You’ve heard that trading is the only way to get ahead with crypto.

It’s not true. Below, I’ll share an easy, relatively safe way to make money without trading or gambling:

Staking.

Rewards you can cash out any time

With staking, sometimes called bonding or locking-up tokens, you leave your altcoins with the protocol in return for rewards. It’s like passive income, paid in crypto.

One of the easiest cryptos to stake is ATOM, the token of the Cosmos Hub blockchain.

***Disclaimer — I hold a small amount of ATOM to cover fees for using the blockchain. It is not an investment asset for me.***

With ATOM, you can earn $1,000 or more each month, free and clear, directly into your possession. Other crypto offer larger rewards, but this one is very easy to stake.

Two options:

Let a crypto exchange do this for you. The exchange will take a hefty cut of your rewards but you won’t need to learn how to do anything new. Look for the option at whatever crypto exchange you use. For example, under the Coinbase “Earn” menu, you can get 13% rewards for letting Coinbase stake your ATOM tokens.

Deposit your tokens into a smart contract using your crypto wallet. For ATOM, you’ll use the Keplr wallet. Once you create your wallet and deposit tokens, you will see a “stake” button. That button will deposit your tokens into the staking smart contract. Soon enough, you will start getting free crypto.

Note, Keplr doesn’t support every crypto. Also, some crypto wallets don’t support ATOM. Use CoinGecko to figure out which wallet to use for your chosen token.

Many cryptocurrencies offer staking rewards. You can see a complete list at stakingrewards.com.

 

How to get $1,000 each month

Using ATOM as our example, you would buy 20,000 ATOM tokens at today’s $4 price. At today’s 15% rate, this would generate 250 ATOM tokens each month, equivalent to $1,000.

The more tokens you start with, the more rewards you get.

If $80,000 seems steep as a starting point, put in whatever you feel comfortable with. As with trading and every other form of investing, the more you put in, the more you get out.

(And the more you might lose!)

Bonus: you don’t need to cash out your rewards.

If you choose to put your staking rewards back into the protocol, you can supercharge the growth of your investment. Each time you collect tokens, recycle them back into your account. You’ll get compound returns, like a savings account.

Some protocols do this automatically as auto-compounding. Cardano (ADA) is one example of a protocol that does this.

With ATOM, you’ll need to collect your rewards manually and then restake them.

Free crypto, not risk-free crypto

While this is free crypto, it’s not risk-free crypto. You still have to worry about:

Smart contract failure that traps your tokens.

Scam projects.

Token creation policies that generate more inflation than rewards. In other words, the token supply grows faster than your rewards, which reduces your purchasing power. ATOM is not one of those projects, but you’ll find many if you look around.

Changes in price, including a drop to zero. In that case, your rewards will be worthless (or, less than you expected). On the flipside, this can also work in your favor if the market goes up. The value of your rewards will go up, too.

For more on this topic, read a related article, Altcoins: Stake Now or Forever Hold Your Peace.

Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top Bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio and connect with him on Tealfeed.

In a thrilling turn of events for the cryptocurrency world, Grayscale Investments has unveiled its first XRP Trust in the United States, sending ripples through the market and igniting a 9% surge in XRP’s price. This development has not only captured the attention of investors but also sparked speculation about the potential for an XRP exchange-traded fund (ETF). Let’s dive into the details and explore what this could mean for the future of XRP. A Game-Changer: Introducing Grayscale’s XRP Trust

Grayscale, known for its innovative approach to digital asset management, has taken a bold step by launching the XRP Trust. This product allows accredited investors to gain exposure to XRP without the complexities of directly holding the cryptocurrency.

For those who have been hesitant to dive into the crypto waters, this trust offers a regulated and straightforward investment vehicle.Imagine being able to invest in a digital asset that could revolutionize cross-border payments without the hassle of managing wallets or private keys. That’s the allure of the XRP Trust, and it’s no wonder that investors are flocking to it. The Market Reacts: XRP’s Price Takes Off

The announcement of the XRP Trust sent shockwaves through the market, with XRP’s price soaring to approximately $0.5603. This surge reflects a growing optimism among investors who see the potential for institutional interest in XRP. In just a matter of days, XRP has experienced a 4.71% increase, and the excitement doesn’t seem to be waning.

The buzz surrounding the trust has created a sense of urgency among investors eager to capitalize on this new opportunity. As more people learn about the trust and its potential, we might see even more upward momentum in XRP’s price. The ETF Dream: Could an XRP ETF Be on the Horizon?

One of the most tantalizing aspects of Grayscale’s XRP Trust is its potential to evolve into an ETF. Grayscale has laid out a four-stage product life-cycle plan, and the prospect of an XRP ETF has many in the crypto community buzzing. An ETF would allow everyday investors to access XRP in a way that is familiar and regulated, potentially opening the floodgates for a new wave of investment.

However, the path to an ETF is fraught with challenges. Regulatory approval from the SEC is no small feat, especially given the ongoing legal battles between Ripple Labs and the SEC. Yet, if the stars align, the dream of an XRP ETF could become a reality, further legitimizing XRP as a mainstream investment. Navigating the Legal Landscape

The backdrop of the XRP Trust’s launch is the ongoing saga of Ripple’s legal struggles with the SEC. Recent court rulings have sparked hope among investors, suggesting that a favorable outcome could pave the way for greater acceptance of XRP in the financial landscape. The resolution of these legal issues is critical, as it could determine the future trajectory of XRP and its potential as a regulated investment vehicle.

Investor Sentiment: A Growing Wave of Confidence

As the market continues to react positively to the news, investor sentiment is shifting. The excitement surrounding the XRP Trust is palpable, and many are eager to see how this development will influence the broader cryptocurrency market. With institutional investment on the rise, XRP could become a key player in the digital asset space.

Conclusion: The Future Looks Bright for XRP

The launch of Grayscale’s XRP Trust represents a significant milestone for the XRP ecosystem and the cryptocurrency market as a whole. As we watch this story unfold, the potential for an XRP ETF and increased institutional interest could reshape the future of digital assets.For investors, this is an exhilarating time to be involved in the world of cryptocurrencies. With the promise of innovation and the potential for significant returns, the stage is set for XRP to take center stage. Buckle up, because the journey is just beginning, and the future looks brighter than ever for XRP!

