This week, the price of one ounce of silver has seen a significant rise. Over the past five days, silver has increased by more than 11% against the U.S. dollar, surpassing gold’s 2.3% five-day gain. Silver reached per troy ounce for the first time since February 2013. Silver Hits per Ounce, Outperforms Gold […]
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Lackluster Performance for Hong Kong Bitcoin ETFs Since Launch
Since the Hong Kong spot bitcoin exchange-traded funds (ETFs) began trading, their performance has been underwhelming, with three ETFs accumulating around 8 million in net assets. Inconsistent Inflows and Outflows Mark Hong Kong Bitcoin ETFs’ First Weeks On Thursday, the spot bitcoin ETFs in Hong Kong experienced net negative outflows of approximately 104.79 BTC, valued […]
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By The Numbers: Over 1 Million New Crypto Tokens Launched Since April
The crypto community created over one million tokens across all chains in the past month, with Solana and Ethereum leading the crypto token frenzy. According to Coinbase’s director, these numbers doubled the tokens created in Ethereum between 2015 and 2023.
Over 22,000 New Crypto Tokens Created Daily
Coinbase’s director Connor Grogan shared on X that 1 million tokens have been launched since April 1, 2024. The tokens created in the Ethereum Network account for 36% of the total number, with 372,642 tokens launched in the past month and a half.
According to Dune Analytics, 327,553 tokens, around 88% of the total, were launched on the Layer-2 blockchain Base. The surge was seemingly propelled by the memecoin frenzy that has taken over this cycle.
Additionally, Ethereum and Arbitrum saw a significantly smaller number of new crypto tokens launched, with 21,474 and 19,284 new tokens, respectively.
However, Solana took the crown after seeing the creation of 643,227 tokens since April 1. Out of those, 464,563 are memecoins, per Dune Analytics. Moreover, Grogan highlighted that Solana registers an average of 20,000 new tokens daily.
As reported by Solana Floor, on Monday, the blockchain reached a new all-time high (ATH) in newly created tokens, with 23,000. This could be attributed to the market pump propelled by the return of renowned crypto trader Roaring Kitty. Since his comeback to social media, several new memecoins have been created, and the top ones have surged.
BREAKING: Over 23K New SPL Tokens created on @solana in the last 24 hours, a new all-time high. pic.twitter.com/cn4ARy0KwC
— SolanaFloor | Powered by Step Finance (@SolanaFloor) May 14, 2024
The crypto community reacted to the astonishing numbers, with many expressing concerns. One user pointed out that most of these tokens are “just spam to farm sniper bots.” He alleged that some people launch tokens “just to rug pull bots that auto-bought.”
Another user playfully added, “The moral of the story is don’t buy projects created after February 2024.” This year, investors have seen many project launches promising big returns. Instead, investors have suffered rug-pull and other scams.
Overabundance Of Altcoins?
At the end of April, DeFi researcher and Web3 investor Thor Hartvigsen pointed out that while only four months into the year, the market had seen a massive increase in the supply of altcoins.
As a result, this increase accounted for .6 billion in additional liquid supply injected into the market. Hartvigsen added that crypto projects will unlock .5 billion over the years, with many tokens launched in 2023 “also unlocking this year with many cliffs ending.”
Moreover, the market observer highlighted that the average float in market capitalization and fully diluted valuation (FDV) for the tokens launched in Q1 2024 was just 13.6%.
To him, this is only “the tip of the iceberg,” as the crypto market will continue to be flooded with new supplies and tokens. He offered a list of categories he believes will see the greatest number of new tokes this year.
His list included Modular Infrastructure protocols, Liquid Restaking Tokens (LRTs), Bridges and Cross-Chain Messaging solutions, and Perpetual Decentralized Exchanges (DEXes).
On Tuesday, DeFi researcher Ignas shared a list based on the recently launched low-float tokens shared by Hartvigsen. According to him, these tokens are down by 63.6% on average.
According to the researcher, tokens like JUP, ONDO, and STRK have registered a 49.2%, 30.5%, and 74.2% decrease from ATH prices.
Bitcoin: This Indicator Flashes Green For The First Time Since January 2024
According to the candlestick arrangement in the daily chart, Bitcoin is moving inside a range. BTC is also down roughly 20% from the all-time high at spot rates. Though the series of lower lows posted in the past few trading days is bearish, one analyst is upbeat, expecting an encouraging recovery in the sessions ahead.
This Indicator Flashes Green: Time For Bitcoin To Rally?
Taking to X, the analyst notes that the 50-day Williams %R oscillator is turning from oversold territory, signaling that the bear run could end. Historically, the indicator has accurately signaled buying opportunities whenever it turns from oversold territory.
The Williams %R oscillator is a crucial technical indicator chartists use to assess momentum and identify potential oversold or overbought conditions. When the indicator falls below -80, it suggests the asset being analyzed is oversold, potentially indicating a buying opportunity. Conversely, when it rises above +20, it may mean that the asset is overbought, prompting the trader to adjust their strategy accordingly.
