurrencies backed 1:1 with fiat, such as the United States dollar — comes into question.

As the managing director of crypto exchange Bitget, Gracy Chen got a front-row seat to the global disruption of cryptocurrencies. In an interview with Cointelegraph, Chen shared her thoughts on the future of stablecoins as CBDCs make their entry into the mainstream.

Cointelegraph: How relevant will stablecoins be (in retail and wholesale markets) once CBDCs are circulating?

Bitcoin (BTC) spending an “unprecedented” period below a key moving average is a poor guide to the 2022 bear market.

That was the opinion of analyst Superswell, who this week championed on-chain metrics as a way of understanding current BTC price action.

“Business as usual so far” for Bitcoin bear market

In a series of tweets on Dec. 5, Superswell challenged those concerned about the 200-week simple moving average (SMA) disappearing as support on BTC/USD.

“Over the last few months, I've seen quite a few people point out that BTC failing to find support at the 200wkSMA is unprecedented and therefore we're in uncharted territory - especially considering how much time we have spent below,” part the thread read.

“This is where I personally feel that onchain data provides better information as to where we are in relation to historical capitulations than TA (ie: 200wkSMA).”

Silvergate Capital CEO Alan Lane has slammed “short sellers” and “other opportunists” for spreading misinformation over the last few weeks — just to score themselves a quick buck. 

In a Dec. 5 public letter, Lane said there was “plenty of speculation – and misinformation” being spread by these parties to “capitalize on market uncertainty” caused in part to FTX’s catastrophic collapse in November.

His crypto-focused bank was recently forced to deny one of these so-called FUD (fear, uncertainty and doubt) campaigns last week when there was speculation that the firm was exposed to the bankrupt crypto lender BlockFi.

Lane also used the latest letter to the public as an “opportunity to set the record straight” about its investment relationship with FTX, as well as the company’s “robust risk management approach.”

Lane reiterated that the firm complies with the Bank Secrecy Act and the USA PATRIOT Act, which requires it to monitor and scrutinize “each and every account,” including FTX and Alameda research.