As the cryptocurrency landscape continues to evolve, Bitcoin is poised to flourish in the long run, irrespective of the November 2024 U.S. presidential election outcomes. This sentiment resonates with many cryptocurrency investors as interest sparked by former President Donald Trump’s supportive crypto stance begins to fade.

 

Bitcoin’s resilience amid political uncertainty

Steven Lubka, head of private clients and family offices at Swan Bitcoin, expressed, “Do I believe we will reach six figures by 2025? Almost certainly. Do I think we will achieve six figures no matter who emerges victorious? Almost certainly. ” According to Lubka, Bitcoin’s trajectory has been closely tied to the fiscal and monetary conditions of countries like the U.S., indicating that the election results will not substantially shift this reality.

James Davies, co-founder of the Crypto Valley exchange, downplayed the fears surrounding Bitcoin’s future. “Some of our communities have become echo chambers, convinced that disaster will strike if one party wins over the other. The market is resilient, not solely focused on the U.S., and has not reacted unfavorably to significant events from either political faction.”  He emphasized that the focus should be on opportunities and regulations for U.S.-based users rather than the price of a global commodity.

 

Price fluctuations and macroeconomic trends

The recent institutional adoption of Bitcoin, underscored by the launch of U.S. Bitcoin exchange-traded funds, has further bolstered this optimistic outlook.  Tyr Ross, president of 401 Financial, stated, “The election results will have minimal influence on Bitcoin’s performance over the next 12 to 18 months.”  He noted that many firms are still navigating exchange-traded fund access, there are anticipated rate cuts, and retail trading at centralized custodians is currently low.

Throughout most of 2024, Bitcoin has fluctuated between $55,000 and $70,000, following a peak of over $73,000 in March. Investors widely expect this price stagnation to endure until the U.S. electorate selects the next president.  However, recent election news seems to have less impact on Bitcoin’s valuation, which appears to be more influenced by broader macroeconomic trends.

 

Potential impact of election outcomes

In recent weeks, there was speculation that the election could act as a significant trigger for Bitcoin, with many suggesting that a second Trump presidency would benefit the cryptocurrency sector.  Analysts at Bernstein indicated that investing in Bitcoin might be the best strategy in light of a potential Trump victory, predicting the cryptocurrency could soar to a new all-time high of around $80,000. Conversely, they suggested a Harris win could see Bitcoin drop toward $40,000.

Lubka remarked, “If Trump wins in November, there may be an immediate surge. If he wins, some immediate sell-off would not surprise me at all. However, over the medium term, I don’t believe that will be the prevailing trend.”  While Vice President Harris has not publicly articulated her stance on cryptocurrency, some industry participants are concerned that she may hold unfavorable views akin to those of Senator Elizabeth Warren and U.S. Securities and Exchange Commission Chairperson, Gary Gensler, which are perceived to hinder crypto adoption.

Despite worries stemming from the Biden administration’s approach to Bitcoin, Lubka reminded investors that “Bitcoin has performed exceptionally well” during this period. He highlighted that it has been one of the top assets globally, even in an environment where it faced significant opposition. Historically, governments have tended to adopt at least a mildly hostile stance towards Bitcoin, yet it has thrived.

 

In a recent development, BlackRock, the world’s largest asset manager, has predicted that the Federal Reserve will maintain higher interest rates for a more extended period than previously anticipated. This forecast has significant implications for the cryptocurrency market, particularly Bitcoin, as it suggests a deepening correlation between Bitcoin and traditional financial markets.

Blackrock’s Stance on Interest Rates and Bitcoin

BlackRock’s CEO, Larry Fink, has acknowledged that the firm’s caution regarding potential market fluctuations and its prediction of a slower-than-anticipated trajectory for interest rate reductions by the Federal Reserve have sparked discussions about the future of Bitcoin. Investor Brock Pierce, in a conversation with Arnold Schwarzenegger of Altcoin Daily, concurred with BlackRock’s perspective, stating, “We’re going to seeing cut, and as there high yields high interest other asset, Bitcoin less appealing.

“Pierce highlighted that Bitcoin’s connection to the overall market remains robust, despite initial optimism that it would act as a safeguard against economic instability. He emphasised that a decrease in interest rates would make Bitcoin more enticing, but noted that Bitcoin has not yet achieved independence as a non-correlated asset.

Impact on Bitcoin’s Price and Adoption

The potential for extended rate hikes by the Federal Reserve has already had an impact on Bitcoin’s price. On September 11, 2024, Bitcoin was trading above $63,000, marking a significant uptick of over 15% compared to the previous week’s low. This resurgence in Bitcoin’s value can be partly attributed to the growing likelihood of a victory in the upcoming election by former President Donald Trump, which has injected fresh momentum into the cryptocurrency market.

However, BlackRock’s stance suggests that this bullish trend may be short-lived if the Federal Reserve maintains higher interest rates for an extended period. As investors seek higher yields in other assets, Bitcoin’s appeal may diminish, leading to potential price volatility.

Institutional Adoption and Spot ETFs

Despite the potential challenges posed by extended rate hikes, BlackRock has been actively involved in the cryptocurrency sector, which Pierce believes has a significant positive effect on the industry. The investment giant’s support adds credibility to Bitcoin and helps to alleviate doubts about its prospects.

BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a standout performer in the realm of spot bitcoin exchange-traded funds (ETFs), amassing substantial net inflows in recent quarters. The growing investor interest in such products underscores the increasing acceptance of Bitcoin within institutional investment circles.

As BlackRock forecasts extended rate hikes by the Federal Reserve, the correlation between Bitcoin and traditional financial markets deepens. This development poses challenges for Bitcoin’s price stability and adoption, as investors may seek higher yields in other assets. However, BlackRock’s involvement in the cryptocurrency sector and the growth of spot Bitcoin ETFs suggest that institutional interest in digital assets remains strong. Investors should closely monitor the Federal Reserve’s actions and their impact on Bitcoin’s performance in the coming months.

 

 

Disclaimer

Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.

