The Federal Reserve Board’s annual stress test results reveal that large banks are expected to face nearly 5 billion in projected losses during a severe recession scenario. These losses are significantly higher than last year due to increased risks in bank balance sheets and higher expenses. The aggregate common equity tier 1 (CET1) capital ratio […]
Bitcoin News
Cardano Bucks Bears As Large Transactions Climb To $10 Billion, Can This Drive Price To $1?
The Cardano decline in the past week seems to be coming to an end, as evidenced by on-chain data. While the overall crypto market has been in a slump, Cardano is starting to buck the trend. ADA, Cardano’s native token, has seen a huge surge in on-chain transactions from large holders, indicating sporadic activity and interest in the blockchain. Notably, transaction data shows that Cardano has registered over billion worth of large transactions in the past 24 hours, representing a 26% increase within the time frame. Furthermore, this puts the worth of ADA large transactions at .54 billion in the past seven days.
Cardano Large Transactions Climb To Billion in 24 Hours
Cardano, like most altcoins, has been going through a turbulent price action since the beginning of the month. This decline was further exacerbated by Bitcoin’s drop below ,000 in the past 48 hours. However, Cardano now seems to be building bullish momentum, particularly from large holders. In the past 24 hours alone, 27.17 billion ADA, amounting to .43 billion, was traded between large holders, according to ITB.
Interestingly, the number of Cardano large transactions jumped to 851 in the past 24 hours, which is a 107% increase from 410 of such transactions recorded on June 16th.
IntoTheBlock’s large transaction metric measures the number of transactions larger than 0,000 on the blockchain. It’s worth noting that while activity from this cohort has grown in the last 24 hours, it remains considerably below the transaction peak of 95,730 set on May 29.
Can The Activity Push ADA To ?
With activity from large holders starting to increase, a natural question is whether this can translate to significant price appreciation for ADA. Many analysts think ADA still has plenty of room to run if the crypto market recovers and turns bullish again. Cardano, for one, now has its 30-day MVRV ratio at -12.6%, which is a very bullish indicator for a bounce in the short term.
At the time of writing, ADA is trading at .3915 and is up by a meager 0.45% in the past 24 hours. Interestingly, recent price action shows ADA bouncing off a 7-month low of .3685 on June 18.
The journey to seems tough at the moment, and there are many price resistance levels to overcome. The first step is to push above the .400 resistance level. Failure to push above could lead to the start of another decline to .37. However, ADA reached an all-time high of .10 in September 2021, so reclaiming is not yet out of the game.
Grayscale Removes Cardano From Its Crypto Large Cap Fund
Grayscale Investments has removed cardano from its Digital Large Cap Fund. The crypto fund now holds bitcoin, ethereum, solana, XRP, and avalanche. The crypto asset manager also adjusted the holdings of its Smart Contract Platform Ex-Ethereum Fund. Cardano Removed From Grayscale’s Large Cap Fund Grayscale Investments, the world’s largest crypto asset manager, announced Thursday that […]
Bitcoin News
Cardano Price Tumbles As Grayscale Sells All ADA From Large Cap Fund
The Cardano (ADA) price is experiencing a notable decrease, dropping by 12% since the start of the week, with a 2.6% dip recorded today alone. Despite this, with a market capitalization of .27 billion, ADA maintains its position as the 9th largest cryptocurrency.
This recent downturn comes amidst a broader crypto market experiencing mostly sideways to downward movement, with ADA recording more significant losses compared to its peers like ETH, which is down by 7.4%, BNB by 6.4%, Solana by 6.3%, and XRP by 6.1%.
Grayscale Dumps Cardano From GDLC
A pivotal factor behind Cardano’s sharper decline could be linked to the recent liquidation of all ADA holdings by the Grayscale Digital Large Cap Fund (GDLC). The fund, which currently boasts assets under management (AUM) worth 9 million, had Cardano constituting 1.62% of its portfolio on January 4, which amounts to approximately .4 million.
