Altcoin
6 Factors Fuelling Today’s Bounce Back
The crypto market has demonstrated a strong bounce back following a period of significant sell pressure and market uncertainty. Recent developments indicate a potential recovery with Bitcoin (BTC) leading the charge. These include end of German Bitcoin liquidation, Spot Ethereum ETF S-1 approval, whale accumulation among others.
1. Germany’s Bitcoin Selloff End & Global Tensions
Michaël van de Poppe, a ceyroi analyst, recently highlighted that “Germany has finished selling their #Bitcoin.” This extensive selloff, totaling approximately $3.5 billion since June 19, has been fully absorbed by the market. Despite this massive liquidation, Bitcoin’s price remained steady at $58,000 at the time.
Now, the BTC price is nearing $63,000, marking a recovery. Moreover, Van de Poppe also noted the rising global uncertainty following an assassination attempt on former President Trump. He suggests this environment could be conducive for Bitcoin to gain upward momentum. In addition, it could also influence the overall crypto market positively.
2. Spot Ethereum ETF And Institutional Moves
The market is also buoyed by the imminent approval of an Ethereum ETF. Grayscale, a prominent investment firm, announced that July 18, 2024 will be the record date for the initial creation and distribution of shares of the Grayscale Ethereum Mini Trust. This distribution will see 10% of Ether holdings from the Grayscale Ethereum Trust (ETHE) transferred to the ETH Trust.
Grayscale’s confidence in the ETF approval this week has added to the positive sentiment. The ETH Trust aims to be listed on the NYSE Arca under the ticker symbol “ETH,” pending regulatory approval. Moreover, last week, all eight Ethereum ETF applicants submitted the updated S-1 filings as asked by the SEC. This development also boosts approval odds.
3. Crypto Market Analysis And Bullish Momentum
IntoTheBlock, a crypto analytics firm, observed, “Bitcoin reclaimed the $62k support level after a strong weekend. While resistance is strong above, enough bullish momentum can prevent selling pressure.” This reclaim of a crucial support level is significant, indicating strong buying interest and potential for further price appreciation.
CryptoQuant highlighted the tough conditions for Bitcoin traders. The analytics firm noted that “Bitcoin traders face a tough market with negative margins at -17%, the lowest since the FTX collapse.” According to historical trends, such low margins often precede market bottoms. This suggests a possible recovery phase, which has been witnessed in the crypto market today.
Also Read: Satoshi Era Whale Moves 1000 Bitcoin, What’s Happening?
4. Whale Activity And Miner Capitulation
Notable whale activities have also influenced the market. Justin Sun, TRON founder, withdrew 14,436 ETH worth approximately $45.5 million from Binance. This indicates a bullish stance on the upcoming ETF approval, igniting optimism in the market. Additionally, XRP whales have snapped up over 100 million XRP tokens amid rumors of a settlement in the Ripple vs. SEC case.
Miner capitulation, a historical precursor to Bitcoin price rebounds, has been significant. The Bitcoin True Hashrate Drawdown percentage recently hit 7.6%. It is identical to levels seen during Bitcoin’s $16,000 valuation amid the FTX collapse. This capitulation implies weaker miners are exiting, reducing market sell pressure and paving the way for potential price recovery.
CryptoQuant further emphasized recent buying trends among U.S. whales on Coinbase suggest additional funds may flow into Spot Bitcoin ETFs during weekdays. Earlier, last week, these ETFs witnessed $1.1 billion of inflows, further solidifying a bounce back. In addition, BTC whales scooped up $4 billion worth of BTC last week.
5. Short Liquidations And Market Dynamics
The market rebound saw substantial short liquidations, totaling $100.79 million, a according to Coinglass. This amount significantly exceeded the $21 million in long liquidations. This dynamic creates buying pressure as traders mitigate losses by buying back their short positions, potentially accelerating the recovery. However, this also introduces a layer of uncertainty, as traders can manipulate the market when it peaks.
From a psychological perspective, the market appears primed for a rebound. Participants have endured a considerable period of adjustment, experiencing fear and frustration, which often sets the stage for a recovery. However, Ali Martinez, a popular crypto analyst, advised caution.
He noted, “If you’re getting in late, watch out! #Bitcoin could retest the breakout zone at $59,200 before reaching the $63,800 target.” Nonetheless, BTC recovery past $63,800 is imminent after the slight pullback. This also sets the stage for a bullish momentum in the broader crypto market.
