What Happened in Crypto Today: Bitcoin's Least Favorite Month Is Here!
As we covered in detail yesterday, some indicators are flashing potential bullish breakouts for Bitcoin - yet, the market seems determined to move in the opposite direction.
One FUD after another is battering the crypto market, causing widespread dips.
This disconnect between bullish signals and bearish moves is leaving many traders confused. But that's the nature of crypto. And we'll break down this market mystery in our analysis section at the end.
For now, let's dive into today's top crypto headlines:
MicroStrategy continues its Bitcoin buying spree despite financial hurdles. So what’s their Bitcoin strategy? 🤔
Bitcoin suddenly drops to $62K, liquidating $310 million in long positions. But what exactly caused this dump in the market? Is there more to come?📉
BlackRock's BUIDL fund pays out $7 million in dividends. What's driving this success in the current market? 💰
Ethereum holds steady at $2,860 support. But why isn't it climbing higher with positive net ETF inflows? 🚀
A trader turns $8K into $800K in an hour with a memecoin. Which wallet address is it and how can you follow their trades? 🕵️♂️
And as always, a quick market analysis at the end!
Let’s dive in!
MicroStrategy's Facing Losses, But Betting Big on Bitcoin
MicroStrategy's Q2 earnings call paints an interesting picture of a company doubling down on its Bitcoin strategy, even as it faces financial challenges.
The numbers don't look great at first glance.
Earnings per share dropped to $5.74, with revenue falling 7% year-over-year to $111.4 million. That's well below what analysts were expecting.
But MicroStrategy added 12,222 Bitcoin to its holdings, bringing the total to 226,500 BTC. At current prices, that's $14.7 billion worth of Bitcoin. They've invested $8.5 billion total, averaging the cost of $36,821 per Bitcoin.
So what’s their Bitcoin strategy? Read the full story!
Bitcoin's Dip to $62K
Bitcoin just took a sharp dive, dropping from $64,000 to $62,800. This sudden move triggered a wave of liquidations, wiping out $310.27 million in long positions over 24 hours.
The carnage was swift: $77.07 million in long Bitcoin positions liquidated in a day, with $26.6 million of that happening in just four hours.
The biggest single hit? A $4 million ETH-USDT swap on OKX.
Analyst DW says it's not "extreme" yet, but points out the market's low liquidity.
But what exactly caused this dump in the market? Is there more to come? Read the full story!
BlackRock's BUIDL - $7 Million Dividend Success Story
BlackRock's BUIDL fund is making waves in the tokenized asset world.
Since its March 2024 launch, it's paid out $7 million in dividends to investors.
The growth trajectory is impressive. Starting with a modest $265,400 in its first month, dividends skyrocketed to $2.12 million by July.
But what is this tokenized fund? And why is it experiencing such gains? Read the full story!
Ethereum's $2,860 Support Holds Firm
Ethereum's showing some serious staying power.
It's been holding strong at the $2,860 support level since July 5, proving there's still plenty of buyer appetite out there.
Deribit Insights is pretty bullish on ETH's prospects. They're eyeing a potential surge to $4,500, riding the wave of excitement from the recent U.S. Ether ETF approvals.
On July 30 alone, the nine-spot Ether ETFs saw $33.6 million in net inflows.
Then why is ETH’s price going down if the net inflow is positive? Read the full story!
The Story of Turning $8K to $800K in an Hour
One savvy trader recently turned $8,500 into $800,000 in less than an hour.
How? By jumping on the CTO memecoin bandwagon early.
Lookonchain spotted this trader buying 256 million CTO tokens with just 50 SOL. They were only the third address to buy in.
An hour later, they cashed out 227 million tokens for a $800K profit.
This same trader previously turned $3,400 into $104,000 with another token called PFI. Some are calling it skill, others are crying ‘insider trading.’ Either way, it's quite the winning streak.
Which wallet address is it and how can you follow their trades? Read the full story!
And A Quick Market Analysis…
Disclaimer: The information provided in this section is for knowledge and educational purposes only. It is not intended as financial advice and should not be construed as such.
TL;DR
Bitcoin recently dropped to $62,000, resulting in a loss of $300 million in long positions.
Historically, August has been a challenging month for Bitcoin, with negative returns in 8 out of the last 11 years.
Though analysts maintain a bullish long-term outlook, predicting potential targets of $95,000 to $120,000 if key resistance levels of $67,000 and $71,500 are breached (NFA).
In Ethereum news, while Grayscale's ETH Trust has experienced over $2 billion in outflows since its ETF conversion, BlackRock's iShares Ethereum Trust saw a positive inflow of $89.6 million on August 1.
Bitcoin just took a swift dive to $62,000, wiping out $300 million in long positions.
So first, let's talk about August! Historically, it's been Bitcoin's least favorite month, according to data on Coinglass.
Source: Coinglass
We've seen negative returns in 8 out of the last 11 years.
Not exactly a confidence booster, but hey, past performance doesn't guarantee future results.
Despite the short-term volatility, longer-term forecasts remain bullish.
Analysts point to potential targets of $95,000 to $120,000 based on technical patterns and historical cycle analysis (NFA). However, these projections hinge on Bitcoin breaking key resistance levels, particularly $67,000 and $71,500, according to those analysts.
Now, let’s talk about Ethereum!
Ethereum markets are showing interesting dynamics. While Grayscale's ETH Trust has seen over $2 billion in outflows since conversion to an ETF, overall Ethereum ETF flows turned positive on August 1st.
BlackRock's iShares Ethereum Trust saw an $89.6 million inflow, offsetting Grayscale's continued outflows.
So What Should You Do?
Keep a close eye on those key levels - $67,000 and $71,500 for Bitcoin (NFA), but always use stop-loss in trading.
Watch both Bitcoin and Ethereum ETF flows. If they keep trending positive, it could be a sign of growing institutional interest. Here you can easily track Bitcoin ETF inflows!
Remember August's track record, but don't let it paralyze you. Every cycle is different.
And reconsider how much leverage you're using.
