Mixed trading conditions on the global crypto market in the next 24 hours. Cloudy bearish trading conditions lie ahead for Bitcoin, Ripple’s XRP, Cardano and Binance Coin, while sunny bullish conditions lie ahead for Ether, Litecoin and
Dogecoin.
Over a one-week horizon, the sun will shine over the entire crypto sphere indicating strong upside potential. Only Polkadot is set to face a cloudy bearish trend, ATTMO shows.

Cryptocurrencies trade higher

The cryptocurrency trend was positive over the past 24 hours as investors and analysts alike remain optimistic about the sector’s overall outlook and the crypto universe continues to draw big inflows.

“The classic grind upwards is taking place for #Bitcoin. Probably we'll continue towards new highs (target remains $36,500-37,000). Classic liquidity drops take place, but the trend is clearly upwards,” the CEO and founder of MN Trading, Michael van de Poppe said.

“Bitcoin's market demand has outpaced its supply, a clear sign of robust positive momentum. In just one day, a whopping 700,000 new BTC addresses joined the network. This expansion is considered one of the most reliable indicators for price predictions. With fewer BTC coins currently in circulation, buyers might need to increase their bids to have their orders executed promptly,” the co-founder of Glassnode Yann Allemann echoed.

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Inflows so far this year have already exceeded 2022’s

“Digital asset investment products saw inflows totalling US$261m, representing the 6th week of consecutive inflows that now totals US$767m, surpassing the total inflows of US$736m seen in 2022,” according to CoinShares weekly report.

“Bitcoin saw the lion’s share of inflows, totalling US$229m, bringing year-to-date inflows to US$842m, likely buoyed by the increasing likeliness of a spot-based ETF in the US. Ethereum saw the largest inflows since August 2022, totalling US$17.5m.”

The price of Bitcoin was unchanged at 34,883 US dollars over the past 24 hours, while the price of Ether rose 0.4 percent.

Cardano to use Polkadot’s blockchain enabling tool

Cardano will use Substrate, the foundation of the Polkadot software development kit (SDK), to expand its partner chain projects. “IOG, the leading developer of Cardano, describes Substrate as a ‘proven open-source modular framework’ and will contribute a set of composable pallets to broaden its overall reach,” Polkadot said.

Cardano’s development activity leads Santiment’s ranking over the past month, tracked by Polkadot. Cardano rose 2.4 percent to 0.35 dollars, while Polkadot rose 4 percent to 4.98 dollars on the news.

Chainlink reaches 18-month high on investor interest, imminent rollout of upgraded staking

Chainlink reached an 18-month high on Monday, as the number of addresses with non-zero balances hit a year high, Glassnode data shows. This signals that an increasing number of investors are buying the 12th largest cryptocurrency.

The release of Chainlink’s staking v0.2 in the near term has also supported the price movement. Eligibility criteria for the early access to this rollout were released last week.

UK stablecoin rules on their way

The Bank of England (BoE) and the Financial Conduct Authority (FCA) released a discussion paper setting out rules for systemic payment systems using stablecoins, focusing on those pegged to the British pound. The BoE would oversee “systemic stablecoins” issued by payments providers such as PayPal and Meta, while the FCA would oversee the wider crypto universe.

“The government has announced plans to legislate for a future financial services regime for crypto assets. It is taking a phased approach, focusing initially on fiat-backed stablecoins that may be used as a form of payment, followed by the wider crypto asset regime.

Under these plans, we will regulate the issuance and custody of fiat-backed stablecoins under the Financial Services and Markets Act 2000, and the use of these stablecoins as a means of payments under the Payment Services Regulations,” the FCA said.

Interested third parties have until Feb 6 to share their comments.

SEC member lashes out at his boss’ rule through enforcement actions

The Securities and Exchange Commission (SEC) rule through enforcement actions may be appealing, but should be used sparsely, Mark Uyeda, one out of the SEC’s five commissioners said.

“For years, market participants [in the US] have expressed concern about a lack of regulatory guidance in the crypto space. Let’s be clear about it – enforcement actions are not well-suited for providing guidance… Accordingly, the Commission should consider proposing rules or issuing interpretive guidance with respect to cryptocurrencies and digital assets. It’s unfortunate that, despite the large number of rule proposals issued by the SEC during the last two years, cryptocurrency was not among them,” Uyeda said during a speech held at the 2023 Conference on SEC Regulation Outside the United States.

“The SEC could have proactively contributed to the creation of a body of law regarding cryptocurrencies and digital assets. Unfortunately, the SEC did not take this approach and instead is pursuing a case-by-case approach through enforcement actions. As a result, it will take years to reach any type of legally-binding precedent, as matters will need to wind their way through the courts before reaching the court of appeals level,” he added.

Over the past years, the SEC sued numerous leading crypto players, including Ripple Lab, Kraken, Binance and Coinbase.

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DISCLAIMER

ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment. The forward-looking weather-inspired predictions part of this report may have changed by the time you read this edition of ATTMO Times. So always check the latest ATTMO predictions before making any investment decision.