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.
XRP price shot up 26% in hours as the US SEC Chair Gary Gensler announced his resignation. Ripple’s native token XRP hit a high of $1.43, the levels last seen during the 2021 bull run. Crypto market analyst predicts the continuation of the rally all the way to $2 following a bullish pattern breakout. The news of pro-crypto Paul Atkins replacing Gensler as SEC Chair could fuel the XRP rally further.
XRP Price Rally to $2 Coming?
Following the resignation announcement by SEC Chair Gary Gensler, the XRP bulls have charged in leading to another 26% price rally. Gensler’s last day at the office will be January 20, 2025, the same day when President-elect Donald Trump takes charge at the White House. It is clear that the XRP community sees Gensler’s resignation as positive, following the tough four-year legal battle in the Ripple lawsuit.
Crypto market analyst Ali Martinez believes that this rally will continue to $2. Martinez suggested that Gensler leaving the SEC would mark a significant turning point for Ripple, potentially easing regulatory pressures on the company.
“Gary Gensler leaving the SEC is the best thing that could happen to Ripple,” Martinez stated. He further added that XRP price could now set its sights on a $2 target, amid the fresh breakout from the flag-and-pole pattern.
Crypto analyst CrediBULL Crypto highlighted that XRP’s monthly Relative Strength Index (RSI) is on the verge of entering overbought territory for the first time in three years. “XRP/ETH just reclaimed and retested a 4 year long range, with the first target being ~250% higher,” he added.
Paul Atkins to Replace US SEC Chair Gary Gensler?
As Gary Gensler puts his resignation, the biggest question in everyone’s mind is whom will Donald Trump appoint as the next SEC Chair? Fox Business reported that former SEC Commissioner Paul Atkins is the front-runner to succeed Gary Gensler.
Paul Atkins is popular for his free-market regulatory approach and pro-crypto stance. He has also garnered strong support from the business community and the digital asset industry. His appointment could also open the gates for the spot XRP ETF by 2025.
21Shares, Canary Capital, and Bitwise have already filed with the US SEC for the XRP ETF in the last two months. The arrival of this investment product could fuel institutional interest in XRP.
Gary Gensler’s decision not to complete his term at the SEC has been met with widespread approval from the business sector, which has been critical of his regulatory approach. The narrative towards the end of Ripple vs SEC lawsuit now looked more obvious.
As of press time, the XRP price is trading 26% up at $1.40 with a market cap of $80 billion. As per the Coinglass data, the open interest in XRP has shot up 35% to $2.47 billion. In the last 24 hours, $25.64 million worth of XRP positions were liquidated with $14 million in short liquidations and $11.62 million in long liquidations.
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
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.
Solana has once again caught the attention of market participants as it hit a new ATH on Friday. Notably, SOL witnesses a sustained rally against the backdrop of massive whale accumulations. Now, as the crypto is noting a buying pressure amid the bull market, market watchers anticipate further gains in the crypto ahead.
Solana Hits New ATH Amid Massive Whale Buying
According to data by Lookonchain on November 22, whales continue to accumulate Solana amid its upside movement to a new ATH. According to the data, a fresh wallet was recorded accumulating 42,443 SOL, worth $11.14 million, from Binance over the past two days. This accumulation was made by the wallet address “Au1VJ…q8hF8”, per Solscan’s data.
Simultaneously, another massive accumulation recorded over the past day has weighed the scales toward the bullish side of the asset. Lookonchain revealed that a whale bagged 100K SOL, worth $23.86 million, and staked it over the last two days. Notably, Solscan’s data showed this whale address as 7L1HBfMH.., while the whale’s SOL holdings totaled $55.58 million.
Overall, these accumulations, underscoring increased buying pressure on the asset, birthed significant market optimism on future price movements. For context, large-scale investors’ accumulations signaled heightened market confidence in the asset’s potential to offer gains ahead.
