TL;DR

Binance will stop supporting pairs like ALPACA/BTC and QUICK/BTC later this week, advising users to adjust their trading bots to prevent losses.

The exchange added IO.NET (IO) to several services and introduced new contracts for Binance Futures Copy Trading.

The Upcoming Amendments

Binance continues to adjust its offerings “to protect users and maintain a high-quality trading market.” The process includes periodic reviews of all listed pairs, with some of them removed from the platform due to poor liquidity or other reasons.

Most recently, the company revealed it will halt trading services on the following ones: ALPACA/BTC, NFP/TUSD, MDX/BTC, QUICK/BTC, and XAI/BNB. The delisting effort will come into effect on June 14. 

“Users are strongly advised to update and/or cancel their Spot Trading Bots prior to the cessation of Spot Trading Bots services to avoid any potential losses,” the exchange warned.

Some affected cryptocurrencies, such as NFP, MDX, and XAI, slightly dipped after the announcement. Their plunge coincides with a market correction reigning in the entire cryptocurrency sector.

It is worth noting that a more severe price decline usually occurs when a leading exchange like Binance terminates all services with a certain digital asset. Such was the case in February when the popular privacy coin Monero (XMR) collapsed by over 20% after the firm withdrew its support.

Additional Binance Updates

Besides removing some trading pairs, Binance added IO.NET (IO) to Binance Simple Earn, “Buy Crypto,” and Binance Convert. The company also included it on Binance Margin and Binance Futures, while the addition to Binance Auto-Invest is scheduled for June 13. 

Last but not least, the firm introduced the following contracts: BB/USDT, ONDO/USDT, and TNSR/USDT to Binance Futures Copy Trading. 

The feature is designed for traders that may lack the time or expertise to hop on the bandwagon on their own, allowing them to automatically replicate the trades of professional or experienced individuals. However, it’s important for users to conduct their own research and understand the risks involved before participating in copy trading.

The post The Following Cryptocurrencies Are Impacted by Binance’s Latest Change appeared first on CryptoPotato.

Donald Trump is covering all his bases to pull in the crypto crowd. This time around, he has turned to championing Bitcoin mining not just in Washington, D.C., but also internationally.

In a recent meeting with industry players, the Republican presidential candidate said he aims for all remaining Bitcoin to be mined in the US, a move he believes will contribute to the country’s energy dominance.

Trump’s Crypto Crusade

Attendees of the meeting include representatives from prominent Bitcoin mining companies such as Salman Khan from Marathon Digital, S Matthew Schultz from CleanSpark, Jason Les, and Brian Morgenstern from Riot Platforms. Former Head of Mining at Galaxy and Director of Bitcoin Mining at Fidelity, Amanda Fabiano was also present in the meeting.

In his latest post on the social media platform Truth Social, Trump said,

“Bitcoin mining may be our last line of defense against a CBDC. Biden’s hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT.”

With the latest push, Trump essentially aims to boost the US share of Bitcoin’s network hash rate, which is currently at 38% according to the latest data by ChainBulletin. Trailing behind is China at 21% followed by Canada at 6.5%.

Trump Leverages Crypto Advantage Over Biden

The cryptocurrency industry is increasingly seeking to influence US politicians as it faces heightened regulatory scrutiny. While the approval of spot Bitcoin and Ethereum ETFs were significant milestones, Trump is pulling out big guns to sway voters in his favor.

In recent months, Trump has resorted to using cryptocurrency as his latest tool to target the Biden administration. The dramatic shift in opinion on the matter is now a major issue in the upcoming presidential race.

Last month, Trump promised that Bitcoin would prosper in the US under his leadership while speaking at the Libertarian National Convention in Washington, DC. He also vowed to protect the rights of crypto holders to self-custody while keeping critics like Elizabeth Warren away from their assets. He also opposed the creation of a central bank digital currency (CBDC).

The latest polls indicate that Trump is currently leading Biden by a slim margin, holding 40.9% of voter support compared to Biden’s 40%. Meanwhile, independent candidate Robert F. Kennedy Jr maintained a little over 9% of voter support.

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Polkadot has recently reached a crucial support region near its previous major swing low of $6 after facing a significant rejection.

The price is now experiencing slight fluctuations, which may lead to increased market volatility.

Technical Analysis

By Shayan

The Daily Chart

The daily chart reveals that after a notable 17% drop, Polkadot’s price has settled near the $6 support zone, aligning with its prior major swing low. This area is filled with demand, and the bearish momentum has diminished upon reaching this threshold. The cryptocurrency has entered a period of slight fluctuations with minimal volatility, indicating a struggle between buyers and sellers at this critical level.

This action suggests that the existing demand might dominate the supply in the short term. Hence, a temporary period of sideways price movement appears imminent before either side gains control and initiates the next significant move.

Source: TradingView The 4-Hour Chart

On the 4-hour chart, Polkadot’s price experienced substantial selling pressure after breaching the lower boundary of a multi-month ascending wedge pattern, accelerating the bearish momentum. Upon reaching the crucial $6 support region, heightened buying pressure emerged, leading to slight sideways movements.

Nevertheless, the price is currently forming a symmetrical triangle pattern, indicating a lack of clear momentum. As the price approaches the narrowest range of the pattern, a breakout in either direction will likely determine the next short-term move. A breakout above this pattern could potentially lead to a bullish retracement toward the $6.7 mark.

