Day: August 13, 2024

Bitcoin Choppy: Will On-chain Data Prop up Optimistic BTC Bulls?

Posted on by Dalmas Ngetich

Bitcoin is stable when writing, peeling back some losses in the past day. Even as prices teeter around $60,000, buyers stand a chance, especially if there is even more rejection of lower lows. In the short term, the zone marking support at around $57,000 to $60,000, and the resistance at around $70,000 and $72,000 will be worth watching. So far, the uptrend remains, especially if Bitcoin is stuck inside the August 8 bar.

At press time, Bitcoin is up nearly 20% from August lows and remains firm. Even though there were cracks over the weekend, the rejection of lower prices is a net positive overall. So far, Bitcoin is flat in the past trading day but up a massive 7% in the previous trading week. Most impressively, trading volume is also picking up steam, rising to over $36 billion in 24 hours.

Bitcoin Daily Chart for August 13

Generally, traders are upbeat and closely monitoring the following trending Bitcoin news:

  • Over the past few weeks, the Bitcoin miner reserve has been dropping. What this means is that miners are controlling fewer and fewer coins. This is understandable, given the massive dump from late April 2024 to June.
  • Amid stabilizing prices, on-chain data shows that traders are cautious and choosing to stay on the sidelines, at least for now. The rise in open interest versus the BTC exchange reserve could ignite demand, pushing speculators back into the picture.

Bitcoin Price Analysis

The [[BTC/USD]] uptrend remains, at least for now.

As long as prices trend above the $57,000 level or June and May lows, every low may present entries for aggressive traders.

If the uptrend remains and buyers take over, the first target would be $66,000 and later $70,000. This outlook will be especially so if there is a breach above $63,000—the local resistance.

Conversely, conservative traders can wait for a decent close above $70,000 or drop below $50,000 before committing.

Bitcoin Bull Marathon Digital Raises $250 Million in Debt to Fuel Acquisitions

Posted on by Arslan Butt
Bitcoin Bull Marathon Digital Raises $250 Million in Debt to Fuel Acquisitions
Marathon Digital raising $250 million for expanding Bitcoin mining ops

Bitcoin mining giant Marathon Digital Holdings (MARA) announced plans to raise $250 million through a private offering of convertible senior notes due in 2031. The proceeds will be used to acquire more Bitcoin and for general corporate purposes.

Doubling Down on Bitcoin

This move highlights Marathon’s unwavering commitment to Bitcoin. The company, already the world’s largest publicly traded Bitcoin holder with over 20,800 BTC, aims to further solidify its position. This strategy mirrors that of MicroStrategy, another publicly traded company known for its aggressive Bitcoin acquisitions.

Convertible Notes Offer Flexibility

The convertible notes offer Marathon flexibility. The notes will mature in 2031 but can be converted into cash or Marathon stock at the company’s discretion. This allows Marathon to potentially benefit from future stock price appreciation while securing funds for current Bitcoin purchases.

Market Reaction Muted

Despite the bullish news, Marathon’s stock price dipped slightly in pre-market trading. Some investors might be cautious about the company taking on debt to finance acquisitions. However, Marathon’s long-term strategy of accumulating Bitcoin could prove lucrative if the cryptocurrency’s price continues to rise.

Industry Leader in American Bitcoin Mining

Marathon is not only a global leader in Bitcoin mining but also a champion for the American mining industry. The company recently announced its intention to label all Bitcoin mined in the US as “Made in USA,” reflecting its commitment to domestic production.

Looking Ahead

Marathon’s aggressive fundraising strategy underscores its confidence in Bitcoin’s future. The company’s ability to navigate the debt market and continue acquiring Bitcoin will be closely watched by investors in the coming months.

Ethereum Outshines Bitcoin in Market Rebound, Fueled by ETF Inflows

Posted on by Arslan Butt
Ethereum Outshines Bitcoin in Market Rebound, Fueled by ETF Inflows
Ethereum price posts higher gains than Bitcoin

Ethereum (ETH) emerged as the frontrunner in the recent crypto market recovery, attracting significant investor interest compared to Bitcoin (BTC). This development comes after a turbulent week that saw a major correction across the cryptocurrency landscape.

Institutional Interest Shifts Towards Ethereum

CoinShares, a leading digital asset manager, revealed in its weekly report that Ethereum funds raked in a staggering $155 million last week. This surge in inflows represents a whopping 88% of the total capital injected into crypto asset investment products.

Furthermore, the launch of US spot-based Ethereum ETFs in late July seems to be a major driver behind this positive trend. The report highlights that these new products experienced their first week of positive inflows since their launch, attracting roughly $105 million.

Bitcoin Struggles to Regain Momentum

While Bitcoin witnessed a slight uptick in inflows towards the end of the week, its overall performance paled in comparison to Ethereum. CoinShares reported a modest $13 million in inflows for Bitcoin ETPs, significantly lower than Ethereum’s figures. Interestingly, short Bitcoin ETPs witnessed their largest outflow since May 2023, totaling $16 million. This suggests a potential shift in investor sentiment away from shorting Bitcoin and potentially towards a more bullish outlook.

