Daily News | Bitcoin Passes $24K as Macro Factors Favor Crypto, Lido DAO's Treasury Proposal Drives LDO Token Up

2023-02-16, 01:59

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![](https://gimg2.gateimg.com/blog/166563293266894988220221013-114826.jpeg)

## Crypto Daily Digest: <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> Surges Due to Lower Stocks and Bonds Volatility, Ether Supply Shrinks Since January

Good morning and good luck, traders! Let's seize this Thursday and make the most of it! 🚀

Asian stock markets rose on Thursday after US shares also went up. This came as investors considered new data suggesting that the Federal Reserve would tighten its policies further. The data included s<a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>g retail sales in January and higher homebuilder sentiment in February. Despite the market's resilience and the success of speculative technology stocks, upcoming US employment data is anticipated to reveal an increase in jobless claims. However, Jonathan Golub of Credit Suisse believes that the US will not experience a recession this year.

Equity futures for Australia, Japan and Hong Kong were up after the S&P 500 climbed 0.3% and the Nasdaq 100 closed up 0.8%. Benchmark 10-year Treasury yields rose six basis points. In addition, crude oil futures fell below $79 per barrel after the EIA reported a 16 million barrel increase in crude inventories last week.

<a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> rose to its highest level since August for a second consecutive day, gaining 8.7%. Altcoins also rallied, as concerns about the US regulators' crackdown decreased. The SEC proposed new rules to tighten regulation around crypto custodians, and the circulation of BUSD, the third-largest stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">Ecoin</a>, decreased. Ether's supply has been decreasing since January, making it net deflationary.

According to Acheson, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>'s 65% drawdown in 2022 has made it a compelling liquidity play, particularly for long-term investors who view BTC as a store of value. The recent lower volatility in stocks and bonds, declining oil prices, and a weakening US dollar have all contributed to the growth of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>. Unlike stocks, <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> is not affected by adverse economic news or higher interest rates due to having no cash <a href="/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a>s to discount, and it has a s<a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>g floor given its various use cases. Although other risk assets are sensitive to a liquidity recovery, none has experienced as severe a drawdown as <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>.

## Topic of the Day: <a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a>’s LDO Rallies After Proposal to Sell or Stake $30M Ether from Treasury

The recent proposal submitted by <a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a>'s financial unit, Steakhouse Financial, is aimed at deciding whether the DAO should sell or stake the 20,304 ether, worth around $30 million, it holds in its treasury. The proposal also includes three other treasury-related proposals, such as diversifying stabl<a href="/price/ecoin-ecoin" target="_blank" class="blog_inner_link">Ecoin</a> holdings and selling protocol surplus to finance operating expenses.

In addition to this proposal, <a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a> has also submitted a proposal for a Token Reward Plan (TRP) for approval. The plan includes a framework to distribute voting LDO tokens over a period of up to four years to DAO contributors, and the authority to donate up to a maximum of 22 million LDO to a grants association for use in the TRP.

The proposal and the TRP plan have resulted in a positive response from investors, as the LDO token has gained 10% on the day after the proposal submission, and 18% the following day, before stabilizing around a 10% gain. The rally is a continuation of the token's positive performance in the past month, where it has gained around 30%.

<a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a>'s success is evident from the fact that it has the highest total value locked among all decentralized finance protocols, surpassing popular protocols such as MakerDAO and Curve Finance. Its platform has over $8.4 billion of staked ether, indicating a significant level of trust and confidence in its staking system.

<a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a> is a decentralized autonomous organization that provides a liquid staking system for <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>. Staking is the process of locking up a certain amount of cryptocurrency to contribute to the security of the blockchain and earn rewards. <a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a> allows users to stake their <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> in other protocols and earn staking rewards without giving up control of their assets, which is known as non-custodial staking.

## <a href="/price/lido-dao-ldo" target="_blank" class="blog_inner_link">Lido DAO</a> (LDO) $2.8731 (+0.97%) - Bullish Outlook

**Overview:**

- ***Closest daily support zone: 2.716 - 2.631***
- ***Closest daily resistance zone: 3.000 - 3.096***
- ***Key Level: 3.100 (Monthly Low of Oct. 2021)***

![](https://gimg2.gateimg.com/image/article/1676512690Untitled0216.png)

Following its governance proposal, LDO rose 18% within two days and broke within a previous supply zone, confirming it is now in a bullish trend and the rise will likely continue. This has been further confirmed by the Ichimoku Cloud indicator as price action trades above the blue cloud. Based on the Fibonacci Extension tool, LDO is expected to test the 1.618% (3.393) level if it is able to make a successful breakout above the current supply zone (2.716 - 3.096). However, LDO will need a s<a href="/price/tron-trx" target="_blank" class="blog_inner_link">TRON</a>ger candle to completely invalidate the rising wedge pattern spotted on the daily timeframe, which is normally a reversal pattern. Overall, the current outlook favors the bulls, especially given the bullish engulfing candle spotted on Feb. 14 and the following surge which indicates superb strength.

**Daily Resistance zones**

1. 3.000 - 3.096
2. 3.222 - 3.393
3. 3.684 - 3.970
<br>

**Daily Support zones**

1. 2.716 - 2.631
2. 2.460 - 2.286
3. 2.104 - 1.947

<div class="blog-details-info">
<div>Author:** Peter L.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>