Following the initial 2024 U.S. Presidential Debate, prediction market wagers on whether incumbent Joe Biden will withdraw have seen a significant increase in activity. The likelihood of Biden stepping down and being substituted has risen notably. Betting Markets React to Joe Biden’s Unintelligible Statements and Performance On Thursday, CNN broadcasted the 2024 U.S. Presidential Debate […]
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Cardano And XRP Shorting Activity Could Act As ‘Rocket Fuel’ For A Rally; Santiment
On-chain analytics platform Santiment has outlined a factor that could contribute to Cardano (ADA) and XRP enjoying further moves to the upside. Both tokens recorded relief pumps following the recent decline in the crypto market, but market traders believe this development is far from a bullish reversal.
Heavy Trader Shorting Could Lead To Price Rises For Cardano And XRP
Santiment claimed in an X (formerly Twitter) post that the heavy trader shorting which Cardano and XRP are currently seeing could be the “rocket fuel” for continued price rises for these crypto tokens. Santiment had also revealed that Cardano and XRP were among the most notable altcoins that are heavily shorted following their relief bounces.
Interestingly, they called this a “good sign” for the patient bulls, as they believe that liquidation of these short positions could effectively be the momentum that these crypto tokens need to rise higher. Cardano and XRP being named among the most shorted altcoins isn’t surprising, considering that they are the most underperforming coins this year among the top 50 crypto tokens by market cap.
Cardano and XRP have also usually failed to enjoy significant relief pumps even when Bitcoin (BTC) and the broader crypto market enjoy a massive rebound. However, this time could be different, as Cardano and XRP have enjoyed a modest price recovery while some other altcoins lag.
Data from Coinglass shows that Santiment’s theory could already be in play, seeing how the Cardano and XRP bears have suffered significant losses in the last 24 hours. Over ,000 in Cardano short positions have been liquidated during this period, while not a single cent in Cardano long positions have been liquidated. Similarly, over ,000 in XRP short positions have been liquidated while XRP longs were unaffected.
A Major Move Might Be On The Horizon For XRP
Crypto analyst Egrag Crypto recently predicted that XRP could enjoy a price pump of around 1,700% starting in July. He alluded to XRP’s quarterly hammer formation between April and June 2016 and July and September 2017 before the crypto token enjoyed a major pump. The crypto analyst stated that XRP could form this bullish pattern again but needed to close the 3-month candle above the range between .55 and .58 in 10 days.
Egrag further claimed that if the hammer formation is similar to the one in 2016, the XRP could begin the projected 1,700% price rally in July, eventually sending the crypto token to . However, if the hammer formation is similar to the one in 2017, Egrag mentioned that XRP holders might have to wait another six months before the “epic” pump of around 5,500%, sending XRP’s price to .
Crypto On Watch: Will ECB Rate Cut Fuel Bitcoin Rally?
Bitcoin prices are set to surge following the European Central Bank’s (ECB) decision to initiate its first interest rate cut in five years yesterday. The unanimous vote by all 20 national representatives slashed rates by 0.25%, marking a significant shift in monetary policy for the Eurozone.
Coupled with projections of slowing inflation and modest economic growth, this move has sparked intense speculation in the crypto market, with many analysts predicting a notable rise in Bitcoin prices.
ECB Pivots Towards Growth
The ECB’s decision reflects a growing concern about the Eurozone’s economic health. Inflation, initially a major point of focus, is now expected to cool down to 1.9% by 2026. However, the projected GDP growth of 0.9% in 2024 and 1.6% in 2026 paints a picture of sluggish economic activity. By lowering interest rates, the ECB aims to stimulate borrowing and investment, potentially jumpstarting the Eurozone’s growth engine.
The European Central Bank announced the first rate cut in five years, 25bps. The ECB expects inflation to be 2.5% in 2024, 2.2% in 2025, and 1.9% in 2026. GDP growth is expected to be 0.9% in 2024, 1.4% in 2025, and 1.6% in 2026. https://t.co/vtft9WFAX7
— Wu Blockchain (@WuBlockchain) June 6, 2024
Cryptocurrency Bonanza?
The ECB’s dovish turn has sent a jolt of excitement through the cryptocurrency community. Lower interest rates typically translate to a weaker Euro. This, in turn, could make dollar-denominated assets like Bitcoin more attractive to investors seeking diversification and a hedge against inflation. Analysts believe this, combined with potential future rate cuts, could propel Bitcoin to new highs.