In the ever-evolving world of cryptocurrency, few stories capture the imagination quite like that of the Ethereum Foundation. Once boasting a staggering $1.6 billion in its main wallet, the foundation now finds itself navigating the choppy waters of the crypto market with a balance of approximately $650 million as of September 9, 2024. What does this mean for the future of Ethereum, and how did we get here? Let’s dive into this financial saga.

From Billions to Millions: A Dramatic Shift

Imagine waking up one day to find that your bank account has taken a nosedive from $1.6 billion to $650 million. That’s the reality for the Ethereum Foundation, which has seen its treasury shrink significantly over the past couple of years. The decline can be attributed to a combination of market volatility and the foundation’s strategic spending to support Ethereum’s ongoing development and community initiatives.Ethereum, the second-largest cryptocurrency by market capitalization, has been on a wild ride. After peaking at around $3,283 earlier this year, ETH has since dropped by approximately 30%, now trading at about $2,260. This rollercoaster ride has not only affected investors but has also put pressure on the foundation’s finances.

The Spending Strategy: A Balancing Act

Despite the downturn, the Ethereum Foundation is not panicking. With an annual expenditure of about $100 million, the foundation has crafted a financial strategy designed to weather the storm. Justin Drake, a key researcher at the foundation, has assured stakeholders that they have a fiat buffer in place, providing a safety net for several years of operational costs.Vitalik Buterin, the co-founder of Ethereum, has also been vocal about the foundation’s budgeting approach. He advocates for a sustainable model that allocates 15% of the remaining funds for yearly spending. This prudent strategy allows the foundation to continue its vital work in developing the Ethereum ecosystem while maintaining a watchful eye on its financial health.

Market Sentiment: Fear and Opportunity

The current market landscape is a mix of fear and opportunity. With ETH recently experiencing a drop of over 10% in just one week, the sentiment among investors has shifted into the “fear” zone, according to the fear and greed index. However, this environment can also present unique opportunities for those looking to invest in the future of Ethereum.In a strategic move, the foundation recently transferred 35,000 ETH, valued at approximately $94 million, to the Kraken exchange. This decision highlights their commitment to maintaining liquidity and ensuring that they can meet operational needs, even in a challenging market.

Looking Ahead: A Bright Future for Ethereum?

As the Ethereum Foundation prepares to release an updated financial report, all eyes will be on its next steps. Will they adapt their strategy to account for the changing market conditions? How will they continue to support the Ethereum community and its ambitious roadmap?The journey of the Ethereum Foundation is far from over. With a dedicated team, a clear vision, and a commitment to innovation, they are poised to navigate the complexities of the cryptocurrency landscape. For investors and enthusiasts alike, the next chapter in the Ethereum story promises to be as thrilling as the last.In conclusion, while the Ethereum Foundation’s wallet may have seen a significant reduction, the organization remains resilient and focused on its mission. As the cryptocurrency market continues to evolve, so too will the strategies and innovations that drive the Ethereum ecosystem forward. Buckle up—it’s going to be an exciting ride!

The cryptocurrency market is navigating a challenging period as Bitcoin (BTC) and Ethereum (ETH) prices have declined significantly in recent days. As of September 6, Bitcoin’s price fell below $55,500, marking a 24-hour drop of nearly 3%, while Ether followed suit with a 3.2% decline.

Market Cap and Trading Volume

The global cryptocurrency market cap has dipped below the $2 trillion mark, currently standing at approximately $1.95 trillion. Bitcoin’s market cap has dropped to $1.11 trillion, with a dominance of 56.18% in the overall market. Trading volumes for Bitcoin have surged to $32.9 billion, indicating increased activity despite the price decline.

Emerging Projects and Trends

Despite the current market challenges, several new cryptocurrencies are gaining attention for their potential:

EarthMeta: Focuses on virtual real estate in the metaverse.

BlockDAG: Utilizes a Directed Acyclic Graph (DAG) for scalable blockchain transactions.

Poodlana: A meme-based DeFi project with staking and NFT integration.

Jetbolt: Aims to enhance transaction speeds in the DeFi space.

The intersection of memes and DeFi continues to attract interest, as seen with projects like Pepe Unchained. However, investors are advised to exercise caution due to the inherent risks in this sector.

Top Performing Cryptocurrencies on September 6, 2024

On September 6, 2024, the cryptocurrency market experienced notable fluctuations, with several coins showing varying performance. Here are the top-performing cryptocurrencies based on the latest data:

Toncoin (TON)

Price: $4.80

24-hour Gain: 4.24%

Helium (HNT)

Price: $8.26

24-hour Gain: 1.54%

Notcoin (NOT)

Price: $0.007558

24-hour Gain: 1.23%

Tether Gold (XAUt)

Price: $2,518.51

24-hour Gain: 0.55%

UNUS SED LEO (LEO)

Price: $5.61

24-hour Gain: 0.31%

Market Overview

The global cryptocurrency market cap stood at approximately $1.95 trillion, reflecting a 24-hour dip of 2.58%.

Bitcoin (BTC) was trading at $55,496.65, down 2.98% over the past 24 hours.

Ethereum (ETH) was priced at $2,336.13, marking a 3.20% loss.

Notable Losers

In contrast, some cryptocurrencies experienced significant declines:

MultiversX (EGLD)

Price: $24.54

24-hour Loss: 8.47%

Bonk (BONK)

Price: $0.0000156

24-hour Loss: 7.54%

Bittensor (TAO)

Price: $234.81

24-hour Loss: 6.86%

Starknet (STRK)

Price: $0.3825

24-hour Loss: 6.63%

ORDI (ORDI)

Price: $28.22

24-hour Loss: 6.63%

Outlook and Investor Strategies

While the current market conditions may be concerning, many analysts believe that the October to December quarter typically presents better opportunities for cryptocurrencies. Investors are encouraged to consider cost-averaging their purchases during this consolidation phase, particularly in promising assets. As the landscape continues to evolve, staying informed and conducting thorough research will be crucial for investors navigating the crypto market. The upcoming economic reports will provide valuable insights into the direction of the market and the potential impact of Federal Reserve decisions.

