An optimistic inverse head-and-shoulders price chart is currently forming within the collective market value of altcoins, signalling a potential “alt season”. This term has come to define a phase where cryptocurrencies, aside from prominent ones like bitcoin, ether, and leading stablecoins, outperform these central players. Observations based on technical analyses by crypto trader and ex-Valkyrie Investments researcher, Josh Olszewicz, kindled this speculation.
This promising charting pattern on the market typically signals an asset’s bullish potential by outlining three troughs in prices, the middlemost being the lowest. A trend change from bearish to bullish is considered confirmed once the asset’s prices cross the trendline (also known as the neckline) connecting the lows.
Bittrex, a cryptocurrency exchange, recently settled charges concerning allegations of providing US investors unregistered securities access. They have agreed to pay off a fine of $24 million. Earlier this year, fellow crypto exchanges such as Coinbase and Binance.US were similarly charged.
According to the SEC, Bittrex was operating a securities exchange, broker, and clearinghouse while avoiding the necessary registration procedures. The SEC went on to assert that Bittrex had directed crypto issuers to remove any public statements potentially implying a violation of securities law due to their tokens.
Despite the enthusiasm surrounding Coinbase’s Base blockchain official launch, the capital inflow was less than zealous, just over $10 million in the initial 24 hours, disappointing some crypto traders.
However, an intriguing facet has come to light showing how the higher yield rate offered by what are known as cash equivalents (the average on 100 of the largest money-market funds) has crossed the 5% threshold, reaching a peak since 2007. This lucrative yield might be causing macro traders to hesitate before risking their investments on unstable assets like tech stocks and cryptocurrencies.
It would appear that the shimmer of the altcoin market might glitter further, igniting an “alt-season”. However, the mist of uncertainty surrounding security law compliance by crypto exchanges casts a shadow over these potential gains. Additionally, the high yields from cash-equivalent money markets may dull the gleam of risky assets like cryptocurrencies.
Source: Coindesk