Broader Market Recovery

The positive sentiment extended beyond Ethereum, with other crypto assets like Solana, XRP, and Cardano also experiencing inflows. This collective optimism helped propel the total cryptocurrency market capitalization back to $2.2 trillion by August 13th.

Ethereum Price Analysis

Ethereum’s price capitalized on the positive investor sentiment, surging by over 23% since its dip below $2,200 on August 5th. At the time of writing, ETH is trading around $2,700, showcasing a stronger recovery compared to Bitcoin’s 19% price increase.

Technical Outlook for Ethereum

While the recent price increase is encouraging, some technical indicators suggest potential hurdles ahead. The hourly MACD momentum appears to be slowing down in the bullish zone, and the RSI is hovering slightly above 50. These factors suggest a possible short-term correction before a sustained upward trend.

Bitcoin: Whales Accumulate, ETFs Hold Strong as Market Rebounds

Posted on by Arslan Butt
Bitcoin: Whales Accumulate, ETFs Hold Strong as Market Rebounds
Bitcoin price ready to bounce higher?

Bitcoin (BTC) demonstrates resilience after a volatile week, reclaiming the crucial $60,000 level. This positive development follows a significant drop to $54,000 last week, raising concerns about the future of the cryptocurrency market.

BlackRock, Fidelity Lead Institutional Charge

Despite the recent market turbulence, major institutions like BlackRock and Fidelity remain bullish on Bitcoin. Their continued investment in Bitcoin ETFs and portfolio allocations signal confidence in the long-term potential of the asset class.

Healthy ETF Activity Signals Investor Calm

ETF inflows and outflows maintain a steady pace, indicating a lack of panic selling amongst investors following the correction. This healthy activity suggests investors are viewing the dip as a buying opportunity rather than an exit point.

Bitcoin Whales Seize the Opportunity

Large investors, often referred to as “whales,” capitalized on the price drop by accumulating a significant amount of Bitcoin. Within a 30-day window, these entities bought a staggering 400,000 BTC, showcasing a strategic approach to acquiring Bitcoin at a discount.

BTC/USD Technical Analysis Points Towards Further Growth

Crypto analyst Doctor Profit emphasizes the importance of the established trading range for Bitcoin throughout 2024. Dips between $60,000 and $50,000 are seen as “golden buying opportunities.” The analyst predicts the $69,000-$70,000 range as the next major resistance level for Bitcoin to overcome.

Upcoming Economic Data Could Spark Volatility

This week, key economic data releases like the PPI and CPI are expected to influence market sentiment. Doctor Profit suggests this data might exceed expectations, potentially impacting future interest rate decisions by the Federal Reserve.

Bitcoin’s Short-Term Outlook

Despite the current optimism, Doctor Profit acknowledges the possibility of a temporary pullback to the $54,000-$55,000 zone. This is viewed as a natural market correction that could eliminate weaker investors.

IRS Unveils Simplified 1099-DA Tax Form for Crypto: Key Updates for 2025

Posted on by Arslan Butt

The US Internal Revenue Service (IRS) has recently introduced a new draft of the 1099-DA tax form, significantly revising the initial version released in April 2024.

This form is essential for crypto brokers and investors to report certain transactions involving digital assets. Available for public review on the IRS website for the next 30 days, the updated draft addresses several previous concerns and aims to simplify the reporting process for the 2025 tax season.

Continue reading “IRS Unveils Simplified 1099-DA Tax Form for Crypto: Key Updates for 2025” →

XRP Soars 26% After Ripple’s $125M SEC Settlement Deemed a Victory; Technical Outlook

Posted on by Arslan Butt

XRP experienced a dramatic 26% increase in value following a pivotal ruling by a New York federal judge that marks a potential end to Ripple Labs’ three-year legal battle with the Securities and Exchange Commission (SEC).

On August 7, the judge mandated Ripple Labs to settle with a $125 million civil penalty and issued a permanent injunction preventing future violations of U.S. securities laws. This decision is seen as concluding the prolonged legal proceedings initiated by the SEC in December 2020, and as reported by Cointelegraph, it signifies a turning point in the case.

Continue reading “XRP Soars 26% After Ripple’s $125M SEC Settlement Deemed a Victory; Technical Outlook” →

Kamala Harris Surpasses Donald Trump in $572 Million U.S. Presidential Race Betting

Posted on by Arslan Butt

In a significant shift in prediction market dynamics, Vice President Kamala Harris has overtaken Donald Trump in the race for the U.S. presidency on Polymarket.

As of today, the odds favor Harris at 52%, a notable rise from Trump’s previous lead, which has since decreased to 46% from a mid-July high of 70%. This change occurred over the past weekend, positioning Harris as the new frontrunner for the November election.

Impact of Crypto on Election Campaigns 

The U.S. presidential election has stirred considerable interest within the cryptocurrency community, particularly surrounding the candidates’ stance on digital currencies. While Harris has begun to engage with the crypto sector, details of her policies remain under wraps.