On Thursday, Grayscale Investments announced the decision as part of its first quarter 2024 review. According to the official press release, the adjustment to GDLC’s portfolio entailed the selling of Cardano and reallocating the cash proceeds to existing Fund Components, proportional to their weightings.
This rebalancing led to the removal of ADA from GDLC’s portfolio. The final composition of the fund as of April 3, 2024, includes Bitcoin (70.96%), Ethereum (21.84%), Solana (4.52%), XRP (1.73%) and Avalanche (0.95%).
The press release detailed, “In accordance with the CoinDesk Large Cap Select Index methodology, Grayscale has adjusted GDLC’s portfolio by selling Cardano (ADA), and using the cash proceeds to purchase existing Fund Components in proportion to their respective weightings. As a result of the rebalancing, Cardano (ADA) has been removed from GDLC.”
Grayscale also highlighted the quarterly evaluations of the GDLC, DEFG, and GSCPxE Fund compositions, aimed at updating existing Fund Components or including new ones based on index methodologies provided by the Index Provider. This practice ensures that the funds’ holdings reflect the most current market trends and asset performance.
Notably, the Grayscale Smart Contract Platform Ex-Ethereum Fund still contains Cardano. The cryptocurrency is the second-largest position after Solana (58.41%), with a weighting of 14.56%.
In response to these developments, Charles Hoskinson, the founder of Cardano, offered a terse commentary via X, stating, “Wall Street give; Wall Street take.”
This succinct remark encapsulates the volatile nature of crypto investments and the significant impact that major financial players like Grayscale can have on the market dynamics of digital assets.
Wall Street give; Wall Street take https://t.co/dkyrhHW4WS
— Charles Hoskinson (@IOHK_Charles) April 5, 2024
At press time, ADA was trading at .57. In the short term, the 100-day EMA at .58 is the key resistance that ADA needs to overcome in order to develop new bullish momentum. The 100-day EMA has served as strong support three times since mid-January. After the recent dip below this indicator, ADA is struggling to reclaim it. In the medium term, the bulls need to break above the .68 level.
Polygon (MATIC) Whale Makes Large Deposit To Binance, Bearish Sign?
On-chain data shows a Polygon whale has made a sizeable deposit to the cryptocurrency exchange Binance, a sign that may be bearish for MATIC.
Polygon Whale Has Deposited .7M Worth Of MATIC To Binance
According to data from the cryptocurrency transaction tracker service Whale Alert, a massive MATIC transaction has been spotted on the blockchain during the past day.
The transfer in question involved the movement of 13.1 million MATIC, worth almost .7 million in US Dollars, when the transaction went through on the network. Given the large scale of the transfer, it’s likely that a whale entity was responsible for it.
Whales can be influential beings on the blockchain due to their sheer scale of holdings. As such, their movements can be worth watching, as they may lead to fluctuations in the market or, at the very least, inform us about the sentiment among these humongous entities.
As for what any such transaction may imply for the market, it comes down to the intent behind it. Below are additional details regarding the latest Polygon whale transfer, which may reveal its context.
As is visible above, the sending address involved in this Polygon transaction was an unknown wallet. This means the address was unaffiliated with any known centralized platform like an exchange and, thus, was likely to be an investor’s wallet.
On the other hand, the receiving address was connected to a centralized entity: the cryptocurrency exchange Binance. Moves like this that go from unknown wallets to exchanges are known as exchange inflows.
The whale making an inflow to Binance suggests they wanted to use one of the platform’s services, which can include selling. As such, the transaction may prove to be bearish for Polygon’s price if the whale ends up selling their stack.
MATIC Is Behind Market With Only 1% Surge Today
Whereas the rest of the cryptocurrency market has been racing up in the past day, led by Bitcoin’s strong surge towards ,000, Polygon has lagged as the asset has only been able to see an uplift of 1% in the last 24 hours.
The below chart shows how the coin has performed in the last few days.