Source: TradingView Sentiment Analysis

By Shayan

With Polkadot’s price failing to establish a new daily high, traders are seeking explanations. While the price reflects a struggle between buyers and sellers, insights from the futures market sentiment could offer valuable perspectives.

The accompanying chart illustrates Polkadot’s open interest, a critical metric for assessing futures market sentiment. Typically, higher open interest values signal bullish sentiment, while excessively high values can trigger heightened volatility and potential liquidation cascades.

Recently, the open interest metric peaked, indicating an overheated futures market. However, following the recent plunge, a long-liquidation event ensued, resulting in a significant decline. Despite Polkadot’s downtrend, it’s notable that the open interest metric has followed a similar trajectory, experiencing a substantial decrease. This alignment suggests a cooling off of activity within the futures market.

Consequently, the market appears primed for the resurgence of either long or short positions, potentially triggering a fresh and decisive market movement in either direction.

Source: CoinGlass

The post This Important Polkadot Metric Drops Along the Price, What Does it Mean? (DOT Price Analysis) appeared first on CryptoPotato.

TL;DR

DexTools has added support for ShibaSwap, providing advanced DeFi analytics for the SHIB community.

The decentralized exchange allows users to trade, stake, and farm cryptocurrencies, particularly those part of the Shiba Inu ecosystem.

ShibaSwap is Now Live Here

DexTools – a popular decentralized finance (DeFi) platform that offers a wide range of tools and resources to help users navigate the ecosystem – added support for Shiba Inu’s ShibaSwap. According to the announcement on X, the development unlocks “advanced DeFi analytics” for the SHIB Army.

WOOF! @DEXToolsApp now supports #ShibaSwap. Unlock advanced #DeFi analytics for the #SHIBARMY pic.twitter.com/E25mHS6tzS

— ShibaSwapDEX (@ShibaSwapDEX) June 11, 2024

ShibaSwap is a decentralized exchange part of the Shiba Inu ecosystem. It enables users to trade cryptocurrencies, particularly SHIB, LEASH, and BONE, without relying on a central authority. 

Besides trading, participants can stake their tokens on ShibaSwap to earn rewards, while yield farming options are also available. 

Earlier this year, the decentralized exchange migrated to the layer-2 scaling solution – Shibarium – in the form of ShibaSwap 2.0. The upgrade includes new features such as improved user processes for adding and reducing liquidity, staking, and trend analysis.

“[ShibaSwap 2.0] “is the redesigned beating heart of a freshly forked Shibarium, where community tokens can flourish. This new UX is still an early Shibaswap version, with more updates in the pipeline for the product,” Shiba Inu Lead Developer Shytoshi Kusama said at the time.

How is Shibarium Doing?

The L2 blockchain solution made the headlines numerous times since its official launch in August last year due to blasting through countless milestones. At the end of May, the number of total blocks processed on the network surpassed the five million level, while prior to that total transactions exceeded 400 million.

Shibarium’s main role is to enhance the functionality and scalability of Shiba Inu’s ecosystem. It aims to reduce transaction fees, improve speed, and provide infrastructure for decentralized applications on the network. Those willing to learn more about the protocol, feel free to take a look at our dedicated video below:

The post Shiba Inu’s ShibaSwap Receives Support by This Leading DeFi Platform appeared first on CryptoPotato.

Bitcoin’s price actions have been heavily influenced by major economic developments on the US front once again, as it dropped from over $70,000 to $66,000 ahead of the US CPI data and the latest FOMC meeting.

The altcoins also faced massive volatility lately, but PEPE has emerged as the top dog with a 10% surge.

BTC Prepares for US Developments

The primary cryptocurrency had a violent end to last week as it dropped from $72,000 to under $68,600 in hours. The weekend was a lot less eventful as the asset recovered some ground and stood at just over $69,000.

The landscape took a more positive turn on Monday when bitcoin jumped by just over $70,000 once again. However, the end of the impressive spot BTC ETF streak of inflows resulted in more pain for the underlying asset, which tumbled toward $68,000 on Tuesday.

Another price decline followed suit in the past 12 hours that drove BTC to its lowest position since May 20 of $66,000. This came amid fears about the US CPI data and the next FOMC meeting, both of which should be today.

Bitcoin has been able to bounce off and currently trades above $67,000. However, more volatility is expected during the day after both those US developments take place.

For now, BTC’s market cap stands below $1.330 trillion, while its dominance over the alts is at 51.5%.

Bitcoin/Price/Chart 12.06.2024. Source: TradingView PEPE Defies Overall Trend

Most larger-cap alts have been quite sluggish over the past 24 hours after they lost a lot of value yesterday. ETH, SOL, XRP, DOGE, ADA, SHIB, AVAX, LINK, and TRX are still slightly in the red.

In contrast, TON has jumped by 3%, while KAS has added just over 4% in the past day.

PEPE has emerged as the top performer from this cohort of assets. The meme coin is up by 10% and sits above $0.000013 now.

In contrast, FET has dumped by more than 8%, followed by AR (-5%), IMX (-4%), and FIL (-4%).

The total crypto market cap has shed some more value and now sits below $2.6 trillion.

Cryptocurrency Market Overview. Source: QuantifyCrypto

The post PEPE Explodes 10% Daily, BTC Faces Massive Volatility Ahead of FOMC Meeting (Market Watch) appeared first on CryptoPotato.