Donald Trump has pledged to transform America into the “crypto capital of the planet” if he regains the presidency, a move that could yield significant personal benefits for him. As part of his campaign, he has launched a new cryptocurrency trading venture called World Liberty Financial, which he actively promotes on the same social media platforms used for his political messaging. This initiative is backed by his two eldest sons, Donald Jr. and Eric, along with daughter-in-law Lara Trump, who is also co-chair of the Republican National Committee.

Intertwining Business and Politics

Trump has a history of merging his business interests with his political ambitions, previously promoting his hotels and golf courses while in office. His latest venture could see a substantial increase in value if he is elected and gains the authority to implement legislative and regulatory changes favored by crypto advocates. Jordan Libowitz, a spokesperson for Citizens for Responsibility and Ethics in Washington, expressed concern, stating, “Taking a pro-crypto stance is not inherently troubling; however, the problematic aspect arises from doing so while establishing a means to benefit personally from it.” He emphasized that the success of this venture could be closely tied to U.S. economic policy.

Details of World Liberty Financial

World Liberty Financial is expected to function as a borrowing and lending service, similar to the recently compromised Dough Finance, which was developed by a team associated with World Liberty Financial. Many details about this new platform, including the extent of Trump’s and his family’s financial involvement, remain largely undisclosed. Following a recent post by Lara Trump discussing their goals at World Liberty, Eric Trump mentioned that both Lara and his sister Tiffany had been victims of a hacking incident, raising further questions about the security of their operations.

Shift in Stance on Cryptocurrency

During his presidency, Trump was openly critical of cryptocurrencies, famously tweeting in 2019 that they could facilitate illegal activities. However, he has since adopted a more favorable view, announcing in May that his campaign would accept cryptocurrency donations to build a “crypto army” ahead of Election Day. He also attended a Bitcoin conference in Nashville, reiterating his commitment to making the U.S. the “crypto capital of the planet” and proposing the establishment of a Bitcoin “strategic reserve” using government-held currency.

Economic Policy Implications

If re-elected, Trump has indicated plans to exert greater influence over monetary policy, suggesting he would encourage the Federal Reserve to lower interest rates. He is also advocating for decentralized finance (DeFi), which utilizes public blockchain technology to disrupt traditional financial systems. Additionally, Trump has proposed subsidizing Bitcoin mining to enhance energy production and has committed to opposing the creation of a Central Bank Digital Currency (CBDC) managed by the Federal Reserve.

Trump’s engagement with the cryptocurrency sector may provide a new avenue to connect with younger male voters, particularly by collaborating with conservative influencers. This strategy resonates with his base, who are often skeptical of government intervention in global markets. As the 2024 election approaches, the implications of Trump’s business dealings in the crypto space will likely be a focal point of discussion, especially among watchdog organizations and voters concerned about the integrity of political leadership.

Bitcoin has recently experienced significant price dips, surrendering to bearish market conditions amid widespread ETF outflows and a tumultuous U.S. stock market. As the cryptocurrency struggles to maintain its footing, investors are left grappling with the implications of these developments.

Current Market Conditions

As of early September 2024, Bitcoin’s price has fallen below critical support levels, dipping to around $55,700. This marks a notable decline from previous highs and raises concerns about the potential for further drops, with analysts suggesting that the next support level could be as low as $51,000. The recent downturn follows a broader trend in the cryptocurrency market, where Bitcoin has seen a nearly 25% decline over the past week, the steepest drop since the FTX collapse in late 2022. The decline is largely attributed to a significant sell-off in the U.S. stock market, where over $1 trillion was wiped off the S&P 500 in just 24 hours. This turmoil has had a cascading effect on cryptocurrencies, leading investors to offload riskier assets like Bitcoin. The correlation between the stock market and Bitcoin’s performance underscores the influence of macroeconomic factors on the cryptocurrency market.

ETF Outflows and Investor Sentiment

Adding to the bearish sentiment, there have been notable outflows from Bitcoin ETFs, further indicating a lack of confidence among investors. This trend has contributed to the downward pressure on Bitcoin’s price, as institutional investors appear to be retreating amidst the current market volatility. Despite the bearish conditions, some analysts argue that the current dip could present a buying opportunity for strategic investors. They suggest that the market is due for a correction, and those willing to hold through the downturn may benefit in the long run as confidence returns to the market.

 

Future Outlook

Looking ahead, the question remains whether Bitcoin can rebound from its current lows. While some analysts point to potential bullish patterns forming on the charts, such as an inverted head and shoulders pattern, the overall sentiment remains cautious. The immediate future will depend heavily on external factors, including the performance of the U.S. stock market and broader economic conditions . The upcoming U.S. presidential election also looms large, with potential implications for Bitcoin regulation and adoption. Former President Donald Trump’s proposal to create a U.S. strategic Bitcoin reserve if re-elected could significantly impact market dynamics and investor sentiment . In conclusion, Bitcoin’s recent dips reflect a confluence of bearish market conditions, ETF outflows, and macroeconomic uncertainties. While some see this as a moment to buy, the path forward remains fraught with challenges. Investors will need to stay vigilant and consider both the risks and opportunities presented by the current market landscape.

In a remarkable display of confidence in the cryptocurrency market, a single whale address has accumulated a staggering 2,000 Bitcoin (BTC) worth approximately $117 million in just four days. This whale, who previously sold $467 million worth of Bitcoin in July, has now withdrawn a total of 2,000 BTC from the Binance exchange at an average price of $58,525.

The whale’s wallet now holds an impressive 8,559 Bitcoins, valued at around $490 million. This move comes at a time when other top anonymous wallets and whales have remained relatively inactive.

 

Whales Buying While Retail Sells

The whale’s accumulation of Bitcoin stands in stark contrast to the behaviour or of smaller traders. Data from analytics platform Santiment shows that in August, wallets with 10-10,000 BTC have collectively added 133,300 more coins while smaller traders continue to sell their holdings. This trend is further evidenced by the increase in Bitcoin whale wallets holding at least 100 BTC. In just one month, the number of such wallets has reached a 17-month high of 16,120, despite disappointing prices for retail traders.