However, Polygon’s returns of around 7% over the past week aren’t too far off from Bitcoin’s 9% profits in the same period. Still, the relatively poor performance in the past day may be why the whale has potentially decided to sell their large stack.
Regarding market cap, MATIC is currently the 14th largest coin in the sector, with its closest competitor, Polkadot (DOT), speeding away with its gains of more than 6%.
Ripple Initiates Large XRP Transactions Post Legal Setback
Ripple Labs, a leading cryptocurrency payment firm, has been seen moving millions of XRP tokens following the United States Securities and Exchange Commission’s (SEC) recent victory in a legal dispute.
Ripple Moves Millions Of XRP As Price Holds Steady
According to a recent report, Ripple Labs moved a whopping 120 million XRP tokens valued at about .8 million. The move has caused quite a stir within the XRP community and heightened sell-off anxiety in the face of increased market volatility.
This comes after the payment firm experienced a legal setback in court on Monday. The SEC’s motion to force Ripple to provide its financial statements for XRP was granted by the Southern US District Court of New York.
It was reported by Bithomp that the aforementioned funds were transferred to a Ripple-related wallet that was used for massive transfers. Data from Bithomp revealed that the wallet address rBg2Fu…uJ4vt5x1o91m moved the funds to a separate wallet address rP4X2hTa7…XvPz7XZ63sKxv3. This indicates that the transaction might include the transfer of such large amounts using other wallets or companies under Ripple’s control.
Furthermore, the transfer might just be connected to Ripple’s payment services. As a result, it will allow banks to utilize XRP to send funds across borders almost instantly and for a minimal cost.
It is noteworthy that the address that received the funds has transferred a notable portion of the XRP tokens. However, the address still contains about 90 million XRP valued at approximately million.
Bithomp also reported that the firm was seen moving about 53.75 million XRP tokens valued at about .5 million. Data from the on-chain platform shows that the wallet address rKveEy…ZsoGMb3PEv transferred the funds to another wallet address rPfSrrKY…R7g1tYzDDJoAys.
The Payment Firm Brings XRP To The US Market
Ripple has announced its plan to transform international payments in the US with XRP and its payment services. According to the firm, they will be introducing “new product updates that will cover the majority of US states.”
These fresh products are going to be powered by its Money Transmitter Licenses (MTLs). Initially, Oliver Segovia, Senior Director and Head of Product Marketing for Payments at Ripple, shared the announcement on Linkedin.
Segovia explained that although Ripple’s global headquarters is located in the US, 90% of its businesses serve organizations outside. Specifically, he acknowledges that for the last three years, the firm has remained somewhat quiet in the US market.
Despite these developments, XRP’s price has still been down by 5.42% in the past week, holding steady at .50. Interestingly, its trading volume has increased by over 25% in the past 24 hours.
Bitcoin Has Large Resistance Wall Ahead: Here’s The Level To Watch
On-chain data suggests Bitcoin has a large wall of resistance ahead of it currently. Here are the exact levels that make up this important range.
A Large Amount Of Bitcoin Supply Was Purchased Between ,700 & ,000
According to data from the market intelligence platform IntoTheBlock, BTC is sitting just below a significant on-chain resistance zone. In on-chain analysis, the strength of any resistance or support level is defined based on the number of coins acquired by the investors there.
To any holder, their cost basis is naturally an important level; thus, they may be more prone to make some moves whenever the cryptocurrency’s spot price retests their profit-loss boundary.
How the investors might react to such a retest can change depending on the direction of the retest. Holders at a loss can sometimes be desperate to exit the market, so if the price retests their cost basis (that is, the retest is happening from below), they might sell to at least be able to get back their investment.
Such selling can provide resistance to the price. Only a few investors making such moves may not be relevant to the broader market. Still, if a significant number of traders acquired a large amount of BTC inside a narrow range, the reaction produced by a retest could be sizeable.
