Meme coins are back in the spotlight again, and Bonk (BONK) is leading the charge. The Solana-based token has rallied 20% in the past week and is now trading around the .0000257 level. Alongside BONK, presale project Sealana (SEAL) is also seeing growth – nearing the million milestone in its much-discussed presale phase. Bonk […]
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Value Locked in Defi Nears $100B Range Again After $11.89B Increase in 35 Days
Over the past 35 days, the total value locked in decentralized finance (defi) protocols has expanded by .89 billion, recovering from a low of just over billion on April 13. Although it has not yet reached the 0 billion mark, the value locked in defi is approaching that milestone after hovering just below it. […]
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US Bitcoin ETFs See 4 Days of Inflows, Blackrock’s IBIT Nears GBTC’s Reserve Levels
On Thursday, U.S. spot bitcoin exchange-traded funds (ETFs) marked their fourth day of inflows, accumulating 7.3 million. Grayscale’s Bitcoin Trust (GBTC) also experienced its fourth day of inflows, gaining .6 million during the trading sessions. Spread Between IBIT and GBTC Bitcoin Reserves Grows Thinner U.S. spot bitcoin ETFs continued their streak this week with four […]
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Most Important Bitcoin Indicator Nears Bullish Flip: $150,000 Soon?
In a recent analysis, James Coutts, Chief Crypto Analyst at Realvision, signaled a potential bullish turn in Bitcoin’s near future, attributing the forecasted change to shifts in global liquidity measures, specifically the Global Money Supply (M2) index which is widely seen as most important price catalyst. Coutts detailed this anticipation in a thread on X, where he examined the relationship between major economic indicators and Bitcoin’s price cycles.
Global Money Supply And Its Correlation With Bitcoin
Coutts’ analysis begins with the M2 money aggregates, which consist of cash, checking deposits, and easily convertible near money. He tracks these aggregates across the 12 largest economies, all adjusted to USD. This measure, he suggests, is central to understanding liquidity flows within the global fiat, credit-based financial system. According to Coutts, “The money stock often moves in one direction, with significant drops like those seen in 2022 being rare and typically brief.”
Currently, the Global M2 is neutral, but Coutts predicts imminent changes: “There is a sea of red across my macro & liquidity dashboard, but signs are emerging that this is about to change. Global M2 holds the key for the next leg of the cycle due to its high correlation with $BTC bull cycles.”
The rate of change in M2 money supply is more critical than its nominal value. Coutts noted, “The chart confirms what our MSI performance table suggests: Bitcoin usually moves with shifts in M2 momentum.” He explained that despite the global money supply MSI indicator being in an uptrend, the momentum remains sluggish, maintaining a Neutral MSI. For a shift to a bullish MSI signal, an increase in momentum is necessary, requiring a combination of dollar depreciation, credit expansion, and increased government debt issuance.
Coutts pointed out the crucial role of credit conditions, as evidenced by corporate bond spreads (BBB/Baa) compared to the US 10-year Treasury yield, which have historically aligned with significant inflections in Bitcoin’s cycle. “These spreads are currently narrowing, indicating that corporations are managing to issue and roll over debt despite the high interest rates resulting from the record hikes in 2022 and 2023,” he observed.
Using the chameleon trend indicator on the corporate spread index, Coutts suggests a strategy: “Long Bitcoin when the index shows a bearish trend (red) and stay alert for potential trend reversals (turning green).”
The Role Of the Dollar And Future Outlook
A key to this cycle, according to Coutts, is the behavior of the DXY (Dollar Index), which measures the US dollar against a basket of foreign currencies. “The Dollar is range-bound. A break below 101 would be rocket fuel for Bitcoin,” he asserted, emphasizing that market sentiment on liquidity is often reflected in real-time by DXY movements.
Coutts also touched upon the US debt situation, suggesting that without a conservative shift in Congress advocating for fiscal responsibility, more deficit spending is likely on the horizon, which could further influence liquidity conditions favorable to Bitcoin.
Coutts concluded with a note of caution mixed with optimism: “While my framework needs 2/3 MSI indicators to turn Bullish for macro headwinds to turn into tailwinds, Bitcoin price action will probably sniff out this inflection in the macro before most indicators react.”
