Crypto Portal

2023-06-29 18:45:05 Germany rejects Binance’s request for crypto license: Report

No respite in Europe either
After the U.S. Securities and Exchange Commission filed a lawsuit against Binance, the world’s leading crypto exchange is facing trouble across several countries in Europe.

Germany has rejected Binance’s license request. Binance had withdrawn its request for regulatory crypto approval in Austria. It has also given up its registration with regulatory bodies in the United Kingdom and Cyprus.

Binance declared its focus on the European market and to become compliant with the Market’s Crypto Assets (MiCA) regulations. The new regulation will allow crypto firms to operate throughout the single European market by winning regulatory approval in one of those markets.

Binance’s spot trading market share hit near a one-year low in June 2023, as per data from research firm Kaiko. Binance’s market share stood at 55.9 in June. The figure was nearly the same as the last two months. But the slight dip this month made it hit the lowest point since August 2022, when it was at 53.7 . Open / Comment

2023-06-26 18:30:28 Bitcoin: Short-term holders see profit

In a thrilling turn of events, Bitcoin [BTC] shattered a significant price barrier and surged past the $30,000 mark. This paved the way for numerous investors to rejoice in their financial gains. But what does the profitability of these fortunate holders imply for the future path of Bitcoin’s trend?

Bitcoin short-term holders cruise into profit
New data from Glassnode revealed that the recent surge in Bitcoin’s price has brought about a wave of triumph for short-term holders. The leap from approximately $25,000 to beyond $30,000 has pushed many of these holders into a profitable position.

To be precise, over 66.4% of short-term holder coins, amounting to a staggering 1.8 million, have now found themselves in profit. This surge has elevated the profitable short-term holder supply percentage to 96.9%, equivalent to roughly 2.6 million BTC.

Furthermore, historical patterns indicated that such periods of profitability often led to price increases. This means that we could see the price of BTC rise more if more STH is pushed into profit.

Comparing 30-day and 180-day Bitcoin MVRV
An examination of the Bitcoin 30-day Market Value to Realized Value Ratio (MVRV) on Santiment showed the profitability of STH. As of this writing, the 30-day MVRV stood above 0, signaling a favorable state of profitability for BTC held by STH.

The metric surpassed 10% at press time, though there were indications of a slight decline. Open / Comment

2023-06-23 23:15:02 BTC vs XRP : Examining the correlation and clash of opinions

As two of the most prominent cryptocurrencies that have garnered significant attention and interest, Ripple and Bitcoin ignited an ongoing debate about the correlation between both assets.

In the past, some have argued that Ripple’s use cases set it apart from Bitcoin. Others, on the opposing side, believe that the fate of XRP is intricately tied to the performance of BTC.

BTC and XRP diverged
The conversation arose again when John. E. Deaton weighed in on XRP’s reaction to the recent Singapore expansion. The lawyer, who openly supports XRP, explained that the token followed BTC’s direction despite the positive development. Deaton mentioned,

If all XRP holders in are in a common enterprise with Ripple and relying on the successful efforts of Ripple, you would expect XRP to react. Yet, it does what it always does – follows Bitcoin and the macro environment.

Dispute along the same lines
In response to Deaton’s comments, the Ripple community house was divided. While some supported the take, others pointed to the token’s suppression amid Bitcoin’s recent rise, implying that the CryptoLaw founder’s opinion was not accurate. Open / Comment

2023-06-20 22:30:18 Uniswap’s recovery falters near post-FTX levels

Uniswap’s extended drop in the first half of June smashed January lows and the post-FTX level of 4.710. But the DEX token eased at 3.633 and inflicted a strong rebound, hiking 14 to around 4.43 at the time of writing.

UNI’s price action retraced slightly after rejection, just below the post-FTX level of 4.710. In the meantime, Bitcoin temporarily crossed the 26.6k mark but was yet to flip bullish on the higher timeframe.

Will the 50 Fib level rescue bulls
A Fibonacci retracement tool was placed between the swing high at the end of May and the June low on the 4-hour chart. The 61.8 Fib level of 4.61, below the post-FTX level, was a key resistance for the past few days.

The futures market is bearish
The open interest (OI) rates and the number of futures contracts linked to UNI declined massively between 10-12 June. It dropped from > 43 million on 10 June to about 31 million by 12 June. Moreover, it peaked at 39 million on 15 June before dropping again.

