Crypto Week: Blockchain Wars and Large BTC Sales

Bitcoin found a strong support at $19,700 after the recent upside correction seems to be ending. BTC prices are now looking to test $17,500 and may towards this level soon. However, there are more buyers in the market compared to sellers. So, some time is needed to go downwards, especially breaking through strong support levels. In such situation it is better to keep calm without any elevated optimism during price spikes in the absence of a proper setup.

Another scandal rocked the crypto market last week as Ava Labs that is behind Avalanche blockchain protocol. Ava Labs was accused of paying off 1% of its tokens to a legal company Roche Freedman to file lawsuits against its peers and distract U.S. regulators. Such legal practices are quite common Discovery manner to get access to confidential information. Crypto Leaks suggested that such strategy not only gave valuable advantage, but also diverted attention of the regulators from the Ava Labs itself. All accusations were refuted by Emin Gün Sirer, CEO of Ava Labs, and Kyle Roche from the legal company. But the AVAX token prices fell dramatically ahead of the market.

Federal Reserve’s (Fed) chairman Jerome Powell last week confirmed that the U.S. monetary regulator will do everything is needed to combat inflation. He doesn’t say that the Fed is going to push the Untied States towards the recession, but tight monetary policy will eventually lead to lead to it. All risky assets, including stocks and cryptos, could be downgraded soon on such a perspective.

Bitcoin prices could be dramatically affected by any transactions related to the infamous MT Gox hack back in 2011. Victims of this hack are waiting to be paid out form more than a decade, while market players are dread of massive BTC sale-offs after the payouts. So, a recent transaction of 5,000 BTC form the crypto wallet that was rumored to receive 138,000 BTC from MT Gox made market players nervous. The truth is any BTC distributions could not be provided as the payout system is not there yet. Any payouts would be made in tranches, according to the creditor of MT Gox, while there is no sufficient information to start payouts has been collected. Nevertheless, such account activities should be monitored as a large amount of BTC could appear in the market soon.