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Why BTC, ETH, XRP & Altcoins Are Dropping?

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The crypto market today is experiencing significant turbulence, with major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) facing notable declines. This downturn has sparked widespread concern among investors, with many wondering what’s driving this bearish trend. Thus, we have listed the key factors contributing to the market’s current state, focusing on Bitcoin, Ethereum, and altcoins.

Bitcoin Miners Under Pressure Amid Declining Crypto Market Today

Bitcoin, the market leader, is also facing significant headwinds. The revenue per terahash for Bitcoin miners has dropped to a 12-month low of 4 cents, down from over 10 cents earlier in the year. This sharp decline in mining profitability is due to several factors, including the upcoming halving event, low on-chain activity, and increasing network difficulty.

The Halving event in April 2024 reduced the block reward by 50%, putting further pressure on miners. As a result, smaller mining operators are being forced to either shut down or consolidate their operations. This consolidation is likely to lead to a decrease in network decentralization, which could have long-term implications for Bitcoin price.

Also, as the crypto market declined today, FUD grew around Binance’s suspicious transfer of 75,117 BTC worth $4.69 billion. Out of this, the crypto exchange shifted 45,000 BTC to an unknown wallet, sparking speculations. However, it was then clarified that it was an internal transfer.

In addition, long liquidations in the market currently stand at $112.25 million, according to Coinglass. While this figure may not seem overly significant, it reflects the heightened market uncertainty that is contributing to the overall bearish sentiment.

The crypto market today is also reacting to profit-taking behavior. Last week, Bitcoin rallied past $65,000 amid optimism surrounding potential Federal Reserve rate cuts. However, traders have been quick to take profits, leading to the current slump.

Source: Velo Data

Moreover, BTC 6-month Returns By Day chart by Velo Data shows that it tends to experience declines on Tuesdays, while Sundays often see price surges. This “buy the dip on Tuesday, sell on Sunday” pattern may be at play, further contributing to the recent price drop. Furthermore, altcoins generally mimic BTC price trend, which may have led to the latest pullback.

Ethereum’s On-Chain Activity Slumps

Ethereum, the second-largest crypto by market capitalization, has seen a notable decline in its on-chain activity. On August 21, the 7-day moving average (7DMA) of Ethereum’s daily on-chain volume dropped to $2.37 billion, marking a 9-month low. This decline in on-chain volume is significant, as it indicates a reduction in network activity, which often correlates with lower market interest and, consequently, falling prices.

Moreover, Ethereum’s transaction count hit a low of 1.06 million on August 23, coinciding with a 20% drop in ETH’s price. This sharp decline in transaction volume suggests that fewer users are engaging with the network. This further exacerbates bearish sentiment.

Adding to the negative outlook, the Ethereum Foundation recently deposited $100 million worth of ETH to Kraken as it liquidated its holdings for operational purposes. Additionally, a prominent Ethereum whale recently offloaded $24 million worth of ETH, contributing to the downward momentum.

Another critical factor is the outflow from spot Ethereum ETFs. The crypto market today is witnessing continued outflows from Ethereum ETFs, with $13.2 million being withdrawn on Monday. Notably, no new funds have seen any inflows, indicating the lack of investor confidence in Ether funds.

XRP Faces Volatility As Crypto Market Slumps Today

XRP, one of the top altcoins, is also experiencing significant volatility. The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) continues to weigh heavily on XRP price. Currently, XRP is trading lower than the $0.60 level amid the SEC’s appeal uncertainty.

Earlier this month, Judge Analisa Torres ordered Ripple to pay a $125 million penalty, which is 94% less than what the SEC had originally demanded. While this ruling was seen as a partial victory for Ripple, the uncertainty surrounding the SEC’s appeal has kept the market on edge.

Toncoin Declines After Telegram CEO’s Arrest

Lastly, Toncoin has been facing a sustained downtrend following the arrest of Telegram CEO Pavel Durov in France. Durov is currently facing 12 criminal charges related to alleged failures in monitoring criminal activities on the Telegram platform. Moreover, the Telegram CEO’s detent until Wednesday.

The legal troubles surrounding Durov have cast a shadow over Toncoin. This led to increased selling pressure as the broader crypto market decline today. TON ecosystem’s Notcoin (NOT) also bore the brunt as NOT price now risks downfall to $0.0005.

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Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

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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Ethereum Foundation Launches Pectra Tesnet ‘Mekong’, ETH Price Set For $4000

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Ethereum Foundation on Thursday announced launch of its first short-lived Pectra testnet ‘Mekong.’ This testnet includes all the EIPs proposed for the upcoming Pectra upgrade on the Ethereum network. Will this trigger ETH price rally to $4000 as the price jumped 8% in the last 24 hours?

Ethereum Foundation Introduces Mekong Tesnet for Pectra

In an official announcement by Ethereum Foundation on November 7, the first short-lived Mekong testnet was introduced after scoping the Pectra fork and four DevNet events

The foundation said the Mekong testnet consists of all the EIPs proposed for the next major Pectra upgrade. It includes changes such as UX changes via EIP-7702, staking changes via EIP-7251, changes to the deposits and exit mechanisms via EIP-6110 and EIP-7002.

The Mekong testnet is focused on wallet developers to engage with UX changes and for stakers to gain confidence in the upcoming changes. This is a short-lived testnet but the features included will make it into existing public testnets and finally the mainnet.

In addition, Ethereum developer Tim Beiko reveals ethPandaOps has introduced this short-lived Pectra testnet Mekong to introduce major changes in mainnet. Also, this helps the crypto community try out EIP-7702, MaxEB consolidations, and more.

Moreover, Ethereum Foundation developer Parithosh recommended wallet teams to try Mekong testnet at the DevCon Week, which will run the entire week of November 9-17.

ETH Price to Hit $4000

Bullish sentiment surrounding Donald Trump’s win and DevCon event has triggered the rally. Moreover, the launch of the Mekong testnet to fuel ETH price further. Notably, analyst Benjamin Cowen predicted Ethereum price rally after a bottom formation confirmation in the ETH/BTC pair above the 50 DMA.

Popular analysts Michael van de Poppe and Ali Martinez said Ethereum is in the early bull run stage. With the Pectra upgrade expected to take place in early 2025, whales are likely to buy the dip. Michael van de Poppe suggested that the markets are rotating and ETH will see a massive pump. Notably, a higher-low formation will bring much-awaited upward momentum.

ImageImage

Also, Ali Martinez added that MVRV Momentum crossing its 180-day has historically signaled a period of outperformance for ETH price. The cross hasn’t happened yet and gives an opportunity to buy the dip for more upside ahead for the $4000 psychological level.

ETH price today jumped 8% to a 3-month high, with the price currently trading at $2,800. The 24-hour low and high are $2,611 and $2,878, respectively. However, the trading volume has decreased by 6% over the last day.

MVRV momentumMVRV momentum
MVRV momentum

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Varinder Singh

Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.

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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Why Bitcoin Users Are Moving to Altcoins? As Ethereum Price Jumps 11%

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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.

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.

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.

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.

Courtesy: CryptoQuant

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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.





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XRP Price At Risk As Ripple Moves $250M?

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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.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

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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