The market is hungry for signals, and the ECB’s move is a clear indication of a global shift towards looser monetary policy, crypto analysts said. This creates a fertile ground for Bitcoin, potentially attracting investors looking for alternatives to low-yielding traditional assets.
A Symphony Of Central Banks
The ECB’s decision follows a similar move by the Bank of Canada, which became the first major central bank to cut rates this year. This coordinated effort by central banks underscores a growing concern about a potential global economic slowdown.
Related Reading: Beyond BTC: Crypto Miners Get Brainy, Embrace AI After Block Reward Whacking
With the US Federal Reserve also facing mounting pressure to ease policy, the stage could be set for a synchronized global shift towards monetary stimulus, potentially creating a perfect storm for Bitcoin’s ascent.
At the time of writing, Bitcoin was trading at ,168, up 0.3% and 4.5% in the daily and weekly timeframes, data from Coingecko shows.
Featured image from Business Standard, chart from TradingView
Solana Leaves Competition In The Dust: Blazing Speed To Fuel Price Surge?
Solana (SOL), the self-proclaimed “world’s fastest blockchain,” has been grabbing headlines for its blazing transaction speeds and surging token price. But is it all sunshine and rainbows in Solana land, or are there cracks in the seemingly smooth road?
Solana Takes The TPS Crown
According to CoinGecko data, Solana blew past competitors like Polygon and Ethereum in transactions per second (TPS). This translates to faster transaction processing times, a key factor for scalability and mass adoption in the blockchain world.
However, a closer look reveals a more nuanced picture. While daily active addresses, which represent unique users interacting with the network, have indeed increased, the daily transaction count hasn’t kept pace.
This suggests a scenario where more users are entering the Solana ecosystem, but they aren’t necessarily conducting a high volume of transactions. Is this a case of casual crypto tourists dipping their toes in, or is there something else at play?
Fees Take A Tumble, But Is It A Sustainable Slide?
Another interesting wrinkle is the decline in transaction fees on Solana. This might seem like good news for users, but it could be a double-edged sword. Lower fees could indicate that the transactions being processed are less complex and require lower charges.
This could potentially limit Solana’s revenue generation in the long run. Additionally, a drop in fees could signal a decrease in network congestion, which might explain the stagnant daily transaction count.
DeFi Keeps The Party Going, But Caution Flickers
A bright spot for Solana is the continued growth in its Decentralized Finance (DeFi) Total Value Locked (TVL). DeFi refers to a suite of financial services built on blockchains, and TVL represents the total value of crypto assets deposited in DeFi protocols.
Solana’s rising TVL indicates its growing adoption within the DeFi space, where users can lock up their crypto to earn interest or participate in other financial activities. This is a positive sign for the overall health of the Solana ecosystem.
However, a note of caution emerges from technical indicators like the Money Flow Index (MFI). This indicator suggests a potential price correction for SOL, hinting that the current uptrend might not be entirely sustainable.
Combine this with the mixed signals on network activity and the declining fee structure, and investors are left with a question mark hanging over Solana’s long-term prospects.
A Blockchain In High Gear, But the Destination Is Unclear
Solana’s impressive transaction speeds and strong DeFi presence are undeniable strengths. However, the network’s overall activity and tokenomics raise questions about its long-term viability.
Meanwhile, at the time of writing, SOL was trading at 5, up 7.1% and 26.0% in the daily and weekly timeframes, data from Coingecko shows. This price surge, coupled with the network’s breakneck transaction speeds, paints a picture of a project with immense potential.
However, for Solana to truly become a dominant force, it will need to address the questions surrounding its network activity and long-term sustainability, not to mention add more fuel to its price.
Featured image from F1, chart from TradingView
Roaring Kitty Return Continues to Fuel Meme Stock and Crypto Frenzy: GME, AMC, and Meme Coins Soar
On Tuesday, shares of Gamestock and AMC Entertainment Holdings continued to soar, fueled by retail investors following the reappearance of Keith Gill’s online persona, ‘Roaring Kitty.’ This upward momentum also spilled over into the cryptocurrency market, with meme coins like roaring kitty (ROAR) jumping 175% and the wall street bets token rising 1,121% against the […]
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Bitcoin Back Above $63,000: Will FOMO Fuel Another Rally Or Lead To A Bust?