Since the beginning of 2023, the analyst observes that the 50-day Williams %R oscillator mapping Bitcoin prices has dipped into oversold territory on four occasions. Notably, each time the oscillator reversed from this zone, BTC prices rose in tandem.
Now, with the Williams %R oscillator returning from the oversold territory roughly ten days ago, the analyst is optimistic. It returned from the oversold territory in January 2024, preceding the bull run in Q1 2024.
If past performance is anything to go by, BTC is likely ready for a leg up. Considering the extended sideways movement and lower lows since prices peaked in mid-March 2024, this development will be a massive boost for the coin.
Does BTC Stand A Chance After Extended Consolidation?
The asset has become more dynamic since the approval of spot Bitcoin exchange-traded funds (ETFs). Broader market conditions, such as regulatory changes, macroeconomic trends, and investor sentiment increasingly influence it.
Subsequently, this dynamism can impact the accuracy of technical indicators like the Williams % R oscillator. This tool lags and doesn’t factor in events in real time. Therefore, while the oscillator has been reliable in the past, it may not necessarily accurately predict the future cycle.
For this reason, the coming days and weeks will be crucial for Bitcoin. If the price breaks out of its current range upwards, it could lend credence to the bullish interpretation.
Currently, BTC is in a narrow range. According to the daily chart, support is at ,500, and resistance is at ,000.
Bitcoin Relative Open Interest Lowest Since Feb, Analyst Says “Hard To Be Bearish”
Data shows the Bitcoin Open Interest as a percentage of its market cap has been at lows recently, a sign the derivatives side has been healthy.
Bitcoin Open Interest Is Now Less Than 2% Of The Market Cap
As explained by analyst James Van Straten in a new post on X, the derivatives side of the market has looked “extremely healthy” while BTC’s latest recovery has occurred.
The metric of interest here is the “Open Interest,” which keeps track of the total amount of derivatives-based Bitcoin positions that are currently open on all centralized exchanges.
When the value of this indicator goes up, it means that the investors are opening up more positions on the market right now. Generally, the total leverage in the market rises when such a trend takes place, so the price of the asset could end up turning more volatile following it.
On the other hand, a decline in the metric suggests users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. The cryptocurrency may behave in a more stable manner following such a decrease.
Now, here here is a chart that shows the trend in the Bitcoin Open Interest over the past few years:
In the graph, the Open Interest is displayed as a percentage of the asset’s market cap (that is, the total valuation of the entire BTC circulating supply at the current spot price).
It would appear that the indicator has registered a drawdown recently and has slipped under the 2% mark. This would suggest that the positions on the derivatives market now make up for less than 2% of the market cap.
From the chart, it’s visible that the metric had earlier spiked to a high as the coin’s rally towards a new all-time high had taken place. Interestingly, the market cap was rapidly going up in this rally, but this ratio was still trending up, implying that speculation had been growing at a rate faster than the price.
This may have been a sign that the derivatives side was starting to become overheated. In the drawdown that had followed the price top, the investors had started getting liquidated, leading to the ratio registering a decline.
The most recent price drop had helped reset the market further, bringing the ratio down to levels not seen since February. Bitcoin has been mounting a recovery effort in the past few days, but so far, the derivatives market has remained cool. “Hard to be bearish here,” says the analyst.
It now remains to be seen if the health of the market would continue to look optimistic in the coming days, thus potentially allowing for the recovery to go a step further.
BTC Price
Bitcoin had returned back above ,500 earlier, but the asset has since seen a small pullback as it’s now down to ,100.
Friend.tech’s FRIEND Token Airdrop Faces Steep Decline Since Market Debut
Friend.tech, the decentralized social media application on the Base network, recently launched its native token through an airdrop. Since trading commenced, the token has plummeted, dropping anywhere from 50% to 90% of its initial value across various decentralized exchange (dex) platforms, as reported by several different price aggregation websites. FRIEND Starts Strong but Value Plummets […]
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Stablecoin Market Hits $160 Billion, Reaching Heights Not Seen Since Terra’s Crash
This week, the value of the fiat-pegged cryptocurrency economy has climbed to 0 billion, a peak last observed in May 2022, shortly before Terra’s UST detached from its intended parity on May 9, 2022. In the past month, various stablecoins have experienced an increase in supply, with Ethena’s USDE at the forefront, registering a […]
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Bitcoin Accumulation: You Won’t Believe How Much BTC Holders Have Bought Since The Crash
Bitcoin holders have again reaffirmed their faith in the flagship crypto despite its recent price declines. This follows recent data showing that Bitcoin accumulation addresses recorded a new all-time high (ATH) amidst the current market downward trend.
Accumulation Addresses Record New All-Time High Of Bitcoin Inflows
Data from the on-chain analytics platform CryptoQuant shows that over 27,700 BTC was transferred into accumulation addresses between April 16 and 17. This is a new all-time high (ATH) for these addresses in terms of their daily Bitcoin inflows.
Before now, the highest amount of BTC sent to these addresses in a day stood at 25,500, recorded on March 23 earlier this year. Interestingly, the March 23 record came just about a month after Bitcoin inflows into accumulation addresses hit an all-time high (ATH) of 25,300 BTC on February 21.