On the other hand, investors who were in profit before the retest may look at dips in their cost basis as an opportunity to accumulate more, thinking that the price would go up again. This buying, when large enough, can support the asset.
Now, here is a chart that shows how the various Bitcoin price ranges look like right now in terms of the amount of BTC that was acquired at them:
As is apparent from the graph, the ,700 to ,000 range hosts the cost basis of 2.68 million addresses, which acquired a total of 1.02 million BTC inside it. The average price of this range is around ,400, which is above the current spot price of the cryptocurrency.
“Uncertainty can cause these holders to sell into their break-even point, increasing resistance in a move up,” explains the analytics firm. If Bitcoin can break through this resistance, though, it may have an easier time exploring higher levels, as it offers less resistance.
The chart shows that below the current spot price is the substantial ,400 to ,700 support range, which has helped cushion Bitcoin’s fall during the recent correction. Thus, even if the resistance zone rejects BTC, this support area may at least help it return for another go.
BTC Price
At the time of writing, Bitcoin is trading around the ,200 level, down 8% in the past week.
Bitcoin Gearing Up For Recovery As Large Whales Stop Moving Old Coins
There may finally be light at the end of the tunnel for the Bitcoin price as selling has begun to subside for the cryptocurrency. So far, it seems that the large holders have been the main driving force behind the price decline, which could explain why the rally has been suppressed for so long. However, as these large investors start to scale back their selling, the Bitcoin price could be looking at another recovery.
Bitcoin Whales Stop Selling Old BTC
According to a report posted by Santiment, the reason for the suppressed Bitcoin price over the last week could be traced back to large Bitcoin holders. These holders who have a massive stash of old coins, which means coins that have not moved in a long time, had begun to move their coins after the price of BTC found its legs due to anticipation around the Spot ETF approvals.
Once these whales began to move these coins, there was a definite drop in the asset’s price that can be linked back to this move. As these whales moved these coins out of their wallets, the age of their BTC holdings went down, suggesting that they were selling these older coins.
On average, the age of their holdings went from around 640 days to around 624 days in the days following the Spot ETF approvals by the SEC. The on-chain tracker suggests that this was a sign that the market was back in the bull market.
However, after around a week of doing this, these whales seem to have come to a point where they are no longer moving coins. “There are mild signs that this continued movement of older coins is finally done for the time being,” Santiment said.
Now, while Santiment interprets this as a sign that the bull cycle may be over, there is also the possibility that these whales have stopped moving their coins in a bid to wait for the price to recover. In this case, selling pressure will recede, allowing Bitcoin the space to regain its footing once more.
BTC Struggles With ,000 Resistance
The Bitcoin price is currently struggling with the resistance mounting at ,000. Since the crash last week, bulls have continued to lag behind as bears have chosen this level to pitch their tents. The sell pressure also seems to be localized at this point, so it has become the next important level to beat.
If Bitcoin is able to surmount the ,000 resistance, it could signal a return of the rally. At this point, ,000 becomes the next major resistance as investors flock back in. However, failure to turn ,000 into support could result in a further decline in the price.
Shiba Inu Bucks Bearish Trend: Large Holder Netflow Rises 1079% To 4.68 Trillion SHIB
Shiba Inu has been going against the bearish trend recently, especially with the increased adoption of the Shibarium Layer 2 network. This time around, it is large holders who are driving the bullish return. Specifically, these large holders have increased their positive net flows by more than 10x.
Shiba Inu Large Holder Netflow Jumps 1079%
According to the on-chain data tracker IntoTheBlock, the Shiba Inu large holder net flow has seen a significant rise. These large wallets saw their net flow ( the total difference between inflows and outflows) rise an outstanding 1079% starting from December 10.
In total, the net flow of these large wallets came out to a whopping 4.68 trillion SHIB. Now, this is important when placed in comparison to the numbers from the previous days which the tracker shows to be just under the 287 billion SHIB mark.
