Cryptocurrencies Price Prediction: Bitcoin, Cosmos & Ethereum – European Wrap 23 January

Bitcoin price nosedives below $40,000 on bloody Monday, BTC price recovery likely on the horizon

Bitcoin price hit a low of $39,400 on Monday after a market-wide bloodbath ushered in a correction in cryptocurrencies with a large market capitalization. BTC made a comeback above the psychological level of $40,000 on Tuesday, and on-chain metrics are showing signs of a further recovery in the asset. 

Bitcoin price dropped to a $39,400 low on January 22 as Grayscale’s GBTC noted a $640 million outflow. BTC ETF outflows picked up pace on Monday, acting as one of the key drivers for Bitcoin price decline. 

Cosmos validators reject proposal to reduce token inflation rate to 0%

A Cosmos contributor proposal to reduce the minimum net supply of tokens to zero was rejected by the community in a close vote, resulting in the status quo being maintained. This is because, generally, a higher inflation rate is seen as a way to incentivize miners, making the network more secure by increasing the cost of a potential attack.

Cosmos proposal 868, introduced by StakeLabs in November last year, was voted out by the community, which decided not to move forward with the suggested changes. The proposal was aimed at reducing the minimum set inflation rate to 0% from the current 7%. 

Ethereum traders realize nearly $33 million in losses as overheated futures market cools

Ethereum price dipped nearly 7% in the past day as the crypto market corrected on Monday. Bitcoin led the decline by dropping below $40,000, a psychologically important level, for the first time since December 3. 

ETH price, which is correcting to the lowest level in two weeks, could be bottoming out as market participants’ sentiment improves alongside a decline in the altcoin’s funding rate. Ethereum’s Network Realized Profit/ Loss (NRPL) metric indicates that ETH traders suffered $32.73 million in losses on Monday. This marks the first time Ethereum traders realized a loss since October 13.