Accumulation addresses are wallets with no outgoing transactions and have a balance of over 10 BTC. Accounts belonging to centralized exchanges and Bitcoin Miners are excluded from this category. Meanwhile, these addresses must have received two incoming transactions, with the most recent occurring within the last seven years.
These addresses can be considered the most bullish on Bitcoin, and the growing accumulation trend from these wallets shows how much faith these long-term holders have in the flagship crypto. Furthermore, they are also believed to be positioning themselves ahead of the bull run, as BTC may never drop to these price levels once it comes into full force.
Meanwhile, CryptoQuant’s CEO, Ki Young Ju, also highlighted the significance of this development, noting that on-chain accumulation has remained “very active” even as the demand for Spot Bitcoin ETFs has stagnated for four weeks. This suggests that Bitcoin bulls could help shore up the demand gap left open by these ETFs.
BTC Price Shows Strength
Bitcoin dropped below the ,000 support level following reports about Israel’s retaliatory attack on Iran. However, the flagship crypto showed strength as it quickly rebounded above the ,000 price mark. This is significant considering how much Bitcoin and the broader crypto market declined rapidly following Iran’s attack against Israel on April 13.
Furthermore, the quick price recovery also suggests that Bitcoin has established strong support around the ,000 price range and could be set for a parabolic move to the upside once this period of consolidation is over. Crypto analyst Crypto Rover also recently commented on Bitcoin’s future trajectory, stating that the crypto token will come out with a “banger” soon enough.
At the time of writing, Bitcoin is trading at around ,000, up in the last 24 hours according to data from CoinMarketCap.
Increased Bitcoin ETF Adoption Propels BTC Dominance To Highest Level Since 2021
Bitcoin’s dominance within the cryptocurrency market has reached a three-year high, signaling strong demand for US spot Bitcoin ETF holding the largest digital asset and a challenging period for smaller tokens.
Bitcoin accounted for nearly 55% of the .4 trillion digital asset market at the end of last week, a level not seen since April 2021. On Saturday, in particular, BTC’s dominance jumped to 57% as it briefly touched the ,000 mark.
The next largest tokens by market share include Ethereum (ETH), Tether’s USDT stablecoin, Binance exchange’s native token Binance Coin (BNB), and Solana (SOL).
BTC’s Rise Fueled By Successful US Bitcoin ETF Launches
According to Bloomberg, the recent success of the recently approved US spot Bitcoin ETFs from prominent issuers such as BlackRock and Fidelity Investments has played a significant role in Bitcoin’s rise.
These ETFs have garnered approximately billion in assets, making their debut one of the most successful in fund category history.
The inflows into these ETFs drove BTC to its current all-time high (ATH) of ,798 in mid-March, a clear resistance level for the largest cryptocurrency on the market, as evidenced by its inability to consolidate above the ,000 level following this achievement.
Although BTC is down about 6% since then, smaller digital assets such as Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) have seen more significant declines of nearly 30% over the past month.
This drop coincided with reduced expectations for looser US monetary policy settings, often fueling speculative gains.
Hong Kong-Listed ETFs Boosts Bitcoin And Ethereum
Institutional investors’ allocations to the US Bitcoin ETF have greatly influenced Bitcoin’s performance relative to the rest of the market. Benjamin Celermajer, director of digital-asset investment at Magnet Capital, noted that strong institutional demand is a key driver.
On Monday, Bitcoin and Ethereum, the second-largest cryptocurrency, saw notable price jumps following indications that asset managers are preparing to launch Hong Kong-listed ETFs on both tokens. Bitcoin rose 4.3% to ,575, while ETH jumped 6.2% to ,260.
These rallies had a positive impact on the broader crypto market, lifting other notable tokens such as Polygon (MATIC), Cardano (ADA), the dog-themed meme coin Dogecoin (DOGE), and Solana, which is now the top 5 cryptocurrency market winner, up over 8% on Monday.
Interestingly, the Bloomberg Galaxy Crypto Index, which measures the performance of the largest digital assets traded in US dollars, has more than tripled since the beginning of last year, marking a significant rebound from the bear market experienced in 2022.
Lastly, investors and traders eagerly anticipate the upcoming Bitcoin Halving, an event that will cut the new supply of the token in half, expected around April 20th.
Previous Halving events have acted as a tailwind for prices, although there are growing doubts about whether history will repeat itself given BTC’s recent all-time high achievement.
BTC has successfully maintained its position above the ,000 threshold and has consolidated in this range. However, it is important to note that losses have accumulated over longer time frames.
Over the past fourteen and thirty days of trading, the cryptocurrency has experienced significant declines of over 21% and 24% respectively.
Featured image from Shutterstock, chart from TradingView.com
Ethena’s ENA Token Soars 80% Since Launch, Now a Top 100 Crypto Asset Amid Defi Buzz
Since its launch on April 2, the Ethena governance token ENA has experienced an 80% climb in value against the U.S. dollar, ascending from an all-time low of .532 per token. Currently, it ranks among the top 100 coins by market capitalization, boasting a total valuation of .36 billion at the time of reporting. Rapid […]
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