Institutional Confidence Remains Strong

The whale’s actions are not an isolated incident. Cypherpunk and CEO/Co-founder of Blockstream, Adam Back, reports that whales have been buying Bitcoin at impressive rates since the recent dip below $58,000, with an estimated 450 BTC being purchased every minute. This trend is also reflected in the ETF industry, where a significant portion of new launches this year involve crypto. Remarkably, 13 out of the top 25 ETF launches in 2024 are related to Bitcoin or Ethereum, with the top four being spot Bitcoin ETFs, attracting a total of $35.1 billion in year-to-date flows.

Potential Impact on Bitcoin Price

The increased net outflows of Bitcoin from exchanges, with over 16,500 BTC worth more than $1.01 billion leaving in the past seven days, suggest potential accumulation by investors. This movement shows that the accumulation phase might have started, despite bearish expectations for September.While September has usually been bearish for the BTC price, data shows that October’s monthly gains over the past 11 years have been impressive. Bitcoin had a bearish start to this month but regained 2.1% over the past 24 hours, trading at $58,900 with a market cap of $1.16 trillion.

In conclusion, the actions of this whale, along with the broader trend of institutional investment and whale accumulation, suggest a potential shift in the cryptocurrency market. As retail traders continue to sell, whales and institutions are seizing the opportunity to accumulate Bitcoin at discounted prices, potentially setting the stage for a future price surge.

The once-thriving meme coin market is experiencing a significant downturn, with popular tokens like BOME, WIF, and SHIB facing sharp declines in investor interest. This shift reflects a broader trend in the cryptocurrency space, where macroeconomic factors and changing market dynamics are reshaping the landscape. Solana Meme Coins Hit Hard

Solana-based meme coins have been particularly affected by the recent slump. BOME, a prominent token in this category, has plummeted nearly 97% from its 52-week high, highlighting the extreme volatility that has plagued the meme coin market. WIF, or Wifecoin, has also seen a 23% decline over the past week, contributing to the overall decline in the sector.  Even Shiba Inu (SHIB), a long-standing favorite among meme coin enthusiasts, has not been spared, dropping 11% in the same timeframe. 

Broader Market Challenges

The meme coin market’s woes are not isolated incidents but rather reflections of broader challenges facing the cryptocurrency industry. The overall market has experienced an average decline of 63.73% from peak values, with many investors losing interest amid concerns over macroeconomic factors and declining trading volumes. The Federal Reserve’s policies, which have led to reduced investor confidence, have played a significant role in the market’s downturn.  As a result, the global cryptocurrency market capitalization currently stands at $2.02 trillion, a 1.39% decline from the previous week.

Shifting Investor Sentiment

The decline in meme coin interest is not solely about falling prices; it also signals a shift in investor sentiment. Traditional meme coins like SHIB and Solana-based projects are facing competition from new ICOs that offer innovative features, such as Play2Earn models and multi-chain utility. Projects like Crypto All-Stars and The Meme Games are capturing attention by providing more than just speculative opportunities, challenging the dominance of established meme coins.  The Meme Games, for instance, combines meme coins with a Play2Earn gaming experience, allowing users to race their favourite meme characters for crypto rewards.

The decline in investor interest for BOME, WIF, and SHIB reflects a significant shift in the meme coin landscape. As the market matures, investors are becoming more discerning, seeking projects that offer real utility and innovative features. While traditional meme coins still have a loyal following, their future may depend on adapting to the changing market dynamics and finding new ways to engage investors.

Disclaimer

Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.

As of August 30, 2024, Cardano’s price is hovering around $0.36, with a 24-hour trading volume of approximately $362.8 million. This marks a slight increase of 0.82% from the previous day, but the overall sentiment remains cautious. The market capitalization of Cardano stands at about $16.03 billion, reflecting its position as one of the top cryptocurrencies, currently ranked 12th by market cap.

However, the broader market conditions have not been favorable for ADA. Over the past week, the cryptocurrency has struggled to maintain upward momentum, failing to capitalize on potential breakout opportunities. This stagnation has resulted in a 32% decline in transaction volume among large wallet holders, or “whales,” dropping from $7.81 billion to $5.26 million. This decrease indicates a waning interest from influential market participants, further contributing to the bearish outlook surrounding ADA.

Future Projections and Investor Sentiment

The failure to break out of the descending wedge pattern raises concerns about ADA’s short-term prospects. Analysts suggest that if ADA cannot reclaim the $0.40 support level, it may face further declines, potentially dropping to $0.31. Such a movement would intensify the existing bearish trend and could lead to a more significant drawdown in price.

Conversely, if ADA manages to bounce back from the $0.31 level and successfully breaks out of the wedge, it could target a price of $0.53, representing a 47% potential rally from current levels. However, this optimistic scenario hinges on a reversal in investor sentiment and renewed activity from crypto whales, both of which are currently lacking.

In summary, while Cardano has the potential for recovery, its immediate future appears uncertain. The combination of declining whale activity and a failure to break out of key price levels could keep ADA under pressure in the coming weeks. Investors will need to monitor these dynamics closely to gauge the cryptocurrency’s next moves.

The cryptocurrency market is currently experiencing significant turbulence, with Ethereum (ETH), Bitcoin (BTC), and Shiba Inu (SHIB) all facing bearish trends. As these digital assets struggle to maintain their positions, traders and investors are reevaluating their strategies in light of recent price movements and market sentiment.

Ethereum (ETH) Facing Bearish Reversal as Price Breaks Key Support

Ethereum’s recent steep drop has dashed hopes for a long-term upswing, with the price breaking below a crucial support level of $2,500. The breakdown has forced the asset to trade at around $2,400, a dangerously low level for the second-largest cryptocurrency by market cap. The break below the ascending trendline is especially concerning, as it indicates that the recent rally is coming to an end. Ethereum may find it difficult to regain its footing shortly, with the trendline now functioning as resistance. The declining trading volume accompanying this decline suggests less buying interest, which could worsen the current downtrend. With the market sentiment shifting, there is a growing chance that Ethereum will see a longer bearish phase.