Conversely, Trump has consistently voiced his support for Bitcoin, despite his broader criticisms of crypto. The state of Minnesota, under Harris’s running mate Tim Walz, saw significant legislative moves to regulate cryptocurrency kiosks, highlighting the growing relevance of digital assets in political agendas.

Crypto Community Mobilizes Support

A new grassroots initiative, Crypto4Harris, is set to host a pivotal town hall this coming Wednesday. Their goal? To galvanize the cryptocurrency community in support of Kamala Harris’s presidential campaign. This event marks a significant step in connecting digital asset leaders with political advocacy.

Notable Speakers and Goals

  • High-Profile Participation: Influential figures such as Sheila Warren from the Crypto Council for Innovation and entrepreneur Mark Cuban are scheduled to speak, highlighting the importance of the event.
  • Policy Advocacy: Crypto4Harris aims to promote a regulatory environment that supports the growth of digital assets, ensuring the U.S. remains at the forefront of the crypto industry.

Contrasting Perspectives on Cryptocurrency

  • Trump’s Conservative Stance: In contrast, Donald Trump has publicly opposed the sale of American-developed cryptocurrencies, urging for enhancements in domestic blockchain technologies to ensure global competitiveness.
  • Upcoming Discussions: Adding to the intrigue, Elon Musk will engage Donald Trump in a live discussion on X platform on Monday night, likely covering topics at the intersection of technology and governance.

This gathering and subsequent discussions are expected to influence the broader dialogue on cryptocurrency’s role in U.S. economic strategy and its potential impact on the upcoming election.

Bitcoin Nears $58K Amid Market Volatility: Quick Outlook

Posted on by Arslan Butt

This weekend saw Bitcoin drop sharply to just over $58,500, marking a 4.8% decrease within 24 hours. This downward trend extended across the crypto landscape, as evidenced by CoinDesk Indices, which showed a 5.2% decline in the broader market.

Ethereum, for instance, saw a reduction of 3.5%. Concurrently, U.S.-listed ETFs experienced notable outflows, with Bitcoin ETFs shedding $89 million and Ethereum ETFs $15.7 million.

Continue reading “Bitcoin Nears $58K Amid Market Volatility: Quick Outlook” →

Bitcoin’s Remarkable $1.3B Recovery: Insights Into USDT’s Role

Posted on by Arslan Butt

This week witnessed what is now considered the 13th largest capitulation event in the history of financial markets, focusing heavily on the cryptocurrency sector.

Amidst a turbulent market landscape, Bitcoin demonstrated resilience, bouncing back impressively after plumbing new monthly lows.

Alongside Bitcoin, other major cryptocurrencies like Ethereum saw substantial gains, collectively rising over 20%.

The recovery underscored the volatile yet robust nature of digital assets in current financial ecosystems.

Continue reading “Bitcoin’s Remarkable $1.3B Recovery: Insights Into USDT’s Role” →

Solana Struggles to Find Footing as Ethereum Dominates DEX Landscape

Posted on by Arslan Butt
Solana Struggles to Find Footing as Ethereum Dominates DEX Landscape
Can Solana price rebound?

Solana (SOL) faces headwinds despite a recent bounce, with its decentralized exchange (DEX) trading volume lagging behind Ethereum (ETH) and other competitors. While some investors remain bullish on Solana’s long-term potential, the current market conditions present challenges.

Ethereum Leads the Pack in DEX Activity

Data from DefiLlama reveals a significant disparity in DEX trading volume between Solana and Ethereum. Over the past week, Ethereum’s DEXs have seen a 12% increase in trading volume, reaching a staggering $16.5 billion. In contrast, Solana-based DEX activity has shrunk by over 10% during the same period, hovering around $11 billion.

Solana’s Institutional Appeal Persists

Despite the decline in DEX volume, data suggests continued institutional interest in Solana. Tristan Frizza, founder of Zeta Markets, cites CoinShares data highlighting a rise in institutional allocations towards Solana. This suggests potential growth fueled by institutional adoption, but its pace will depend on broader economic factors and regulations.

Investor Sentiment Divided

Several crypto investment firms maintain a bullish stance on Solana. Asymmetric Financial and Syncracy Capital emphasize Solana’s perceived undervaluation compared to Ethereum. However, these optimistic views are countered by concerns regarding the recent price correction and lack of demand in the DeFi space.

Focus Shifts Towards DeFi and Stablecoins

The broader market downturn has shifted investor focus towards DeFi and stablecoins. Firms like DeFiance Capital and Maven 11 highlight the attractive valuations and strong product-market fit in these sectors. Pantera Capital also expressed interest in DeFi and DePIN projects alongside Solana and other blockchains.

Solana’s Short-Term Outlook Uncertain

Solana’s recent failure to breach the $150 resistance level and the overall bearish momentum raise concerns. The technical indicators suggest a potential decline towards the range lows near $130. However, the presence of a liquidity pool at $140 could lead to a short-term reversal.

Solana vs. Ethereum: The Battle for DEX Supremacy

While Solana boasts strong institutional backing, Ethereum currently dominates the DEX landscape. The coming months will be crucial for Solana as it strives to close the gap and attract more users and volume to its DEX ecosystem.