TL;DR

Despite the cryptocurrency market downturn on June 12, Pepe (PEPE) and Bonk Inu (BONK) saw significant gains, both increasing by 10%.

PEPE’s daily trading volume surpassed $1.2 billion, outpacing Dogecoin (DOGE) and all other meme coins on that front.

Not Like the Rest

The cryptocurrency market keeps bleeding today (June 12), with numerous leading digital assets, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), Cardano (ADA), and more, being in the red.

However, a few meme coins detached from the ongoing correction. Pepe (PEPE) and Bonk Inu (BONK) are some of the brightest examples, registering 10% price increases on a daily scale. They are among the six largest meme coins in terms of market capitalization, with the frog-themed holding the third position and the Solana-based placed in the sixth spot.

PEPE Price, Source: CoinGecko

Apart from witnessing a substantial price spike, PEPE has flipped all meme coins in one major metric. CoinGecko’s data shows that daily trading volume involving the asset has surpassed the $1.2 billion mark. Dogecoin (DOGE) is second, with its figure currently standing at around $1.1 billion.

Numerous industry participants noted the rallies of PEPE and BONK, predicting further surges in the near future. The X user davie satoshi suggested that the frog-themed meme coin bounced off “a multi-month support line” and is now heading towards new peaks. 

For their part, Clifton Fx spotted a “falling wedge formation in a 6-hour timeframe” for BONK. This pattern is characterized by converging trend lines where both the upper and lower lines slope downward. It may develop over a period ranging from several days to a few weeks and is considered a positive signal for the price. As such, Clifton Fx assumed that “a massive bullish wave” might be on the horizon.

Consider the Risks

Despite defying the current market correction, assets like PEPE and BONK remain risky for traders due to their infamous volatility. Their prices, just as the valuation of any other meme coin, can crash by double digits in a short period of time, triggering painful financial losses for investors.

Having that said, people should enter the ecosystem after proper due diligence and invest only as much as they are ready to lose. For more important tips, please check our dedicated video below:

The post These Two Major Meme Coins Explode Despite Market Dip appeared first on CryptoPotato.

On Tuesday, June 11, U.S. spot Bitcoin exchange-traded funds (ETFs) experienced net outflows of $200 million as the market awaits key economic indicators, including CPI and FOMC data.

This followed the outflows from Monday, which ended their record streak of net inflows.

Spot Bitcoin ETFs End 19-Day Inflow Streak

According to data from Farside Investors, Grayscale’s GBTC had the largest amount of net outflows, totaling $121 million. Ark Invest’s ARKB was next in line, with $56.5 million. Other ETFs, such as Bitwise’s BITB, reported $11.7 million in outflows, while Fidelity and VanEck experienced smaller net outflows of $7.4 million and $3.8 million, respectively. Meanwhile, other funds, including BlackRock’s IBIT, saw no activity on Tuesday.

This wave of outflows ended a 19-day consecutive run of net inflows for the 11 spot Bitcoin ETFs, which concluded on Monday with outflows amounting to $64.93 million. Despite the recent downturn, these funds have accumulated a total net inflow of $15.42 billion since their introduction in January.

The recent outflows and the subsequent market reaction come at an important time, with investors awaiting key economic indicators from the U.S., including the Federal Open Market Committee (FOMC) meeting results and the Consumer Price Index (CPI) data.

The latest CPI report, expected on Wednesday, June 12, could influence the Federal Reserve’s interest rate path. According to a CNBC report, the CPI is forecasted to show a modest 0.1% increase from April, reflecting a broader disinflationary trend.

The Federal Reserve’s rate-setting meeting is unlikely to surprise the market, with a 99.4% probability that the Fed will maintain the current interest rate of 5.50%. However, a Reuters poll of economists suggests that the Fed may reduce rates twice this year, potentially starting in September.

BTC Tumbles to $66K, ProShares Files for Spot ETH ETF

Amid these developments, bitcoin’s price tumbled on Tuesday, falling from just over $70,000 to $66,000. According to CoinGecko data, Bitcoin is currently trading at $67,400, down from last week’s peak of nearly $72,000.

In other related developments, ProShares filed an S-1 registration statement for its spot Ethereum ETF on June 10, becoming the ninth such applicant to file with the SEC following the approval of eight others three weeks ago.

SEC just added the ProShares’ Ethereum ETF Filing to its website. (That is extremely quick) Instinct initially says this wont launch on day 1 with the other ETFs whenever that is but who knows. This is interesting. https://t.co/VU0bYo3Gjr pic.twitter.com/npZYnljBmY

— James Seyffart (@JSeyff) June 10, 2024

In another post, Seyffart noted that the new filing has not yet been approved by the SEC but was merely acknowledged and added to their website. He also found it intriguing that ProShares is entering the ETH ETF race so late.

The post US Spot Bitcoin ETFs See $200M Net Outflows Ahead of Major Economic Indicators appeared first on CryptoPotato.

Metaplanet, a Japanese company, announced on June 11 a purchase of 23.351 BTC worth about $1.59 million, elevating its BTC holdings to 141.07, worth $9.6 million.

This pro-bitcoin move by Metaplanet triggered a remarkable 10.8% price surge in its publicly traded shares.

Metaplanet Buys 23.351 BTC

The Tokyo-based company, which has earned the nickname Asia’s MicroStrategy, announced that following the latest purchase round, its bitcoin holdings were bought at an average price of 10.27 million Yen, an equivalent of about $65,365.