Bitcoin (BTC) Crashes to 200 EMA, Potential Trend Reversal

Bitcoin’s price has dropped sharply, returning to the 200-day Exponential Moving Average (EMA). This move has shaken the confidence of traders expecting a long-term rally, indicating an impending price correction and possible trend reversal. The $200 million market wipeout has caused investors to become concerned about Bitcoin’s short-term viability. The fact that Bitcoin has once again failed to reach the $70,000 threshold during this market cycle is even more disheartening for enthusiasts. If Bitcoin breaks below the 200 EMA, a longer downtrend may begin, potentially retesting lower support levels near $55,000 or even $50,000.  The market may be changing from a bullish to a bearish phase if it returns to the 200 EMA.

Shiba Inu (SHIB) Retraces, Bearish Reversal Looming

Shiba Inu, the once-dominant meme coin, is now at a critical juncture after a failed attempt at a price reversal. SHIB’s inability to break above the 50-day Exponential Moving Average (EMA), a critical resistance level, suggests a lack of buying support. The failure to break through the 50 EMA reflects the overall sentiment regarding Shiba Inu, going beyond a simple technical setback. The decreasing trading volume highlights the lack of confidence in SHIB’s recovery. Given the current market conditions, there is an increasing chance that Shiba Inu will experience a significant reversal. Selling pressure from investors looking to reduce their losses could intensify if the asset stays weak below the 50 EMA, potentially triggering a downward spiral.

In conclusion, the cryptocurrency market is facing a potential bearish reversal, with Ethereum, Bitcoin, and Shiba Inu all showing signs of weakness. Traders and investors should closely monitor these developments as they prepare for possible further downside in the near future.

 

 

Disclaimer

Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.

Since its creation, people have searched for a “use case” for Bitcoin.

It seems the world has no use for money that you can send to anybody, anywhere, anytime, in any amount, without restriction, without revealing your sensitive personal information, without putting your property in another person’s control, with certainty that your transaction will go through and confirmation that every payment you receive is authentic and valid.

Nor do they care about having a way to conduct finance that works in all conditions, even when counterparties fail, without political violence, military coercion, government manipulation, or sovereign debt.

Fine.

Did they ever stop to think about what would happen after nuclear war destroys the financial and monetary infrastructure of legacy governments?

I did!

While your government’s currency won’t work after the nuclear holocaust (assuming your government is even around), Bitcoin will.

It’s a computer protocol. Nuclear war can’t destroy it.

In fact, once people recover the capacity to use computers, mint coins, and print paper, they might find it easier to adopt Bitcoin rather than rebuild their old financial systems.

(In our hypothetical scenario, those “old” financial systems refer to our current financial systems.)

Today’s financial systems cost billions of dollars and require extensive experience and operational savvy. They need regulators, courts, lawyers, compliance departments, clearinghouses, accountants, settlement companies, brokers, traders, power companies, cybersecurity experts, and a whole legal and regulatory apparatus.

With Bitcoin, you just need to plug in a device.

Which is easier to do after a nuclear war?

Available as a collectible NFT on Mirror.

Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top Bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio and connect with him on Tealfeed.

In a bold move to reduce its reliance on the U.S. dollar and circumvent the impact of Western sanctions, Russia is set to launch two state-backed cryptocurrency exchanges in Moscow and St. Petersburg. This strategic initiative aims to integrate digital currencies into Russia’s trade settlement processes and promote the use of local currencies like the Russian ruble and Chinese yuan over the U.S. dollar.

Introduction of a Yuan-Pegged Stablecoin

To further strengthen its position within the BRICS alliance, Russia is also introducing a new stablecoin pegged directly to the Chinese yuan. By maintaining a 1:1 ratio with the yuan, this stablecoin is designed to eliminate price volatility and offer a secure means for conducting transactions without the risk of fluctuating currency values. This innovation is poised to significantly undermine the dominance of the U.S. dollar in international trade, as it will allow Russia and its partners to bypass the dollar entirely.

Reasons why they are launching State-Backed Crypto Exchanges and Stablecoins

The move comes as Russia faces increasing challenges in paying overseas suppliers and receiving payments for exported goods due to the tighter embargo imposed by the United States in June. The expansion of U.S. sanctions against foreign banks operating in Russia has exacerbated these payment difficulties for local companies dealing with international sanctions. To alleviate these challenges, Russia has recently passed legislation to legalize cryptocurrency mining and create a framework for testing digital tokens in cross-border payments, all under the supervision of the Central Bank. President Vladimir Putin signed these bills into law on August 8, clearing the way for the upcoming trials.

Upcoming Trials and Potential Impact

The trials, scheduled to begin on September 1, will focus on swapping between rubles and cryptocurrencies, offering a potential lifeline to companies struggling with cross-border payments. The National Payment Card System (NPCS), established in 2014 and known for operating the Mir cards and instant interbank payment systems, has been selected by the central bank to manage these tests due to its existing infrastructure and regulatory framework. If successful, the trials could pave the way for the Moscow Exchange and the St. Petersburg Currency Exchange to launch official cryptocurrency platforms as early as next year.  Any existing digital asset will be eligible for use in the tests, which could significantly broaden Russia’s scope of electronic financial transactions.

If successful, the trials could pave the way for the Moscow Exchange and the St. Petersburg Currency Exchange to launch official cryptocurrency platforms as early as next year.  Any existing digital asset will be eligible for use in the tests, which could significantly broaden Russia’s scope of electronic financial transactions.

Shifting Global Financial Dynamics

The introduction of a yuan-linked stablecoin could diminish the U.S. dollar’s role in international trade and increase the prominence of the yuan. This aligns with China’s goal of positioning the yuan as a global currency, with Russia playing a key role in this shift.

What Does This Mean for the Future of Global Finance?

As Russia and other BRICS nations continue to challenge the U.S. dollar’s dominance, we could be witnessing the dawn of a new era in international trade and finance. Could this move inspire other countries to explore digital currencies and shift away from the traditional financial systems? How will the global market react to a potential decrease in the dollar’s influence? Stay tuned as the world watches these developments unfold, which could reshape the future of global economics.

Bitcoin is currently experiencing significant market fluctuations, with the cryptocurrency trading around $63,840 as of August 26, 2024. This follows a brief surge to $64,800 earlier in the day during the Asian trading session. Analysts are cautioning that this upward movement may not be sustainable, raising concerns about a potential “Bart Simpson” price pattern, which could indicate a reversal in Bitcoin’s recent gains.