His analysis suggests that if Bitcoin breaks above its all-time highs, it would be unwise to bet against it, anticipating potential climbs towards 0,000 in this cycle. “The DXY holds the key to the Bitcoin cycle as it prices in mkt expectations on liquidity in real time. And liquidity is coming. Watch the 101/102 level on DXY If that breaks, then we should see ~0k btc this cycle,” he remarked.
At press time, BTC traded at ,090.
GMEWIFHAT and AMC Solana Meme Coins Explode as Sealana Nears $1M
The meme coin craze is back on the Solana blockchain. Tokens paying homage to meme stock legends GameStop and AMC have been soaring, while the presale for Sealana (SEAL) just passed the 0,000 funding milestone. GMEWIFHAT & AMC Meme Coins Rocket on Solana Meme stock madness has fully spilled over to Solana. One token that […]
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Persistent Discount Plagues Grayscale’s Ethereum Trust as ETF Decision Nears
As May approaches its end, a significant number of market watchers are keen to find out whether the U.S. Securities and Exchange Commission (SEC) will approve a spot ethereum exchange-traded fund (ETF). Although Grayscale retracted its plan to convert its Ethereum Trust into a publicly traded ETF, the fund’s discount to net asset value (NAV) […]
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Bitcoin’s 61-Day Streak Above $60K Threatened, $271M in Liquidations as BTC Nears Critical Threshold
Bitcoin prices experienced a notable decline on Tuesday, dropping more than 2% against the U.S. dollar in the last 24 hours, following a 7.8% decrease over the previous week. Global trading volumes on spot crypto exchanges have remained subdued, and in the past day, derivatives exchanges saw 1 million in both short and long positions […]
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Uniswap On Arbitrum Nears $150 Billion In Swap Volume
Uniswap, one of the world’s largest decentralized exchanges (DEX) by total value locked (TVL), is approaching a major milestone on Arbitrum, the largest layer-2 by TVL on Ethereum.
According to data from Dune Analytics shared by Uniswap Labs, Uniswap on Arbitrum is on the cusp of surpassing a staggering 0 billion in total swap volume.
Riding The DeFi Boom
As of April 25, Uniswap had facilitated over 6 billion in cumulative swap volume on Arbitrum alone. The number has gradually increased over the past three years since June 2021, when it was deployed on Arbitrum, looking at on-chain data.
By August 2021, Uniswap was processing less than ,000 in swap volume. After that, they steadily picked up momentum throughout the crypto bear run of 2022. Notably, a sharp uptick from October 2023 coincided with the start of the crypto boom that eventually propelled Ethereum to over ,000 in Q1 2024.
The rising swap volume on Arbitrum reflects the increasing preference for Decentralized Finance (DeFi) solutions. As Uniswap on Arbitrum nears 0 billion, more users are increasingly turning to the popular DEX to trade, all without giving up control of their assets.
The surging popularity of Uniswap on Arbitrum can be partly attributed to significantly lower transaction fees compared to the Ethereum mainnet.
Through Arbitrum, the optimistic roll-up solution, swappers enjoy low transaction fees. They can also trade from a scalable environment secured by the Ethereum mainnet.
Ethereum developers recently implemented Dencun, introducing a new transaction format called “blobs.” Because of this, layer-2 solutions can store large chunks of data off-chain, reducing the mainnet bloat. Subsequently, fees have been lowered, drastically enhancing the user experience for Arbitrum and other layer-2 users like Base and Optimism.
Uniswap V4 And United States Wells Notice
Following Dencun’s activation, Uniswap Labs plans to deploy v4. This iteration introduces features like Hooks that developers say will make the DEX even more efficient and flexible. The launch is set for this year.
Though Uniswap V4 is huge for the DEX and DeFi as a whole, the United States Securities and Exchange Commission (SEC) ‘s decision to issue a Wells notice is a setback.
The regulator intends to sue. However, the founder, Hayden Adams, responded in a post on X that they are ready to fight.
XRP Price Ready For 70% Breakout As Long-Term Consolidation Nears Its End
The XRP price has seen some level of recovery over the last two days that has seen positive sentiment returning to the latocin once again. This has carried forward with the expectation that the price will continue to surge. One crypto analyst in particular, who goes by RLinda, has revealed why the cryptocurrency is set to surge 70%.