This recent acquisition follows two previous ones of about 97.85 BTC and 19.87 BTC on April 23 and May 10, respectively. Albeit owning only a tiny fraction of BTC compared to behemoths like MicroStrategy, Metaplanet now stands as the world’s 30th largest corporate holder of the asset.

Following the announcement of the new BTC acquisition, Metaplanet’s stock has jumped by about 10%. Moreover, since unveiling its bitcoin investment strategy on April 9, Metaplanet’s stock has hiked by about 368% from a low of 19 Yen to the current 89 Yen. These price hikes testify to investors’ approval of the move into crypto.

When announcing its BTC strategy, Metaplanet highlighted a few factors behind its decision. Bitcoin is a good hedge against the rapidly surging Japanese international debt burden. Japan’s debt-to-GDP ratio stood at 261 in early 2024, the highest of all developed countries.

Moreover, bitcoin can be a huge hedge against the rapid depreciation of the Yen. Since January 2021, the Yen has depreciated by about 35% against the USD, while BTC has appreciated over 200% against the Yen in the past year alone. Hence, Metaplanet wants to reduce its exposure to the weakening Yen and take advantage of the potential of BTC.

Corporates Reap Rewards as Bitcoin Surges

As the most prominent cryptocurrency dances slightly above $67K, Metaplanet’s bitcoin exposure boasts an unrealized profit of about 2.5%. These profits come even as BTC trades a few thousand below its all-time high of $73K.

Metaplanet vows to continue expanding its bitcoin reserve. Following the footsteps of MicroStrategy, Metaplanet revealed on May 13 plans to use “a wide range of capital markets instruments” as it increases its BTC reserves.

Like Metaplanet, corporate investors, including MicroStrategy, are reaping massive rewards. Saylor Tracker data reveals that the firm he co-founded has an unrealized profit of nearly $6.5 billion on its BTC exposure.

This trend extends beyond Metaplanet and MicroStrategy. Just yesterday, Canada’s DeFi Technologies added 110 BTC to its treasury, causing an 11% spike in stock prices.

The post Metaplanet’s Stock Surges by 10% After Third BTC Purchase appeared first on CryptoPotato.

Bitfarms announced on Monday that its Board of Directors has unanimously approved a shareholder rights plan, effective immediately, to preserve the integrity of its strategic alternatives review process in response to an unsolicited takeover offer from Riot Platforms Inc.

The plan, commonly known as a “poison pill,” is intended to prevent any party from gaining control of Bitfarms without providing fair value to all shareholders.

‘Poison pill’ Strategy

A poison pill strategy is a defensive measure used to prevent corporate takeovers by making a deal too expensive for the acquiring company. Bitfarms stated that it would issue new stock to existing shareholders, diluting the stake of any entity pursuing a hostile takeover.

Under the Rights Plan, one right will be issued for each common share outstanding as of June 20. These rights will become exercisable if any person or entity acquires 15% or more of Bitfarms’ outstanding common shares without complying with the plan’s “Permitted Bid” provisions.

Permitted Bids must be made to all shareholders, remain open for 105 days, and meet other specific conditions. While the Rights Plan is effective immediately, it requires shareholder ratification within six months.

Bitfarms also disclosed that the Toronto Stock Exchange (TSX) will defer its consideration of the Rights Plan until it is assured that the appropriate securities commission will not intervene. This deferral does not affect the plan’s adoption or operation, which will remain effective for a minimum of six months from June 10, the date of adoption, unless terminated earlier.

Riot’s Takeover Plans

Riot Platforms made its unsolicited proposal public in May, offering to buy Bitfarms for about $950 million. The company also expressed its intention to request a special shareholder meeting to add independent directors to Bitfarms’ board.

This came after Bitfarms rejected Riot’s takeover approach in April. Riot initially offered $2.30 per share in cash and stock for Bitfarms, approximately 20% above the firm’s share price before the offer was made.

Following an evaluation of the proposal, Bitfarms’ Special Committee of independent directors concluded that Riot’s offer significantly undervalued the company and its growth prospects.

On May 28, Riot acquired a 9.25% stake in Bitfarms, becoming the company’s largest shareholder. Riot further increased its stake by purchasing an additional 1.5 million shares on June 5, raising its total ownership to approximately 12%. By June 5, Riot beneficially owned 47,830,440 shares of Bitfarms.

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Matter Labs, the creators of ZKsync, announced on Tuesday that a community airdrop for their new ZK tokens will start next week.

The Ethereum Layer 2 service provider will distribute 3.675 billion tokens, representing 17.5% of the total token supply through airdrops, to about 695,232 eligible wallets.

ZK Airdrop Coming Next Week

In the release, the team announced that ZK will have a total supply of around 21 billion tokens. As per Matter Labs’ statement, the 17.5% airdrop makes this the most extensive token distribution from a Layer 2 network.

The report further states that 89% of the airdropped tokens will go to a group classified as users, while 11% will be apportioned to the contributors. Users are people who met the threshold of transactional activities by the snapshot date, March 24.

On the other hand, contributors, including developers, researchers, the community, individuals, and companies, actively participated in turning ZKsnyc into the L2 behemoth it is today. While users will claim tokens from next week, the contributors will have to wait for at least one more and begin making claims from June 24.