Additionally, Uniswap’s Exchange Long/Short ratio corroborated the above inference, with shorts commanding dominance at 53.95% in the 4-hour timeframe. The negative derivative metrics could delay the prospects of the H4 structure flipping bullish. Open / Comment

2023-06-17 19:00:05 Burning questions emerge as Shiba Inu’s burn rate declines

Shiba Inu has been experiencing notable progress in various important areas, especially its price. As the price of SHIB has been on the rise, it reflected positive movement in several key metrics. However, amidst these upward trends, one particular metric has witnessed negative returns over the past few days. A cause for worry?

Shiba Inu’s burn rate declines
Recent data revealed a noticeable decline in the burn rate of Shiba Inu. Information shared by Shibburn, a SHIB burn rate tracker, indicated that the burn rate decreased by more than 85% within the past seven days.

Additionally, according to the Shibburn site, only 360,222 SHIB tokens were burned in the past 24 hours, resulting in an almost -84% burn rate. Also, over 22 hours have lapsed since the last burn. This current burn rate departs from the consistent millions of SHIB tokens burned in previous instances.

Furthermore, a closer examination of the volume metric on Santiment sheds light on a potential cause of the burn rate decline. Analysis of the volume chart indicated a decline in SHIB trading volume.

As of this writing, the volume stood at approximately 64.6 million. It represented a significant decrease from the over 100 million volumes recorded around 11 June. This decline in volume implied a decrease in the number of SHIB transactions, thus contributing to the decrease in the burn rate.

Active addresses surge
Despite the decline in burn rate and trading volume, Shiba Inu experienced a notable increase in active addresses. According to the seven-day active addresses metric, SHIB active addresses began trending upward around 6 June, reaching the highest level in the past two months. As of this writing, there were over 77,000 active addresses. Open / Comment

2023-06-14 21:01:01 TRON faces a massive price slump: The beginning of a downtrend?

The US CPI rose 4% in May year-on-year, lower than April’s 4.9%. This boosted investor confidence that the Federal Reserve could pause its rate hikes. Experts suggested that the Fed could opt to stay put on the interest rates this month and keep the option of raising rates in June.

The Dow Jones Index climbed 0.6% on Tuesday, 13 June, and the S&P 500 also posted gains. This could translate into gains for the crypto market, but Bitcoin was stuck beneath the $26.4k resistance. TRON also showed a bearish market structure on the higher timeframes.

Indicators showed a downtrend was initiated- should short sellers enter the market?
The RSI on the 1-day timeframe fell below neutral 50 to signal momentum had shifted in favor of the bears. The CMF was also below -0.05 to highlight significant capital flow out of the market. Together they showed a rise in bearish pressure in the market. Moreover, the Directional Movement Index also showed a strong downtrend in progress, with both the -DI (red) and ADX (yellow) above 20.

The price action on the daily timeframe showed bearish bias as well. The move below the recent higher low at $0.074 signified a break in the previously bullish market structure. What was more, TRX sellers were able to force prices beneath the $0.0668 mark as well. In doing so they brought the bearish intention of the market to the forefront.

It remains to be seen if this move downward is the beginning of a downtrend or only a particularly sharp correction. The evidence at hand pointed toward further downside. A revisit to the $0.074-$0.078 region can be used to short TRX

The spot CVD suggested selling pressure has been intense for a while now

On May, both the spot CVD and the Open Interest registered their highs for the month of May. Since then, both metrics have been falling. The CVD in particular was in a persistent downtrend, even though TRX pushed to the higher high at $0.085. Open / Comment

2023-06-11 17:30:07 How Ethereum has put the DeFi market at risk

Ethereum and assets linked to the Decentralized Finance (DeFi) sector are experiencing a wave of uncertainty in the market. Although ETH’s dominance in the smart contract space has been unwavering, liquidation in the crypto market arm reached $11 million.

According to Parsec Finance’s data, this liquidation was the highest recorded since 12 May. However, market participants might need to exercise more caution as DefiLlama data shed light on potential threats.

DeFi: Wary of the possibilities
At the time of writing, the multi-chain DeFi aggregator showed that the total liquidatable assets amounted to $1.7 billion. This metric describes the overall worth of DeFi assets with open futures or contract positions which could suffer losses depending on the market direction.

Based on DefiLlamas’ data, most of the liquidation in the last 24 hours occurred via the MakerDAO protocol. However, there were several open staked Ether and Wrapped Bitcoin positions at risk of suffering the same fate.

So, this could prompt market participants to carefully evaluate the risks involved with their sentiment.
Over the last 24 hours, it has not been rosy for the broader crypto market. For instance, ETH’s value decreased by 5.93%. DeFi tokens like Arbitrum and Lido Finance lost 12.49% and 18.16% respectively.

With the falling prices, DefiLlama revealed that another 20% aggregate decrease in value could take another $161 million out of the market.

