•Crypto markets lost $40B over the weekend as Bitcoin dropped to a 10-day low.
•The US PCE inflation metric increased by 0.6% for January, resulting in a sharp price drop of BTC from $24,000 to just under $23,000.
•Altcoins such as MATIC, DOT, UNI also reported substantial losses.
This article looks at how the crypto market cap lost the $1.1 trillion mark and how Bitcoin dropped to a ten-day low over the weekend due to an increase in US PCE inflation metric which resulted in a sharp price drop of BTC from $24,000 to just under $23,000. Additionally, altcoins such as MATIC, DOT and UNI reported substantial losses.
At the end of last week Bitcoin skyrocketed by double digits to chart a six-month high above $25,000 but failed to break that line at first with quick rejections on all three attempts. The latest attempt pushed it south down to $23,500 after which the bulls tried intercepting it back up above $24,000 hours later. However when the US announced that their PCE inflation metric had increased by 0.6%, BTC reacted with a sharp price drop down below $23K thus recording its lowest tag in ten days.
Not just Bitcoin but most of the cryptocurrency market was affected resulting in substantial losses for altcoins like MATIC and DOT along with UNI who recorded some of the most significant drops among all other coins this past weekend.
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• NBA Hall-of-Famer Paul Pierce has been charged by the SEC for promoting the Ethereum Max token on his social media accounts.
• He agreed to pay a penalty of $1,115,000 plus approximately $240,000 in disgorgement and prejudgment interest.
• The SEC alleges that Pierce fraudulently promoted the purchase of the EMAX token without publicly disclosing that EthereumMax paid him over $244,000 in EMAX for promoting it.
SEC Charges NBA Hall of Famer Paul Pierce
NBA Hall-of-Famer Paul Pierce has been charged by the Securities and Exchange Commission (SEC) for being involved in the promotion of Ethereum Max. On February 17, he was charged with illegally promoting the EMAX token on his social media accounts.
Agreed to Pay Penalty of Over $1 Million
Pierce has agreed to pay a penalty of $1,115,000, plus approximately $240,000 in disgorgement and prejudgment interest, without admitting or denying guilt. To avoid greater sanctions from regulators he is also prohibited from promoting any crypto asset securities for three years.
Promoted Fake Investments to Promote EMAX?
The SEC alleges that Pierce fraudulently promoted the purchase of the EMAX token without publicly disclosing that EthereumMax paid him over $244,000 in EMAX for promoting it. He even posted screenshots of a fake account that showed significant profits and holdings using EMAX but his own personal holdings were much lower than those in the screenshot.
Penalty For Fraudulent Promotion
For his fraudulent promotional activities regarding EthereumMax’s offering and sale of its digital asset security tokens known as “EthereumMax” or “EMAX” tokens — Pierce faces a penalty payment to SEC amounting to more than one million dollars ($1 M). Additionally he is barred from engaging in any kind of promotion related activities associated with digital asset securities for three years period starting from February 17th 2023 onwards.
The case against Paul Pierce serves as an example warning others not to engage with fraudulent activities such as illegal promotions or misuse information about investments related to crypto assets securities . It’s important for investors and promoters alike to ensure they are aware about all legal requirements before entering into any financial transaction involving digital assets securities.
• Tron generated $48 million in revenue in Q4 2022, a 25% increase compared to Q3.
• Average active daily addresses and average daily transactions surged from 2.6 million and 5.3 million respectively in Q3 to 3.1 million and 6.5 million in Q4 2022.
• The success of Tron during the fourth quarter of 2022 was achieved despite unfavorable macroeconomic conditions and the crash of Terra, FTX, and other cryptocurrency platforms earlier in the year.
Tron Generates $48 Million Revenue During Q4 2022
A recent research by Messari revealed that Tron generated a revenue of $47.9 million in the last quarter of 2022, a 25% increase compared to the previous quarter (Q3). This success was achieved despite the unfavorable macroeconomic conditions throughout the year as well as the crash of Terra, FTX and other cryptocurrency platforms earlier on.
Average Active Daily Addresses Increase
The research further highlighted that average active daily addresses increased from 2.6 million in Q3 to 3.1 million during Q4 2022, while average daily transactions also rose from 5.3 to 6.5 million within this period. In addition, average transactions per second climbed from 62 to 76 over the same time frame.
Q2 Still Most Productive Quarter for Tron
Despite its impressive performance during the fourth quarter of 2022, it is worth noting that Tron’s most productive quarter remains Q2 which saw it generate a profit of $48
• XRP’s price has been unable to break a critical resistance level of $0.43 over recent weeks.
• Against Bitcoin, the cryptocurrency has been on the decline for the last few weeks and broke below the 0.000018 support level.
• If the 0.000018 level is confirmed as broken, further drops towards 0.000015 are expected in coming weeks.
Ripple Price Analysis
XRP’s price has not yet shown any significant strength as it continues its struggle to surpass a critical resistance level of $0.43 over recent weeks.
XRP/USDT Daily Chart
On the daily chart, the price has been consolidating in a tight range below this resistance level for quite a while, with the 200-day moving average located around $0.4 providing support and preventing further drops.
If this resistance is finally broken to the upside, XRP could rally towards $0.55 in short term; however, if rejection occurs then 50-day moving average around $0.37 would be first potential support before key $0.3 area.
XRP/BTC Daily Chart
Against BTC, XRP has been declining for few weeks and 0.000018 major support was broken to downside.
A confirmation of this breakdown will potentially lead to further drop towards 0.000015 in coming weeks; however, RSI approaching oversold area may indicate fake breakout.
XRP seems stuck at its current levels against USDT and needs to break above $0.43 for any hopes of an upward move, while against BTC it needs to reclaim 0.000018 level for any chances of recovery.