ZKSync has provided a wallet eligibility checker where individuals can check whether they qualify for the airdrops. As per the documentation, every airdropped token is immediately unlocked and can be transferred immediately without requiring a vesting period.

Interestingly, 66% of the total ZK tokens allocation is apportioned to the community, while only 33% is allocated to investors and teams. While talking about their decision to apportion more to the community, the ZKsync Association said:

“Awarding more tokens in the airdrop than to the Matter Labs team and investors is more than a symbolic decision for the community… The community will have the largest supply of liquid tokens to direct protocol governance upgrades.”

The distribution of these team tokens will start in June 2025 and continue for a four-year vesting period ending in 2028. The decision to delay the unlock dates for team tokens by one year comes a few months after another competitor, StarkWare, was forced to postpone the team unlock date following criticism online.

Real Tokens for Real People

As per the ZkSync statement, this airdrop focuses on rewarding real people while filtering out bots and sybil wallets. The network employs many criteria to spot and reward wallets from real people with real on-chain activity.

When asked whether there would be selling pressure due to a large sum of tokens being unlocked immediately on the airdrop, Matter Labs CEO Alex Gluchowski said, “People are free to dispose of their tokens.”

Alex said that they want holders of the tokens to participate in governance. If one does not want to, they can sell them.

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OKX has experienced significant outflows, with $204 million withdrawn in the past 24 hours and $630 million in the past week, surpassing the outflows of other prominent cryptocurrency exchanges.

The surge in withdrawals comes from multiple security controversies that may have undermined user confidence.

OKX’s Design Flaw

On June 9, two OKX users lost a significant amount of funds in a suspected SIM-swapping attack due to a vulnerability in the exchange’s two-factor authentication (2FA) security system, which resulted in their accounts being compromised.

Blockchain security firm SlowMist founder Yu Xian claimed that the users were sent SMS risk notifications from Hong Kong just before a new API key was established for their account verification.

This was further validated by security analysts at Dilation Effect, who identified a vulnerability in OKX’s authentication system. They found that despite users binding their accounts to Google Authenticator (GA) for higher security, OKX allows customers to switch to lower security verification methods during sensitive operations, bypassing GA verification.

When sensitive operations occur, such as disabling the phone of GA verification or changing the login password, the 24-hour withdrawal ban risk control measures are not triggered. For password changes, this measure is only triggered when logging in from a new device.

DE also said that withdrawals to whitelisted addresses do not undergo dynamic verification based on withdrawal amounts. Once an address is whitelisted, it allows unlimited withdrawals within the limit without additional verification, unlike other exchanges, which impose limits and require re-verification if exceeded.

The platform said that OKX’s security settings lack a baseline design and have made several compromises likely to enhance user experience.

OKX Initiates Investigation

Prior to this, malicious entities used artificial intelligence (AI) to craft fake videos, further compromising the exchange’s security.

In response to these incidents, OKX said that it has initiated an investigation and reached out to affected users. The exchange also urged its clients to enable two-factor authentication to enhance security. Despite these efforts, the recurring security issue has resulted in a wave of withdrawals as users seek safer alternatives.

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United States Senator Elizabeth Warren (D-MA) is calling on the Federal Reserve to lower its interest rate target on Thursday – a move most analysts believe would be a boon for crypto markets.

The senator’s request puts her in an ironic alignment with crypto investors, whose industry she has repeatedly tried to stifle with burdensome legislation and reporting requirements.

Cut Interest Rates Now, Says Senator Warren

In a letter to Fed chairman Jerome Powell on Tuesday, Warren claimed that the central bank’s current 5.5% rate is “already slowing the economy” while counterintuitively exacerbating inflation, which has remained stubbornly above 3% for the past several months.

“It is driving up housing and auto insurance costs, which are currently the main drivers of the overall inflation rate,” the letter reads, co-signed by Warren and Senator Jacky Rosen (D-NV), citing a May 31 report from Bankcreek Capital Advisors. “Reducing rates will reduce the cost of renting, buying, and building housing, lowering Americans’ single highest monthly expense.”

Lowering rates would also put the United States in line with Canada and the European Union, both of whose central banks lowered interest rates last week for the first time in years. “Sweden, Switzerland, Hungary, and the Czech Republic have already cut rates,” the senators added.

In conclusion, the senators claimed that the Fed’s current policy may force a recession that pushes thousands of workers out of their jobs.

“You have kept interest rates too high for too long. It is time to cut rates,” the letter stated.

The Odds Of A Rate Hike

The Fed’s next interest rate decision is due on Tuesday, following the CPI inflation print for May earlier in the day. Thus far, the Fed has indicated that interest rates will stay ‘higher for longer.’

“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” the Fed wrote following its last meeting in May.

It also claimed that job growth and unemployment remain low, potentially leaving room for higher rates.

According to CME FedWatch, the market is 99% sure that the Fed will keep rates flat at its June meeting, with a stronger likelihood of a cut beginning in September or November.

Nevertheless, Bitcoin bulls believe the trend is clear, and that lower rates are destined to arrive and deliver higher crypto price. In a post last week, BitMEX co-founder Arthur Hayes argued that it is now time to “go long Bitcoin and subsequently shitcoins,” in response to multiple central bank pivots.

The post Crypto Hater Elizabeth Warren Begs Fed Chairman To Cut Interest Rates appeared first on CryptoPotato.

