Prediction of Bitcoin and Ethereum Prices: BTC and Ethereum Slide in the Kraken Crackdown
According to reports, the price of Bitcoin and Ethereum fell this week as Kraken settled with the US Securities and Exchange Commission and won’t offer its staking service product to companies that don’t have regulatory approval.
Kraken’s SEC Settlement – A Warning for Exchanges or an Opportunity for Decentralized Alternatives
Kraken’s final outcome Settlement The implications of the Securities and Exchange Commission’s (SEC), ruling on Kraken has major implications for the cryptocurrency market. On Thursday, the SEC announced that Kraken, a cryptocurrency trading platform, would be paying a $30 million penalty for failing to register its crypto staking-as a service program’s sale and offering.
Brian Armstrong, Coinbase CEO, warned on Twitter prior to the announcement that he had been informed by the SEC that crypto staking would be eliminated for US retail customers.
The first impression is that the News about Kraken’s settlement All crypto-staking service providers felt that the SEC was a bad development. The market reaction indicates that the SEC was a negative development for all crypto-staking services. Rocket Pool and Lido, which are two of the most popular pooled staking platforms, saw their governance tokens rise to over 11% over the past day.
Staked assets are critical to proof-of-stake network stability, such as Ethereum. High entry barriers make it difficult for retail investors to become Ethereum validators. They turn to pooled staking providers and staking as-a-service.
Liquid Staking, which allows tokenized and tradable staked asset tokenization, has reached $12 billion (or 26% of the $47billion DeFi ecosystem). Lido is the largest protocol that supports ETH staking and accounts for $8 billion or 75%.
Kraken was criticized by the SEC for oversimplifying stakes to appeal to retail customers. Kraken set return rates for its customers. The protocol should have determined the variable rate of rewards.
Robinhood’s crypto revenue drops 25% in Q4: What does this mean for crypto traders?
Robinhood’s Bitcoin business saw a 25% drop in revenue compared to the Q4 prior quarter. The company was founded in 2013 and is best known for its stock trading platform, which it expanded to cryptocurrencies in 2018. It has quickly risen in prominence as a premier venue for exchanging digital currencies such as Bitcoin and Ethereum.
There are many reasons revenue drops, including the general slowdown of the bitcoin industry. Robinhood saw a drop in trading volume and profits due to high cryptocurrency price volatility. The company presented to investors its earnings of $82 million (EBITDA).
Fourth quarter was a failure, with a loss in excess of $166 million reported. It saw an EPS decrease of $0.20. This loss was less than the $0.20 decrease in EPS expected for the third quarter 2022.
Vladi Tenev, CEO of Robinhood, believes in the future cryptocurrency bitcoin. He will continue to offer his customers access to these “rapidly changing assets” as a service.
Due to the tensions in cryptocurrency markets, Bitcoin and Ethereum prices continue to fall and trade in a sell zone.
Bitcoin’s current price is $21,682 and its 24-hour trading volume of $24 billion. Bitcoin has dropped by less than 1 percent in the past 24 hours. CoinMarketCap is currently ranked first with a market cap of $418 million.
Bitcoin broke through the $21,875 level of support on Saturday. A closing candle below this level increases the possibility of a selling trend. BTC could face a bullish breakout above the $21,875 resistance level, which would expose it to $22,300 or $22,850.
The downtrend could be extended to $21,200 if the price does not break below $21,750. BTC’s immediate support level is at $21,200. A break below this level could lead to BTC’s price dropping to $20,600.
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The Ethereum price is $1,518 and the 24-hour trading volume is $7.5 billion. ET has fallen by almost 2% over the past 24 hours. It ranks second on CoinMarketCap with a market capital of $185 billion.
Technically, Ethereum trades just above the $1,500 double bottom support level. Closed candles of $1,500 or more have the potential for an uptrend to the $1,560 level.
This resistance level is driven by an upward channel, which was previously broken on Friday. BTC could be exposed to $1,600 and $1,680 levels if it breaks above $1,560.
A failure to break above $1,560 can make the ETH price bearish. This could increase selling pressure and trigger a bearish breakout below the $1.510 level. This would lead to a rise to the $1.435 level.
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