Although 20% might seem like a lot, the press time market state does not take away the possibility. This is because more than half of the cryptocurrencies in the top 50 by market capitalization have experienced double-digit decreases in the last 24 hours.

TVL in the drain
Interestingly, the Total Value Locked (TVL) has not been exempt from the widespread gloomy picture of the market. Out of almost 200 chains in the sector, only one—zkSync Era—recorded growth in the last 24 hours. Open / Comment

2023-06-08 17:30:56 Reasons behind MATIC’s decoupling from market trends

Several cryptocurrencies rebounded on June after a price correction, but Polygon’s [MATIC] actions were different. According to CoinMarketCap, MATIC’s price declined by more than 14% and 5% in the last week and the past 24 hours, respectively.

Santiment’s latest tweet pointed out a possible reason behind this price trend. However, there was something else to look forward to, as a key metric suggested a trend reversal in the coming days.

Selling pressure on Polygon increases
Santiment’s tweet posted on June revealed that the big players in the crypto space were actually selling their MATIC holdings. About 115 million MATIC were moved to exchanges in one shot.

As per the tweet, the latest setback appeared to be a $95 million transfer from a whale’s cold wallet to Binance. The increase in selling pressure resulted in a further price drop.

At the time of writing, MATIC was trading at $0.7627 with a market capitalization of over $ billion, making it the 10th largest crypto.

Santiment’s chart suggested that the selling pressure was still on. Polygon’s supply on exchanges increased while its supply outside of exchanges went down. Additionally, the supply held by top addresses also declined, suggesting that investors were selling.

Is a trend reversal possible?
While the aforementioned metrics looked bearish, CryptoQuant’s data revealed a bullish metric. As per the data, MATIC’s Relative Strength Index (RSI) was in an oversold position.

When RSI becomes oversold, it is generally followed by an increase in buying pressure. However, apart from RSI, the other metrics continued to be bearish.

For instance, MATIC’s exchange reserve was increasing, while daily active addresses declined. MATIC’s MVRV Ratio plummeted sharply. This, coupled with the rise in 1-week price volatility, suggested a further price drop. Open / Comment

2023-06-05 19:00:33 Bitcoin Ordinals and the mystery of the ‘cursed Inscriptions’

Bitcoin Ordinals developers implemented the “first steps” in addressing the challenges associated with ‘cursed Inscriptions’ on the network. The name cursed Inscriptions refers to the unrecognized assets incorrectly created due to the misuse of opcodes to inscribe assets on satoshis.

A fix could be underway
According to the version 0.6.0 upgrade, the rollout would ensure the authentication of a Bitcoin username and password. In addition, the upgrade would allow zero-sat transactions to be unbonded from Inscriptions.

In April, Ordinals creator Casey Rodarmor proposed to make the cursed assets tradable. But Rodarmor has since stepped down. And the released upgrade added that Raphjaph, one of the developers, has been promoted to lead maintainer.

Leonidas.og, who is the builder of the project on Bitcoin Ordinals, as well as a BRC-20 token, also shared some insights on the development.

According to the creator, the transformation of the over 70,000 cursed Inscriptions into blessed ones would tow towards positive Inscription numbers. He pointed out:

If a new edge case is found and a new type of Cursed Inscription is added, the existing Cursed Inscriptions will be reindexed and the new Cursed Inscriptions will be inserted which will shift around the negative inscription numbers. Everyone holding Cursed Inscriptions should expect the negative inscription numbers to be shifted. Open / Comment

2023-06-02 18:30:49 Bitcoin: New holdings spike; good news ahead?

Several analyses centered on Bitcoin of late have unanimously agreed that the king coin was in the middle of an accumulation phase, with most long-term holders exhibiting a lack of desire to sell their holdings.

However, a recent study by Glassnode revealed that this trend might be nearing its inflection point. The percentage of Bitcoin supply transacted in the last three months increased from 11.5% to 21.4% in May, an exponential increase of 86%.

This meant that there was a noticeable transfer of Bitcoin from longer-term investors to newer participants, suggesting bullish market trends.

Bitcoin supply that is less than three months old is typically considered as highly mobile, liquid, and most likely to be spent during periods of volatile price swings. Also referred to as “young coins”, this supply increases in volume during a bull market phase when long-term holders start to sell and take profits. As indicated below, the supply swelled up considerably in May.

But does that really mean “diamond hands” have locked in gains?

As per the graph below, BTC’s supply older than six months has grown from a share of 75% at the beginning of May to 78% at the time of writing, indicating the lack of willingness of long-term holders to sell. Open / Comment