Bitcoin futures interest tapped an all-time high in US dollar terms on Monday, reaching over 500,000 BTC worth $36.3 billion.

Analysts say the overwhelming surge in open interest relates to a clever arbitrage play levied by institutional traders between Bitcoin’s futures and spot markets.

The Cash And Carry Trade

In a Tuesday newsletter, lead Glassnode analyst James Check theorized that leveraged funds are simultaneously shorting Bitcoin on the CME while buying up coins in equal measure via the Bitcoin spot ETFs.

“These traders are holding a delta-neutral position, where they are not exposed to the price risk of Bitcoin, as they equal parts long and short,” wrote Check.

This technique is widely known as the “cash and carry trade,” which is utilized by traders whenever a large premium develops between a commodity’s futures and spot prices.

This is often the case with Bitcoin, where perpetual swap traders are currently willing to pay a 10% premium to shorts for the privilege of being long Bitcoin with leverage.

At the time of Check’s post, Bitcoin was trading at $68,400 while the December 2024 futures contract traded for $73,200. At this premium, users of the cash and carry strategy could effectively earn a 6.4% annualized yield, virtually devoid of risk.

“Unless the trader makes a serious mistake with their collateral management, it is highly unlikely these positions are at risk of a margin call or liquidation,” Check wrote.

Arbitrage Traders In Bitcoin

Since the start of the year, Bitcoin futures open interest has grown by 21% (92,000 BTC) in Bitcoin terms, and by 100% in USD terms. Much of the explosive growth occurred in the CME – a home for US-based institutional futures traders.

In Check’s view, this explains why Bitcoin has seen relatively little price volatility in recent weeks despite a resurgence of inflows worth 25,000 BTC last week. While the cash and carry trade has been available to crypto native firms for years, Bitcoin ETFs have made it plausible for a new swath of investors to take advantage of it.

Check said the net impact of the cash and carry trade on boosting or suppressing Bitcoin’s price is “little.” However, users of the strategy add depth to markets and keep spot and futures markets moving closely together.

“What we really need for the market to get moving again is a serious impulse of non-arbitrage demand, which overwhelms spot sell-side from HODLers and existing holders,” he concluded.

The post Bitcoin Open Interest Reaches All-Time High Of $36.3 Billion: Here’s Why appeared first on CryptoPotato.

Since Dogecoin’s debut in 2013, the meme coin market has seen significant growth, reaching a total market cap of $60 billion by June 2024.

In March alone, the asset class attracted a whopping $13 billion in spot trading volumes on exchanges, surpassing major blue-chip cryptocurrencies such as Ethereum and Solana. However, this sector is grappling with risks.

Red Flags Identified in Meme Coin Investments

According to CoinShares’ latest report, the heavy concentration of assets among meme coin holders highlights a notable risk of market manipulation and liquidity challenges due to the significant asset concentration among a few holders.

Larger holders or whales can significantly impact the token’s price by making large trades, causing volatility. Furthermore, if a small number of addresses hold most of the tokens, liquidity issues can arise. This is particularly true if the same addresses also control the liquidity provision on decentralized exchanges.

The high Gini coefficient of around 0.8 for these meme coins indicates a significant centralization of token holdings.

For the uninitiated, this metric assesses the distribution of tokens among different addresses. Such centralization poses risks like potential market manipulation, liquidity challenges, and increased investor caution, all of which need careful consideration when evaluating these “joke” tokens.

“The high Gini coefficient of ~0.8 indicates a substantial centralization of token holdings, posing risks such as market manipulation and liquidity issues, in addition to a degree of volatility that is intolerable for most investors.”

Investors Flock to Meme Coin Futures

While examining the relative trading volumes, CoinShares found that the influence of older meme coins, such as the OG Dogecoin and Shiba Inu, is diminishing. Meanwhile, PEPE and a flurry of new Solana meme coins have gained traction, which now collectively account for over 50% of the trading volume.

This shift reflects a recent investor preference toward newer meme coins. There are several factors at play such as growing communities, blockchain ecosystems, as well as the potential for higher returns.

Despite this, the liquidity and longer track record of established meme coins remain significant.

Correspondingly, the high futures open interest reflects the massive market footprint of these coins and suggests increased speculative trading. For instance, Dogecoin’s open interest hit a record of $1.8 billion recently, while that of PEPE surged nearly 50% to $850 million in May.

The rise in open interest, which has now exceeded $3 billion, points to increased price volatility and indicates that investors are increasingly using futures positions to manage their exposure to meme coins.

The post Meme Coins Face Dual Threat: Market Manipulation and Liquidity Issues appeared first on CryptoPotato.

Bitcoin’s price has failed to keep up its upward momentum and has yet to set a new record high above the $75K level. Given the current price action, even a deeper correction is probable.

Technical Analysis

By TradingRage

The Daily Chart

On the daily chart, the price dropped below the $68K support level a few days ago. It has dropped back inside the large descending channel, making its recent breakout fake.

The $60K support level seems like a valid target for the upcoming weeks, and the 200-day moving average trending around the $56K mark can be the next target for the worst-case scenario.

Source: TradingView The 4-Hour Chart

Looking at the 4-hour timeframe, things seem more apparent. The price has been forming an ascending channel pattern around the $70K resistance zone. Yet, the channel is getting broken to the downside, which is a classical bearish reversal indication.