6. September Fed Rate Cut Probability Above 90%
Signals from the Federal Reserve suggest a strong chance of an upcoming interest rate reduction, which could have a substantial impact on the crypto market. Bloomberg analyst Mike McGlone has forecasted that the Fed will lower interest rates following a downturn in US stock markets.
Looking at historical trends, significant rate hikes between 2004 and 2006 were followed by the first rate cut in September 2007. Similarly, after the recent cumulative rate increases of 525 basis points since early 2022, a rate cut is expected this coming September.
Despite the June Producer Price Index (PPI) data showing persistent inflation, the CME FedWatch tool indicates a 90.3% probability of a rate cut in September. Reduced interest rates often lead to a weaker US dollar and increased investor interest in alternative assets like crypto.
Also Read: Bitcoin & Altcoins In Focus As Market Eyes Ether ETF, Fed Chair Comment, & Other Events
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Altcoin
Why Bitcoin Users Are Moving to Altcoins? As Ethereum Price Jumps 11%
Although the Bitcoin price rally has paused above $75,000 a day after Donald Trump’s victory, altcoins have continued their strong show with the Ethereum price taking the lead with 11% gains all the way to $2,850 levels. Investors have a lot of questions as to does this mark the beginning of the much-awaited altseason moving ahead.
Altcoins Steal the Limelight from Bitcoin?
On the day of Donald Trump’s victory on November 6, the Bitcoin price touched its all-time high levels surging all the way to $75,000. While the bulls try to defend these levels, altcoins seem to grabbing the investors’ focus.
The Ethereum price has managed to pull off 12% gains moving all the way to the $2,850 level and eying further rally to its all-time high levels. This comes despite strong selling pressure from Ethereum whales. Popular crypto analyst IncomeSharks noted that the ETH price has given a crucial breakout from the downward trendline slope, which opens the gates for a 75% rally from here to new all-time highs.
$ETH – Breakout. 75% move from here to an all time high. $3k first. pic.twitter.com/29KJzgk4Ex
— IncomeSharks (@IncomeSharks) November 7, 2024
Furthermore, after hitting the lower lows over the past few months, the ETH/BTC trading pair has notched up a bit. “With ETH/BTC at 0.035 it definitely makes sense to start hedging,” added Cowen. However, he added that for the bottom formation confirmation, the ETH/BTC pair must end above the 50 DMA.
I would watch #ETH / #BTC here.
If it can get above the 50D SMA, the there is a good chance that ETH/BTC has bottomed. pic.twitter.com/dXNYj2sDvY
— Benjamin Cowen (@intocryptoverse) November 7, 2024
Apart from Ethereum price surge, other altcoins like Solana made strong gains on Donald Trump’s victory. The Solana price has surged to $188 once again as talks about the approval of spot Solana ETF in the Trump presidency gain traction. As a result, analysts predict an SOL surge to $300 levels from here.
Will BTC Lose the Grip Over the Market?
Some market analysts state that it is still early to call the altseason and expect Bitcoin dominance to grow even further. Also, this could just be the beginning of the next major Bitcoin bull run.
Veteran trader Peter Brandt shared an optimistic outlook for Bitcoin, suggesting it has entered a “sweet spot” in the current bull market halving cycle. According to Brandt, Bitcoin is on track to peak between $130,000 and $150,000 by August or September of next year, marking a potential new high for the cryptocurrency.
Echoing similar thoughts, crypto analyst Ali Martinez noted that the next BTC top usually happens after 8 to 12 months following a monthly close above the previous all-time highs. Thus, he expects the next BTC top to happen anywhere between July to November 2025.
Historically, #Bitcoin has reached market tops roughly 8 to 12 months after achieving a monthly close above its previous all-time high.
If this pattern continues, the next potential market top for $BTC could occur between July and November 2025. pic.twitter.com/aWBZDBpUea
— Ali (@ali_charts) November 6, 2024
According to blockchain analytics firm CryptoQuant, Bitcoin’s recent all-time high doesn’t signal an overvaluation relative to its cost basis. The firm’s data on the MVRV ratio suggests that BTC remains well below peak levels. Additionally, Bitcoin’s price is close to traders’ average purchase cost, indicating that the market is not currently overheated. These insights point to the potential for continued growth in Bitcoin’s value.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Altcoin
XRP Price At Risk As Ripple Moves $250M?
The XRP price has come under the spotlight following Ripple’s recent $250 million XRP transfer. This comes amid bullish predictions for the coin, with analysts saying that its price could enjoy a parabolic rally following Donald Trump’s win.