XRP Price Completes A False Breakdown
In the analysis that was posted on the TradingView website, crypto analyst RLinda outlined a number of reasons why the XRP price may be getting ready for a surge. One of these reasons is the fact that the altcoin has completed a false breakdown.
This is referring to the price crash that sent the price falling from .7 to .42, recording an almost 50% crash. However, the crypto analyst believes that this crash was bullish for the coin as it was basically a false breakdown, followed by a breakout.
In scenarios such as this, the XRP price could be headed for a breakout similar to the breakdown and eventual recovery between August and November 2023. Such a case could see the price rise 50% with a higher end of 70%.
Additionally, the XRP price has also been in long term consolidation, another factor that could contribute to this breakout. “XRPUSDT is forming a technical false break of support, in the long term consolidation above the zone should be formed with the purpose of continuation of growth, the potential of which can be opened by 50-70%,” the analyst stated.
The State Of XRP
XRP has already seen investors returning once it was clear the worst of the crash. Crypto whales, in particular, have been making their bets, moving 600 million XRP tokens. As NewsBTC reported, whales holding between 10 million and 100 million XRP increased their holdings by 30 million in just one week. But even more interesting is the fact that they have moved up to 600 million tokens in the space of two weeks.
These moves come ahead of crypto analysts prediction major upside for the cryptocurrency. One of those is crypto analyst Egrag Crypto who predicted that the XRP price is ready to spike as high as .4. This would mean an over 100% increase in price.
However, XRP has not exactly been the market favorite in recent times. Its daily trading volume has seen a notable decline, with Coinmarketcap reporting a 20% drop to .33 billion in the last day. Nevertheless, the altcoin remains the 7th-largest in the space, with a market cap of .3 billion.
XRP Wallets Holding At Least 1 Million Coins Nears All-Time High As Sentiment Improves
With the crypto market on the rise once again, XRP has seen positive headwinds and this has triggered an improvement in sentiment among investors. This positive recovery has seen more crypto investors move to acquire the altcoin, pushing a very important holder cohort toward new all-time high levels.
Wallets Holding More Than 1 Million XRP Nears ATH
Over the last year, there has been a lot of selling among XRP investors as the price continued to struggle. This poor performance continued despite Ripple securing multiple partial victories against the United States Securities and Exchange Commission (SEC), prompting investors to jump ship.
One XRP holder cohort that witnessed a lot of selling is the addresses holding at least 1 million XRP tokens. At current prices, it would mean that these wallets are holding at least 0,000 on the lower end of the cohort, making this the cohort that includes the dolphins and whales.
The number of addresses holding at least 1 million tokens had hit its all-time high back in June 2023. But with the price falling, these large holders began to sell, and at one point, the number of wallets sat around 50 wallets below its all-time high of 2,014.
However, with the crypto market moving toward another bull market, expectations are that the price of XRP will follow the rest of the market, prompting large investors to return. Data from Santiment, an on-chain data aggregation platform, shows that over the course of 2024, the number of wallets holding 1 million tokens or more rose steadily and by April, this figure is now sitting at 2,013, one wallet away from reaching its previous all-time high, and two wallets away from setting a new record.
Why Are Large Investors Returning?
One reason why large investors are returning to XRP could be that the indicators are finally turning bullish for the altcoin. There was also an opportunity for these investors to buy the tokens for cheap when the market crashed and altcoins like XRP suffered almost 40% losses.
Related Reading: 3 Major Metrics To Watch Out For That Can Impact Ethereum Prices
Popular crypto analyst TonyTheBull took to X (formerly Twitter) to reveal the significance of this price crash. According to the analyst, it was the final capitulation shakeout for the altcoin. Comparing it to a similar shakeout in 2017 shows that after this, XRP could go on a massive rally.
No, this was the final capitulation shakeout in $XRP https://t.co/Z0uQ2GhS7v pic.twitter.com/qfWC6H8DNv
— Tony “The Bull” Severino, CMT (@tonythebullBTC) April 23, 2024
The large investors could be expecting this rally as well, hence, why they have been buying up large amounts of coins. If the 2017 rally is anything to go by, then the XRP price could quickly barrel through , printing significant returns for investors.