Market
BTC Falls, BlackRock Eyes Blockchain, and More
This week, Bitcoin and the broader crypto market experienced a sharp decline following the release of US Consumer Price Index (CPI) data.
Speculation about BlackRock launching its own blockchain has also surfaced. Additionally, Binance’s delisting of several altcoins triggered significant market reactions.
Bitcoin’s “Fakeout” Following CPI Data Release
On August 14, the US Bureau of Labor Statistics (BLS) released July’s Consumer Price Index (CPI) data. The figure was lower than the previous month, leading to speculation that the Federal Reserve might cut rates in September, possibly by 25 basis points.
Bitcoin initially reacted positively to the data, trading above the $60,000 level. However, this proved to be short-lived, as the price quickly reversed, dropping below $60,000 — a move known in trading circles as a “fakeout.” At the time of writing, Bitcoin stands at $58,345, reflecting a 1.95% decrease in the past 24 hours.
Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030
Despite this volatility, analysts maintain a positive long-term outlook for Bitcoin. Potential catalysts for a bullish trend include anticipated rate cuts, increased inflows into Bitcoin exchange-traded products (ETPs), and favorable regulatory developments.
Institutional Investors and Wall Street Giants Reveal Spot Crypto ETF Holdings
This week, institutional investors disclosed their positions in Bitcoin and Ethereum ETFs through their 13-F filings with the US Securities and Exchange Commission (SEC). Goldman Sachs, for example, holds positions in seven of the 11 available spot Bitcoin ETFs in the US. Its largest stake is in the iShares Bitcoin Trust (IBIT), with an investment valued at approximately $238.6 million.
In addition to IBIT, Goldman Sachs has invested heavily in other Bitcoin ETFs. Notably, the bank holds $79.5 million in Fidelity’s Bitcoin ETF (FBTC) and $56.1 million in the Invesco Galaxy Bitcoin ETF (BTCO), among others.
Similarly, Morgan Stanley, another Wall Street giant, also demonstrated a preference for BlackRock’s IBIT, with positions valued at $188 million. Furthermore, Morgan Stanley has smaller holdings in the Ark 21Shares Bitcoin ETF (ARKB) and the Grayscale Bitcoin Trust (GBTC).
The trading firm DRW Capital also presented its significant stake in crypto ETFs, particularly focusing on Ethereum. The company’s filings indicate an allocation of over $150 million to the Grayscale Ethereum Trust.
Additionally, the State of Wisconsin Investment Board (SWIB) reported owning nearly 2.9 million shares of BlackRock’s spot Bitcoin ETF (IBIT) as of June 30. This position, valued at nearly $99 million, marks a significant increase from the previous quarter, where SWIB held around 2.5 million shares. Interestingly, SWIB also reduced its exposure to the Grayscale Bitcoin Trust by offloading 1 million shares during the first quarter.
Vetle Lunde, a senior analyst at K33 Research, recently noted that the second quarter of 2024 saw a notable increase in institutional ownership of Bitcoin ETFs. The 13-F filings revealed that 1,199 professional firms held investments in US spot ETFs as of June 30. This number marks an increase of 262 firms from the previous quarter.
“While retail investors still hold the majority of the float, institutional investors increased their share of total AUM by 2.41 percentage points, now accounting for 21.15% in Q2,” Lunde remarked.
This growth in institutional participation is significant. It indicates that large financial entities are becoming more comfortable with the risk-reward profile of crypto investments.
Hydra Update Prepares Cardano for Chang Hard Fork
On August 9, Cardano released version 0.18.0 of its Hydra Head scaling solution. This upgrade is particularly crucial as Cardano prepares for its upcoming Chang hard fork, which aims to fully decentralize the blockchain.
Sebastian Nagel, a Cardano developer, emphasized that one of the key features of this update is the ability to withdraw funds from an open head without closing it. This improvement aligns with Cardano’s broader goal of transitioning into a decentralized network. Charles Hoskinson, Cardano’s founder, envisions it as a global system featuring advanced governance and community-driven initiatives.
