The leading meme token by market value, dogecoin, experienced an 18% increase on Thursday, climbing to .22 per coin for its first ascent to this level since 2021. The ‘Dog Father’ Reigns: Dogecoin Soars 43.3% in 7 Days Against the U.S. Dollar The proclaimed ‘Dog Father’ of meme coins, dogecoin (DOGE), has shown a substantial […]
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Blackrock’s Bitcoin ETF Adds 12,623 BTC in Largest Single-Day Purchase Since Launch
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Stablecoins Join The Crypto Bull Run With $140B Market Cap, Highest Since 2022
February has been an overall notable month for cryptocurrencies and the crypto industry. We’ve seen Bitcoin and Ether, the two largest cryptocurrencies by market capitalization, reach milestones not seen since the crypto winter started.
The bull run has seemingly started, as many analysts and investors have announced, and it appears to be following a ‘2-year trend’ where the industry is beginning to reclaim the heights lost in 2022. Consequentially, the rally has propelled the overall market cap of the crypto industry.
Stablecoins Remain Stable, But The Market Is Expanding
According to data from DefiLlama, stablecoins have joined the crypto market in the bullish rally, as its market capitalization hit 0 billion for the first time since December 2022.
Stablecoins are cryptocurrencies designed to have value pegged to another currency, like the US dollar, or a commodity, like gold. They account for a large portion of the daily trading volume of cryptocurrencies, as many consider them more useful for everyday transactions.
The slow and steady recovery of the crypto industry has been maturing the bullish sentiment in the community. Fueled by investors’ trust in crypto assets and important developments in the industry, the crypto market seems to be recovering to achieve a performance like that of the previous crypto bull run.
However, stablecoin’s recent market expansion is not only fueled by the positive sentiment. Tether (USDT) sits as the third largest cryptocurrency by market capitalization, with over billion, and it has continued to extend its reach in the last few years.
Just this month, USDT’s market cap increased by billion; in the last year, it has risen by over billion. USDT is also ranked as the first cryptocurrency by trading volume in the previous 24 hours, according to data from CoinMarketCap.
Circle’s USDC, ranked fifth by daily trading volume and seventh by market cap, has also seen impressive growth, with its billion market cap increase showing a recovery this month.
The stablecoin’s market capitalization saw a 1-year slump after dropping from billion in March last year. However, the relisting of its trading pairs on Binance and the recent expansion to international markets has fueled USDC’s ‘resurgence,’ as Coinbase recently called it.
Crypto Market Cap Hits T
Today, the total crypto market cap hit trillion as Bitcoin’s price spiked to ,000, increasing 32.2% monthly and 101.3% in the past year. This milestone has not been reached since April 2022, when the total crypto market cap was at .1 trillion.
However, Bitcoin’s parabolic surge is not the only reason behind this achievement, as the altcoin market cap, which includes all cryptocurrencies except for BTC, has grown 29.35% in 30 days.
Accordingly, the market capitalization for altcoins hit 5 billion, representing a 111.6% surge last year. Similarly, this level has not been seen since April of 2022.
The altcoin market has seen green throughout February as interest in cryptocurrencies soared massively, led by the ETFs frenzy that started building at the end of last year and exploded in January.
Bitcoin Fear & Greed Index Reaches Highest Level Since 2021, What To Expect Next
The Bitcoin Fear & Greed Index has risen to its highest level in almost three years, hitting Extreme Greed at rocket speed. Using past performance and indicators, it is possible to deduce where the BTC price is headed next after reaching this new milestone.
Bitcoin Fear & Greed Index At New 2-Year High
The Bitcoin Fear & Greed Index is a measure of investor sentiment and how they are looking at the market. This can help to figure out if investors are currently putting money into the market or if they are taking money out of it.
There are five major categories across the Fear & Greed Index, including Extreme Fear, Fear, Neutral, Greed, and Extreme Greed. The index is ranked on a scale of 0-100, with a range of numbers representing a category of investor sentiment.
Extreme Fear is the lowest on this scale, which ranges from 0 to 25. Then, from 26 to 46, we have the Fear. Both of these categories indicate an unwillingness of investors to enter the market and have often presented as the best time to invest in crypto.
Next on the scale is 47 to 52, which represents the Neutral territory. Then 53 to 75 is Greed when investors are beginning to feel confident in the market. Finally, 76 to 100 is Extreme Greed, which represents peak bullishness. As the Bitcoin Fear & Greed Index currently sits at 79, which is Extreme Greed, it could carry some implications for the market.
Extreme Greed Marks The Top?
Just as the Bitcoin Fear & Greed Index can be helpful in determining what is a good time to buy, it can also provide pointers for when a market top might be in. Looking through the historical performance of the crypto market compared to the Fear & Greed Index, we see a persistent correlation between peak euphoria and the market top.
The most recent example of this is November 2021, when the index’s score climbed to as high as 84, just 5 points shy of the current 79 score. At this point, the price of Bitcoin had risen to ,000 before meeting resistance, which it will eventually succumb to,
In the following days, sentiment would begin turning, as did the price of Bitcoin. A similar pattern was also seen in February and March 2021 when the index hit a high of 94. The next few days saw interest taper off, marking the peak at that particular point.
If the same pattern were to be repeated in this scenario, then Bitcoin could have another few days of runway before it blows off top. Presently, the cryptocurrency is already seeing significant resistance at ,000, which could suggest that the top is near.