A logical explanation for this massive uptick in net flows is that these whales are looking to take advantage of the low SHIB prices. On December 10, the SHIB price was still trading above .00001, which is when the net flows were under 287 billion.
However, as the SHIB price began to drop, the net flows of these large accounts began to rise. The further the price dropped, the more the whales added to their wallets. This shows a clear intent to accumulate tokens with the belief that the price is poised to bounce back again.
SHIB Investor Sentiment Turning Bullish
The decline in price has understandably eroded investors’ bullishness to a certain degree. But this seems to be short-lived especially as metrics begin to turn toward the upside. The first of these is the SHIB burn rate seeing an uptick in the last day.
Data from Shibburn highlights a 49% increase in the burn rate of the meme coin over the last 24 hours. This comes as a total of 2.88 billion tokens were burned by the community at this time. Usually, this happens as investors expect a turning point in the price.
Additionally, the Shiba Inu Fear & Greed Index has also managed to maintain a neutral level. This suggests that there is still a good level of bullishness left after the price decline. As long as metrics continue to improve, there could be a turnback toward recovery soon.
Bitcoin Bull Rally Is Far From Over According To These Large Whales
Bitcoin has really heated up in the past few weeks, pushing its price above consecutive price resistances to reach new yearly highs. Bitcoin recently pushed past ,000, registering gains of 15% in a 7-day timeframe.
However, while the price gain can be partly attributed to hype around the spot Bitcoin ETFs, on-chain data shows increased activity among many big holders. According to the on-chain analytics platform Santiment, the recent surge in the price of BTC has been connected with an increase in the number of wallets holding more than 100 BTC.
Large Bitcoin Wallets Increase Purchases
An X post by Santiment has revealed the amount of wallets holding 100 BTC or more has been on the rise for four weeks. Bitcoin went through unprecedented gains in October, and whales and large holders holding between 100 and 1,000 BTC increased by 16 wallets. As a result, BTC continued on its price climb, pushing ,000, the first of many to come in the following weeks.
However, Santiment data shows that the number of large wallets saw a big drop-off on November 9, correlating with a brief period of profit-taking which saw Bitcoin drop from ,000 to ,500 by November 15.
Things started to change by mid-November, indicating that the bull rally wasn’t slowing down. The number of whale addresses holding 100 BTC or more started to rise around this time period, and 48 of these whale wallets have returned in the past four weeks, indicating these large players have been busy stocking up on BTC during the rally. According to Santiment data, there are now around 16,000 of these wallets.
#Bitcoin‘s climb has continued, reaching K just 2 hours ago. The amount of existing 100+ $BTC wallets have correlated tightly with this price climb. Since a big drop-off on November 9th, 48 of these whale wallets have returned in the past 4 weeks. https://t.co/4lNBvn1HB3 pic.twitter.com/jJYVsPSbfk
— Santiment (@santimentfeed) December 5, 2023
More BTC Gains In December?
December has historically been a mixed month of performance for Bitcoin. However, the last time the crypto registered price gains in October and November, it would go on to spike another 46.92% in December. A repeat could see Bitcoin reach above ,000 before the end of the year.
The recent Bitcoin price rally is somehow different from past rallies, as potential catalysts for a price surge like the next halving and the launch of spot Bitcoin ETFs in the US are still yet to happen. Santiment’s on-chain metric regarding whale wallets reiterates the position of many crypto analysts predicting that the recent price surge is just the start of an extended bull run that will continue through 2024.
Bitcoin is currently trading at ,767 after briefly touching over ,000 for a few hours. According to crypto analyst Ali Martinez, the TD Sequential indicator indicates a possible price pullback for BTC to the ,000 support zone.
A #Bitcoin price correction is coming… The question is when?
Well, the TD Sequential indicator suggests that a potential $BTC price pullback could begin within the next 7 to 48 hours, based on the daily and three-day charts.
pic.twitter.com/UwI1IMq4jo
— Ali (@ali_charts) December 5, 2023