Speculation Surrounding BlackRock’s Blockchain Initiative
According to a report by Token Terminal, BlackRock could be exploring the launch of a proprietary blockchain similar to Coinbase’s Layer-2 network, Base. The report suggests that such a blockchain could centralize the record-keeping of BlackRock’s vast holdings, enhancing transparency, efficiency, and security. If this plan materializes, it will align with BlackRock’s broader strategy of leveraging technology to streamline its operations and offer novel solutions to its clients.
However, such a project would have challenges, including managing the complex regulatory environment and ensuring the blockchain’s security and scalability. Despite BlackRock not confirming these plans and potential challenges, the asset management firm potentially launching a blockchain could represent a major shift in the traditional finance sector.
Six Altcoins Take a Hit After Binance Delisting Announcement
On August 12, Binance, the world’s largest crypto exchange by trading volume, announced the delisting of six altcoins. Effective August 26, 2024, at 03:00 UTC, Binance will remove all spot trading pairs for these tokens.
Historically, when Binance announces the listing or delisting of altcoins, it significantly impacts their prices. The recent delisting decision immediately caused the prices of the affected tokens to drop.
Read more: Which Are the Best Altcoins To Invest in August 2024?
The tokens impacted were PowerPool (CVP), Ellipsis (EPX), ForTube (FOR), Loom Network (LOOM), Reef (REEF), and VGX Token (VGX). Some of these even experienced value declines exceeding 20%.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Banana Gun Rises After Justin Sun’s $6.2 Million Art Purchase
Justin Sun, founder of TRON and Poloniex CEO, has purchased the viral art piece Comedian—a banana duct-taped to a wall—for $6.2 million at Sotheby’s.
Following the purchase, Sun announced on X (formerly Twitter) that he plans to eat the artwork. This has ignited a frenzy of memes, commentary, and market reactions, even causing the crypto token Banana Gun to spike in value.
Crypto Reacts: Banana Gun on the Rise
Maurizio Cattelan’s Comedian gained international fame in 2019 when it was first displayed at Art Basel Miami. Its simplicity and absurdity—a banana taped to a wall—sparked debates about the nature of art. The so-called artwork became viral when performance artist David Datuna ate it in a stunt dubbed Hungry Artist.
Sun’s pledge to eat the $6.2 million fruit has also drawn parallels, adding another layer of humor to the piece’s history. The Tron founder even said he’s willing to donate the banana to Elon Musk and send it to Mars.
Meanwhile, several users even recreated their own version of Comedian and shared it on social media. One fan followed up by taping bananas around the Massachusetts Institute of Technology (MIT) campus, encouraging others to “tape all over the world” and start a movement.
What they are campaigning for, precisely, remains to be seen.
“In the coming days, I will personally eat the banana as part of this unique artistic experience, honoring its place in both art history and popular culture. Stay tuned,” Sun said on X.
The ripple effects of Sun’s purchase eventually trickled beyond the confines of art and humor and into crypto markets. The token Banana Gun, which shares its name with the theme, surged nearly 16% following the news. Traders and enthusiasts, ever attuned to cultural moments, appear to have seized the chance to capitalize on the buzz.
Sun’s acquisition and the banana’s virality bring to mind another recent development in the art-crypto nexus. Earlier this week, Ethereum co-founder Vitalik Buterin allegedly minted 400 Patron NFTs. This development sparked hopes of a resurgence for the NFT market.
This aged well…. $BANANA is an insane project. For me, this is in the same league as $ZIG. Fundamentals are truly insane. No matter which narrative will cook next, $BANANA will profit from it,” said one trader on X.
The combination of Sun’s high-profile purchase and the market’s reaction to Banana Gun demonstrates how art, humor, and technology continue to blur boundaries. Whether Sun’s banana-eating spectacle will leave a lasting impact or peel away (pun intended) into meme history, one thing is certain—the intersection of crypto and culture remains as unexpected as ever.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Cardano (ADA) Price Hits 41% Weekly Growth, $1 Target in Sight
Cardano (ADA) price has surged 41.89% in the last seven days, signaling strong bullish momentum in the market. The uptrend remains strong, supported by key technical indicators like the ADX and Ichimoku Cloud, which point to sustained positive sentiment.
However, signs of consolidation and narrowing gaps in short-term indicators suggest that the rally could face challenges if buying pressure weakens.