The Bitcoin price made a strong comeback on Friday after witnessing a significant amount of bearish pressure throughout the past week. On Wednesday, May 1, the premier cryptocurrency fell below the ,000 mark for the first time in almost two months.
On Friday, May 3, the price of BTC recovered above the ,000 level, going as high as ,000 in the past day. However, the question is – can the Bitcoin price enjoy a sustained rally following this latest resurgence?
How Long Will The BTC Price Rally Last?
In a recent post on the X platform, Santiment pointed to a shift in investors’ position and sentiment on the Bitcoin price following the recent surge above ,000. According to the on-chain analytics site, traders on the Binance platform are “going from liquidated shorts to longs” after the latest price increase.
While this shift in sentiment might signal renewed optimism in the premier cryptocurrency, Santiment sounded a warning bell for enthusiasts watching the Bitcoin price and looking to get into the market. The blockchain firm said in its post:
For the rally to continue, we don’t want to see FOMO rising too much higher than what it appears to be now.
FOMO, or “fear of missing out,” is a phenomenon where investors hastily purchase in-demand assets out of fear of missing out on potential gains. While it can drive the asset to a higher price in the short term, excessive FOMO often results in unsustainable bullish trends and subsequent downturns.
What’s more, crypto prices tend to move in the opposite direction of the crowd’s expectations. Hence, if the majority of traders are betting on the Bitcoin price to rise, there is a great likelihood that the cryptocurrency’s value will experience a drop.
Behind The Bitcoin Price Surge
As of this writing, the Bitcoin price stands at around ,871, reflecting a substantial 6% increase in the last 24 hours. Although the catalyst for this latest Bitcoin rally remains unclear, on-chain data shows that recent whale activity might have triggered the bullish momentum.
In a recent post on X, CryptoQuant CEO and founder Ki Young Ju revealed that Bitcoin whales acquired 47,000 BTC in a single day. Ju also said that while this class of investors might have included ETF-associated addresses, the recent spike in “balances for whale addresses” is not ETF-related.
#Bitcoin whales accumulated 47K $BTC in the past 24 hours. We’re entering a new era. pic.twitter.com/SXgzToN8GU
— Ki Young Ju (@ki_young_ju) May 3, 2024
‘Real-World Implementations of Both AI and Web3’ Fuel AI Tokens’ Rally, Says Daniel He
With socialfi platforms, financial incentives serve not only as a reward mechanism for content creators but also “fundamentally transform the engagement model for all users,” Daniel He, the CEO of the artificial intelligence (AI)-powered socialfi platform, Republik, said. He believes that by offering incentives for user engagement beyond liking or commenting, socialfi platforms have a […]
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Bitcoin: Will This “Dry Powder” and Historical Trends Fuel A Price Boom?
While Bitcoin has dipped from its recent highs of around ,000, some analysts are urging investors to stay calm and even see this as a buying opportunity. So far, Bitcoin prices have remained under pressure, trickling lower in the past trading week.
Are There Similarities With The Bitcoin Bull Run Of 2020?
Though the downward momentum is slowing down, and there has been no confirmation of the April 2 dump, the failure of bulls to convincingly flow back and drive the coin above ,000 remains a concern for some traders.
Even so, taking a bullish stand, one analyst on X compares the current formation with that of 2020. Pointing to the cyclic nature of prices and the inevitability of retracements from bottoms and peaks, the trader expects prices to bounce.
The trader said that in 2020, when Bitcoin prices fell, shaking out weak hands, the recovery sparked a bull run that forcefully saw the coin surge above previous all-time highs of ,000. The analyst seems to allude to the retracement before the breakout as a catapult that eventually fed the “legendary” bull run, which saw Bitcoin float to as high as ,000.
Based on this comparison, the trader is adamant that it may, reading from history, be the best time to “sell” at around spot levels. Still, for now, buyers can consider doubling down until there is a clear trend definition and shake-off of the current bear formation. Currently, BTC has strong rejections in the ,700 to ,000 liquidation zone, marking last week’s highs.
Watch Out For The “Dry Powder”
Besides technical candlestick formation, another trader thinks buyers better HODL even with sellers in control.
In a post on X, the analyst said Tether Holdings, the issuer of USDT, and Circle, the issuer of USDC, recently minted billions. On April 2, Tether issued 1 billion USDT on Tron, while Circle issued 250 million USDC on Solana.