Meanwhile, the RSI has entered the oversold region, pointing to a potential bear trap. Therefore, if the market quickly climbs back inside the channel, the bearish scenario would fail, and a bullish reversal could be expected.

Source: TradingView On-Chain Analysis

By TradingRage

Exchange Reserve

While Bitcoin’s bullish momentum is seemingly fading, things are going strong in the background. This chart demonstrates the BTC exchange reserve metric, which measures the amount of Bitcoin held in exchange wallets.

A decline in exchange reserve typically shows dominating demand, while increases are associated with excessive supply.

The exchange reserve has been on a steep decline recently, significantly since the price recovered from the $60K level earlier in May. While the technicals do not favor a rally, the fundamentals of Bitcoin supply and demand seem strong and could lead to a price surge in the coming months.

Source: CryptoQuant

The post BTC Bears Set Sights on $60K But Fundamentals Remain Promising (Bitcoin Price Analysis) appeared first on CryptoPotato.

The weekend dump dragged Litecoin’s price below $80 as the cryptocurrency experienced significant sell pressure.

The accumulation over the past couple of weeks failed to drive the price higher, but the latest data suggest two potentially bullish indicators for the altcoin, predicting a recovery.

Litecoin’s Active Addresses Spike

According to the popular crypto analytic platform, Santiment, the number of addresses interacting on the Litecoin network more than doubled starting from June 4th. This increase in active addresses, from an average of around 345k in May to around 704k in the past week, suggests a significant uptick in network activity and adoption, which is generally considered a positive sign.

Santiment’s insights further indicate that Litecoin’s RSI has entered into the “opportunity zone” region, implying that the asset may be oversold and potentially primed for a price rebound. Combined, the surge in active addresses alongside the favorable RSI reading could potentially signify a rally for Litecoin in the near future.

Despite this, concerns about sell pressure still exist. Another related analysis showed that around 432,070 addresses acquired a total of 6.67 million LTC, purchasing with the price range of $81-$83. This significant buying activity indicates a strong interest at this price level.

If Litecoin manages to climb back to this range, it is likely that some of these investors may try to sell their holdings in an attempt to break even. In such a scenario, a potential selling pressure could create a resistance around the $81-$83 range.

Milestones for Litecoin

Litecoin briefly emerged as the most active blockchain in the world, surpassing Bitcoin and Ethereum in terms of active addresses, suggesting a surge in usage due to cost and time efficiency last week.

On June 6th, IntoTheBlock data revealed that the number of active Litecoin addresses reached the highest level since January. The total number of Litecoin transactions hit 426k during this period of increased network activity.

While a majority of this transaction uptick involved smaller transactions under $10, there was also noticeable rise across transactions of all sizes on the network as indicated by the blockchain intelligence firm.

The post Doubling Litecoin (LTC) Addresses Could Signal Bullish Move appeared first on CryptoPotato.

TL;DR

Polkadot (DOT) is trading at around $6.37 amid a market correction, with analysts predicting a potential rise if it surpasses key resistance zones.

The Relative Strength Index (RSI) indicates the asset might be poised for an upward trend, with current levels suggesting it is not overbought.

Bears Might Get Disappointed

Polkadot’s DOT is yet another cryptocurrency heavily affected by the ongoing market correction. It currently trades at around $6.37 (per CoinGecko’s data), representing a 2% decline on a daily scale and 14% on a two-week basis.

One popular analyst who touched upon the asset’s downtrend is the X user Yakuza. He

claimed that last week’s volatility interpreted DOT’s bullish mode but argued that “the party isn’t over yet.”

The analyst outlined an important resistance level of approximately $7.90, which might be followed by a substantial ascent above $13 if overcome. 

“The bears are putting in extra hours to make sure we don’t scale these ranges before Q3. They’ll be extremely disappointed,” they added.

For their part, Block Diversity revealed entering the DOT ecosystem as an investor. The analyst hopped on the bandwagon when the asset was worth $4.90 and then increased the exposure when the asset reached $7.50 and subsequently dipped to $6.20. The X user stated that the stash will be kept for the long run:

“Messed up average buy approx $6.3. I am keeping this heavy bag for the long term. No sell in sight. PS: This is one of my biggest spot positions, followed by SKL, FIL, ZIL, ATOM, and XTZ.”

Previous Forecasts and Important On-Chain Metrics

Another analyst who envisioned a DOT rally in the event of overcoming a certain resistance zone is Michael van de Poppe. He outlined his prediction last week, envisioning a rally to as high as $17 should the asset cross the $9.30 mark. 

Crypto Thanos chipped in, too, assuming that everything between $6 and $7.50 is part of DOT’s accumulation phase. The crypto enthusiast has high hopes for the token based on certain fundamentals such as “supersession of the old model of parachain auctions,” “radical change in the use,” reduction of inflation via the burning of fees, and others.

One major on-chain indicator signaling that DOT’s value might indeed be poised for an uptick is the Relative Strength Index (RSI). This momentum oscillator helps determine whether the coin is overbought or oversold, thus showing potential reversal points.

It ranges from 0 to 100, as anything above 70 suggests that a price correction could be imminent. Data shows that RSI has been hovering below that level since May 22, currently positioned at 32.

DOT RSI, Source: Crypto Waves

 

The post Polkadot Crashes Toward $6 But Some Remain Optimistic, What’s Next? (DOT Price Prediction) appeared first on CryptoPotato.