Moreover, with the soaring odds of a Solana ETF further weighing in, the current market sentiment for one of the leading crypto by market cap remains highly bullish. A recent CoinGape Media report further revealed that the SEC has now started engaging with the SOL ETF issuers regarding the filed S-1 registration statements. Besides, Bitwise has also filed for Solana ETF recently, further fueling market interest.
Coin Price Gians 8% Breaking ATH
SOL price today witnessed gains worth 8% intraday and was trading at $262.51 at the time of reporting. The coin’s 24-hour low was $237.33, whereas the current price level marked a new ATH. Notably, the weekly chart illustrated a 26% pump for the coin, followed by a monthly upswing of 59%. This bullish movement falls in line with massive buying pressure on the asset, as seen by the abovementioned whale transactions.
Simultaneously, Coinglass data indicated that the coin’s futures OI surged 15% to $6.01 billion. Moreover, the derivatives volume noted a 61% uptick to $19.03 billion. Overall, this stat indicated a burgeoning market interest in the asset, further paving an optimistic path for future price movements.
Also, a recent Solana price analysis by CoinGape Media pointed out that the coin eyes a $5,000 price target as it has already noted a significant surge from its 2023 lows. Crypto market watchers continue to monitor the token for further price action shifts in light of the abovementioned statistics.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
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.
The Dogecoin hash rate has spiked sharply, reaching new all-time highs. This bullish development reflects increasing network activity and miner participation. The surge also aligns with the recent positive shift in Dogecoin’s momentum, which favorable market conditions and sentiment have bolstered.
Dogecoin Hashrate Reaches New ATH
Dogecoin mining activity is experiencing a major upsurge, as its hash rate recently hit a new ATH. This impressive milestone indicates strong network security and growing miner confidence in Dogecoin.
Crypto analyst Master Kenobi announced this bullish development in an X (formerly Twitter) post on November 20. The analyst revealed that over time, DOGE mining activity could become more profitable, more stable and less taxing for miners than Bitcoin mining.
Master Kenobi’s analysis is especially notable due to Bitcoin’s cyclic halving events, which occur every four years and cut the rewards of miners in half. The Bitcoin halving also decreases the rate at which new coins are available, thus reducing its supply while also resulting in lesser profits for Bitcoin miners.
Without halving events like Bitcoin, Master Kenobi reveals that Dogecoin offers more predictable rewards and facilitates long-term stability for miners. Moreover, this stability can potentially boost the meme coin’s value and strengthen its network security, thereby improving trust in its ecosystem.
The Dogecoin hash rate is calculated based on the number of calculations performed per second to solve a hash on the blockchain. At the time of the ATH, DOGE’s hash rate was at 1.5 PH/s. However now its hash rate has increased slightly to 1.52 PH/s.
Interestingly, the spike in Dogecoin’s hash rate to new ATHs comes as the meme coin records a surge in momentum. Over the past few weeks, Dogecoin has experienced triple-digit gains, recording a price increase of more than 169% just this month. CoinMarkeCap’s data also shows that the price of the meme coin is currently trading at $0.385.
This price surge has caught the attention of the crypto market, and with the increase in hash rate, Dogecoin is steadily solidifying its position as the number one meme coin in the crypto market.
DOGE Mining Vs. Bitcoin Mining
In his X post, Master Kenobi reveals that Dogecoin and Bitcoin operate on fundamentally different networks. Each cryptocurrency uses distinct hashing algorithms, making mining compatibility between both ecosystems virtually impossible.
While DOGE operates on the Scrypt algorithm, which is optimized for a different class of Application-Specific Integrated Circuits (ASICs), Bitcoin, on the other hand, relies on the SHA-256 algorithm, which requires ASICs specifically designed for its type of hashing.
This notable distinction prevents miners from switching between networks, bolstering the independence of each blockchain network. Additionally, the difference in hashing algorithms ensures no overlap in hardware utility and prevents the risk of a network being compromised by others’ mining resources. This ultimately improves security for both the Dogecoin and Bitcoin ecosystems.
Featured image created with Dall.E, chart from Tradingview.com
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