The XRP Price At Risk With Ripple’s $250 Million Transfer
The XRP price is at risk of a decline following Ripple’s transfer of $250 million worth of XRP to an unknown wallet. Onchain data shows that the crypto firm transferred 470 million XRP to this wallet (rP4X2…sKxv3). This unknown wallet has since transferred 100 million XRP to another wallet (rhWt2…E32hk).
The purpose of the $250 million transfer remains unclear. However, it could relate to Ripple’s On-Demand Liquidity (ODL) services or the ongoing SEC appeal case.
This development comes just a day after XRP whales moved $814 million, indicating whale accumulation. While the Ripple transfer is unlikely to impact the XRP price since it will likely be done over the counter (OTC) if it is a potential sale, it could still create a bearish sentiment among XRP investors.
However, crypto analysts are confident that XRP is currently in bullish territory following Donald Trump’s win in the US presidential elections. The coin could surge up to 3,336% as crypto analyst StephIsCrypto predicted a major above $2 following Trump’s victory.
A Price Surge Above $20 By Year-End
In an X post, Crypto analyst Amonyx made a bold prediction, stating that the XRP price will rise above $20 by year-end. In another X post, the analyst suggested that he was confident that this price surge would happen with the US SEC chair Gary Gensler set to be removed following Donald Trump’s victory.
Gensler’s removal is bullish for the XRP price because he has spearheaded the long-running legal battle against Ripple. The legal battle could have negatively impacted XRP all this time, creating doubts in investors’ minds.
However, with Gensler gone and the Ripple SEC lawsuit likely to end, investors could again become bullish on XRP and look to invest more in the crypto. Crypto analyst Ross Vandermeer also predicted that the XRP price could eventually rise to $1,000 thanks to Donald Trump’s US election victory.
Ripple CEO Brad Garlinghouse recently called on the US president-elect to fire Gary Gensler on day 1, just like he promised. Meanwhile, Ripple chief legal officer (CLO) Stuart Alderoty urged Trump to end the regulation-by-enforcement approach to position the US as the crypto capital.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Altcoin
Ripple CLO Reveals How Donald Trump Can Make US The Crypto Capital
Ripple chief legal officer (CLO) Stuart Alderoty has revealed how US President-elect Donald Trump can make the United States (US) the crypto capital. The Ripple CLO statement came as Ripple CEO Brad Garlinghouse outlined his checklist for the Trump administration.
Ripple CLO Reveals How Trump Can Make US Crypto Capital
In an X post, Stuart Alderoty called on Donald Trump to move swiftly to end the regulation-by-enforcement approach that the crypto industry has endured and position the US as the crypto capital of the world.
As the Ripple CLO suggested, the US has been unable to claim the title of crypto capital due to its unfavorable regulatory environment. Regulators like the US Securities and Exchange Commission (SEC) have clamped down on crypto firms instead of providing regulatory clarity.
However, the Ripple CLO believes that is likely to change under Donald Trump. In his post, he also revealed that the president-elect had taken time to listen to Ripple’s story when they met and has also prioritized crypto as a key policy issue.
Indeed, the US president-elect was very vocal about crypto during his presidential campaign, making several promises to the crypto industry. As part of his promises regarding Bitcoin and the crypto industry, Donald Trump said he would fire US SEC Chair Gary Gensler on day one in office.
This is one of the major promises the crypto community is holding on to, considering that Gensler has spearheaded the anti-crypto crusade in the country.
Brad Garlinghouse Outlines Checklist For Donald Trump’s Administration
Before the Ripple CLO’s comments, Ripple CEO Brad Garlinghouse had outlined his checklist for the Trump administration’s first 100 days in office. First, he stated that Trump should fire Gensler on Day 1, just as promised.
In Gensler’s place, Garlinghouse recommended that the president-elect appoint either Christopher Giancarlo or Robinhood CLO Dan Gallagher, as they will be “massive upgrades” in rebuilding the rule of law at the SEC. Galaxy CEO Mike Novogratz also recently mentioned pro-crypto US SEC commissioner Hester Peirce as one of those who could also replace Gensler.
The Ripple CEO also asked Trump to get the US Congress to move the digital asset market structure bill forward in the Senate. Lastly, he asked if they could get some clarity for Ethereum, similar to that of Bitcoin and XRP since they are recognized as non-securities.
While Brad Garlinghouse didn’t endorse any candidate, Ripple CLO Stuart Alderoty and Ripple co-founder Chris Larsen made their stance known through donations. The Ripple CLO donated $300,000 to the Donald Trump campaign, while Larsen donated up to $11 million to Kamala Harris’ campaign.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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