The “Bart Simpson” pattern is characterized by a sharp price increase followed by a consolidation phase and then a sudden drop, resembling the shape of the cartoon character’s head. This pattern can be indicative of market manipulation or speculative trading, often driven by large players known as “whales.” The reverse pattern, known as the bullish Bart, occurs when there is a sharp decline followed by a recovery, suggesting renewed buying interest

Current Market Situation

The recent price action was influenced by positive signals from the U.S. Federal Reserve regarding possible interest rate reductions in September, marking the first such move since 2019. Bitcoin’s price initially climbed past the $64,000 mark, reaching its highest value in two weeks. However, the market has shown signs of volatility, with trader CrypNuevo highlighting that liquidity issues could lead to a decline towards critical support levels around $62,200, which could trigger the liquidation of recent long positions.

Analyst Perspectives

Market analysts are divided on the potential outcomes for Bitcoin. Some, like Crypto Chase, emphasize the need for caution, suggesting that retests around $62,000 may not be reliable indicators of a breakout. They recommend monitoring for a breakout above $65,700 or observing price reactions if Bitcoin revisits the $60,000-$61,000 range. Conversely, Rekt Capital offers a more optimistic view, suggesting that Bitcoin may be aligning with historical price movements following halving events, which could lead to further gains. Analysts are closely watching the $69,000 resistance level, as a successful breakout here could signal a more sustained upward trend. As Bitcoin navigates this volatile market landscape, traders are advised to remain vigilant. The potential for a “Bart Simpson” price move underscores the importance of risk management strategies, particularly for short-term traders. With the cryptocurrency market still susceptible to manipulation, the next few days will be crucial in determining whether Bitcoin can maintain its recent gains or if a significant correction is on the horizon.

 

Disclaimer

Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.

 

The anticipation of a Federal Reserve rate cut has sparked renewed interest in Bitcoin and related stocks. As the Fed signals a potential easing of monetary policy, investors are closely watching how this will impact the cryptocurrency market and associated equities.

Current Market Context

Recent minutes from the Federal Open Market Committee (FOMC) suggest that a rate cut could occur as soon as September, contingent on upcoming economic data. This has led to a surge in Bitcoin’s price, which recently traded above $60,000, reflecting a 2% increase in just 24 hours. The expectation of lower interest rates typically enhances liquidity in the market, making riskier assets like cryptocurrencies more appealing to investors.

Key Bitcoin-Related Stocks

As the crypto market gains momentum, several stocks are positioned to benefit from this potential rally:

NVIDIA Corporation (NVDA): Known for its graphics processing units (GPUs), NVIDIA has transitioned towards artificial intelligence and high-performance computing. The company has an expected earnings growth rate exceeding 100% for the current year and holds a Zacks Rank of #2 (Buy) due to its strong performance and market position.

Interactive Brokers Group, Inc. (IBKR): This global electronic brokerage firm allows trading in cryptocurrencies and has a solid earnings growth forecast of 18.4%. Interactive Brokers has been recognized with a Zacks Rank of #1 (Strong Buy), indicating strong investor confidence.

Robinhood Markets, Inc. (HOOD): As a financial services platform that facilitates trading in various assets including cryptocurrencies, Robinhood is well-positioned to benefit from increased crypto trading activity. The company has an impressive earnings growth rate forecast of over 100% and also holds a Zacks Rank of #1.

Block, Inc. (SQ): The parent company of Cash App, Block allows users to buy and sell Bitcoin and other cryptocurrencies. With its focus on digital payments and cryptocurrency, Block is expected to thrive as interest in crypto rises, and it currently holds a Zacks Rank of #3 (Hold).

Implications of Rate Cuts

The anticipated rate cuts are expected to lower the opportunity cost of holding non-yielding assets like Bitcoin. Historically, lower interest rates have led to increased investments in growth-oriented assets, including cryptocurrencies. This shift could drive significant inflows into Bitcoin and related stocks, particularly as the market adjusts to the new monetary policy landscape.

Conclusion

As the Federal Reserve prepares to potentially cut interest rates, Bitcoin and its related stocks are in a prime position to benefit from the resulting market dynamics. Investors are advised to keep an eye on economic indicators and the Fed’s decisions, as these will likely dictate the trajectory of both the cryptocurrency market and the stocks associated with it. The interplay between interest rates and asset performance will be crucial in the coming months, shaping investment strategies across the board.

Disclaimer

Any information provided in this article is not intended to be a substitute for professional advice from a financial advisor, accountant, or attorney. You should always seek the advice of a professional before making any financial decisions. You should evaluate your investment objectives, risk tolerance, and financial situation before making any investment decisions. Please be aware that investing involves risk, and you should always do your own research before making any investment decisions.

 

The prediction of a $35 trillion collapse of the U.S. dollar has intensified discussions around Bitcoin as a viable alternative investment, potentially rivaling gold. Recent economic indicators, including inflation and the dollar’s declining value, have fueled this narrative, suggesting that institutional investors may soon pivot toward cryptocurrencies.

Current Economic Context

As of August 2024, the U.S. dollar has reached its lowest value since the start of the year, raising fears of a further decline. The Consumer Price Index (CPI) has shown inflation rates hovering around 5.4%, significantly impacting purchasing power and investor sentiment. This situation is compounded by rising federal debt, which has surpassed $33 trillion, prompting many investors to seek safer assets. Bitcoin, with its limited supply of 21 million coins and decentralized nature, is increasingly viewed as a hedge against inflation and currency devaluation.

Recent Bitcoin Performance

Bitcoin’s price trajectory has been notably volatile but has shown resilience. After starting 2023 at approximately $16,530, Bitcoin rose consistently throughout the year, ending at around $42,258. The cryptocurrency reached an all-time high of over $75,830 in March 2024, driven by increased institutional adoption and the approval of Bitcoin Spot ETFs in the U.S. This marked a significant turning point, as Bitcoin’s market capitalization surged past $1.5 trillion during this period, reflecting growing institutional interest and acceptance of cryptocurrencies as legitimate investment options.