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User Alert: Tornado Cash Developers Warn of Risk to Funds Deposited Since Jan. 1
Tornado Cash developers have issued a scam warning to cryptocurrency users who made deposits via the IPFS’ gateways between Jan. 1 and Feb. 24. Developers suspect that an exploiter may have “leaked” Tornado Cash deposits during this period to a server under their control. ‘Malicious Javascript Code’ Developers of Tornado Cash, a smart contract-based cryptocurrency […]
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Defi’s Total Value Locked Hits $80 Billion in a Dramatic Turnaround Since 2022
Recent data reveals that the total value locked (TVL) in decentralized finance has jumped past the billion milestone, reaching heights not observed since the downfall of Terra’s stablecoin in May 2022. Leading the charge in 2024 by TVL size is Lido’s liquid staking platform, with ether-based liquid staking derivatives (LSDs) securing a dominant position […]
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Bitcoin Fisher Transform Reaches Critical Level Not Seen Since 2021, What This Means
The Bitcoin price has had a rocky start to the new week after losing its footing above ,000 on Tuesday. However, all hope is not lost, as indicators still point to a continuation of this trend. Crypto analyst Tony The Bull has identified an important trend in the Bitcoin chart which could trigger a continuation of the trend back above ,000.
Bitcoin 1-Week Fisher Transform At Crucial Point
In an analysis posted on X (formerly Twitter), the crypto analyst shared a chart that showed the Bitcoin Fisher Transform in comparison to price. Most importantly, the chart showed the 1-week Fisher Transform and how it has moved since 2017.
The analysis shows some similarities between the current trend and the trends seen in 2017. A similar trend was also seen in 2019 and 2021, where the Fisher Transform rose rapidly before falling. But the importance of this trend lies in where the Fisher Transform heads next from here.
The current important level is the 1.5 Standard Deviation, which has been a crucial point whenever this trend has occurred. Now, if the Fisher Transform is able to stay above this level, it is bullish for the price. However if it falls below this standard deviation, it is very bearish for the price.
“This is a pivotal area based on historical price action and its exhibiting 2017-like behavior not seen in 2019 or 2021,” the crypto analyst explains. “Below it tends to incite bearish trends, while holding above gives bulls extra vigor.”
Bears And Bulls Vie For Control Over BTC Price
The interest in the next direction of the Bitcoin price has seen bulls and bears lock horns over which camp will reclaim control of BTC. This has seen the price of the digital asset fluctuate wildly over the last few days, going from ,000 to below ,000, before bouncing back up once again in the early hours of Wednesday.
This tug-of-war continues to hold the price of Bitcoin down, but investor sentiment seems to be climbing even through this. According to the Bitcoin Fear & Greed Index, investor sentiment has reached Extreme Greed for the first time in one year.
Historically, the index going into extreme greed has signaled the top of the market, with prices trending downward not too long after. However, Bitcoin is still seeing positive indicators, with its trading volume rising more than 40% in the last 24 hours alone.
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16,000 Bitcoin Dormant Since 5+ Years Suddenly Moves, What’s Going On?
On-chain data shows 16,000 BTC, which have been dormant for 5-7 years, have finally shown some movement on the Bitcoin blockchain.
5-7 Years Old Bitcoin Age Band Has Made A Large Move
As pointed out by an analyst in a post on X, a large stack of dormant coins has moved across the network today. The relevant on-chain indicator here is the “Spent Output Age Bands” (SOAB), which keeps track of the movements of the various Age Bands on the blockchain.
“Age Bands” here refer to groups of coins divided based on their total holding time. For example, the 1-month to 3-month Age Band would include all coins that have been dormant (that is, staying inside the same address) since between one and three months ago.
If a large number of coins belonging to this holding time range would transfer on the blockchain, then the SOAB for this particular Age Band would register a spike. In the context of the current discussion, the 5-7 years Age Band is of interest.
The chart below shows the recent SOAB data for this Age Band specifically:
As displayed in the above graph, a large amount of coins aged between 5-7years old appear to have just been moved on the network as the corresponding Age Band has registered a spike.
This Age Band is a segment of the wider and “long-term holder” (LTH) group, which includes investors who have been holding onto their coins since at least 155 days ago.
Statistically, the longer a holder keeps their coins dormant, the less likely they become to sell at any point. As such, the LTHs are generally considered to be more resolute than the rest of the market (the “short-term holders“).
Since the 5-7 years Age Band would include coins that are old even in LTH terms, their owners would have to be diamond hands among diamond hands. Due to this reason, it can be something notable when such ancient entities finally decide to break their silence.
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During the latest SOAB spike, these investors have moved a massive stack of 16,000 BTC (around 7.8 million at the current exchange rate). Now, what implications this move may have on the market depends on what these investors intend to achieve with it.
A dive deeper into on-chain data suggests the move was an outflow from the cryptocurrency exchange Coinbase, as the chart below shows:
The fact that it is an outflow may be a positive sign for Bitcoin, as it means that selling may not have been the goal here. Rather, the move implies the whale entity behind it may be moving towards self-custody to HODL further, or a large buyer like an ETF is gobbling this BTC up.
BTC Price
Bitcoin had made a visit down to ,600 during the weekend, but the cryptocurrency already appears to have bounced back as its price is now floating around the ,400 level.