ADA Current Uptrend Is Still Strong
Cardano DMI chart shows an ADX of 42.7, indicating a strong trend. The metric has remained above 40 since November 7. This high ADX value confirms the robustness of ADA ongoing uptrend, signaling solid momentum behind the recent price movements.
With the positive directional index (D+) at 21.3 and the negative directional index (D-) at 11, bullish pressure continues to outweigh bearish activity, further supporting the upward trajectory.
The ADX measures the strength of a trend without considering its direction. Values above 25 indicate a strong trend, while those below 20 suggest a weak or nonexistent trend. With an ADX at 42.7, ADA is clearly in a strong uptrend, showing significant market confidence.
The gap between D+ and D- reinforces the bullish dominance, suggesting that ADA price could sustain its upward movement if current conditions persist.
Cardano Ichimoku Cloud Shows An Important Signal
The Ichimoku Cloud chart for Cardano indicates a generally bullish trend, as the price remains above the cloud (Kumo). The Tenkan-sen (blue line) and Kijun-sen (red line) are relatively flat, showing signs of consolidation after ADA’s recent rally.
While the price is still trading above these lines, the narrowing gap between the price and the Tenkan-sen suggests weakening short-term momentum.
The green cloud ahead signals potential support for ADA uptrend, but the current consolidation phase highlights the need for sustained buying pressure to maintain this momentum.
If the price drops below the Kijun-sen or approaches the cloud, it could signal a possible shift toward bearish sentiment.
ADA Price Prediction: Can It Reach $1 In November?
If Cardano (ADA) maintains its strong uptrend, it could test the resistance at $0.85. Breaking this level could pave the way for further gains, with the potential to reach the $1 threshold, marking a 20% rise from current levels and the highest price for Cardano since April 2022.
However, as indicated by the Ichimoku Cloud, a potential reversal could be on the horizon. If bearish momentum takes over, ADA price could face significant downward pressure, potentially dropping to $0.51.
If this support fails, the price could decline further to $0.32, representing a steep 59% correction. This highlights the importance of the current support and resistance levels in determining ADA’s next direction.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Why SUI Network Outage Did Not Cause a Price Crash
Earlier today, the Layer-1 blockchain Sui experienced a two-hour blackout, halting block production and rendering transaction processing impossible. This network outage led to a slight dip in SUI’s price, falling from $3.73 to $3.64.
Despite concerns of a more significant decline, the price stabilized after the project announced that the network was fully restored and operational.
Sui Comes Back Online, Altcoin Still in Good Position
Around 10:52 UTC, web3 security firm ExVull disclosed that a DOS bug caused the Sui network outage. Fully known as a Denial-of-Service (DoS) attack, the bug” refers to a software attack that overwhelms a system with excessive traffic or requests, causing it to become unavailable to legitimate users by crashing or severely slowing its functionality.
“After our analysis, it was found that the Sui Network node occur DOS due to integer overflow,” ExVul stated.
Following this development, several exchanges halted SUI transactions as the price also dipped a little. However, nearly two hours later, the project updated its community, saying that validators had assisted in resolving the issue.
“The Sui network is back up and processing transactions again, thanks to swift work from the incredible community of Sui validators. The 2-hour downtime was caused by a bug in transaction scheduling logic that caused validators to crash, which has now been resolved,” it explained.
Meanwhile, data from Messari showed that, amid the outage, the Sharpe ratio remained positive. The Sharpe ratio is a key measure of risk-adjusted return, indicating how much excess return an investment generates relative to its volatility.
It helps investors assess whether the returns of a riskier asset justify the risk taken. A higher ratio signifies better risk-adjusted performance. Typically, when the ratio is negative, it means that the risk might not be worth the reward.
However, since it is positive for SUI, it indicates that accumulating the altcoin around its current value could still yield positive returns.
SUI Price Prediction: Run Above $4
On the daily chart, SUI continues to trade within an ascending channel. An ascending channel, also called a rising channel or channel up, is a chart pattern defined by two parallel upward-sloping lines.
It forms when the price shows higher swing highs and higher swing lows, indicating an ongoing uptrend. Furthermore, the Chaikin Money Flow (CMF) has increased, suggesting that buying pressure has outpaced distribution.
If this continues, SUI’s price could climb above $4. However, if a Sui network outage occurs again, this might not happen. In that scenario, the value could drop below $3.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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