Despite an attempt at making higher highs in early June, momentum has shifted in favour of sellers.

Key Support levels: $0.000018

Key Resistance levels: $0.000025  

1. SHIB Loses Key Level

Market participants were hoping SHIB can hold the $0.000025 level as a key support that can send the price to new highs. Unfortunately, this was short-lived. Sellers took back control of the price action and turned this level into a key resistance.

Chart by TradingView 2. Bulls on the Defensive

With the $0.000025 level lost to sellers, bulls had no option but to retreat to the next key level at $0.000018 which is currently acting as support. The price action is also bearish and has been making lower lows in the past week.

Chart by TradingView 3. Bearish Momentum Picking Up

June may have started on an optimistic note, but it soon turned around as momentum shifted bearish. This can also be seen on the weekly MACD. The histogram is making lower lows and the moving averages are in a free fall right now. Watch the key support at $0.000018 which could attempt to stop this sell-off.

Chart by TradingView

The post Why is the Shiba Inu (SHIB) Price Down Today? appeared first on CryptoPotato.

While XRP investors have been hoping for the coin’s price to rally for the past few months, the exact opposite is occurring at the moment. Yet, this shakeout might just be the final phase before a new uptrend.

Ripple Price Analysis

By TradingRage

The USDT Paired Chart

Against USDT, XRP has consolidated inside a large symmetrical triangle over the past couple of months. However, the market has fallen below the pattern recently, and the $0.5 support level has also broken down.

If the price does not quickly climb back above this level, a short-term decline toward the $0.4 support zone could be expected.

Source: TradingView The BTC Paired Chart

The XRP/BTC pair’s daily chart shows a multi-quarter downtrend. XRP has been declining against BTC since November last year when the price failed to break above the 200-day moving average.

Recently, Ripple briefly tested the 600 SAT support and is currently consolidating between it and the 800 SAT resistance zone.

While there is still no sign of a rebound, with the RSI indicator recovering from the oversold region, the market could finally move higher toward the 200-day moving average around the 1000 SAT mark. This is, of course, if the 600 SAT level holds.

Source: TradingView

The post XRP Nosedives 9% as Bears Are Already Looking at $0.4 But is it Too Soon? (Ripple Price Analysis) appeared first on CryptoPotato.

TL;DR

Despite a recent dip below $67,000, industry participants remain optimistic about Bitcoin’s potential resurgence and future gains.

Upcoming US CPI data and the FOMC meeting could significantly impact BTC’s price, with analysts expecting possible upward movement.

The Optimistic Scenarios

The price of Bitcoin (BTC) rallied to almost $72,000 earlier this month, allowing some industry participants to speculate that a new all-time high could be just around the corner. Instead of a fresh peak, though, the asset headed south in the past several hours, dipping below the $67,000 mark and hurting over-leveraged traders.

BTC Price, Source: CoinGecko

However, numerous analysts remain optimistic that the negative trend is a momentary event that might soon be replaced by another resurgence. The X user Mags claimed that BTC has been forming “a descending broadening wedge pattern,” which often leads to “an explosive move on the breakout.”

Crypto Rover—an X user with almost 800,000 followers—was even more bullish. He reminded that the US SEC has already approved spot BTC and spot ETH ETFs, predicting that “crypto is going only up from here.” The analyst went even further, setting the staggering target of $500,000 for a single BTC sometime in the near future.

Shortly after his bold forecast, Crypto Rover presented a chart showing that retail investors are yet to jump on the bandwagon, while FOMO (Fear of Missing Out) is at a relatively low level. According to him, this means that the bull market has not even started.

Earlier this month, the market intelligence platform Santiment shared a similar pattern, signaling that euphoria among traders is still far from its peak zones observed in previous bull cycles. In the context of crypto, FOMO refers to the fear of missing out on potential investment gains in a particular digital asset that has been performing quite well.

The phenomenon can cause investors to enter the ecosystem emotionally rather than rationally. People may ignore vital due diligence and investment strategies, leading to impulsive buys at high prices. This, in turn, could propel crucial losses in the event of a severe market correction.

FOMO levels were notably high in 2021, when BTC jumped to almost $70,000 for the first time in its history. However, the jolly was short-lived, with the whole industry entering a devastating bear market in 2022.

These Events Can Become Game Changers

Another analyst who delved into the matter is Michael van de Poppe. He noted BTC’s downfall after being rejected at the $71K area, expecting a further plunge toward the $64,000-$65,000 range.

On the other hand, the crypto enthusiast believes the asset will head north once again following the upcoming US CPI data and FOMC meeting.

The US Bureau of Labor Statistics is set to release the latest Consumer Price Index on June 12, while the Federal Open Market Committee meeting (which decides whether interest rates in America should be raised, lowered, or kept at the same level) is scheduled for the same date.

Both events have historically triggered enhanced volatility for the leading digital asset and the entire cryptocurrency sector.

Most experts believe that interest rates will remain unchanged at their current 5.25-5.50% benchmark. Prominent names, including Mike Novogratz (CEO of Galaxy Digital Holdings), think BTC will head north once the Fed pivots from its anti-inflationary regime. 

Such a move would make money borrowing easier, which might translate into increased interest in risk-on assets such as cryptocurrencies.

The post More Pain to Come? Check Out These Recent Bitcoin Price Predictions appeared first on CryptoPotato.