This development, the analyst said, means there is “plenty of dry powder.” Stablecoins like USDT and USDC offer stability in the crypto markets, providing a refuge for crypto holders whenever prices tumble.
However, they can also act as conduits of liquidity from the traditional market, providing an avenue for interested users to get exposure to top coins or even engage in activities such as decentralized finance (DeFi).
In the past, prices often edged higher when there were huge stablecoin mints.
Litecoin ETF Rumors Fuel 10% Surge As Institutions Hint At Interest
Rumors regarding a potential spot Litecoin (LTC) Exchange-Traded Fund (ETF) have sparked a significant price surge, with the digital asset gaining 10% amid speculation of institutional interest. Fox Business journalist Eleanor Terrett, through a post on X (formerly Twitter), unveiled insights suggesting growing institutional intrigue towards a Litecoin ETF.
Terrett shared, “SCOOP: Hearing rumblings on the institutional level about possible interest in a Litecoin ETF. The logic is that because of LTC functional similarities to BTC, the SEC may be more inclined to approve it, possibly even more so than ETH.”
Why A Spot Litecoin ETF Could Be Possible
This statement comes at a pivotal time as the crypto market continues to navigate through regulatory uncertainties and growing interest from traditional financial institutions. Adding to the buzz, Terrett highlighted recent actions by the Coinbase Derivatives to launch futures contracts for Dogecoin, Litecoin, and Bitcoin Cash, all set to begin on April 1st, 2024.
These futures contracts, as detailed, are part of Coinbase’s strategic move to diversify its offerings, leveraging the self-certification approach under CFTC Regulation 40.2(a). This approach permits entities to launch new products without the explicit approval of the CFTC, provided they comply with the Commodity Exchange Act and accompanying regulations.
Moreover, the recent classification of Ethereum (ETH) and Litecoin (LTC) as commodities by the Commodity Futures Trading Commission (CFTC) in its lawsuit against KuCoin has added another layer of legitimacy to the discourse surrounding Litecoin’s regulatory standing. The CFTC’s action emphasizes its view of certain cryptocurrencies as commodities.
Amidst these regulatory clarifications and developments, discussions about the potential approval of a spot Litecoin ETF have intensified. Luke Martin, a renowned crypto analyst, echoed the sentiment, suggesting that the approval of an Ethereum ETF could pave the way for other “old altcoins,” like Litecoin, which may have a stronger case for not being classified as securities.
He stated, “When the ETH ETF launches and passes, the question then becomes especially with the SEC’s track record versus tokens […] there’s other dinosaur old altcoins which you can make almost a stronger case [that] they’re not a security, one that sounds ridiculous but if you think deeply about it, it’s true – Dogecoin you could probably prove easier is not a security than ETH. Why wouldn’t they launch Litecoin, Dogecoin?”
CFTC FILING: COINBASE FILES TO LIST FUTURES FOR $DOGE $LTC $BCH
Is this a hint for which alts are getting ETFs next?!
Spoke with @zhusu a few weeks ago about this exact scenario, and the unique trading opportunities that come with a $DOGE ETF. pic.twitter.com/tlyFgDvUhR
— Luke Martin (@VentureCoinist) March 21, 2024
Adding to the momentum, Alan Austin, Managing Director at the Litecoin Foundation, expressed enthusiasm about the prospects of a spot Litecoin ETF, stating, “I’ll say it again, love or hate ETFs, the first company to launch a Litecoin ETF is going to crush it!”
LTC Price Is Lagging Behind
Despite the current buzz, Litecoin’s price analysis indicates that it is still down by 77% from it’s all-time high in May 2021, signaling a bearish trend in comparison to other cryptocurrencies that have already surpassed their 2021 peaks. Nevertheless, a recent break above the 200-week EMA has ignited a glimmer of bullish momentum.
Overcoming the red resistance zone between 2 and 6 could be critical for Litecoin to reach new heights, with the 8 mark (0.236 Fibonacci retracement level) as a potential near-term target.
0G Raises $35 Million to Fuel AI Integration in Web3 Ecosystem With Modular Innovation
On March 26, 2024, the Web3 modular infrastructure startup 0G secured million in funding from over 40 strategic backers. Representing “zero gravity,” 0G is dedicated to enhancing infrastructure scalability through modular design. Its primary focus is on addressing the essential challenges necessary for the deployment of onchain artificial intelligence (AI) solutions within the Web3 […]
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