Institutional Interest and Market Dynamics

The potential for institutional investment in Bitcoin is a key factor in its price dynamics. Notable companies like MicroStrategy and Tesla have made substantial investments in Bitcoin, with MicroStrategy alone holding over 150,000 BTC. As traditional financial institutions explore cryptocurrency investments, Bitcoin’s market capitalization could witness substantial growth. Analysts suggest that if even a small percentage of institutional assets were redirected into Bitcoin, it could lead to a dramatic increase in its price, further solidifying its status as a digital alternative to gold.

Bitcoin vs. Gold: A New Paradigm?

The comparison between Bitcoin and gold is becoming increasingly relevant. Historically, gold has been viewed as a safe haven during economic uncertainty, but Bitcoin’s unique characteristics—such as its scarcity and ease of transfer—position it as a modern alternative. As institutional interest grows, Bitcoin may not only compete with gold but could potentially surpass it in terms of market value. Currently, Bitcoin holds approximately 54.9% of the cryptocurrency market share, while gold’s market capitalization stands at around $12 trillion.

The convergence of economic instability and institutional interest in cryptocurrencies suggests that we may be on the brink of a significant shift in investment paradigms. If the predicted collapse of the U.S. dollar occurs, Bitcoin could not only thrive but also redefine its role in the global financial system, challenging traditional assets like gold in the process. As the landscape evolves, investors will need to navigate this new terrain carefully, weighing the risks and opportunities presented by this digital asset revolution.

As we consider the implications of a potential dollar collapse and the rise of Bitcoin, several questions arise:

How do you perceive the risks and rewards of investing in Bitcoin compared to traditional assets like gold?

What factors do you think will influence institutional adoption of Bitcoin in the coming years?

In your opinion, is Bitcoin a viable long-term store of value, or is it merely a speculative asset?

Bitcoin options linked to the upcoming U.S. elections are creating significant buzz in the cryptocurrency market, with traders locking in nearly $350 million in open interest. This surge in activity reflects a growing interest in how political events may influence the digital asset landscape, as investors speculate on potential market movements surrounding the elections.

Record Open Interest Ahead of Elections

As of August 20, 2024, the notional open interest in Bitcoin options related to the U.S. elections stands at approximately $345.83 million, according to Amberdata. These options, referred to as “election expiry options,” are set to expire four days after the elections on November 4, 2024. Trading for these options began on Deribit about a month ago, indicating that traders are proactively positioning themselves to capitalize on expected market volatility.

Bullish Sentiment Dominates

The distribution of open interest demonstrates a predominantly bullish sentiment among traders. Call options, which allow investors to benefit from price increases, account for 67% of the total open interest, resulting in a put-call ratio of less than 0.50. This indicates that there are significantly more call options than put options, reflecting optimism regarding the election outcomes. The most popular call option is priced at a strike of $80,000, boasting an open interest of over $39 million. Furthermore, open interest is heavily concentrated in higher strike call options, ranging from $70,000 to $140,000, suggesting that traders are positioning for potential new record highs in Bitcoin prices as the election date approaches.

Strategic Positioning by Traders

According to Wintermute, an algorithmic trading firm, these election-focused contracts allow investors to leverage heightened interest by speculating on how the elections might affect cryptocurrency markets. The current put-call ratio of 0.50 indicates a bullish outlook, with twice as many calls traded as puts. Additionally, there is $39 million locked in a put option at a strike price of $45,000, which provides some downside protection. This clustering of open interest in call options at higher strike prices indicates that market participants are betting on upward movement in Bitcoin, while the presence of lower strike puts suggests a degree of hedging against potential price declines.

 

Implications for the Cryptocurrency Market

The substantial open interest in Bitcoin options tied to the elections signals that traders are not only looking to hedge against potential downturns but also aiming to profit from expected price volatility. This trend could lead to increased liquidity in the cryptocurrency market, with significant price fluctuations anticipated as election day nears.

The nearly $350 million in open interest for Bitcoin options related to the U.S. elections underscores the growing interest in how political events can influence cryptocurrency markets. As traders navigate this complex landscape, the implications for both Bitcoin and the broader financial ecosystem will be closely monitored in the coming months. The upcoming elections could serve as a pivotal moment for the cryptocurrency market, influencing not only prices but also the overall sentiment among investors.

Ah, predictions. Who doesn’t love a good guess made in public?

The problem with predictions is that when you’re right, it’s a coincidence, and when you’re wrong, people make fun of you.

I don’t dabble in predictions.

That said, we can set some realistic expectations, can’t we?

The months ahead

From an on-chain perspective, the market’s starting to rebuild the foundation it lost earlier this year.

Let’s look only at Bitcoin. Wherever Bitcoin goes, the rest of the market always follows. We can use Bitcoin to get a sense of what we can expect in the next few months.

New address growth has ticked up after trending downward for most of the year.

Among the cohorts of existing wallets larger than .1 BTC, we see growth, too.

Stablecoins continue to rise.

I won’t go into charts and analysis of HODLers and various other metrics and trading charts. You get enough of that in my newsletter, Crypto is Easy. Suffice to say, nature is healing and we’re seeing healthy churn among market participants.

Keep your wits about you

Of course, let’s not get ahead of ourselves.

We still see plenty of selling from OGs and entities that hold a lot of Bitcoins.

We also don’t know how much overhang remains from miners who shut off this summer and recipients of Bitcoins from Mt. Gox, a defunct crypto exchange that recently gave billions of dollars in Bitcoins to old users.

More importantly, I don’t see new sources of inflows in any of the data I look at, and I have heard nothing from my contacts that suggests such inflows should come soon.

So what does that mean?

The market will continue to move sideways and down until it breaks this trendline:

Once Bitcoin’s price shifts trend, it won’t take much to send the market higher, especially if we still see the trends and behaviors I shared in this answer.

As for timing?

Doesn’t matter. We know the destination. That’s enough.

Mark Helfman publishes the Crypto is Easy newsletter. He is also the author of three books and a top Bitcoin writer on Medium and Hacker Noon. Learn more about him in his bio and connect with him on Tealfeed.